Reduced Export Threshold for Cultural Artifacts in Kazakhstan: 45-Fold Increase Allows Exports
Kazakhstan lowers threshold for exporting cultural values to battle money laundering
Kazakhstani citizens can now legally export cultural values worth up to 1 million tenge from the country, following the approval of a bill in its first reading by the Mazhilis today. Currently, the limit stands at 45 million tenge.
The bill to counter the laundering of criminal proceeds proposes reducing the threshold for transactions involving cultural values, the import or export of such items, and cash purchases or sales.
"The threshold for operating with cultural values, whether cash transactions, imports, or exports, will be lowered from 45 million to 1 million tenge," said Jenis Elemesov, the deputy head of the Financial Monitoring Agency (AFM).
This change consists of any cultural values, not only protected ones.
"A threshold of 45 million tenge is excessively high. The 1 million tenge figure has been the subject of much debate. We support this amount," Elemesov added. International practice usually falls within the range of 2,000 euros.
The bill will enable law enforcement agencies to scrutinize financial transactions involving digital assets if their total exceeds 5 million tenge. Likewise, it mandates mobile operators to provide data on balance top-ups, demands that construction companies (COs) disclose real estate deals worth more than 50 million tenge, and obliges banks and financial institutions to report suspected client operations to the AFM.
If an analysis indicates that exported values have criminal roots, the violators will face legal consequences.
Regarding cultural values, the reduction in the export threshold will make authorities better equipped to oversee a broader variety of transactions and detect illicit activities more effectively. With this change, more transactions will fall under regulatory scrutiny, necessitating increased reporting obligations from financial institutions, export agencies, and individuals. This will help prevent money laundering schemes as the government tightens controls over cultural assets.
In line with international standards and practices, Kazakhstan emphasizes asset identification, detecting suspicious transactions, and reducing the possibility of individuals splitting shipments or undervaluing items to avoid detection. This new measure is a part of efforts to combat the illegal export of cultural objects and black-market trading, some of which may be used for money laundering purposes.
"The new bill in Kazakhstan lowers the threshold for exporting cultural values, which includes non-protected items, from 45 million tenge to 1 million tenge in the finance sector, aiming to better regulate business transactions and identify money laundering activities."
"With the reduction in the export threshold for cultural values, authorities in Kazakhstan will be able to oversee a broader range of transactions, enabling them to detect illicit activities more effectively and prevent money laundering schemes, especially in the context of the international trade of cultural assets."
