Kazakhstan Tightens Bank Rules for Non-Residents

Kazakhstan introduces strict rules for issuing bank cards to non-residents

The need to strengthen control over the issuance of bank cards to non-residents in Kazakhstan has been long overdue. With the development of technology and the globalization of financial services, the risks associated with money laundering, terrorist financing and other illegal activities have increased. In addition, some foreign citizens used bank cards issued in Kazakhstan to organize financial pyramids, online casinos and dropper schemes. In early 2025, Kazakhstan already introduced the first restrictions on the issuance of bank cards to non-residents, reducing their validity to 12 months. This led to a temporary suspension of the issuance of debit cards to foreigners by some large banks in the country, such as Kaspi, Home Credit Bank, Halyk Bank and others.

New proposed measures

The draft resolution, developed by the Agency for Regulation and Development of the Financial Market of Kazakhstan, provides for a number of additional restrictions and requirements for issuing bank cards to non-residents:

1. A ban on remote issuance and reissue of cards — banks will no longer be able to issue and reissue cards to non-residents remotely or through authorized persons. This means that foreign citizens will have to personally visit bank branches to receive cards.
2. Two-factor identification — to enhance security and prevent fraud, banks will be required to conduct two-factor identification of non-resident clients using biometric data, including verification by passport photo.
3. The principle of «one card — one owner» — non-residents will be able to receive only one payment card, with the exception of special cases, such as cards for receiving benefits, children's cards and credit cards for servicing loans.
4. Verification of the legality of stay — banks will carefully check documents confirming the legality of the non-resident's presence in Kazakhstan in order to exclude the possibility of issuing cards to persons violating migration laws.
5. Enhanced transaction monitoring — during the first three months after issuing or reissuing a card, banks will conduct enhanced monitoring of incoming and outgoing transactions to identify suspicious transactions and prevent financial crime.
6. Analysis of the purposes of using the account — non-residents will be required to fill out a detailed questionnaire about the purposes of opening an account, sources of funding and the presence of accounts in other Kazakhstani banks. This information will help banks assess risks and prevent the use of accounts for illegal purposes.
7. Monthly verification — to receive online banking services, non-residents will have to confirm their identity every month. This will allow banks to regularly check the relevance of customer information and promptly identify changes in their status.
8. Limitation of the validity of cards — the validity of payment cards issued to non-residents will not exceed 12 months. After this period, foreign citizens will have to go through the identification and verification procedure again to receive a new card.

Objectives and expected results

The introduction of new rules for issuing bank cards to non-residents in Kazakhstan has several important goals:

1. Combatting financial crimes such as money laundering and terrorist financing. Enhanced control and monitoring of transactions will help identify and stop suspicious transactions.
2. Preventing illegal drug trafficking through the banking system. Thorough verification of clients and analysis of the purposes of using accounts will reduce the risks of banks being involved in drug trafficking.
3. Combating the organization of financial pyramids and online casino activities. Limiting the number of cards and enhanced customer identification will help prevent the creation of multiple accounts for illegal activities.
4. Minimizing the risks associated with dropper schemes. A ban on remote card issuance and regular verification of clients will complicate the use of bank cards in fraudulent schemes.

The implementation of the new rules is expected to help strengthen Kazakhstan's financial security, reduce the risk of banks being involved in illegal activities, and increase the transparency of the banking system
and may have a number of implications for the banking sector and foreign nationals in Kazakhstan:

1. Increasing banks' operating costs for identifying, verifying, and monitoring non-resident clients may reduce their interest in servicing this category of clients.
2. The process of obtaining and using bank cards for foreign citizens will become more complex and time-consuming, which may cause discontent among non-residents and reduce the attractiveness of Kazakhstan for foreign specialists and investors.
3. Limiting the number of cards and their validity period may create inconvenience for foreign nationals who need to manage their finances in Kazakhstan.
4. Some non-residents may face difficulties in passing two-factor identification and regular verification, especially if they are located in remote regions or do not have access to the necessary technology.

Banks may become more selective in relation to non-resident clients, giving preference to those who have a stable source of income and a long history of residence in Kazakhstan.

International experience

Tightening the rules for issuing bank cards to non-residents is not a unique practice for Kazakhstan. Many countries around the world apply various measures to control the financial transactions of foreign citizens and prevent illegal activities. The experience of other countries shows that tightening control over the financial transactions of non-residents can be an effective tool for combating financial crime and increasing the transparency of the banking system. However, it is important to find a balance between ensuring security and maintaining the attractiveness of the country for foreign citizens and investors. For example, the United States has the Foreign Account Tax Compliance Act (FATCA), which requires foreign financial institutions to provide information about American taxpayers who have accounts abroad. The European Union applies the Anti-Money Laundering and Terrorist Financing Directive, which sets strict requirements for customer identification and transaction monitoring.

In conclusion, we note that the proposed measures to tighten the rules for issuing bank cards to non-residents in Kazakhstan reflect the country's desire to strengthen financial security and combat illegal activities. Although the new rules may create some difficulties for foreign citizens, they are aimed at protecting the interests of the state and ensuring the stability of the banking system. Successful implementation of the new measures will require close cooperation between regulators, banks and foreign citizens. Banks will have to adapt their procedures and systems to the new requirements, and non-residents will have to show understanding and willingness to comply with the established rules. It is important to note that the proposed changes have not yet been approved and are under discussion. Stakeholders have the opportunity to express their comments and suggestions until April 14, 2025. The final decision on the implementation of the new rules will be made taking into account the results of the public discussion and analysis of potential consequences.