Tokayev Expands the Powers of Three Agencies to Combat the Shadow Economy

President Tokayev recently signed several decrees significantly expanding the powers of the Financial Monitoring Service, the Financial Market Supervision and Development Service, and the Competition Protection and Development Service to strengthen the supervision and crackdown on money laundering, terrorist financing, and the proliferation of weapons of mass destruction. These regulatory adjustments took immediate effect, marking a significant step forward for Kazakhstan in the field of financial regulation.

At a working meeting chaired by the Financial Monitoring Service, Tokayev emphasized the need for the agency to more proactively utilize digital tools and artificial intelligence technologies to combat financial crime. He pointed out that criminals are increasingly using modern technologies, including AI, and if law enforcement agencies fail to take proactive action, this problem could escalate into a threat to national security.

01 Expanded Powers of the Three Regulatory Agencies

The Financial Monitoring Service received the most extensive authorization in this reform. It can now directly transfer suspicious transaction data to law enforcement and specific functional departments, and must simultaneously report to the Prosecutor General's Office.

In addition, the agency has been given a new task: to establish and maintain a list covering public officials, their spouses, and close relatives. The responsibilities of the Financial Monitoring Service have also expanded to combat the shadow economy, coordinate financial crime risk assessments, and oversee compliance with financial monitoring laws and regulations.

The new responsibilities of the Financial Market Supervision and Development Service include supervising export credit agencies, branches of foreign banks, insurance companies, non-resident insurance brokers, and the national postal operator to ensure their compliance with anti-money laundering laws.

The Competition Protection and Development Service will be responsible for regulating stock exchanges, brokerage firms, and clearing centers to ensure their compliance with counter-terrorism financing regulations.

02 Background of the Reform and National Security Strategy

This financial regulatory reform is not an isolated event, but rather part of President Tokayev's overall national security strategy. In June 2021, Tokayev signed the 2021-2025 National Security Strategy, focusing on how to address various challenges over the next five years.

At the beginning of 2022, large-scale violent riots occurred in Kazakhstan, which Tokayev characterized as an attempted coup. This event exposed deficiencies in the national security system, prompting the government to accelerate the reform process.

In fact, since taking office as president in 2019, Tokayev has been pushing forward a series of reform measures. On March 16, 2022, he proposed changing the country's super-presidential system to a "presidential + strong parliamentary system" to ensure the optimal balance of state power. In April 2022, he signed the "Decree on Measures to Debureaucratize State Institutions."

In the area of ​​financial regulation, Kazakhstan has accumulated years of experience. Since 2020, due to the need for exchange rate risk control, the Central Bank of Kazakhstan has begun to tighten foreign exchange controls and strengthen the control over large-scale foreign exchange purchases.

03 Digital Transformation to Combat Financial Crime

At a meeting of the Financial Monitoring Service, Tokayev emphasized that digital tools and artificial intelligence technologies are necessary means to address the current challenges of financial crime. He pointed out that criminals are increasingly using modern technologies, including AI.

Kazakhstan's regulatory agencies already have some experience in digital regulation. In 2023, Kazakhstan's financial regulatory agencies blocked 980 unregistered cryptocurrency exchanges. They also launched nine investigations into "illegal trading operations" and money laundering activities.

In December 2025, Tokayev also signed a key adjustment, transferring information security oversight functions related to critical information and communication infrastructure to the National Security Committee (KNB). This indicates that Kazakhstan is building a comprehensive digital security regulatory system.

04 Geopolitical Balance and Financial Security

Kazakhstan's financial regulatory reforms are also placed within a complex geopolitical context. In recent years, Kazakhstan has intentionally weakened Russia's influence and strengthened multilateral diplomatic relations with countries such as China and the United States.

In terms of intelligence cooperation, Kazakhstan also maintains cooperation with multiple parties. Kazakhstan and Russia have a deep foundation for intelligence cooperation; in 1992, the two countries signed the "Agreement between the National Security Committee of Kazakhstan and the Federal Security Service of the Russian Federation on Intelligence Cooperation."

At the same time, Kazakhstan is also actively developing intelligence relations with the United States. In 2000, the FBI opened an office in Almaty. In 2010, the two countries signed an intelligence cooperation agreement covering cooperation between the CIA and Kazakhstan's intelligence agencies.

This balanced diplomatic strategy is also reflected in the field of financial regulation. Kazakhstan needs to protect its economic sovereignty and security while adhering to international financial rules.

05 Financial Regulatory Trends in a Global Perspective

Kazakhstan's financial regulatory reforms are consistent with international trends. In recent years, more and more countries have recognized that combating financial crime is not only related to economic security but also directly related to national security.

In the international anti-money laundering field, the standards of the Financial Action Task Force (FATF) are increasingly becoming an international consensus. These standards require member states to establish robust customer due diligence, suspicious transaction reporting, and monitoring mechanisms.

Meanwhile, the development of digital technologies is changing the way financial regulation is conducted. Artificial intelligence and big data analytics can help regulators more effectively identify suspicious transaction patterns and improve regulatory efficiency. This aligns with Tokayev's emphasis on utilizing digital tools and AI technology.

As the global financial system becomes increasingly complex, financial security has become an important component of national sovereignty. The ambitions of far-right forces in neighboring Russia regarding northern Kazakhstan's territory, and the events of 2022, have made Tokayev realize the necessity and urgency of strengthening his country's security capabilities.

The financial regulatory reforms are consistent with the move to transfer the regulatory functions of critical information infrastructure security to the National Security Commission in December 2025. These reforms share a common goal: to build a more robust national security system in the digital age.