The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market

The most common mistakes include underestimating one’s financial capabilities, focusing solely on the amount of the monthly payment without considering the total cost of the loan and the overall amount of interest paid, and overlooking additional expenses associated with purchasing and maintaining a home. Borrowers also often take out the maximum loan amount available to them without leaving a financial buffer for unforeseen life circumstances. Another common mistake is the lack of a financial “safety cushion” and insufficient attention to the terms and conditions of the loan agreement. Therefore, before taking out a mortgage, borrowers are advised to carefully review all loan terms, including the interest rate, repayment schedule, early repayment conditions, and any additional fees, and to ask the bank any questions they may have before signing the loan documents.

When purchasing a home with a mortgage, it is important to consider not only the monthly loan payment but also additional expenses associated with acquiring and maintaining the property. These may include property appraisal costs, insurance, notarial and registration fees, taxes, as well as maintenance and potential repair expenses. In addition, borrowers should take into account their existing loan obligations and other regular expenses, as these directly affect their debt burden and ability to meet mortgage payment obligations on time. It is also important to establish a financial “safety cushion” in advance to cover periods of reduced income, job loss, or unexpected expenses. The absence of such a financial reserve is one of the most common mistakes borrowers make and may result in overdue debt.

In the event of a prolonged failure to fulfill obligations under a mortgage loan, the legislation provides for the possibility of foreclosure on the mortgaged property. However, before such measures are taken, borrowers are provided with a number of tools to settle their debt. In addition, borrowers may consider options such as the independent sale of the mortgaged property or other debt settlement mechanisms provided for by law. Only if these measures fail may the bank initiate debt recovery proceedings and foreclosure on the mortgaged property through the courts in accordance with the procedure established by law. Thus, foreclosure on mortgaged residential property is considered a measure of last resort and is applied only after the debt settlement procedures предусмотренные законодательством have been exhausted.

To combat dropper schemes, a centralized system for recording suspicious clients has been established. The system is operated by the Anti-Fraud Center of the National Bank, which receives information from banks, payment organizations, telecommunications operators, and law enforcement agencies. The system maintains two categories of records: the gray list and the black list of droppers. The gray list includes clients whose transactions have been identified as suspicious. Inclusion in this list does not constitute a confirmed violation but serves as a signal to financial institutions and regulators that a client’s account or payment card may have been used in a dropper scheme. The black list includes clients whose involvement in illegal transactions has been confirmed by law enforcement authorities. In such cases, the unlawful activity has been established. When signs of dropper activity are detected, a bank must immediately suspend remote banking services, block debit transactions on the account, and report the case to the Anti-Fraud Center. The information is then made available to other banks and microfinance organizations. The gray and black lists of droppers are not publicly disclosed because they contain personal data and are used solely for official purposes. This approach ensures the protection of personal data and citizens’ rig

For the remote issuance and reissuance of bank cards, financial institutions are required to use two-factor authentication, including biometric identification. Bank cards may only be linked to Kazakhstan-registered mobile phone numbers, which reduces the risk of using foreign SIM cards in fraudulent schemes. In addition, limits have been introduced on the number of bank cards that may be issued to a single client: no more than five cards per client per bank; no more than ten cards per client across all banks; for high-risk non-resident clients — no more than one card for a period of up to 12 months. These measures are intended to prevent the mass issuance of bank cards to a single individual for use in illegal financial schemes. The relevant amendments were introduced by Resolution No. 56 of the Management Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated 16 August 2024, approving the Rules for Biometric Identification by Banks, Organizations Providing Certain Types of Banking Services, and Microfinance Organizations.

“Dropping” refers to the illegal provision, transfer, or use of access to a bank account, payment instrument, or identification tool, as well as the execution of unauthorized payments or money transfers, including on behalf of third parties, in exchange for financial compensation. This practice is a key component of online fraud schemes and is commonly used to cash out or transfer stolen funds. Effective 16 July 2025, Article 232-1 of the Criminal Code of the Republic of Kazakhstan was introduced. Under this article, the illegal transfer of a bank card or bank account is punishable by a fine of up to 160 monthly calculation indices (MCI) or restriction of liberty or imprisonment for a term of up to three years. At the same time, transferring a bank card to close relatives (for example, a spouse or children) is not prohibited. However, in response to the growing number of dropping cases, additional regulatory measures have been introduced to strengthen requirements for the use of bank cards.