The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
Is it possible to use pension savings transferred to an insurance company under a pension annuity agreement to purchase real estate?
According to paragraph 3 of Article 220 of the Social Code of the Republic of Kazakhstan, a one-time pension withdrawal for the purpose of improving housing conditions for oneself, a spouse, or close relatives and/or for covering medical expenses for oneself, a spouse, or close relatives, may be made only if one of the following conditions is met:
- the amount of pension savings from mandatory pension contributions in the contributor’s individual pension account exceeds the minimum sufficiency threshold for pension savings, as determined in accordance with the methodology approved by the Government of the Republic of Kazakhstan;
- for individuals specified in paragraphs 1, 2, and 3 of Article 207 of this Code, as well as for individuals specified in paragraph 4 of Article 207, the amount of monthly pension or allowance provides a replacement ratio of at least 40 percent of their average monthly income, calculated according to the procedure established by the Government of the Republic of Kazakhstan. In calculating the replacement ratio, the recipient’s income prior to retirement is taken into account, but not more than the average monthly income in the country.
Therefore, pension savings that have been transferred to an insurance company under a pension annuity agreement cannot be used for the purchase of real estate.
What mistakes do borrowers most commonly make when taking out a mortgage?
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 purchasi...
What additional expenses, apart from the monthly payment, should be taken into account when purchasing a home with a mortgage?
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,...
Can a borrower lose their home due to a prolonged mortgage delinquency? What is the foreclosure procedure?
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...
What are the “gray” and “black” lists of droppers?
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 enforce...
What new requirements have been introduced for the remote issuance and reissuance of bank cards?
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...
What is “dropping” and what penalties are provided by law?
“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...
How has the regulator strengthened its oversight of collection agencies in recent years?
Since 2017, the Agency has pursued a regulatory policy aimed at strengthening oversight of collection activities, improving the functioning of the debt collection market, and reducing unfair collection practices. Since 2017, the following regulatory measures have been introduced:...
Does a debtor have the right to record a conversation with a collector?
Yes. Under subparagraph 7) of paragraph 1 of Article 16 of the Law on Collection Activities, a debtor and/or their representative has the right to independently record interactions with employees of a collection agency using audio and/or video recording equipment.
