The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
Is the borrower obliged to repay the debt on a microloan to an MFO that has been deprived of its license to conduct microfinance activities?
A microfinance organization deprived of its license to conduct microfinance activities, or whose license has been suspended, is not entitled to carry out microfinance activities.
Furthermore, the microfinance organization is obliged, within thirty calendar days from the date of the authorized body’s decision to revoke the license for microfinance activities, to complete the procedure of re-registration by removing from its name the words "microfinance organization," "credit partnership," "pawnshop," or derivatives thereof, or abbreviations implying that the legal entity engages in microcredit provision, or to make a decision on reorganization or liquidation (clauses 8 and 9 of Article 16 of the Law of the Republic of Kazakhstan "On Microfinance Activities").
According to civil legislation, the borrower is obligated to fully fulfill their obligations under the contract.
Revocation of the microfinance organization’s license to conduct microfinance activities does not release borrowers from their obligation to timely and fully meet their commitments to the organization.
Thus, clients of the microfinance organization who have outstanding microloans under microloan agreements must continue to fulfill their obligations (microloans) to the microfinance organization in accordance with the terms of the concluded microloan
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.
