The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market
Why does a bank that has had its license revoked and is undergoing liquidation continue to charge interest, penalties (fines, late fees)?
According to s ubparagraph 8) of paragraph 1 of Article 48-1 of the Law of the Republic of Kazakhstan “On Banks and Banking Activities in the Republic of Kazakhstan,” from the date a bank is deprived of its license to conduct all banking operations, obligations for the repayment of the principal debt, remuneration (interest), and penalties (fines, late fees) shall be fulfilled by the bank’s debtors in accordance with the concluded bank loan agreements and other types of transactions.
In accordance with paragraph 137 of the Rules for the Liquidation of Banks, the Compulsory Termination of Activities of Branches of Non-Resident Banks of the Republic of Kazakhstan, and the Requirements for the Work of Liquidation Commissions of Banks under Compulsory Liquidation and Branches of Non-Resident Banks under Compulsory Termination, approved by Resolution No. 114 of the Management Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated November 30, 2020, the commencement of the liquidation process of a bank is not a basis for the termination of accrual of penalties and remuneration (interest) on all types of accounts receivable of the bank.
The accrual of penalties and remuneration on the bank’s accounts receivable shall be carried out in accordance with the civil legislation of the Republic of Kazakhstan and on the terms provided for in the agreement concluded between the debtor and the bank.
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.
