12.1.1. Sanctions systems and controls

A Relevant Person must establish and maintain effective systems and controls to ensure that on an on-going basis it is properly informed as to, and takes reasonable measures to comply with, relevant resolutions or sanctions issued by the UNSC or by the Republic of Kazakhstan.

A Relevant Person must comply with prohibitions from conducting transactions with designated persons and entities, in accordance with the obligations set out in the relevant resolutions or sanctions issued by the UNSC or by the Republic of Kazakhstan.

A Relevant Person must freeze without delay and without prior notice, the funds or other assets of designated persons and entities pursuant to relevant resolutions or sanctions issued by the UNSC or by the Republic of Kazakhstan.

12.1.2. Notification obligation

A Relevant Person must report to the FIU any assets frozen or actions taken in compliance with the prohibition requirements of the relevant resolutions or sanctions issued by the UNSC or by the Republic of Kazakhstan, including attempted transactions. A Relevant Person must immediately notify the AFSA when it becomes aware that it is:

1. (a) carrying on or about to carry on an activity;
2. (b) holding or about to hold money or other assets; or
3. (c) undertaking or about to undertake any other business whether or not arising from or in connection with (a) or (b), for or on behalf of a person, where such carrying on, holding or undertaking constitutes or may constitute a contravention of a relevant sanction or resolution issued by the UNSC or by the Republic of Kazakhstan.

12.1.3. Notification requirements

A Relevant Person must ensure that the notification stipulated in AML 12.1.2 above includes the following information:

1. (a) a description of the relevant activity in AML 12.1.2; and
2. (b) the action proposed to be taken or that has been taken by the Relevant Person regarding the matters specified in the notification.
3. 
   
4. Guidance on sanctions
5. (a) In AML 12.1.1 taking reasonable measures to comply with a resolution or sanction may mean that a Relevant Person cannot undertake a transaction for or on behalf of a person or that it may need to conduct further due diligence in respect of a person.
6. (b) Relevant resolutions or sanctions mentioned in AML 12.1.1 may, among other things, relate to money laundering or otherwise be relevant to the activities carried on by the Relevant Person.
7. (c) A Relevant Person should exercise due care to ensure that it does not provide services to, or otherwise conduct business with, a person engaged in money laundering.
8. (d) When making a notification to the AFSA in accordance with AML 12.1.2, a Relevant Person should have regard to the requirements of the AML Law in relation to freezing assets and blocking transactions and must also consider whether it is necessary to file a STR.
9. (e) An Authorised Market Institution should exercise due care to ensure that it does not facilitate fund raising activities or listings by persons engaged in money laundering.
10. (f) Relevant Persons must perform checks on an on-going basis against their customer databases and records for any names appearing in resolutions or sanctions issued by the UNSC as well as to monitor transactions accordingly.
11. (g) A Relevant Person may use a database maintained elsewhere for an up-to-date list of resolutions and sanctions, or to perform checks of customers or transactions against that list. For example, it may wish to use a database maintained by its head office or a Group member. However, the Relevant Person retains responsibility for ensuring that its systems and controls are effective to ensure compliance with these Rules.

12.2.1. Compliance with Findings

A Relevant Person must establish and maintain systems and controls to ensure that on an ongoing basis it is properly informed as to, and takes reasonable measures to comply with, any findings, recommendations, guidance, directives, resolutions, sanctions, notices or other conclusions (each of which is referred to in this Rule as a "Finding") issued by:

1. (a) the government of the Republic of Kazakhstan;
2. (b) the National Bank of Kazakhstan;
3. (c) Kazakhstan state agencies;
4. (d) the AFSA; and
5. (e) the FATF, concerning the matters in AML 12.2.2.

12.2.2. Relevant matters

For the purposes of AML 12.2.1, the relevant matters are:

1. (a) arrangements for preventing money laundering, in a particular country or jurisdiction, including any assessment of material deficiency against relevant countries in adopting international standards; and
2. (b) the names of persons, groups, organisations or entities or any other body where suspicion of money laundering exists.

12.2.3. Notification obligations

A Relevant Person must immediately notify the AFSA in writing if it becomes aware of noncompliance by a person with a Finding and provide the AFSA with sufficient details of the person concerned and the nature of the non-compliance.

12.2.4. Additional measures

A Relevant Person should be able to independently apply countermeasures that are effective, appropriate and proportionate (including EDD measures) to AML and CFT risks, whether or not called upon to do so for the purposes of AML 12.2.1, including by the FATF.

Guidance on Government, Regulatory and International Findings

1. (a)The purpose of these Rules is to ensure that a Relevant Person takes into consideration the broad range of tools used by competent authorities and international organisations to communicate AML and CFT risks to stakeholders.
2. (b)A Relevant Person should examine and pay special attention to any transactions or business relationship with persons located in countries or jurisdictions mentioned by the entities in AML 12.2.1(a) to (e).
3. (c)Relevant Persons considering transactions or business relationships with persons located in countries or jurisdictions that have been identified as deficient, or against which the Republic of Kazakhstan or the AFSA have outstanding advisories, should be aware of the background against which the assessments, or the specific recommendations have been made. These circumstances should be taken into account in respect of introduced business from such jurisdictions, and when receiving inward payments for existing customers or in respect of inter-bank transactions.
4. (d)The Relevant Person’s MLRO is not obliged to report all transactions from these countries or jurisdictions to the Kazakhstan state agencies if they do not qualify as suspicious. See Chapter 13 on STRs.
5. (e)Transactions with counterparties located in countries or jurisdictions which have been but are no longer identified as deficient or have been relieved from special scrutiny may nevertheless require attention which is higher than normal.
6. (f)In order to assist Relevant Persons, the AFSA will, from time to time, publish findings, guidance, directives, or sanctions made by FATF, the UNSC, or the government of the Republic of Kazakhstan. However, a Relevant Person must take its own steps to acquire relevant information from various available sources. For example, a Relevant Person may obtain relevant information from the FIU, European Union, the United Kingdom (HM Treasury) lists, and the United States of America (Office of Foreign Assets Control of the Department of Treasury).
7. (g)In addition, the systems and controls set out in AML 12.1.1 should be established and maintained by a Relevant Person, taking into account the risk assessments under Chapters 5 and 6. In AML 12.1.1, taking reasonable measures to comply with a finding may mean that a Relevant Person cannot undertake a transaction for or on behalf of a person or that it may need to conduct further due diligence in respect of such a person.
8. (h)A Relevant Person should be proactive in obtaining and appropriately using available national and international information, for example, suspect lists or databases from credible public or private sources regarding money laundering, including obtaining relevant information from sources mentioned in (f) above. Relevant Persons should perform checks against their customer databases and records for any names appearing on such lists and databases as well as to monitor transactions accordingly. As set out in the Guidance, a Relevant Person may use a database maintained elsewhere for an up-to date list of sanctions or to conduct checks of customers or transactions against the list.
9. However, it retains responsibility for ensuring the effectiveness of its systems and controls
10. (i)The risk of terrorists entering the financial system can be reduced if Relevant Persons apply effective AML strategies, particularly in respect of CDD. Relevant Persons should assess which countries carry the highest risks and should conduct an analysis of transactions from countries or jurisdictions known to be a source of terrorist financing.
11. (j)The AFSA may require Relevant Persons to take any special measures it may prescribe with respect to certain types of transactions or accounts where the AFSA reasonably believes that any of the above may pose a risk of money laundering.