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This publication retains its 2024 text. Legislative changes after the publication date are not reflected in it.
The Law of the Republic of Kazakhstan on Microfinance Activities was adopted on 26 November 2012 and entered into force on 16 December 2012. It has since undergone numerous amendments and additions.
The Law on Microfinance Activities establishes the legal framework for microfinance in Kazakhstan and defines microfinance organisations as organisations providing microcredits and other financial services to private entrepreneurs and individuals.
Under subparagraph 1-1 of paragraph 1 of Article 3 of the Law, microfinance activities include:
- credit partnerships providing microcredits to their members;
- pawnshops providing microcredits to individuals secured by movable property;
- microfinance organisations providing microcredits to individuals and/or legal entities, with or without security over movable or immovable property.
The Law's main provisions cover:
- licensing of microfinance organisations under this Law and Resolution No. 108 of the Board of the Agency for Regulation and Development of the Financial Market, Approving the Rules for Licensing Microfinance Activities, Qualification Requirements for Microfinance Activities and the List of Documents Confirming Compliance, dated 23 November 2020;
- requirements for their operations;
- and the rights and obligations of microfinance organisations' clients.
The Law also distinguishes the types of activities that microfinance organisations may undertake and establishes measures to protect financial service consumers.