Kazakhstan has eased requirements to open subsidiary banks and branches of foreign banks. The measure has been implemented within execution of the order of the Head of State to attract reliable foreign banks to the financial market of country, DKnews.kz reports.
Relevant amendments are set out in the Law of the Republic of Kazakhstan "Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Development of the Financial Market, Protection of Rights of Consumers of Financial Services, Communications and Elimination of Excessive Legislative Regulation" signed by the Head of State on 30 June 2025.
The law has cut the requirement for a minimum amount of total assets of a foreign bank to open its branch in Kazakhstan – from USD 20 billion to USD 10 billion.
In order to reduce administrative barriers, list of documents has been shortened depending on the level of the credit rating of the financial institution. Documents that the financial regulator can obtain on its own from information systems, Internet resources and from a regulator of the applicant country have been excluded. Requirements for availability of premises in ownership and staffing for a year before the start of work have been simplified.
Branches of foreign banks are also provided with an opportunity to place assets accepted as a reserve in low-risk financial instruments, the list of which will be determined by a regulatory legal act of the Republic of Kazakhstan.
In order to ensure equal competitive conditions for operation of branches of foreign banks and second-tier banks in the financial market of Kazakhstan, branches of foreign banks are now allowed to conduct exchange transactions with foreign currency, carry out custodial activities, issue payment cards, participate in syndicated financing, provide agency services, etc.
These amendments are effective from 1 July 2025.
The law also reinforces requirements for an impeccable business reputation.
The law takes effect on 31 August 2025.
