Over the past few years, a large-scale campaign to recover illegally acquired assets has unfolded in Kazakhstan. A new law, a special committee under the Prosecutor General's Office, and well-designed mechanisms for voluntary and compulsory recovery have formed the basis for tackling tasks that once seemed impossible.
In September 2023, based on a Presidential directive, the law "On the Return to the State of Illegally Acquired Assets" came into force, and in October, a Committee for the Return of Assets was established under the Prosecutor General's Office.
The implementation of the law rests with three key bodies: the Commission on the Return to the State of Illegally Acquired Assets, chaired by the Prime Minister; the Committee for the Return of Assets of the Prosecutor General's Office; and the Company for the Management of Returned Assets.
Specifically, the commission, which includes the heads of key state bodies, members of parliament, and representatives of civil society, is tasked with developing recommendations on systemic measures, mechanisms, and methods for asset recovery.
The Committee for the Return of Assets, in turn, focuses on identifying, verifying, and recovering illegally acquired property. The agency also cooperates with international partners to recover assets located abroad.
The law introduced two key recovery mechanisms: voluntary and compulsory.
Voluntary return involves transferring assets to the state or implementing socially significant projects, sometimes with the aim of avoiding criminal prosecution.
The funds are directed towards building schools, sports facilities, and other infrastructure projects that contribute to the development of rural regions.
For example, in November alone, 525 billion tenge was returned to state revenue. The funds are intended to be allocated for the implementation of social projects.
Earlier, in October, it was reported that funding for the construction of a sports complex in the village of Zerenda in the Akmola region and a music school in the village of Temirlan in the Turkestan region was planned to be allocated from the Special State Fund, which currently holds 177 billion tenge in returned state funds.
The compulsory recovery mechanism is applied when there are doubts about the legitimacy of the origin of assets. The main tool here is the so-called unexplained wealth order, under which property can be confiscated by a court decision if the owner cannot prove its legal origin.
Among the first to feel the effect of the law was Kairat Boranbayev, who in August last year pleaded guilty and returned assets worth $1.5 billion to the state.
Recall that in March 2023, the former in-law of Dariga Nazarbayeva, Kairat Boranbayev, stood trial on suspicion of embezzling funds on an especially large scale in the quasi-state sector.
In May of this year, it was reported that Kairat Boranbayev had already returned 134.5 billion tenge to the state, though the amount could still increase.
Since the law came into effect, assets worth approximately 1 trillion tenge have been returned to the state. Over 220 billion tenge of this was directed to the Special State Fund, while the remainder was transferred to the company for the Management of Returned Assets, which has full state participation in its authorised capital.
So why is this process so significant for every citizen of Kazakhstan?
When assets illegally taken out of the country are returned to the budget, they become a source of funding for regional development, healthcare, education, transport, and other areas that directly impact the quality of people's lives.
Moreover, this process strengthens citizens' trust in state institutions. People see that their taxes and resources are being used effectively and for the benefit of society, rather than for the personal gain of individuals. Asset recovery enhances the sense of justice: criminals face punishment for their actions, and citizens feel their interests are protected.
Ultimately, every tenge returned is an investment in the well-being of the people of Kazakhstan.