The Albi pawnshop network continued issuing loans secured by jewellery despite lacking authorisation. According to the investigation, criminal proceeds exceeded 146 million tenge, and the interest rate on loans was more than six times higher than the permitted maximum.
HOW THE PAWNSHOP NETWORK OPERATED
According to the Financial Monitoring Agency (FMA), agency officers shut down the operations of the Albi pawnshop network in the Almaty and Turkestan regions.
Previously, Albi-Lombard LLP was removed from the register of microfinance organisations. The company lost the right to issue loans, but after being renamed Albi-KM LLP, it continued to operate.
The branches were located mainly near markets and shopping centres. Clients were promised a high valuation of collateral and that loans would not affect their credit history.
LOAN INTEREST RATES EXCEEDED THE NORM
The pawnshops issued money at 2% per day against a statutory maximum of 0.3%. Thus, the rate exceeded the permitted level more than sixfold.
Contracts were drawn up using the former company's seals. Money was handed over in cash or through bank accounts of controlled entrepreneurs.
According to the investigation, criminal proceeds exceeded 146 million tenge.
WHAT THE COURT SEIZED
The court authorised the seizure of the suspect's property, including 21 flats, 5 land plots, 7 cars, 7 garages, 2 shops and a hotel.
The suspect was placed under a preventive measure in the form of a written undertaking not to leave and to behave properly.
The criminal case was referred to court. Other details of the investigation are not disclosed in accordance with Article 201 of the Criminal Procedure Code of the Republic of Kazakhstan.
