Representatives from the Agency for Regulation and Development of the Financial Market of Kazakhstan (the Agency) and various commercial banks convened in Almaty on April 1st and 2nd, 2024, for a two-day practical workshop aimed at addressing money laundering networks and detecting schemes involving “money mules.” The workshop, designed to address the increasing use of these methods in financial crimes and the challenges they pose, focused on equipping participants with advanced knowledge for detection and prevention efforts.
The necessity to bolster the capabilities of entities combatting money laundering, including curbing illicit capital outflows, has become evident. According to the annual Basel AML (Anti-Money Laundering) Index ranking, Kazakhstan ranked 100th in 2023, with estimated monetary losses exceeding USD 150 billion due to money laundering and capital flight abroad. “Money mules” are individuals unwittingly used by criminal networks to launder money through bank accounts, often unaware of the criminal nature of their actions.
The workshop aimed to empower Kazakhstan’s financial intelligence community through capacity-building activities, providing updated knowledge and effective strategies to address emerging threats. These strategies included advanced analytical techniques, technological solutions for monitoring financial transactions, and enhanced collaboration between regulatory agencies and financial institutions. Addressing evolving threats is crucial for maintaining the integrity and stability of the financial system, necessitating proactive measures.
Eighteen financial compliance and anti-fraud specialists, including six women and twelve men, participated in the workshop, which was led by an expert from K2 Integrity, a U.S.-based company specializing in financial crime investigations and anti-money laundering consulting. The sessions combined theoretical frameworks with practical approaches, emphasizing techniques that could be readily implemented. This included Know Your Customer (KYC) and Customer Due Diligence (CDD) methodologies, as well as the utilization of transaction monitoring systems.
Participants noted key takeaways, such as the implementation of innovative monitoring techniques to track illicit money movement networks and gaining insights into disrupting the operations of money mules. Maksat Shagdarov, Head of the Agency’s Department for Combating Abuse in the Financial Market, highlighted the integration of advanced algorithms into systems to identify suspicious transactions more effectively. Arman Omarbekov, Head of Anti-Unfair Practices Division at the Agency’s Banking Regulation Department, emphasized the understanding gained regarding the mindset of money mules through case studies and real-life examples.
The workshop represents a step toward enhancing the resilience of Kazakhstan against money laundering activities, contributing to a secure investment climate and sustainable economic growth. The OSCE Programme Office in Astana remains committed to furthering efforts to improve Kazakhstan’s ability to combat money laundering and terrorist financing offenses through ongoing collaboration and knowledge-sharing, aiming to strengthen the financial integrity and security of the region.
Stay informed with supply chain news on The Supply Chain Report. Free tools for international trade are at ADAMftd.com.
#OSCEFightAgainstMoneyLaundering #MoneyMuleCombat #FinancialSecurity #AMLMeasures #OSCEAntiFraud
