Disclosure Requirements - Kazakhstan
Disclosure Category: 1
In order to comply with the legislation, customers entering into transactions in the Kazakhstan domestic market must consent and are hereby deemed to consent to the requirements in force and to the necessary disclosures by CBL of the identity of holders and related holdings of government securities and short-term notes.
Customers not willing to give this consent cannot hold such securities and/or financial instruments in their account with CBL.
Background and Legal basis
In the case of holdings in Kazakhstan government securities (Domestic Sovereign debt securities and National Bank Notes), in accordance with Article 70 of the Law of the Republic of Kazakhstan "On the National Bank of the Republic of Kazakhstan" (the Law) in order to ensure the high-quality and timely performance of the functions assigned to the National Bank of Kazakhstan (“NBK”), the National Bank of Kazakhstan is entitled to receive necessary information including commercial, banking and other information protected by law from any individuals and corporates, as well as state bodies.
As a result, state bodies, such as the Kazakhstan Central Securities Depositor JSC (“KACD”), and also financial and other organizations, their associations as well as individuals, are obliged, upon the request of the National Bank of Kazakhstan, to provide documents, reports, including financial information and other additional information necessary for the performance by the National Bank of Kazakhstan of its functions.
Upon receipt of a request from the National Bank of Kazakhstan within the framework of Article 70 of the Law, KACD sends, if necessary, an appropriate request to CBL.
CBL will prepare a detailed response to the request and will send a response to the KACD as soon as possible. After receiving information from CBL, KACD sends a consolidated response to the National Bank of Kazakhstan.
In addition to the above mentioned Law, KACD, within the framework of the Resolution of the Board of the National Bank of Kazakhstan No. 130, dated June 17, 2015 "On approval of the list, forms, timeframes for the Central Depository's reporting and the rules for their submission" reports to the National Bank in accordance with approved forms, including information on holders of government securities.
Therefore, CBL shall provide relevant information (reports) on holders of government securities and short-term notes to the KACD at the level of its direct customers (level 1 customers) on a monthly basis until the fifth day (inclusive) of the month following the reporting month.
State bodies, financial and other organisations, their associations (unions), as well as individuals, upon the request of the National Bank of Kazakhstan, are obliged to provide documents, reports, including financial information and other additional information necessary for the performance by the National Bank of Kazakhstan of its functions.
Details to be provided may vary and CBL will, where relevant, contact its customers to collect the requested information.
Customers who are either unable or not permitted to disclose beneficial owner information or any other requested information must not hold Kazakhstan securities in CBL.
CBL shall not be liable for any penalty or loss faced as a result of non-disclosure by a customer and any loss or penalty will be automatically and immediately passed on to the non-compliant customer.
It remains the sole responsibility of the customer to ensure compliance with local disclosure requirements. If a local requirement is not met, it is the customer who will be liable to any related penalty. Customers are therefore advised to seek independent legal advice on the existence and interpretation of local disclosure requirements.