In accordance with the norms of the law, the return mechanisms will be applied to those implicated in large-scale corruption and oligopoly groups that have colluded with persons who have administrative and authoritative resources (connections, influence).
The law applies to entities that are (were) persons holding authoritative public office, positions in state legal entities and quasi-public sector entities, as well as entities affiliated with these persons.
In addition to the above criteria, in order to apply the provisions of the Law, persons must have in aggregate assets in excess of the threshold set by the Law - 13 million MCI (monthly calculation index) (44 billion 850 million tenge, or approximately 100 million USD).
The work on asset recovery will be carried out by the authorized body on asset recovery, which will monitor and analyze information based on details from government agencies and other sources not prohibited by law.
The monitoring and analysis will determine the circle of persons involved in the scheme of illegal asset withdrawal, the circle of persons affiliated with them, the total amount of assets, evidence and circumstances of illegal acquisition of assets, their withdrawal outside the country and other information.
Based on the results of the analysis, if the authorized body has reasonable doubts about the legality of the acquired assets, it will submit proposals to the Commission on Asset Recovery (formed by the Prime Minister from members of Parliament, public figures, members of the Government, first heads of state bodies and other persons) to include such entities and their affiliates in the relevant Register.
The Law clearly defines the criteria which gives grounds for the authorized body to have doubts. This criterion includes inconsistency of the value of assets with the amount of legitimate income or other sources of covering expenses for the acquisition of assets, acquisition of assets by a person or its affiliates in excess of the established threshold and other grounds established by the Law.
The Commission makes a decision on whether to include the persons in the Register, decides on further measures to recover the assets, taking into account social, political and economic stability, and develops recommendations on the assets of city-forming enterprises.
If the Commission includes entities in the Register, the authorized body notifies them of this fact. From that moment the entities may submit a declaration of assets with confirmation of the legality of their acquisition (within a month or within 3 months if a longer period for collection and preparation of documents is required).
Entities must indicate in the declaration income, assets, shares of participation in the authorized capital of a legal entity, loans in Kazakhstan and abroad, and other information on the origin of the assets.
If a person cannot confirm the legality of the acquisition of these assets, then they are recognized as assets of unexplained origin.
If there is a risk of withdrawal of an asset from the country or its alienation, the authorized body will apply to the court with an application for preliminary interim measures.
The return of illegally acquired assets may be carried out voluntarily or compulsorily - on the basis of judicial acts of Kazakhstan, foreign states or decisions of competent authorities of foreign states.
The conditions may envisage payment of money, transfer of part or all of the assets to the state, reimbursement to the state of the amounts of taxes not received, damage caused, amounts of excess income received by the person for the total period of possession of the assets, but not less than the damage caused to the state, and other conditions.
The compulsory return of assets is carried out through an application of the authorized body to the court on general grounds according to the rules of civil procedural legislation.
The law provides mechanisms for the protection of bona fide purchasers.
The assets received in favor of the state will be transferred to the Special State Fund, which is a cash control account in the Ministry of Finance. The Special State Fund will be used to finance social and economic projects.
Given that assets may be located abroad, the Law outlines mechanisms of international legal cooperation to ensure enforcement of court decisions, exchange of information and other legal engagement.
The authorized body will prepare on an annual basis information on countering illegal acquisition and withdrawal of assets, systemic measures taken, including those aimed at eliminating causes and conditions contributing to the illegal acquisition and withdrawal of assets.
The law enters into force 10 days after publication, with the exception of provisions relating to the rights and obligations of citizens, which, in accordance with the general requirements for the entry into force of such laws, enter into force 60 days after publication.