Islamic banking, whose growing potential is widely acknowledged these days, has recently been introduced in Kazakhstan. With the adoption of the Law "On the Introduction of Amendments into Certain Legislative Acts of the Republic of Kazakhstan Concerning the Organisation and Operation of Islamic Banks and Organisation of Islamic Finance" dated 12 February 2009 (the "Amendment Law"), Kazakhstan has become a pioneer among the post-Soviet countries.
The draft of the Amendment Law was elaborated by the working group (the "Working Group") that was created and operated under the auspices of the Agency of the Republic of Kazakhstan on the Regulation and Supervision of Financial Markets and Financial Organisations (the "Agency"). The Working Group was made up of the representatives of the Agency, the Kazakhstan National Bank, other regulatory authorities and legal consultants. Salans lawyers actively participated as members of the Working Group and were leading co-drafters of the Amendment Law.
The Amendment Law allows for the establishment of Islamic banks in Kazakhstan and sets out the legal and regulatory framework for their operation. It introduces a new chapter into the Banking Law that specifically governs the operation of Islamic banks. The general rule is that the procedure for the establishment and regulation of conventional banks under the Banking Law will apply to Islamic banks. However, specific aspects of the establishment and regulation of Islamic banks are set out in the chapter devoted to Islamic banks.
The Amendment Law introduces amendments to the following laws: "On Banks and Banking in RK", the Civil Code, the Tax Code, "On the Securities Market", "On Investment Funds", "On State Registration of Rights to Real Property and Transactions Therewith", "On Mandatory Assurance of Deposits in Second Tier Banks in RK".
Contacts:
Abai Shaikenov, Partner, Salans Almaty +7 727 258 2380, ashaikenov@salans.com
Olga Karimova, Business Development Manager, Kazakhstan, +7 727 258 2380, okarimova@salans.com