CRIMINAL LAW

Genarl Provisions

As in other countries with continental legal system, criminal law of Kazakhstan is based on two major statutes - the Criminal Code and the Code of Criminal Procedure.  The Kazakhstan criminal law principles are up-to-date and humane: the majority of elements of crime correspond to international practice; the presumption of innocence is a fundamental principle of criminal proceedings; there have been implemented a mechanism for protection of human rights; legal entities are not subject to criminal liability; there is an indefinite moratorium on capital punishment until its total abolition.

Currently, all criminal matters in the Republic of Kazakhstan are regulated by Criminal Code No. 226-V of 3 July 2014 (the “Criminal Code”). 

For the sake of criminal law humanisation, the new Criminal Code introduced the concept of minor criminal offence (which was not provided for by previous Criminal Code No. 167-I of 16 July 1997) meaning a conduct (wrongdoing or omission) that does not seriously jeopardize public safety and does not cause any serious injury or threat to a person, entity, community or state which is punishable in the form of a penalty, correctional or public works, arrest, or expulsion from the Republic of Kazakhstan (if the offender is a foreign citizen or stateless person).

However, the Criminal Code significantly tightened liability and punishment for most serious crimes against person, in particular, sexual abuse, paedophilia, drug distribution, human trafficking, domestic violence against women and other grave crimes, especially against children.  Sexual assault (rape) was requalified as a grave crime excluding the opportunity of victim-offender mediation.  Infanticide (or infant homicide) is punishable by imprisonment for 20 years or life term.  The minimum prison term for human trafficking was extended.

On 2 July 2021, the legislator introduced a number of important amendments to the Criminal Code with regard to the criminal liability of entrepreneurs for tax offences and the criminal liability of government authorities.  The amendments broadened the definition of ‘considerable damage / on a considerable scale’ and ‘grand damage / on a grand scale’ set out in Article 3 of the Criminal Code.  From now on, the criteria of a considerable and grand damage include not only the threshold of 50,000-fold and 75,000-fold monthly calculation index, but also the 10% excess of the total amount of taxes and other obligatory payments to the budget assessed by a tax auditor for one calendar year out of the entire audited period over the total amount of all taxes and other obligatory payments to the budget assessed by the taxpayer for such calendar year.  The latest amendments to the Criminal Code are aimed to strengthen the control of powers exercised by government authorities over entrepreneurs.  In particular, the amendments increased criminal liability for illegal takeover (raiding) through the use of law-enforcement/regulatory powers or legal proceedings.  To a certain extent, the amendments reduced the risk of prosecution of executive and tax officers of mid- and large-size companies based on tax audit findings.  Moreover, the amendments increased liability of government authorities in exercising their powers over entrepreneurs.

The amendments of 29 December 2021 completely excluded death penalty from the Criminal Code.  The felons earlier sentenced to death for committed crimes have been exempted from the death penalty and punished by incarceration to the extent of the sanctions under which they were convicted.  Please note that the Criminal Code prohibits early release of such felons on parole.  The Republic of Kazakhstan had to abolish capital punishment prior to ratification of the Second Optional Protocol to the International Covenant on Civil and Political Rights, Aiming at the Abolition of the Death Penalty in January 2021.

On 30 December 2021, the Criminal Code was amended again with regard to animal maiming.  Now such crime is punished by a penalty of up to KZT350,000 and 30 days of arrest.  Animal cruelty causing death to the animal is punished by a penalty of up to KZT583,000 and 50 days of custodial restraint.  When any of such offences is repeated, or committed by a gang or in collusion, or by an adult involving minor, or against a number of animals, the offenders are punished by a penalty of KZT2,900,000 and up to one year of custodial restraint.

Depending on the level of public danger and punishability, crimes are divided into two categories: misdemeanours and felonies.

When a person is found guilty of a misdemeanour, he/she may be subject to the following primary punishments:

1)        fine;

2)        correctional works;

3)        public works;

4)        arrest; and

5)        expulsion from the Republic of Kazakhstan (applicable to foreigners and stateless persons).

When a person is found guilty of a crime, he/she may experience the following additional punishments:

1)      fine;

2)      correctional works;

3)      community service;

4)      custodial restraint; and

5)      imprisonment.

When a person is found guilty of a felony, he/she may also be applied any of the following additional punishments further to primary sanctions (provided that such additional punishments are not heavier than the primary ones):

1)      confiscation of property;

2)      deprivation of special, military or honorary title, class rank, diplomatic rank, qualification class and state awards;

3)      deprivation of the right to hold a certain position or to engage in certain activities;

4)      deprivation of the Kazakhstan citizenship; and

5)      expulsion from the Republic of Kazakhstan (applicable to foreigners and stateless persons).

Such punitive measure as arrest (Article 45 of the Criminal Code) – excluded in 2011 from the old Kazakhstan Criminal Code of 16 July 1997 – was re-introduced by the new Criminal Code.[1]  Arrest implies a close custody of a perpetrator ensuring his/her isolation from the community for the entire period of his/her imposed penalty.  The term of arrest may range from ten to fifty days, and the term of detention is included into the term of arrest.  Minor children, pregnant women, women having babies, women over the age of 58, men over the age of 63, and first- and second-degree disabled employees may not be arrested.

The latest amendments to Kazakhstan criminal law changed the definition of ‘forfeiture’.  The current Criminal Code defines the term ‘forfeiture of property’ as forced uncompensated taking by the State of certain property belonging to a convicted and sentenced person, or property obtained by crime or acquired with means obtained by criminal methods, or property being an instrument or means of crime, and transfer of such property ownership to the State.

It is worth noting that forfeiture may be applied to the following funds and other assets:

1)       any funds or other assets that are acquired as a result of criminal activity, as well as any proceeds from such funds/assets, save for the assets and proceeds therefrom which must be returned to their lawful owner;

2)      any funds or other assets resulting from either partial or entire transformation or conversion of the assets acquired as a result of criminal activity and proceeds therefrom;

3)     any funds or other assets that are used or intended for financial or other support of extremist or terrorist activities or criminal groups;

4)       any funds or other assets that serve as an instrument or means of a crime; and

5)      the funds and other assets described in subparagraphs 1), 2), 3) and 4) above that are transferred by a convicted person to the ownership of third parties.

The new Criminal Code increased the term of deprivation of the right to occupy a certain position or to engage in certain activities which now ranges from one to ten years, and in explicitly provided cases – for life. 

The new Criminal Code introduced the concept of the exemption from criminal liability to the extent permitted by Kazakhstan criminal law.

Kazakhstan criminal law provides for a bail bond implying the provision by an individual acting as a bail bondsman of surety bail bond equivalent to the maximum penalty amount for the committed crime.

The term of a bail bond depends on the seriousness of the charged crime and is determined as follows:

1)        misdemeanour – from six to twelve months;

2)        minor offence – from one to two years; and

3)        medium-gravity crime – from two to five years.

Upon expiration of the bail term, the bail is returned to the bailsman, provided that the person exempt from criminal liability does not commit another criminal violation during the bail period, otherwise the court will reverse its ruling on the exemption of such offender from criminal liability and will apply another punishment based on cumulative offences.  The bail is appropriated in favour of the state.

Criminal procedure in Kazakhstan is governed by Code of Criminal Procedure No. 231-V of 4 July 2014 (the “Code of Criminal Procedure”).

The Code of Criminal Procedure entitles a person to engage an attorney (defender) starting from the moment when such person is qualified as a witness entitled to defence or a suspect or a defendant, or at any further moment in the course of criminal proceedings.  A witness may testify in the presence of their attorney.  The failure of the attorney to appear by the time specified by the pre-trial investigator may not obstruct the interrogation of the witness.

When there is any other evidence sufficient to suspect a person of a criminal violation, such person may be arrested only if he/she tried to escape, or if he/she could not be identified, or if court was filed an application for approbation of restraint in the form of custody.

The new Criminal Code introduced a new term ‘surrender’ meaning a procedural compulsory measure for a term of maximum three hours needed to find out whether the surrendered person is involved in a certain criminal violation. 

When a person is arrested on suspicion of a criminal violation, an officer of prosecution authorities shall orally notify the person of his/her arrest on suspicion of the criminal violation and shall explain his/her right to invite a counsel for his/her defence, the right to remain silent, and that any disclosed information may be used against him/her in court.

When an arrested person does not speak Kazakh and/or Russian or cannot adequately apprehend the explanation of his/her rights due to his/her alcoholic, narcotic or other intoxication, or due to his/her psychosomatic disease, then his/her rights are explained in the presence of an interpreter, if necessary, and/or attorney prior to the commencement of interrogation of the suspect, the fact of which is recorded by the respective officer in the transcript of interrogation.

Within three hours after the actual detention, an officer of investigation authorities, investigator or interrogator must prepare a transcript of interrogation.

A person may be detained on suspicion of a crime for maximum forty eight hours, and if a suspect is underage – for maximum twenty four hours, with the following exceptions when a person may be detained for maximum seventy two hours:

1)      detention on suspicion of a felony;

2)      detention on suspicion of a terrorist or extremist crime;

3)      detention on suspicion of a crime committed in the course of mass riots;

4)      detention on suspicion of a gang crime;

5)     detention on suspicion of a crime associated with illicit traffic in narcotic drugs, psychotropic substances, precursors and similar substances; or a crime against the sexual inviolability of minors; or a premeditated crime causing death; and

6)     when a person cannot be brought before an investigating judge due to their remoteness or the lack of appropriate means of communications, or when a state of emergency is ordered or an extraordinary situation occurs.

The person making the detention may, subject to the rules set out by the Code of Criminal Procedure, immediately conduct personal search of the detained person in the event when there are grounds to believe that he/she is carrying a gun or items which can be used as guns, or any items the circulation of which is prohibited and which can be used as evidence, or he/she is trying to dispose of the evidence revealing the criminal violation committed by him, or in other events where necessary.

If within forty eight hours – in regard to minors, within twenty four hours – from the actual detention of a person the chief executive officer of the detention facility does not receive the court approbation of the suspect custody, such chief executive officer of the detention facility shall immediately release the detainee by issuing the respective order and notifying the person who pursues the case and the prosecutor.  When the head of the detention facility administration fails to fulfil the order, such officer shall bear liability provided for by Kazakhstan law.  The information derived from investigative procedures conducted with the participation of a detainee during or after illegal detention shall be deemed inadmissible.

The detainee has the right to notify, via telephone, their family or employer of his/her detention and place of custody.  Besides, the officer performing prejudicial inquiry shall immediately notify any adult member of the detainee’s family or, if there is no such family member, any other relative or friend, of his/her detention and the place of his/her custody, or allow the detainee to notify his/her family or friends.

Pursuant to the amendments to the Constitution of the Republic of Kazakhstan introduced in May 2007, arrest and detention in custody may be applied only with a judge’s approval rather than a prosecutor’s approval as was required before the introduction of such amendments.  

Measures of restraint are as follows:

1)      commitment not to leave and commitment of proper conduct;

2)      personal guarantee;

3)      placement of a military servant under the supervision of the military unit command;

4)      placement of a minor in the care of authorized persons or organizations;

5)      bail bond;

6)      house arrest; and

7)      custody.

When necessary, a person under restraint may be equipped with electronic location tracking devices, save for military servants who are given into the hands of the relevant military commanders and are kept in custody.

Restraining order as a measure of procedural compulsion is a novel introduced by the new Code of Criminal Procedure which implies the restriction of the suspect’s/defendant’s/indictee’s activities aimed at finding, harassing, visiting, making telephone calls or otherwise communicating with the victim or other participants of the case for protection thereof.  Restraining order is subject to approval by investigating judge, or may be issued by court.

Another novel introduced by the Code of Criminal Procedure is the fund for compensation of crime victims ensuring that victims are compensated as and where stipulated by Kazakhstan law. 

The liability for recovery of compensated amounts is imposed, to the extent provided by the Kazakhstan Law On the Fund for Compensation of Crime Victims No. 131-VI of 10 January 2018, on the following parties:

1)     perpetrator;

2)     legal representatives of a juvenile convicted of a crime;

3)    legal entity financially liable under Kazakhstan law for damages caused by a crime committed by an individual;

4)     person in relation to whom criminal prosecution has been dropped on the grounds provided for by the Code of Criminal Procedure; and

5)   complainant, when the court establishes the fact that such complainant has provided misleading information in order to receive compensation, or when a crime is requalified under corpus delicti that is not provided for by the Law On the Fund for Compensation of Crime Victims, or when a criminal case is dismissed, or when an acquitting judgment enters into force for lack of criminal evidence.

Pre-trial investigation commences upon the registration of a crime incident report/notice with the National Register of Pre-trial Investigations or immediately after the first urgent investigative action.  The relevant prosecuting attorney shall be notified of the commencement of such pre-trial investigation.

The appropriate criminal prosecution authority shall accept and register any notice or report of a crime, either imminent or committed or in progress, and issue a confirmation of such notice/report acceptance to the notifier/reporter.

The following crime incident reports, applications or notices shall not be registered when:

1)      they do not contain information about any violation of the current legislation, damage, essential damage or illicit income, nonperformance or improper performance of professional duties by employees of medical or pharmaceutical organisations, failure to provide medical attention by persons bound to do so, violation of clinical examination procedures, or failure to apply new and innovative prevention/diagnostic/treatment/rehabilitation techniques, proved by inspection, audit, revision or other acts and constituting mandatory elements of crime; or

2)   they relate to an offence implying non-performance or improper performance of a civil transaction executed in writing and not adjudicated void, bogus or fraudulent.

Prejudicial inquiry may be initiated on the grounds of sufficient evidence of a criminal violation, if there are no circumstances excluding criminal proceedings, in particular:

1)    report from an individual or notice from a public officer or executive officer of an entity regarding a criminal violation or missing person;

2)      surrender/acknowledgment of guilt;

3)      announcement in mass media; and

4)      report of an officer of prosecution authorities on an imminent or committed criminal violation.

When there is enough evidence to prove suspicions of someone’s crime, the prosecutor and investigator shall issue, within reasonable time, a well-founded opinion on classification of such crime, a copy of which shall be delivered to the respective prosecutor immediately after its issuance for approval, unless otherwise provided for by the Code of Criminal Procedure.

The crime classification opinion shall be pronounced in the presence of a defence attorney, if attorney's presence is required by law or suspect, within twenty four hours after the issuance of such opinion.  The officer performing preliminary investigation shall explain the matter of suspicions to the suspect.  The suspect shall be delivered a copy of the crime classification opinion.

Witnesses, victims and suspects shall be summoned for interrogation by the person performing preliminary investigation by a subpoena served in compliance with the statutory procedure or by any other means of communication.

When the case is not urgent, interrogation is conducted in the day-time.  Interrogation cannot continuously last for more than four hours.  Interrogation can be restarted only after a break of at least one hour for rest and food, and general duration of interrogation during the day shall not exceed eight hours.

Continuous interrogation of the following persons may not last longer than three hours, and the total duration of interrogation may not exceed five hours:

1)         pregnant women or women supporting minor children;

2)         women over the age of 58; and

3)         men over the age of 63.

Minors must be interrogated in the day-time with breaks every two hours.  Total duration of such interrogation may not exceed four hours a day.  When a minor is obviously fatigued, their interrogation must be stopped earlier.

The novel of the current Code of Criminal Procedure is that it allows remote interrogation.  The interrogation of a suspect or witness may be assisted by such technological means as videolink.

The use of highly technological devices in the course of remote interrogation ensures high quality image and sound, as well as information security.  When a person seeks protection, his/her image and voice can be modified in the course of a video conference preventing his/her face/voice recognition.

When the pre-trial investigator finds that all facts of a certain case which need to be proven are established, such officer shall notify about the completion of pre-trial investigation, in writing, the suspect and his/her defence attorney or legal representative, as well as the victim and his/her representative, civil plaintiff, civil defendant and their respective representatives.

At the same time, such persons are notified of their rights to study the case documents and records and to file motions/petitions for additional investigation or other proceedings.  The time required by a suspect or his/her defence attorney to study the case materials shall not be limited.  However, when the suspect and his/her defence attorney intentionally delay the process, the investigator may fix a time schedule for review subject to approval by the prosecutor.

After all parties of the proceedings review the case materials and all their petitions are considered, the investigator shall issue an indictment and deliver it together with the case materials to the relevant prosecutor.  The prosecutor shall, in his/her turn, review the indictment and case materials. 

The prosecutor shall ensure that the indictment is handed to the defendant, while the defendant shall acknowledge the receipt of such indictment in a written form setting out the defendant’s rights which shall be entered into the case file.

A copy of the indictment shall be delivered to the defence attorney of the defendant, victim and his/her legal representative by hand or through other available means of communication.

Upon the completion of all actions required by the Code of Criminal Procedure, the prosecutor shall resolve to commit the defendant to court and shall refer the criminal case to the court of relevant jurisdiction.

The Code of Criminal Procedure regulates the proceedings on cases under procedural agreements.

Criminal investigation of cases under procedural agreements shall be performed in the following forms:

1)   deal of confession – applies to crimes of insignificant or moderate gravity or grave crimes, provided that the suspect/defendant accepts suspicions/ accusations; or

2)    deal of cooperation – applies to all categories of crimes, when the suspect/defendant assists with the investigation and is clear of gang crimes, or extremely grave crimes committed by other persons, or extremist and terrorist crimes.

A procedural agreement shall not be executed with a person who committed a criminal violation in the state of insanity or who developed a mental disease after he/she committed a crime.

The execution of a procedural agreement shall not serve as the ground for exemption of a person from civil and legal liability to the persons recognized as victims and the civil plaintiff.

The suspect/defendant may decline a procedural agreement before the moment when the court retires to the decision room.

A procedural agreement in the form of a deal of cooperation may be executed between the prosecutor and suspect/defendant/perpetrator/convict with the involvement of his/her defence attorney, when necessary, maintaining confidentiality and ensuring safety.  Further, the agreement is routed through respective approval stages, such as the Prosecutor General of the Republic of Kazakhstan, oblast- and equal-status prosecutors and deputies thereof (in case with the convict, only Prosecutor General of the Republic of Kazakhstan or deputy thereof).

The court allows conciliation proceedings when:

1)    the procedural agreement in the form of a deal of cooperation is signed in the course of prejudicial inquiry with all suspects and charged offenders; or

2)   the procedural agreement in the form of a deal of cooperation is signed in the course of court proceedings with all defendants.

Special Considerations Relating to Foreign Nationals

Criminal proceedings with respect to foreign nationals and stateless persons are conducted in accordance with the Kazakhstan Code of Criminal Procedure.

Those foreigners and stateless persons who committed a crime outside Kazakhstan and are staying in Kazakhstan may be extradited to a foreign state for bringing them to criminal liability or for exercising their punishment in accordance with an international treaty ratified by the Republic of Kazakhstan.

When a foreigner is detained, the police or other authorities shall notify immediately or, if not possible, within twenty four hours, the respective embassy, consulate or another representation of the detainee’s home state through the Kazakhstan Ministry of Foreign Affairs.

If the convicted offender is a national of a foreign state, the respective institution of the Kazakhstan penal enforcement system shall explain to such convict his/her right to appeal to the General Prosecutor’s Office of the Republic of Kazakhstan or appropriate authority of his/her home state for his/her extradition to such state for further service of sentence.

Convicted foreigners and stateless persons enjoy in the Republic of Kazakhstan the freedoms and rights and incur the obligations which are provided by the Constitution and laws of the Republic of Kazakhstan and international treaties.

Convicted foreign nationals and stateless persons have the right to maintain contact with diplomatic missions and consulates of their home states accredited in the Republic of Kazakhstan; and nationals of states that do not have diplomatic missions and consulates accredited in the Republic of Kazakhstan may maintain contact with diplomatic missions of the states that have assumed the functions of protecting their interests or with international organizations conducting their defence.

Exemption from Liability

A perpetrator may be exempt from criminal liability for a number of reasons.  Kazakhstan criminal law adheres to the best practices addressing this issue and provides for such commonly applied grounds as insanity, underage and absence of prior criminal records.  When the gravity of a crime is little or moderate, the offender and injured party try to reach settlement through mediation and compensatory measures.

Such activities of an individual vested with management functions in a commercial or another organisation as transferring/obtaining property and providing/procuring monetized services as compliment or remuneration for earlier undertaken legitimate actions, in the absence of preliminary arrangements, provided that the value of such property or services does not exceed the two-fold monthly calculation index, are not deemed as offence due to their low significance and are applied disciplinary or administrative measures.

Furthermore, the receipt by an employee of a government agency/authority who is not vested with any state duties OR by any other individual akin thereto OR by an employee of a non-government organisation who is not vested with any management functions of a financial gain, benefit or monetized service as compliment or remuneration for earlier performed work or provided services within the scope of their authority, in the absence of preliminary arrangements, provided that the value of such compliment or remuneration does not exceed the five-fold monthly calculation index, is not deemed as offence due to its low significance and is applied disciplinary measures.

The acquisition by an individual vested with state duties OR by any other individual akin thereto OR by an official of the Republic of Kazakhstan, foreign state or international organisation of certain assets or titles thereto or any other property benefits as compliment or remuneration for earlier undertaken legitimate actions/non-feasance, in the absence of preliminary arrangements, provided that the value of such compliment or remuneration does not exceed the two-fold monthly calculation index, is not deemed as offence due to its low significance and is applied disciplinary or administrative measures.

The person who, at the moment of a socially dangerous act (as defined by the Criminal Code) was insane, i.e. could not realize the real nature and social danger of such act or omission or could not control such act due to a chronic mental disease, temporary mental derangement, dementia or any other disorder of the mental faculties, is not subject to criminal liability.

The person who committed a minor criminal offence or committed an offence for the first time may be exempt from criminal liability taking into account his/her personality, voluntary surrender, assistance with the investigation/clearance of the criminal offence or reparation for the damage caused by such criminal offence.  Such exemption does not apply to the persons who committed terrorist/extremist crimes, crimes committed by a criminal group, child molestation, tortures, and grave or extremely grave crimes against person.  This restriction does not apply to juvenile delinquents charged with committing molestation of children 14-18 years of age.

The person who exceeded the limits of necessary defence because of fear, fright or confusion caused by a socially dangerous infringement may be exempt from criminal liability with due consideration of the circumstances.

A person may be exempt from criminal liability if he/she fulfils all the terms and conditions of a procedural agreement.  

The person who committed a misdemeanour or a crime of insignificant or moderate gravity that did not involve death, may be exempt from criminal liability, provided that he/she has reconciled with the victim/plaintiff (including the mediation procedure) and made up for the damages.

The person who committed a minor criminal offence for the first time or a crime of insignificant or moderate gravity that did not involve death or grievous bodily harm, which is applied, among other primary punishments, a penalty by the respective article or part of the Criminal Code, may be exempt from criminal liability subject to bail bond.

The person who committed a criminal offence shall be exempt from criminal liability through judicial proceedings, if the court recognizes that, by the date of trial, the committed offence stopped to be socially dangerous due to the change of circumstances.

A person shall be exempt from criminal liability if the following statutes of limitation have expired:

1)     one year after a misdemeanour;

2)     two years after a crime of insignificant gravity;

3)     five years after a crime of moderate gravity;

4)     ten years after a capital offence or corruption-related offence of low or moderate gravity; or

5)     fifteen years after a particularly grave crime.

A person may not be prosecuted if after the crime commitment the following statutes of limitation have expired without interruption:

1)     five years after a crime of insignificant gravity;

2)     ten years after a crime of moderate gravity;

3)     fifteen years after a capital offence or corruption-related offence of low or moderate gravity; or

4)     twenty years after a particularly grave crime.

The aforementioned statutes of limitation shall be determined from the date of a crime commitment until the effective date of the respective verdict.

Economic Crimes

The biggest change in this section of the Kazakhstan criminal law is the decriminalization of false entrepreneurship.  Prior to 2017, it was illegal to conduct false business activity, and sanctions varied from fines to imprisonment.  However, the major issue was that the definition of such crime described the same criminal behaviour which was provided for by other articles of the Criminal Code, e.g. tax evasion, illegal loan obtainment and production of false accounting documents.  Due to such interference between the corpus delicti of false entrepreneurship and the corpus delicti of other crimes, it was decided to exclude this article from the Criminal Code in order to facilitate the efforts of law enforcement authorities and to ensure the consistency of the criminal law provisions.

Moreover, violation of the standards, rules and regulations adopted by the Government in such domains as licensing, immigration, tax, customs, labour relations and environment that has caused heavy or very heavy damages, normally entails criminal liability of the chief executive officer of a legal entity or structural subdivision who made the erroneous decision.  When making business decisions, entrepreneurs should thoroughly consider all applicable licensing and permit requirements.  Some of the most common mistakes include: excessive reliance on poorly qualified agents offering their services for obtaining licenses/permits; commencement of operations prior to obtaining or after expiration of the term of licenses/permits; incomplete list of activities in licenses/permits, etc.

Illegal business activity may have such implications as imprisonment of the responsible manager – with or without confiscation of property – through criminal proceedings; confiscation of company's assets and revenues through administrative proceedings; invalidation/voidance or annulment of transactions and restitution through civil proceedings.

Repeated (twice or more) instances of hiring foreign labour in violation of the statutory procedure are punishable by a penalty at the rate of up to 200-fold monthly calculation index or correctional works of the same extent, or public works for up to three hundred (300) hours, or arrest for ninety (90) days.

A failure to pay or evasion of taxes and other obligatory payments to the budget and violation of customs rules may also lead to the prosecution of the chief executive officer, while the company may be imposed a penalty at the rate of 30%-50% of the outstanding tax liability through administrative proceedings.

Many entrepreneurs in Kazakhstan engage in corruption.  It should be noted that bribing a person authorized to perform state duties, either directly or indirectly, entails criminal liability.  Bribers who have not voluntarily informed law enforcement authorities of the fact that they had been subject to extortion may also be held liable.

Furthermore, it is not a rare case when extorting officers unreasonably accuse entrepreneurs of committing a crime.  In such events, we recommend that the victims of extortion immediately seek professional legal assistance from an attorney.