Money laundering and the shadow economy in Kazakhstan
| DOI | https://doi.org/10.1108/JMLC-05-2013-0015 |
| Published date | 06 May 2014 |
| Pages | 128-140 |
| Date | 06 May 2014 |
| Author | Nurlan N. Niyetullayev,Paul Almond |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation |
Money laundering and the
shadow economy in Kazakhstan
Nurlan N. Niyetullayev
Faculty of Law, Karaganda State University, Karaganda, Kazakhstan, and
Paul Almond
School of Law, University of Reading, Reading, Berkshire, UK
Abstract
Purpose – The purpose of this paper is to assess and highlight the approach taken towards the legal
control of illicit money laundering taken in the Republic of Kazakhstan, in particular, the role played by
an amnesty on the legalisation of illicit funds. This is particularly important as a basis for a wider
discussion about the proper limits of the “criminalising” approaches commonly taken in anti-money
laundering regulations.
Design/methodology/approach – The discussion and evaluation in the paper is based upon a
conceptual analysis of the money laundering regime in Kazakhstan, in particular, the legal framework
and policies of implementation adopted.
Findings – The paper demonstrates that the problems that are posed by the shadow economy in
post-Soviet transition societies can make the blanket criminalisation of money laundering a
self-defeating approach, unless accompanied by measures which allow for the achievement of
“market-constituting” effects.
Research limitations/implications – The paper draws on experience and practice in one
jurisdiction only (Kazakhstan); it also limits its focus to one particular example of a money laundering
amnesty policy. Both of these limitations, therefore, suggest avenues for further comparative research.
Originality/value – The paper’s conclusions about the interactions between the shadow economies of
transitional societies and the global anti-money laundering agenda have wider application in
assessments of international law in this area.
Keywords Money laundering, Shadow economy, Kazakhstan, Amnesty, Post-Soviet transition
Paper type Research paper
Introduction
The criminalisation of money laundering has emerged to become a new norm of
international law and a core component of the governance of the world economy during
the past 20 years. This development was given added impetus following the 9/11
terrorist attacks in the USA and subsequent attacks in the UK and Europe, since
when the focus of money laundering measures has been redirected towards the
nancing of terrorist activities (Alldridge, 2008;Levi, 2002). It remains a key area of
negotiation between the nations of the West and those of the developing world and has
prompted a signicant degree of harmonisation between national jurisdictions, as well
as points of difference in policy and practice. And while public and political concern over
This research was facilitated via the awarding of a Bolashak International Scholarship to Nurlan
Niyatullayev by the Government of the Republic of Kazakhstan, which allowed for a period of
research study at the University of Reading.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
JMLC
17,2
128
Journal of Money Laundering Control
Vol. 17 No. 2, 2014
pp. 128-140
© Emerald Group Publishing Limited
1368-5201
DOI 10.1108/JMLC-05-2013-0015
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