Remittance and Payment is a major business worldwide with funds close to $700 billion transmitted worldwide. A Kazakhstan Remittance and Payment Institution License is a door to enter into this lucrative business. With a remittance license, the holder will be able to receive and transmit funds worldwide in compliance with the terms of the license.
A Remittance and Payment Institution License is obtained in Kazakhstan after registering as a Domestic TOO (Ltd. Company) which then obtains subsequent permission as a Financial Service Provider from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (‘Agency’) and Ministry of Economy. The license allows the business to accept customers from other jurisdictions.
While as a Remittance and Payment Institution License holder you may be involved primarily in payment transmission, a Kazakhstan Remittance and Payment Institution License also enables businesses to perform a wide variety of activities including-wallet services, crypto exchange, foreign exchange and securities dealing, financial consulting, depository agent activities, merchant services, issuance of debit cards (in specific cases), hosting of currency and crypto trading platforms and software development. It must be highlighted here that a Kazakhstan Remittance and Payment Institution License is unique because it is a single license that permits such a wide range of activities.
The basis of the license is not a statue but a permissive regime based on express written permission provided by the regulatory authority. While the registration of a financial services company is made with the Ministry of Economy, the Agency is entrusted with functions such as regulation of the financial services, money exchange services, investment funds, and insurance companies under the Decree of the President of the Republic of Kazakhstan dated November 11, 2019, No. 203 “On further improvement of the public administration system of the Republic of Kazakhstan”. The permission of the Agency is sought along with the registration of the Ministry of Economy for operating in the financial services sector as a financial services company.
How can I get a Kazakhstan Remittance and Payment Institution License?
There is a four-stage process for obtaining a Kazakhstan Remittance and Payment Institution License.
Stage 1: It involves the collection of documents mentioned below and the preparation of a POA.
Stage 2: Incorporation of a local company that is entered into the Commercial Register which takes around a week. Once the company is incorporated, a Business Identification Number (BIN) is received. In parallel, permission is obtained as a Financial Service Provider from the Ministry of Economy.
Stage 3: After the company is registered and permission is obtained from the Minister of Economy, a bank account is opened for the company and the application process with the Agency is also commenced. The process of registration is normally completed within 4 weeks.
Stage 4: The documents and bank account credentials, debit cards, digipass, and token generators are shipped via courier. An English translation of all documents is also provided.
Kazakhstan Remittance and Payment Institution License Requirements?
The documentation requirements for a Kazakhstan Remittance and Payment Institution License are minimal. The only key documents are a Notarized copy of the passport with apostille and notarized POA (provided by us) with the apostille. The appointment of nominees is possible if sought by the applicant. There are no requirements for office, staff, business references, or a compliance officer. Only a minimum of 1(one) director is required. There is also no minimum paid-up capital requirement. Assistance will be provided for the filing of annual returns and contact details of an English-speaking accountant will be provided.
Kazakhstan Remittance and Payment Institution License Costs and Time
The fee for the application for a license varies on a case-to-case basis but is considered to be among the most cost-effective in the world. A license is also generally granted within 6-8 weeks of submission of a fully completed application. It includes the time for obtaining permission from the Ministry of Economy and the Agency.
NOTE: This license is an Accreditation to operate as a Financial Service provider, not a license offered by Kazakhstan. If a client wishes to verify his accreditation he needs to fly to Kazakhstan and arrange a personal appointment with the regulator. Accreditation issued cannot be published for counter verification purposes online, since only licensees who got their license based on the regulatory regime, will enjoy this so as anywhere else. Our lawyers will assist for translation purposes and join the client to the regulator if desired in the branch of the Agency where the accreditation was issued.
Empire Global has a team of experienced professionals who will assist you through the entire process of the Kazakhstan Remittance and Payment Institution License application including assistance in the preparation of documents, submission of application, and responding to any queries from the Agency and Ministry of Economy. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a Kazakhstan Remittance and Payment Institution License.