The Criminal and Legal Characteristics of the Legalization of Proceeds from Crime: Problems of Classification and Harmonization of Legislation in the Republic of Kazakhstan with International Standards

Abstract

The paper is conducted to study the criminal and legal instruments of combating legalization (laundering) of proceeds of crime in the Republic of Kazakhstan focusing on the analysis of compliance of the national legislation with international standards and obligations in terms of its implementation. The relevance of the study is conditioned by the low level of efficiency of application of Article 218 of the Criminal Code of the Republic of Kazakhstan, which is confirmed by statistics: 20% of acquittals (2022-2024) and the absence of cases on laundering of proceeds from drug trafficking.

The purpose of the research is to identify systemic problems of law enforcement, doctrinal controversies and development of measures to harmonize the norms with international standards of the Financial Action Task Force (hereinafter - FATF).

Methodology includes comparative legal analysis, a system interpretation of the norms of the Criminal Code of the RK, analysis of judicial practice and doctrinal positions.

The results of the research that two-object construction of the corpus delicti of the crime is based: the main object is economic relations; the supplementary object is the interests of justice. The necessity of introduction of the share approach in determining the subject of the crime is revealed, in connection with which the revision of p. 19 of the NRSC of RK No. 3 from 24.01.2020 is proposed. The contradiction between the theory of “special subject” (excluding self-launderers) and practice of application has been established, which requires criminalization of professional intermediaries through the qualifying feature. It has been indicated that the subjective side of the crime does not correspond to the FATF standards, where it is sufficient to realize the criminal origin of assets (due diligence).

The implementation of the recommendations will strengthen the protection of the interests of the economy and justice. The research is significant for law enforcement practice and reforming anti-money laundering legislation of the Republic of Kazakhstan.