Kazakhstan cracks down on illegal microlending scheme worth 128M tenge
Kazakhstan's Financial Monitoring Agency is probing an illegal microlending operation in Uralsk. The scheme allegedly generated over 128 million tenge in criminal profits by issuing more than 2,000 loans under false pretences. Authorities have seized assets linked to the case as investigations continue.
The operation was run by the head of Avans 07 LLP, who offered loans using jewellery as collateral. No proper licence was obtained for these financial services. Instead, the loans were disguised as commission agreements, with sky-high interest rates hidden as storage fees for the jewellery.
The scheme operated under the cover of Uralsk Zoloto, a consignment shop. Borrowers received cash but faced excessive charges, allowing the organisers to profit illegally. Over two years, the Financial Monitoring Agency has uncovered 47 similar unlicensed financial operations across Kazakhstan. Courts have authorised the seizure of the suspect's vehicle and 6 million tenge in cash. The investigation remains active, with further legal action expected.
The case highlights ongoing efforts to crack down on unlicensed lending in Kazakhstan. Authorities have already dismantled dozens of similar operations nationwide. The seized assets and ongoing probe suggest further penalties for those involved.
