IMPACT – MEDIUM
What is the change? Authorities have instituted new penalties for companies that fail to report a foreign national’s arrival in Kazakhstan in a timely manner.
What does the change mean? Effective immediately, companies that host foreign nationals and fail to provide notice to the Migration Police within three business days of the foreign national’s arrival will face fines ranging from 24,050 Kazakhstani tenge (about US$75) to 48,100 tenge, depending on the size of the company.
Background: The changes took effect Jan. 9 and mark a departure from previous policy, where the fines were applicable only when foreign nationals failed to register upon arrival (a separate process from notification), failed to obtain proper documentation allowing them to stay in Kazakhstan or failed to ensure the they left Kazakhstan on time.
Kazakhstan uses a metric called the “monthly calculated index,” or MCI, as the basis for levying fines. Currently, the MCI is set at 2,405 tenge. Under the new penalty scheme, small companies or individuals that fail to provide notice as required will be fined 10 times the MCI (24,050 tenge). Medium companies will be fined 15 times the MCI (36,075 tenge) and large companies will be fined 20 times the MCI (48,100 tenge).
BAL Analysis: Companies that host foreign nationals in Kazakhstan are encouraged to review internal procedures to make sure they regularly report the arrival of foreign nationals within three business days.
This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.
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