Kazakhstan is tightening access to online loan applications.
The security requirements for mobile applications used by banks and microfinance organizations have been strengthened.
https://total.kz/ru/news/finansi/dostup_k_oformleniu_onlain_kreditov_uzhestochaut_v_kazahstane_date_2024_10_28_10_34_122024-10-28 07:09:18
“A ban has been established on providing bank loans and microloans electronically without conducting biometric identification of the individual. Banks are now obligated to inform clients about the arrival of the loan in their accounts and to notify clients of potential fraud risks when transferring money to third parties,” Suleimenov stated in his response to the departmental request.
Additionally:
- Security requirements for mobile applications of banks and microfinance organizations have been strengthened, including the obligation to block the application when using remote control software on the client’s mobile device or when security functions are compromised (Jailbreak, root access), as well as recording geolocation data during financial transactions within the application;
- Banks and microfinance organizations have been given the option, if necessary, to implement additional security measures, including conducting repeated biometric identification of the client, verifying the client’s mobile number against the database of the mobile operator, and making a verification call to the client’s specified mobile number;
- Citizens have been granted the right to voluntarily refuse to take loans (approximately 700,000 voluntary refusals have been established), and a ban has been imposed on banks and microfinance organizations providing credit if such a refusal is present in the individual’s credit report;
- Creditors are obligated to suspend the accrual of rewards and claims during the entire period of investigative activities. The obligations to the client cease upon the legally binding decision of the court, which will establish that the loan was obtained fraudulently without the client’s involvement;
- Banks and microfinance organizations are required to transmit information regarding loan application requests to the credit bureau in real-time;
- Starting January 1, 2025, when applying for an online microloan, it will be mandatory to use both biometric identification and electronic digital signature simultaneously. Additionally, for microfinance organizations, it is required to identify the ownership of the bank account or payment card before transferring money to the client.