Visa's subsidiary, Currencycloud, a B2B financial platform for cross-border transfers, has imposed limitations on operations for Kazakhstan, Spot.uz reported. In December, the Visa-owned platform announced the cessation of sending and receiving transfers from several countries and regions. The company cited the need to comply with "anti-money laundering policy and sanctions verification requirements" as the reason for this move.
Apart from Kazakhstan, operations involving Russia, Belarus, Iran, North Korea, Libya, Myanmar, Syria, Sudan, South Sudan, Cuba, and Venezuela were also halted. Areas of Ukraine under Russian control were likewise affected by these restrictions.
Impact on local businesses
Iman Aqas, a Kazakhstani entrepreneur and founder of the Bueno.Money startup reported that the blocking of payments through Currencycloud to and from Kazakhstan has created challenges for his company. In particular, it has complicated the process of paying salaries to employees residing in the republic.
Regulatory response
The Agency for the Development and Regulation of Financial Markets of Kazakhstan has initiated the preparation of a request to the Monetary Authority of Singapore. The aim is to understand the reasons behind Kazakhstan's inclusion in the blacklist and explore potential ways to lift the restrictions.
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