Published
02/25/2026, 16:30Over the past five years, since 2021, the Financial Market Regulation and Supervision Service has conducted 285 inspections of pawnshops for compliance with legal requirements. As a result, more than a hundred companies have lost their licenses.
According to the regulator, as a result of supervisory measures, 111 pawnshop licenses have been revoked and another 11 licenses have been suspended. In addition, 290 fines totaling 8 million 414 KGS have been imposed.
Thus, almost every second inspection resulted in severe sanctions.
Large-scale inspections became part of a systemic reform of the pawnbroking sector. Its main goal is to protect consumers, reduce the debt burden on the population, and bring pawnshops out of the “gray” zone.
A key turning point was the amendments to the Law “On Pawnbroking” signed by the president in May 2024.
One of the main innovations was the introduction of a ceiling on the annual effective interest rate. Now the rate is calculated as the weighted average nominal rate of the National Bank of the Republic of Kazakhstan plus 12%. In practice, this limited the cost of loans to approximately 30% per annum and effectively ended the practice of issuing funds at 100-300% per annum.
The reform has strengthened disclosure requirements. Today, pawnshops are required to provide customers with complete and understandable information about interest rates, terms, and the procedure for accrual before concluding a contract. Hidden fees and non-transparent payments are prohibited.
In addition, restrictions have been introduced on the transfer of information about borrowers to credit bureaus. Now, the transfer of information is only permitted in cases where the loan amount exceeds 200,000 KGS. The measure is aimed at protecting personal data and preventing the deterioration of credit history due to short-term loans.
An important innovation was the ban on pawnshops arbitrarily changing the terms of a loan agreement if this worsens the borrower's position. This is enshrined in a resolution of the Cabinet of Ministers from November 2024.
The regulator has also tightened requirements for internal control and risk management. Pawnshops are required to implement systems for assessing customer solvency and mechanisms for preventing unfair practices.
Another tool for “cleaning up” the sector was a phased increase in the minimum authorized capital:
In fact, the regulator has launched a process of market consolidation. Companies that are not ready to comply with the requirements and increase their capital will be forced to leave.
