Kazakh regulator says hasn't received info from U.S. Treasury about sanctions violations by its banks

ASTANA. May 15 (Interfax) - Kazakhstan's Agency for Regulation and Development of the Financial Market has not received any information from the U.S. Treasury about any violations of the sanctions by the Kazakhstan-based banks, the agency told Interfax.

The agency said all possible measures were being taken to avoid the risk of secondary sanctions on the financial sector of Kazakhstan from foreign countries.

"The Kazakhstan-based banks have developed measures to ensure that their activities comply with the existing restrictions, the violation of which can lead to adverse consequences. The law of Kazakhstan obligates the bank to verify the clients for compliance with the KYC standards (Know Your Customer) during cross-border payment and transfers," the agency said.

In addition, the Kazakh banks are tracking the sanctioned and dual-use goods through U.S.- and Europe-based websites in order to prevent such goods from being traded.

"These measures are being taken to minimize the risk of circumventing the sanctions imposed by foreign countries and avoiding secondary sanctions," the Agency said.

U.S. Treasury Assistant Secretary Elizabeth Rosenberg said earlier that there are growing risks of secondary sanctions on Kazakh companies and banks that help Russia evade Western sanctions.