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Kazakhstan Financial Watchdog Urges Insurers and Firms to Use Local Messaging App for Client Communications
Kazakhstan's Agency for Regulation and Development of the Financial Market has directed insurers and certain financial firms to transition client communications to a domestically developed messaging app. The directive aims to enhance data security and reduce reliance on foreign platforms. This move follows broader efforts to promote local technology in the financial sector.
Apr 7, 5:14 AM·1m read1 source
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Kazakhstan's financial regulatory authority, the Agency for Regulation and Development of the Financial Market (ARDFM), has issued guidance to insurers and select financial institutions. The agency recommends shifting client communications to a homegrown messaging application. This step is part of ongoing initiatives to strengthen national data protection measures.
The directive specifies that communications involving sensitive client information, such as policy details and transaction records, should migrate to the local app. ARDFM stated that foreign messaging services pose potential risks to data sovereignty. The agency emphasized compliance with national cybersecurity standards as a key rationale.
Initiative Kazakhstan has been promoting the use of domestic technology platforms since 2022, following concerns over international data flows.
The homegrown app, developed by local firms, supports encrypted messaging and integrates with financial regulatory systems. Insurers and firms affected include those handling over 1 million client accounts, according to ARDFM estimates. This guidance comes amid regional efforts to diversify digital infrastructure away from global providers.
The ARDFM plans to monitor implementation through quarterly audits starting next month. Non-compliance could result in regulatory reviews, though no penalties have been outlined yet.
represent a significant portion of Kazakhstan's financial sector, with assets totaling approximately 5 trillion tenge as of 2023.
Clients, numbering in the millions, may experience changes in how they receive updates on policies and claims. Financial firms have been given a six-month transition period to adapt their systems. The agency held consultations with industry representatives prior to issuing the guidance.
