A large-scale microcredit fraud scheme spanning 17 regions of Kazakhstan and affecting more than 43,000 citizens has been shut down. The news is reported by infohub.kz.
According to the Financial Monitoring Agency's official Telegram channel, the microcredits were issued by the microfinance organization Express Zaim. The AFM's Kyzylorda Region Department, together with the National Security Committee Department and under the coordination of the prosecutor's office, shut down the large-scale fraud scheme in the issuance of microcredits across 17 regions of the country.
"According to the investigation, in August 2024 the organization introduced a paid consulting service whose cost depended on the loan amount and was included in the borrower's principal debt. Clients were presented with payment for the service as a mandatory condition for obtaining a microcredit or extending its repayment period, while the option to decline it was concealed," the agency said.
As a result, according to the AFM, borrowers received a smaller amount in hand but were obliged to repay the entire debt with accrued interest. When microcredits were rolled over, the paid service was charged again.
In total, more than 181,000 contracts for consulting services were concluded with 43,000 citizens across Kazakhstan.
A preventive measure of house arrest has been imposed on the deputy director of the microfinance organization. The investigation is ongoing.