Kazakhstan’s Financial Monitoring Agency (FMA) is continuing its investigation into one of the country’s largest recent financial crimes, involving the alleged embezzlement of pension savings through fictitious dental services.
Authorities say millions of dollars were illegally withdrawn from the Unified Accumulative Pension Fund (UAPF) using sham contracts for dental treatment supported by forged medical records. The case involves managers of dental clinics and their accomplices, according to the FMA.
Investigators allege that organizers charged beneficiaries illegal fees ranging from 10% to 20% of the withdrawn pension funds in exchange for facilitating the scheme.
A total of 42 dental clinics are under investigation. The FMA estimates that more than $390 million was funneled through these entities. The money was allegedly used to purchase luxury real estate and other high-value assets, and to open new dental clinics registered under front persons to conceal the true beneficiaries.
Some of the falsified medical diagnoses were clearly implausible. In one case cited by investigators, a 21-year-old patient was diagnosed with complete tooth loss while also being prescribed routine teeth cleaning and orthodontic braces.
In response to the violations, Kazakhstan suspended the use of pension savings for dental services on September 15, 2025. Although described as a temporary measure, the move reflects tighter regulatory oversight following public concern.
The program allowing citizens to use part of their pension savings for medical treatment was launched in 2021. It permitted access to funds above a defined “sufficiency threshold” to pay for healthcare services, including costly dental procedures such as implants and prosthetics.