AFSA fines Proportunity Management Company Limited and ACLB Management Company Limited and the Registrar of Companies petitions the AIFC Court for the compulsory winding up of both companies and two other related entities

The Astana Financial Services Authority (“AFSA”) has fined Proportunity Management Company Limited in the amount of USD 249,770 and ACLB Management Company Limited in the amount of USD 139,533 following regulatory breaches and investigation findings. The AFSA also imposed on Mr. Arman Bayev – the Chief Executive Officer of both companies – a prohibition from holding office in or being a Director or Employee of any Authorised Person or Ancillary Service Provider. The AFSA previously issued multiple public alerts regarding the regulatory status of Proportunity Management Company Limited (“Proportunity”) and ACLB Management Company Limited (“ACLB”).  

In addition, the Registrar of Companies of the AFSA (the “Registrar”), acting with the prior consent of the AFSA, has petitioned the Astana International Financial Centre (“AIFC”) Court for the compulsory winding up of Proportunity Management Company Limited, ACLB Management Company Limited, and two related Special Purpose Companies (collectively referred to as the “Companies”). Mr. Arman Bayev is the common controlling shareholder of the Companies.  

The decisions follow a formal investigation undertaken by the AFSA, initiated subsequent to a special on-site inspection conducted by the FinTech Lab and arising from investor complaints concerning the Companies. The investigation identified the following:  

1. Proportunity and ACLB contravened Section 24 of the AIFC Financial Services Framework Regulations (“Framework Regulations”) by carrying on the Regulated Activities of Providing Islamic Financing and engaging in Islamic Banking Business without the required authorisation from the AFSA; 

1. Proportunity breached Section 27 of the Framework Regulations by actively marketing these activities through its website and social media channels; 

1. Proportunity committed widespread breaches of key AIFC Rules, including the Anti-Money Laundering Rules, General Rules, FinTech Rules, Conduct of Business Rules, and Authorised Market Institution Rules; 

1. Two Special Purpose Companies – Project SI SPC Ltd. and BC Inteh Plus Ltd. – were used as vehicles to pool investor funds under false pretenses and for purposes falling outside the scope of activities permitted by the AFSA. 

Despite AFSA’s directions to cease and desist from activities constituting contraventions and repeated warnings, Proportunity and ACLB have disregarded these directives, continuing to engage in unauthorised activities and promote them in breach of applicable regulatory requirements. 

Given the seriousness of the contraventions, the disregard of regulatory directives, and the resulting risks to investors and integrity of the AIFC financial markets, the Registrar has petitioned the AIFC Court for the compulsory winding up of the Companies, on the ground that it is just, equitable, and in the interests of the AIFC for the Companies to be wound up pursuant to Section 176(1)(b) of the AIFC Companies Regulations. 

In addition, the Registrar applied to the AIFC Court for a disqualification order, on the ground that it is in the public interest that Mr. Arman Bayev should not be a Director of, or in any way (whether directly or indirectly) be concerned or take part in the management of, Companies. 

This petition for compulsory winding up is the only remaining legal remedy available within the AIFC to protect the interests of investors and other creditors. This action removes the Companies’ management and legally stops them from conducting further business or dissipating assets. If the AIFC Court grants the order, it will appoint an independent liquidator. The liquidator’s duties will be to take control of the Companies, secure any remaining assets, investigate their financial affairs, and distribute any recovered funds to creditors (including investors) in accordance with the priorities set by AIFC Insolvency Regulations. The AFSA has determined that it will voluntarily subordinate its claims for the imposed fines, ensuring that all other creditors (including investors) are paid in priority before the AFSA’s fines are satisfied.  

The AFSA remains committed to the continuous improvement and development of its regulatory framework to protect investors and consumers. The AFSA maintains zero tolerance for any misuse of the AIFC jurisdiction and exercises its full authority within its remit to enforce compliance and uphold market integrity. 

Reference: 

The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is established in accordance with the Constitutional Law of the Republic of Kazakhstan “On the Astana International Financial Centre” for the purposes of regulating financial services and related activities in the AIFC. AFSA administers the AIFC Regulations and Rules and is responsible for the authorisation, registration, recognition and supervision of financial firms and market institutions in the AIFC. afsa.kz 

The Astana International Financial Centre (AIFC) is an independent jurisdiction where investors and business meet emerging opportunities of Kazakhstan and Central Asia in a transparent and sustainable environment backed by the principles of English Common Law. aifc.kz  

Public Relations and Communications Division of AFSA, [email protected]