We are committed to promoting the integrity and soundness of AIFC's financial system. In supervising regulated firms, we aim to ensure that AIFC’s participating companies conduct business in a responsible and accountable manner, which contributes to sustainable financial markets within AIFC, Kazakhstan and beyond.
The firms that we supervise vary in size, complexity, the risks they pose to consumers, market sustainability and integrity.
Our supervision objectives are to ensure that financial markets in the AIFC are fair, efficient and transparent. We do this by fostering and maintaining confidence in the AIFC’s financial system and regulatory regime and by detecting, preventing and restraining actions that may cause damage to the financial markets. By applying a risk-based approach to supervision, our interactions with firms are designed to be proportionate to their size, complexity and the types of regulated activities conducted.
We aim for an open, transparent and co-operative relationship with regulated firms, maintaining an on-going dialogue with the firm’s senior management in order to remain updated in terms of the firm’s financial position and business activities.
AFSA also seeks to reinforce the responsibility of senior management for the culture, behaviour and governance of the firm, to ensure financial soundness, fair dealing and compliance with regulatory standards.
How we supervise
We use a number of tools to supervise firms, including:
Thematic reviews play a vital role in our supervisory approach. They allow us to assess current or emerging risks across multiple firms within a sector or market. By focusing on understanding what's happening, we can then propose strategies to address the identified problems.
Our thematic review process is highly versatile, allowing us to apply it to various situations, firms, and categories of consumers. This enables us to investigate specific risks thoroughly and address particular concerns in detail.
Specialised teams with expertise in relevant areas conduct thematic work. These teams conduct extensive desk-based reviews of information, carry out site visits, and collaborate closely with industry practitioners and professional trading bodies when necessary.
Off-site and on-site inspections enable us to check and verify firms’ financial status and health by making offline visits to the premises as well as conducting desk-based reviews remotely. On-site supervision aims to provide a first-hand view of the systems, controls, compliance and personnel culture within the inspected firm.
In addition to thematic reviews, our supervision tools include a regulatory reporting framework. This framework ensures the efficiency and effectiveness of office-based monitoring of regulated entities' activities in the AIFC (Astana International Financial Centre). By establishing a robust regulatory reporting framework, we can closely monitor the activities of regulated entities and ensure compliance with applicable regulations. This framework enhances our ability to detect and address any potential risks or concerns promptly.
How do we determine a firm’s financial health?
We determine firms’ financial health by examining their financial and prudential indicators, financial and business conduct as well as their systems and controls and Anti-Money Laundering the Counter-Terrorist Financing (AML/CFT) procedures.
This means that firms must meet threshold requirements to ensure that they have adequate capital and liquid financial resources to remain sustainable even when faced with risks. These requirements include prudential, financial conduct, and AML/CFT aspects.
