AFSA Fines Veritas Group Limited and S1LK PAY Ltd.

The Astana Financial Services Authority (AFSA) has imposed financial penalties on Veritas Group Limited and S1LK PAY Ltd. (each, a “Company”, and together, the “Companies”, noting that they do not form part of the same group) following regulatory breaches identified as part of investigations conducted by the AFSA and resolved by settlement.

The AFSA fined Veritas Group Limited in the amount of USD 18,072, and S1LK PAY Ltd. in the amount of USD 19,224 following settlement of the respective breaches.

Each Company, acting independently, accepted the AFSA’s findings and agreed to settle their respective matters, accepting the financial penalties as determined by the AFSA. In addition, each Company has taken active steps to implement corrective measures to address the contraventions identified. As a result, the AFSA exercised its discretion to apply a 30% settlement discount to the financial penalties in accordance with paragraph 7.7.1 of the AFSA Enforcement Policy. The financial penalties referenced above incorporate this discount.

Summary of misconduct

During the relevant period, Veritas Group Limited engaged in activities requiring authorisation under the AIFC regulatory framework without holding the appropriate licence issued by the AFSA, and in doing so, conducted Financial Promotions in contravention of applicable regulatory requirements. In response to the AFSA’s requirement, the Company has ceased all unauthorised activities and withdrawn all related promotional materials.

The investigation into S1LK PAY Ltd. identified certain deficiencies in its systems and controls framework relating to ongoing compliance with applicable regulatory requirements and the fundamental principles set out in the Acting Law of the AIFC. S1LK PAY Ltd. has cooperated with the AFSA and developed an action plan to remediate the identified deficiencies.

Publication of settlement outcomes

At the time these enforcement matters were resolved, the AFSA Enforcement Policy did not mandate the publication of Decision Notices in all settlement cases. Subsequently, the AFSA introduced a revised approach, which includes an undertaking to publish all outcomes of enforcement proceedings as part of its enhanced transparency framework.

As these two cases were investigated, settled, and concluded during the transition to the updated publicity regime, they were processed under the previous, non-publication framework. Accordingly, no Decision Notices will be published in respect of these matters.

As a result, the AFSA considers this press release to be an appropriate and sufficient means of publicly disclosing its enforcement actions, consistent with internationally recognised standards and practices underpinning credible deterrence.

Going forward, Decision Notices arising from the AFSA’s enforcement actions will be published in accordance with paragraphs 7.5.1 and 8.3.1 of the AFSA Enforcement Policy.

The AFSA will continue to monitor each Company’s implementation of its remediation actions to ensure sustained compliance with the AIFC regulatory framework.

Reference:

The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), 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 businesses 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]