AIFC hosts a workshop on safe use of digital assets
The Astana International Financial Centre is hosting a workshop “Cryptocurrency in Central Asia: Navigating FATF Recommendation 15 – Challenges and Best Practices”, which discussed ways to ensure safe and responsible use of cryptocurrency.
During the workshop, AFSA shared measures of developing an ecosystem for safe and responsible use of cryptocurrencies. As the only platform in Kazakhstan and the region that may regulate the digital assets industry, one of AFSA’s highest priority is providing a safe environment for conducting activities involving the use of digital assets. The recently adopted Digital Assets Activities Rulebook based on the results of the pilot project includes, among others, detailed requirements on the implementation of FATF’s “travel rule,”[1] prohibits the use of anonymous digital assets and devices and introduces annual independent IT-audit for digital asset service providers.
The workshop has attracted a diverse and distinguished group of participants from Kazakhstan, Kyrgyzstan, and Uzbekistan representing key stakeholders. These included financial regulators, central banks and financial intelligence units from the public sector of Kazakhstan, Kyrgyzstan and Uzbekistan. Law enforcements agencies from Kazakhstan included the Anti-Corruption Agency, the Ministry of Internal Affairs and Prosecutor General’s Office. The private sector was represented by financial institutions of AIFC and Kazakhstan such as commercial banks, digital assets exchanges, investment firms and other financial service providers.
Chief Executive Officer of AFSA Nurkhat Kushimov said: “By bringing together key stakeholders from both the public and private sectors, the workshop seeks to create a shared understanding of the intricacies of virtual asset risks and encourage more cooperation. The event aims to facilitate an exchange of knowledge and expertise, enabling regulatory and law enforcement agencies to stay ahead of emerging trends in illicit financial activities involving virtual assets. The emphasis on cross-border cooperation and the establishment of public-private partnerships underscores the importance of collective efforts in regulating and supervising the virtual asset sector.”
Kathy Leach, British Ambassador to Kazakhstan said: “I am delighted to welcome participants of today’s workshop, organized together with RUSI, the UK leading think tank in partnership with the Agency of Financial Monitoring and Astana Financial Services Authority. It is a continuation of our projects on Strengthening Kazakhstan’s Financial System with participation of regional partners from Uzbekistan and Kyrgyzstan. Today’s workshop is focused on Cryptocurrencies which are a small but significant and growing part of the financial system globally and in the Central Asian region. We are looking to future opportunities to continue our cooperation on Strengthening Kazakhstan’s Financial System”.
The workshop was organised by the Royal United Services Institute for Defence and Security Studies, the British Embassy in Kazakhstan, the Astana Financial Services Authority, and supported by the Agency for Financial Monitoring of Kazakhstan. The event is one of many in a series of capacity building events started in 2023 as part of a broader project on “Countering Illicit Finance in Virtual Assets” sponsored by the British Embassy.
Reference:
RUSI – The Royal United Services Institute.
FATF – an intergovernmental organisation that develops global standards in the field of combating money laundering and terrorist financing (AML/CFT), as well as assesses the compliance of national AML/CFT systems with these standards (Financial Action Task Force).
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.
Around 2,500 firms from 78 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA:
+7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] The FATF’s Travel Rule requires Digital Assets Service Providers, along with other financial institutions, to share relevant originator and beneficiary information from digital asset transactions, with the aim of preventing money laundering, terrorist financing, and other fraud activity.
AFSA alerts the public on the regulatory status of Bivexo Group Astana Limited and Bivexo Group Limited
Bivexo Group Astana Limited is a private company registered at the Astana International Financial Centre (AIFC) on 22 October 2024 with a BIN Number 241040900810. The firm is engaged in the activities of “manufacture of batteries and accumulators” and “manufacture of electrical and electronic equipment for vehicles.”
While Bivexo Group Astana Limited is registered within the AIFC, the firm is neither licensed by the Astana Financial Services Authority (AFSA) to provide Financial Services nor to make Financial Promotions within or from the AIFC.
Bivexo Group Limited, which promotes itself as a Hong Kong-based organisation via the bivexo.com website, is not and has never been registered in the AIFC or authorised by the AFSA to carry out Financial Services within or from the AIFC.
It came to AFSA’s attention that financial promotions on various social media platforms are taking place, urging members of the public to use financial services offered on bivexo.com.
AFSA urges the public to exercise utmost caution and consult the Public Register, which lists business information not only for legal entities registered at the AIFC but also licensed by AFSA. This is a crucial step to ensure a legal entity is duly licensed before using any of its financial services or products.
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.
Over 3,500 firms from over 80 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
AFSA introduces enhancements to AIFC Legal Entities Framework
The Astana Financial Services Authority (AFSA) has introduced enhancements to the AIFC Legal Entities Framework to address the challenges faced by the AIFC Participants.
The amendments simplify certain corporate processes and overall ease of doing business by the AIFC Participants, including the following improvements:
Transfer and registration of Shares and Debt Securities[1]: requirement on having a written instrument of transfer has been cancelled for Public Companies in respect of their Shares and Debt Securities, where such securities are admitted to trading on investment exchanges recognized by the AFSA and settled pursuant to the rules of such exchange;
Non-cash consideration for Shares in Public Companies[2]: allotment of new Shares paid in-kind (non-cash consideration) is now exempt from the requirement to obtain an independent valuation, if the number of the allotted Shares does not exceed 5% of the total share capital;
Public debt offering regime for Private Companies[3]: AIFC-incorporated Private Companies are released from obligation to obtain the Registrar of Companies’ approval in respect of public offering of their Debt Securities, if the Debt Securities are placed via the investment exchanges licensed by AFSA;
Annual accounts distribution[4]: Companies may send annual accounts to its Shareholders by any means, including email address, and not only to each Shareholders’ postal address, as it was prescribed previously;
Place of register and branch register[5]: AIFC-incorporated companies are required to keep their Register of Shareholders within the AIFC, including cases where the Register is maintained by an agent. Public Companies are permitted to establish branch register, which can be maintained by an overseas agent outside the AIFC;
Voluntary strike off[6]: non-operating AIFC company may apply for simplified striking its name off the register of companies without appointing a liquidator and application of the voluntary winding up procedures under the AIFC Insolvency Regulations;
Registered email address[7]: for enhancement of the communication each registered legal entity is required to maintain an up-to-date registered email address and notify the Registrar of Companies of any changes thereof;
Register of Directors[8]: it is clarified that the AIFC Companies must notify the Registrar of Companies on any change in the Register of Directors, including a director’s residential address and email address. A resigning director must notify the Registrar of Companies of its resignation along with their written notice to the Company;
Power of the Registrar of Companies[9]: the Registrar of Companies may require the Company to resolve inconsistencies in the documents delivered by the Company and kept by the Registrar of Companies.
The commencement date for the amendments is 1 January 2025.
The relevant amendments to the AIFC Companies Regulations, AIFC Companies Rules, AIFC General Partnership Regulations, AIFC General Partnership Rules, AIFC Limited Partnership Regulations, AIFC Limited Partnership Rules, AIFC Limited Liability Partnership Regulations, AIFC Limited Liability Partnership Rules, AIFC Non-Profit Incorporated Organisations Regulations, AIFC Non-Profit Incorporated Organisations Rules, AIFC Foundations Regulations are published on the AIFC website.
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.
Over 3,500 firms from over 80 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] Transfer and registration of securities are the processes, when a Person is involved in a sale and purchase transaction with a Company’s securities and transfer of title to such securities must be reflected in the Company’s Register of Shareholders or Debt Security Holders. This definition is provided for general understanding, for further details please refer to clause 54 (Transfer and registration of Shares and Debt Securities) of the AIFC Companies Regulations.
[2] Non-cash consideration for Shares in Public Companies is allotment of Shares as Paid-up (in part or in full) for consideration other than cash, subject to certain conditions as set out in the AIFC Companies Regulations. This definition is provided for general understanding, for further details please refer to clause 46 (Non-cash consideration for Shares in Public Company) of the AIFC Companies Regulations.
[3] Public offering regime is applicable to Debt Securities offerings made by Private Companies. For further details please refer to clause 50 (Prohibition of public offers by Private Companies) of the AIFC Companies Regulations.
[4] Please refer to clause 131 (Accounts) of the AIFC Companies Regulations.
[5] Please refer to clause 55 (Place where registers must be kept) and 55-1 (Branch register) of the AIFC Companies Regulations.
[6] Voluntary strike off is the process when a Company may, subject to certain conditions prescribed by the AIFC Companies Regulations, make an application to the Registrar of Companies to strike its name off the register of companies. Please refer to section 167 (Powers to strike off names of Regulated Entities from the Register) of the AIFC Companies Regulations.
[7] Registered email address is the main communication channel of a legal entity to which all communications and notices may be addressed. Please refer to clause 24-1 (Registered email address) of the AIFC Companies Regulations.
[8] Please refer to Chapter 9 (Directors and Secretaries) of the AIFC Companies Regulations.
[9] Please refer to clause 200-1 (Registrar’s notice to resolve inconsistency in Documents) of the AIFC Companies Regulations.
AFSA introduces amendments to the AIFC Insolvency framework
The Astana Financial Services Authority (AFSA) has introduced amendments to the AIFC Insolvency framework to enhance clarity, alignment, and functionality of insolvency proceedings for entities registered in the Astana International Financial Centre (AIFC). These changes address identified gaps concerning some aspects of the winding-up procedure.[1]
The amendments will come into force on 1 January 2025 and will apply to all relevant insolvency cases within the AIFC jurisdiction. AFSA will continue to monitor the framework’s implementation and ensure the new provisions contribute to the development of the AIFC ecosystem.
AFSA has amended the AIFC Insolvency Regulations and the AIFC Insolvency Rules, both adopted in 2017, to align the roles of the Registrar of Companies and AFSA with the practices established under the AIFC Companies Regulations and AIFC Financial Services Framework Regulations, particularly regarding the winding-up of Authorised Persons and Ancillary Service Providers.
Key changes include:
Registrar of Companies’ role has changed. The power to petition for winding-up on grounds of the AIFC interests has been shifted from the AIFC Authority (AIFCA) to the Registrar of Companies.
Notifications and approvals regime is expanded to include Ancillary Service Providers. Provisions requiring notifications to and approvals from AFSA were extended to include Ancillary Service Providers in various scenarios, such as meetings of creditors and contributories[2], insolvency proceedings, and winding-up orders.
Consistency across various AIFC Acts. For the purposes of insolvency procedures, Ancillary Service Providers are now treated the same as Authorised Persons.
The introduced amendments are critical as they provide clear delineation of roles and responsibilities and reduces ambiguity in insolvency proceedings; harmonise with other AIFC Acts by ensuring consistent application and support regulatory integrity. They also streamline processes to enhance the effectiveness of insolvency procedures, benefiting all stakeholders.
The main beneficiaries of the framework include:
AIFC Participants: Companies and Ancillary Service Providers which will now operate under a clearer regulatory environment.
Creditors and Investors: Improved processes ensure greater transparency and confidence in insolvency outcomes.
The relevant amendments have been published in the AIFC Insolvency Rules and the AIFC Insolvency Regulations.
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.
Over 3,500 firms from over 80 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] Winding-up refers to the process of dissolving a company by settling its liabilities and distributing its assets to stakeholders. It can occur voluntarily or through compulsory procedures.
[2] An individual or entity liable to contribute towards the assets of the company in the event of its being wound-up.
AFSA introduces amendments to the AML/CFT framework
The Astana Financial Services Authority (AFSA) has introduced comprehensive amendments to the Anti-Money Laundering, Counter-Terrorist Financing, and Sanctions Framework within the Astana International Financial Centre (AIFC), effective January 1, 2025.
These amendments have been meticulously designed to enhance existing norms by incorporating necessary clarifications and eliminating ambiguities that have emerged from the practical application of the rules, as addressed through numerous requests from the AIFC Participants and analysed outcomes of inspections and thematic reviews of the AIFC Participants over the recent years.
At the core of these amendments are revisions to the AIFC Anti-Money Laundering, Counter-Terrorist Financing, and Sanctions Rules (AML Rules):
- New Annex to AML Rules contains AML/CFT-specific abbreviations and definitions like “sanctions violation”[1], “watchlists”[2], “geographic area (state or territory) considered to be an area of high risk”[3].
- Key definitions such as “Relevant Person”[4], “Money Laundering Reporting Officer (MLRO)”[5], and “Know Your Employee”[6] have been clarified.
- Additionally, the reference to the AML Practical Guidance will specify economic and financial unilateral sanctions regimes applicable in the AIFC (other than UNSC sanctions)[7].
The revisions also bring the detailed description regarding the application of the Risk-Based Approach, enhancing the processes surrounding Customer Risk Assessment and Customer Due Diligence (CDD):
- Noteworthy is the outright prohibition of reliance on third parties for ongoing CDD monitoring[8], reinforcing accountability among the AIFC Participants.
- Further clarifications have been established concerning the submission of Suspicious Transaction Reports[9] and Threshold Transaction Reports[10], further promoting transparency in reporting obligations.
In aligning the definition of MLRO with the necessity for independence from senior management, the amendments aim to fortify the position’s integrity and effectiveness:
- The revised definition will ensure that the MLRO operates in conditions free from undue influence or conflicts of interest. Thus the MLRO should not combine the role of the business owner, shareholder or CEO/executive management.
- To accommodate compliance with these new stipulations, a transitional period of six months will be granted for existing firms where the functions of an MLRO overlap with senior executive management roles, allowing sufficient time for alignment with the new requirements while implementing essential safeguards.
Moreover, consequential amendments have been made to several guidance documents, including the AML Practical Guidance, the Guidance on the Rules of Internal Control, and the Guidance on Customer Due Diligence[i]:
- These documents have been revised to incorporate clarifications on risk scoring and Business Risk Assessment, customer risk profiles, CDD, relying on third-party consultants, MLRO, and etc.
- The updates have been designed to streamline compliance procedures without introducing completely new obligations, reinforcing the AFSA’s dedication to facilitating a practical and effective compliance environment.
Collectively, these updates serve to align the legislative framework with international best practices, significantly enhancing the efficacy of AML/CFT measures within the AIFC. The AFSA remains committed to fostering a robust culture of compliance and encourages all stakeholders to review the updated documents, which are now accessible on the AFSA website.
Relevant amendments can be found in Practical Guidance to AIFC Anti-Money Laundering and Counter – Terrorist Financing Framework (“Practical Guidance”); Guidance (Requirements) applicable to the Rules of Internal Control for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism for financial monitoring entities of the Astana International Financial Centre (the Relevant Persons) (“Guidance on the Rules of Internal Control”); Guidance (Requirements) for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism, applicable to the Customer Due Diligence in cases when the Astana International Financial Centre Participants (the Relevant Persons) establish non-face to face business relations with customers (“Guidance on CDD”), AIFC General Rules and Anti-Money Laundering And Counter-Terrorist Financing Rules.
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.
Over 3,500 firms from over 80 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] Sanctions violation is an action aimed the violation, evasion or circumvention of EU, US, or UK sanctions. This definition is provided for general understanding, while the official definition can be found in the Annex 1 to the AML Rules.
[2] Watchlists are a set of information on individuals, organisations, and countries that deserve special attention and appropriate actions. This definition is provided for general understanding, while the official definition can be found in the Annex 1 to the AML Rules.
[3] Geographic areas considered to be an area of high risk include countries identified by the FATF as having strategic AML/CFT deficiencies, those under sanctions or similar measures by UN, EU, US or UK, jurisdictions vulnerable to corruption, those with ties to terrorist activities, and known tax havens. This definition is provided for general understanding, while the official definition can be found in the Annex 1 to the AML Rules.
[4] The definition of the Relevant Person now formally includes FinTech Lab Participants. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary and Rule 1.2.(a) of the AML Rules.
[5] The new definition of the MLRO envisages options when MLRO function is carried out solely and as a special function delegated by a Compliance Officer. This definition is provided for general understanding, while the official definition can be found in Rule 13.1.1. of the AML Rules.
[6] Know Your Employee envisages adequate screening procedures to ensure high standards when hiring employees. This definition is provided for general understanding, while the official definition can be found in the Annex 1 to the AML Rules.
[7] Such regimes include unilateral sanctions imposed by the EU, US, and UK. This definition is provided for general understanding, while the official definition can be found in section 8.4. of the AML Practical Guidance.
[8] A Relevant Person must not rely on third parties to provide ongoing monitoring CDD procedures for its customers and counterparties on AML and sanctions matters. More details can be found in Rule 9.1.7 of the AML Rules.
[9] A Suspicious Transaction Report is a report in a prescribed format regarding suspicious activity or suspicious transactions made by Relevant Persons to the Agency of Financial Monitoring. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
[10] A Threshold Transaction Report is a report about a transaction above defined thresholds. This definition is provided for general understanding, while the official definition can be found in the Rule 13.7.2. of the AML Rules.
[i] Practical Guidance to AIFC Anti-Money Laundering and Counter – Terrorist Financing Framework (“Practical Guidance”); Guidance (Requirements) applicable to the Rules of Internal Control for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism for financial monitoring entities of the Astana International Financial Centre (the Relevant Persons) (“Guidance on the Rules of Internal Control”); Guidance (Requirements) for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism, applicable to the Customer Due Diligence in cases when the Astana International Financial Centre Participants (the Relevant Persons) establish non-face to face business relations with customers (“Guidance on CDD”).
AFSA enhances the AIFC Asset Management framework
Considering the developments in the AIFC asset management sector and insights gained during the supervision of the regulated community the Astana Financial Services Authority (AFSA) has enacted the Amendments to the AIFC Asset Management Framework. This step is to further enhance the legislative framework governing investment funds or collective investment schemes in the AIFC and activities of the asset and fund managers operating in or from the AIFC.
AFSA has expanded the list of Specialist Funds available in the AIFC, to include Credit Funds[1], Digital Asset Funds[2], Exchange Traded Funds[3], Money Market Funds[4], Investment Token Funds[5] and Qualified Investment Token Funds. Due to the development of the AIFC asset management sector and the assessment of market needs, AFSA recognises the necessity to broaden the range of Specialist Funds available in the AIFC. This facilitates the diversification of investment options, empowering investors to tailor portfolios to specific sectors and strategies. Offering a comprehensive list of Specialist Funds not only gives a competitive advantage, but also aligns with global investment trends, demonstrating regulatory adaptability.
AFSA also enhanced the Venture Capital Fund framework to attract greater participation in the venture capital market by introducing amendments that broaden opportunities for investors. Currently, Venture Capital Funds are Exempt Domestic Funds focused on equity investments in early-stage unlisted businesses. The changes include allowing Venture Capital Funds to operate as Foreign Funds for Professional Clients, thereby attracting international investors; expanding investment options beyond equity to include securities and units of early-stage unlisted companies; and enabling funds to adopt a Master-Feeder structure[6] for greater diversification and efficiency.
The AIFC CIS Rules currently apply to Domestic Fund Managers, Foreign Fund Managers, and Centre Participants marketing Collective Investment Schemes in or from the AIFC. Since there has been confusion among stakeholders regarding whether Centre Participants must hold a license, to address this, the CIS Rules have been amended to clarify that Centre Participants refer to individuals or entities authorised by the AFSA to conduct relevant Regulated Activities.
The relevant amendments to the AIFC General Rules, AIFC Collective Investment Scheme Rules and Glossary are published on the AIFC website and will come into force on 1 January 2025.
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.
Over 3,500 firms from over 80 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] A Credit Fund is an investment vehicle that pools investor capital to provide financing through debt instruments, such as loans, bonds, and other fixed-income securities. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
[2] A Digital Asset Fund is an investment vehicle that pools capital from investors to allocate into digital assets. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
[3] An Exchange Traded Fund is a type of investment fund that is traded on stock exchanges, similar to stocks. It holds a diversified portfolio of assets, such as stocks, bonds, commodities, or other securities, and is designed to track the performance of a specific index, sector, or asset class. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
[4] A Money Market Fund is a type of investment fund that invests in short-term, low-risk, and highly liquid instruments. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
[5] An Investment Token Fund or Qualified Investment Token Fund is a Fund whose main purpose is investing in Investment Tokens or Qualified Investment Tokens respectively. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
[6] A Master-Feeder Structure is an investment fund arrangement where the “Master Fund” manages core investments and trading strategies, while one or more “Feeder Funds” gather capital from investors and allocate it to the Master Fund. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
AFSA introduces enhancements to the AIFC Derivatives Framework
The Astana Financial Services Authority (AFSA) has introduced enhancements to the Derivatives[1] framework in the Astana International Financial Centre (AIFC). The enhancements, grounded in benchmarking on the best practices and the analysis of feedback received from the market, offers some refinements to the framework and introduces enhancements to conduct requirements for Derivatives transactions.
The amendments aim to establish a clear regulatory framework for Derivatives traded on Authorised Market Institutions[2] and Multilateral/Organised Trading Facilities (MTF/OTF)[3], ensuring effective pricing, settlement and operations, applying market conduct requirements from the AIFC Market Rules, and prohibiting Market Manipulation and Market Sounding.
Given the elevated risks associated with Derivatives operations, the framework establishes the following conduct requirements to protect Clients in Derivatives transactions:
- Requiring risk warning on marketing and other communications to ensure Clients are aware of the high risks associated with Derivatives transactions;
- Mandating additional disclosures in the key features document to ensure Clients understand the nature, risks, and essential characteristics of Derivative instruments and operations. This information, along with a risk warning, must be included in the key features document provided to Clients, enabling them to make an informed decision about proceeding with the service;
- Setting limits on Derivatives operations to mitigate risk exposure.
- In response to the possibility of regulatory arbitrage involving Digital Assets Derivatives, the framework implements amendments aimed to ensure that the regulation of Digital Assets Derivatives aligns proportionally with the Derivatives framework.
The introduced enhancements to the Derivatives framework are applicable to both new applicants and existing Authorised Persons falling under the scope of this regime.
The commencement date is 1 January 2025.
The relevant amendments to the AIFC Market Rules, AIFC Glossary, AIFC Authorised Market Institution Rules, AIFC Multilateral and Organised Trading Facilities Rules, AIFC Conduct of Business Rules, AIFC Rules on Digital Asset Activities, AIFC General Rules are published on the AIFC website.
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.
Over 3,500 firms from over 80 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] Derivatives are financial instruments that derive their value from an underlying asset, index, rate, or financial instrument. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
[2] Authorised Market Institution is a Centre Participant which has been licensed by AFSA to carry on one or more Market Activities.
[3] Multilateral or Organised Trading Facility is an alternative trading venue that facilitates the exchange of financial instruments between multiple parties. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.
AFSA introduces enhancements to the AIFC Credit Rating Agencies framework
The Astana Financial Services Authority (AFSA) has introduced enhancements to the Credit Rating Agencies (CRA) framework in the Astana International Financial Centre (AIFC). Following international practices and the analysis of feedback received from the market, enhancements consider transitioning of CRAs to the Regulated Activities regime. This shift in the regulatory status carries several positive implications and considerations, such as the potential impact on CRAs’ perception by the market and enhance their credibility while signalling to investors, regulators, and market participants that they meet higher regulatory standards.
This transition significantly changes the regulatory landscape for CRAs in the AIFC by intensified regulatory oversight in line with international standards and practices and stricter requirements imposed on CRAs.
The introduced enhancements to the CRAs framework are applicable to both new applicants and existing AIFC CRAs.
The commencement date for the framework is 1 January 2025. A twelve-month transition period is set to implement the relevant requirements for the current CRAs.
The relevant amendments to the AIFC General Rules, AIFC Conduct of Business Rules, AIFC Anti-Money Laundering and Counter-Terrorist Financing and Sanctions Rules, AIFC Glossary, AIFC Fees Rules are published on the AIFC website.
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.
Over 3,500 firms from over 80 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
AFSA alerts the public to the regulatory status of ACLB Management Company Limited
The Astana Financial Services Authority (AFSA) seeks to provide clarification regarding the regulatory status of ACLB Management Company Limited.
While ACLB Management Company Limited is registered within the Astana International Financial Centre (AIFC), the firm is neither licensed by AFSA to provide Financial Services nor authorised to make Financial Promotions within or from the AIFC.
AFSA has become aware of the company entering into agreements to provide financial services through the platform proportunity.kz associated with Proportunity Management Company Limited, despite neither entity holding the requisite licenses. The latest warning regarding the expired licence of Proportunity Management Company Limited can be found via the link.
AFSA advises caution and recommends avoiding entering into any contractual agreements with ACLB Management Company Limited, with or without involvement of Proportunity Management Company Limited, in relation to the financial services and products it may offer.
AFSA encourages the public to check the Public Register, which contains business information on companies authorised and/or registered by AFSA. This is a crucial step to verify that a firm is properly authorised before engaging with any of its financial services or products.
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.
Over 3,400 firms from 84 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]