The amendments take effect from 1 January 2024 and mainly include amendments to supervision fees and fees payable to the Registrar of Companies and provide greater clarity on the application of the fees.

New fees have been introduced with regards to the development and enactment of several frameworks from 2024 onwards. They include the Digital Assets Service Providers (DASP), the Digital Assets Trading Facility (DATF), the Stablecoins and the Security Token Offering (STO) Frameworks. The annual supervision fee for the DATF Operators, which have been working within the FinTech Lab regime only, has therefore been revised by decreasing the fixed fee and introducing a variable component proportionate to market performance.

The changes have affected FinTech Lab Participants, which will be required to start paying the full supervision fee in case of extending their FinTech licence beyond two years of its issuance.  AIFC Rules provide for the issuance of a FinTech Lab licence for two years.

The annual supervision fee for the Market Activity of Operating a Clearing House now covers the clearing value component. Also, relevant adjustments have been made to the annual recognition for a Recognised Non-AIFC Clearing House Operator accordingly.

Other amendments include changes on application fee of licence modification, providing clarifications on calculating supervision fees, additional application and supervision fees payable to AFSA and the Registrar of Companies as well as other technical revisions.

In 2022, AFSA commenced to charge supervision fees for Regulated, Market and FinTech Lab Activities in the AIFC. Over the course of 2023, AFSA has received various comments and queries regarding the application of fees in the AIFC, which have highlighted the need of amending certain parts of fees and greater clarity in the calculation of fees.

AFSA Chief Executive Officer Nurkhat Kushimov: “The amendments are a result of two public consultations with the industry and extensive coordination work with our participants. Our objective is to have an approach that would be proportionate to various firms wishing to test out new business models and solutions while remaining committed to the highest regulatory standards. As such, the new amendments reflect continued development of the regulatory ecosystem at AIFC, its more complex and refined approaches.”

The full package of changes to the AIFC Fees Rules may be found via the link.

The amendments will be effective from 1 January 2024.

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 2,300 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]

In a significant move towards fostering sustainable and responsible investment practices, AFSA has amended the AIFC Collective Investment Scheme Rules to introduce an Environmental, Social, and Governance (ESG) Fund as a new type of Specialist Fund.

This initiative reflects AFSA’s commitment to align with global best practices, meeting stakeholder expectations, and addressing the evolving landscape of responsible investing. Obtaining the status of an ESG Fund holds significant importance since it enables investors to support companies that prioritise sustainability and responsible practices and offers potential financial benefits and risk mitigation.

AFSA Chief Executive Officer Nurkhat Kushimov: “More expanded opportunities for funds in the area of ESG mean an additional path towards a decarbonised world and specifically Kazakhstan’s targets to achieve carbon neutrality. Regulations that enable this process are an important prerequisite to build the necessary groundwork for this to happen.”

Amendments to the AIFC Collective Investment Scheme Rules and consequential amendments to the AIFC Glossary are published on the AIFC website and will come into force on 1 January 2024.

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 2,300 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]

The amendments to the Practical Guidance provide explanations on the existing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements on AML audit imposed by AIFC AML/CTF and Sanctions Rules (“Rules”) and do not introduce any additional new requirements.

The amendments to the Guidance help AIFC Participants improve their understanding of how to conduct an independent AML audit, provide guidelines on the profile of a proper AML auditor, and serve as a useful tool for AML auditors on how to comply with existing AFSA requirements and recommendations.

The amendments concerning the AML audit are annexed to the Practical Guidance to AIFC AML Framework as Annex 7 and titled as the Guidance on AML Audit. The full Practical Guidance (with amendments) is available via this link.

This Guidance on AML Audit also provides explanations on the general goals of AML audit and describes the main actions and steps preceding the audit event. It also provides practical assistance to the AIFC Participants in researching for the competitive auditor, recommendations for interactions with AML auditor and important notes that should be considered by the Participants to meet the relevant AML/CFT regulatory requirements.

AFSA Chief Executive Officer Nurkhat Kushimov: “Continuous and well-structured work in AML and CTF helps protect business operations and the economy. Recent FATF/EAG evaluation result for Kazakhstan and AIFC has shown that Kazakhstan is compliant with most FATF recommendations. What is important to emphasise is that progress in this area depends on both the regulator’s work and the firms’ informed efforts to maintain and enhance their respective AML/CTF controls. This is exactly what the Guidance is designed to do.”

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 2,300 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]

Assets under Management (AUM) at AIFC grew 52% in Q3 of 2023 since Q1 of the same year, reaching an all-time high of $1 bln encompassing both asset and fund managers. This constitutes an almost two-fold increase against the same period last year. The overall number of funds increased from 20 to 37 in the same period.

As of the Q3 2023, hedge funds in AIFC primarily favour public market instruments and equity securities, as well as the Kazakhstani money market. Venture Funds in AIFC show a preference for investing in Fintech and Edtech startup companies in the Asian region. In Q3 of 2023, one of AIFC’s venture capital-specialised fund managers experienced a 220% increase in subscribed capital compared to Q1 of the same year. The company primarily concentrates on funding startups in the FinTech, HrTech, and EdTech sectors. Instances such as these demonstrate investors’ increased willingness to engage in AIFC’s venture capital activities.

Increasingly more international firms show an interest in having a presence at AIFC as AFSA onboarded its first foreign fund manager, Equilibrium Capital Ltd, a Hungary-based company that is regulated by the Central Bank of Hungary.

Commenting on this continued growth in the asset and fund management at AIFC, the Chief Executive Officer of AFSA Nurkhat Kushimov said, “The latest figures show our long-term commitment to make AIFC the “go-to” place for fund managers that strive to do business efficiently and responsibly. These developments are the result of a strategic vision and consistent steps to make that vision a reality. For example, we have just finished public consultations to include ESG funds as a separate type of Specialist Funds within our fund management sector. We expect it to be enacted early next year. This is just one of many ongoing initiatives to make the fund management ecosystem at AIFC more comfortable for business.”

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 2,300 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]

The Astana Financial Services Authority (AFSA) and Magyar Nemzeti Bank (MNB) have signed a Memorandum of Understanding (MoU) on 24 November 2023 on the margins of the Budapest Eurasia Forum.

This significant accord marks intention of both regulators to enhance partnership aimed at fostering cross-border cooperation in financial sector, regular contacts at senior level, and exchange of information on financial markets. Both parties are committed to maintaining high standards of regulatory oversight and fostering a resilient and dynamic financial ecosystem.

Mr. Nurkhat Kushimov, Chief Executive Officer of AFSA, commented: “This agreement with Magyar Nemzeti Bank is a significant step forward in strengthening our ties and forging strategic partnership between AFSA and MNB. We aim to create an environment that supports innovation, enhances regulatory efficiency, and ensures the stability and integrity of our respective financial markets.”

The signing of the MoU was preceded by the joint information session of AFSA and BAMOSZ, Association of Hungarian Fund and Asset Management Companies, one day preceding the Forum. The event was attended by 12 asset management firms of Hungary.

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 2,200 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]

The Astana Financial Services Authority (AFSA) and the National Agency of Perspective Projects of the Republic of Uzbekistan (“NAPP”), have signed in Tashkent a Memorandum of Understanding (MoU) that aims to foster cooperation, mutual assistance, and joint initiatives in the capital market, insurance sector and crypto-asset market.

AFSA and NAPP, the regulator of crypto-asset turnover in Uzbekistan that was recently also empowered with the regulation of capital and insurance markets, wish to endeavour a close and co-operative relationship and recognise the need for mutual cooperation in the carrying out of their regulatory and supervisory functions within their regulated markets. This Memorandum of Understanding will establish a framework for mutual assistance and facilitate the exchange of information.

AFSA’s Acting Chief Regulatory Officer Valikhan Gusmanov: “AFSA recognises the immense potential for enhancing cooperation between the two jurisdictions in capital market, insurance sector, and crypto-asset market. This MoU will enable unleashing the potential of cross-border cooperation in financial markets between the two jurisdictions. Formalising this cooperation marks a significant step forward in promoting regional financial markets development and enhances regulation and supervision of cross-border transactions.”

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 2,200 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]

The Astana Financial Services Authority (AFSA) has revised its Financial Services Framework Regulations (FSFR) and made a number of changes to them and other relevant rules. The amendments aim to ensure that the Astana International Financial Centre remains aligned with the International Organization of Securities Commissions’ principles. To enhance alignment with international standards, AFSA will increase its level of oversight in relation to Ancillary Service Providers (ASPs) in areas relating to ongoing supervision, inspections and enforcement.

The other key enhancements include but are not limited to clarifying the application of Schedule 1 (Decision-making procedures of the AFSA) to the FSFR, making the relevant editorial changes, and extending AFSA’s powers in relevant areas. It is expected that the clarification of the application of Schedule 1 to the FSFR will provide AIFC Participants with certainty on which cases the regulator will follow the decision-making procedures (i.e., giving the Preliminary and Decision notices).

The FSFR will also include some new provisions (e.g., principles of good regulation, extended jurisdiction, third party rights) which were drafted based on comparison with other peer jurisdictions’ legal frameworks. In addition to the FSFR, some other AIFC rules were amended as well. As a result, the changes made to the AIFC General Rules will now transfer the Money Laundering Reporting Officer (MLRO) from the list of Designated Individuals to the list of Approved Individuals. This amendment is important as the MLRO’s position is crucial within a business. The duties of the MLRO may involve serious legal consequences that may result in civil and criminal action; therefore, AFSA needs to ensure that the proposed individual for appointment is fit and proper.

Amendments to the AIFC Financial Services Framework Regulations, and consequential amendments to AIFC Conduct of Business Rules, AIFC General Rules, and AIFC Glossary are published on the AIFC website and will come into force on 1 January 2024.

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 2,200 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]

The Astana Financial Services Authority (AFSA) has published its new Rulebook on Digital Asset Activities, which is taking effect on 1 January 2024.

AFSA Chief Executive Officer Nurkhat Kushimov: «The Rulebook was developed in close collaboration and consultation with market participants and was finalised based on their feedback. The new regime will provide Digital Asset Service Providers with a clear legal and regulatory framework which addresses a broad range of risks, such as illicit activities, cyber threats, market abuse and others. As a result, the Rules strike an important balance between protecting investors, maintaining a fair, orderly, and efficient market, and facilitating innovation in the AIFC».

In particular, the document has introduced enhanced requirements for Digital Asset Service Providers which now encompass a wide range of entities, such as Digital Asset Trading Facility Operators, Fund and Investment Managers, Brokerage and Custody firms and others.

The Rulebook consolidates policy and supervisory practice in relation to Digital Assets in the AIFC, including practice gained throughout the Pilot Project on interaction between AIFC-registered crypto exchanges and Kazakhstan’s banks. Previously, provisions governing Digital Asset Activities were reflected across various AIFC Acts. The Rules will be later expanded to include the framework for issuance of stablecoins in the Astana International Financial Centre (AIFC).

It is expected that clear, detailed, and balanced regime for digital assets will help maintain the competitiveness of the AIFC on international financial and technological markets and provide investors with significant benefits in terms of access to cheaper, faster, and safer financial services and asset management. This Rulebook creates a favorable regime for the digital asset business in the AIFC, encourage innovation, and contribute to the crypto-industry ecosystem in Kazakhstan and the region.

The Rulebook on Digital Asset Activities and consequential amendments to the AIFC Financial Services Framework Regulations, Conduct of Business Rules, Fees Rules, General Rules, Glossary, Authorised Market Institution Rules, and Anti-Money Laundering Rules are published on the AIFC website and will come into force on 1 January 2024.

Reference: 

Digital Asset means a digital representation of value that (1) can be digitally traded and functions as (a) a medium of exchange;  (b) a unit of account; (c) a store of value; (2) can be exchanged back-and-forth for Fiat Currency, but is neither issued nor guaranteed by the government of any jurisdiction, and (3) fulfils the above functions only by agreement within the community of users of the Digital Asset; and accordingly (4) is to be distinguished from Fiat Currency and E-money.

Stablecoins means a Digital Asset whose value purports to be determined by reference to another currency, commodity, or financial instrument.

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 2,200 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]

The Astana Financial Services Authority (AFSA) has signed a Memorandum of Understanding (MoU) with the Financial Regulatory Commission of Mongolia. The purpose of the MoU is to enable mutual cooperation in areas relating to sharing of information and mutual assistance. Formalisation of cooperation is designed to foster reliable and safe financial market transactions between the two jurisdictions and operations of cross-border establishments.

AFSA’s Chief Executive Officer Nurkhat Kushimov: “Increased and enhanced partnerships allow faster, safer and higher quality interaction between regulators that ultimately translates into better services for consumers and healthier markets. The Memorandum signed today lays a solid foundation for such cooperation.”

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 2,200 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]