The Astana Financial Services Authority (the “AFSA”) has suspended the License of GB Insurance Ltd with immediate effect after the Firm had failed to satisfy the pre-conditions on which its conditional license from the AFSA had been granted.

In particular, the company disregarded or ignored the pre-conditions that had been imposed upon it by the AFSA and, in so doing:

• chose to commence live operations without the AFSA’s agreement or knowledge;
• failed to fulfil its mandatory pre-conditions before undertaking the activities of an insurance company;
• failed to have in place actuarial policies, procedures, systems and controls that had been developed by the company to the AFSA’s satisfaction;
• allowed persons who were not approved by the AFSA to perform the Controlled Functions of Insurance Risk Manager, Internal Audit Manager and Approver Actuary; and
• consequently undertook the writing of insurance risks whist failing to have in place the appropriate arrangements and people to undertake such activities.

The AFSA’s mission is to establish an environment that delivers fair and transparent financial and capital markets, in which individuals and institutions act with integrity and maintain the highest standards of corporate governance and international standards on which the AFSA and the AIFC is based.

Gareth Ling, Deputy CEO of the AFSA said, “It is imperative that firms granted conditional licenses by the AFSA must fulfil those conditions to the AFSA’s full satisfaction before undertaking those activities for which they have sought authorisation. The fact that GB Insurance Ltd completely disregarded critical pre-conditions of its license was an act of recklessness and irresponsibility and cannot be tolerated under any circumstances”.

Protection of consumer rights is one of the AFSA’s highest priorities. The AFSA will not permit companies to operate that fail to comply with the core requirements set by the regulator where such failures may expose consumers to unwarranted risks.

As a Class 3 Captive Insurer, the firm’s business was limited to insuring risks of entities owned by the same persons as the owners of GB Insurance Ltd. Nevertheless, the firm has been ordered, amongst other actions, to wind-down or run-off its existing insurance contracts.

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 1,500 firms from 65 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 that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz

19-20 September 2022, Budapest (Hungary) hosted the Annual Budapest Eurasian Forum, which is an international project of the Central Bank of Hungary. The event is held annually with the involvement of 15 thousand participants, including top executives of major banks, politicians, well-known representatives of academia and international organisations. This year, the line-up of speakers included the Governor of the Bank of Thailand, Director of Ban Ki-moon Foundation, Director of the Center for Sustainability at Columbia University and others.

Chief Executive Officer of AFSA, the Astana Financial Services Authority of the Astana International Financial Center (AIFC), Nurkhat Kushimov took part in the forum as a speaker at the panel session “FINANCE: Ingredients of success in the financial sector: How to strengthen new financial hubs in Eurasia?”. The session discussed the creation of a sustainable financial infrastructure and an attractive investment environment, the role of financial innovation and regulatory sandboxes that ensure success in the financial sector, as well as international competition for investment. Critical issues for building effective startups and a FinTech ecosystem were also addressed during the discussion.

AFSA is an independent regulator of the Astana International Financial Centre and a unique body that regulates financial, market and ancillary services provided within the AIFC. AFSA’s strong regulatory framework regulating innovation in FinTech, green finance and Islamic banking in addition to traditional finance has helped the AIFC establish itself as a leading regional platform in Eurasia. AFSA is an active member of the world’s key international standard-setting organisations. For example, last year AFSA chaired the Group of Banking Supervisors in Central and Eastern Europe (BSCEE). The fact that the AIFC has chaired the BSCEE group is significant in that Kazakhstan hosted an event of this magnitude for the first time in Central Asia.

“Currently there are over 1,500 companies from 65 countries of the world in the AIFC. The geographical coverage of participants continues to expand. The AIFC companies cover such major global players as China, the USA, the UK, Singapore, Germany, Finland and many others. Naturally, for us as a financial regulator the quality of companies is a priority. High standards of financial conduct, best international practices and recognition of the world’s leading financial institutions mean that participation in the AIFC is a sign of quality,” – said AFSA Chief Executive Officer Nurkhat Kushimov.

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 1,500 firms from 65 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 that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz 

A meeting of the Inter-departmental Working Group on the issues of mutual evaluation of the national system for anti-money laundering and combatting the financing of terrorism (AML/CFT) of the Republic of Kazakhstan has taken place today. The meeting took place at the Astana International Financial Center (AIFC) and was chaired by First Deputy Head of the Presidential Administration of the Republic of Kazakhstan Timur Suleimenov.

The meeting is part of the planned activities to assess compliance of the regime of the Republic of Kazakhstan and the AIFC with international AML/CFT standards within the framework of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG).

During 2021–2022, with the direct participation of the Financial Monitoring Agency of the Republic of Kazakhstan, the AIFC financial regulator (AFSA) has implemented the main measures aimed at strengthening the AML/CFT regime and increasing the level of technical compliance with the requirements of the Recommendations of the Financial Action Task Force (FATF).

AFSA applies a comprehensive risk-based approach to effectively allocate resources for the implementation of measures in accordance with the FATF Recommendations. The AIFC regime in the field of AML/CFT is provided by a multi-level system of supervision and control.

Risk-based supervision allows for the application of preventive measures, strengthening transparency and accessibility of information on the beneficial ownership of legal persons and entities, and ensuring international cooperation. AFSA uses advanced blockchain solutions for data and transaction analytics, as well as international databases for keeping records of individuals and legal entities associated with money laundering, terrorist financing and other financial crimes.

“We highly appreciate the EAG’s efforts to assist member states in the implementation of the 40 FATF Recommendations. The results of typological research allow us to identify the most high-risk areas and sectors and build an effective risk management methodology. As a result of the work carried out to date, AML/CFT requirements are reflected and detailed in more than 80 AIFC Acts that regulate various areas of our participants’ activities, – AIFC Governor Kairat Kelimbetov noted in his report. – According to the AML/CFT Law of the Republic of Kazakhstan, AIFC participants are subjects of financial monitoring, and AFSA as our Financial Regulator is designated as the body that controls their compliance with the current AIFC law on AML/CFT issues.”

It is worth noting that in August this year, the Organisation for Economic Cooperation and Development (OECD) published a report in which it recognised the compliance of the AIFC tax regime with global tax transparency standards. This recognition is an important step in demonstrating the AIFC’s compliance with global standards of transparency, including tax transparency.

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 1,500 firms from 65 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 that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz

The International Swaps and Derivatives Association (ISDA) has published an Informal Country Update on the enforceability of close-out netting under the Acting Law of the Astana International Financial Centre (AIFC) issued by international law firm, Dentons. The publication of the Informal Country Update marks a significant milestone in the Astana Financial Services Authority’s work with ISDA that commenced in 2021 and marks the completion of the first step towards the full recognition of the AIFC as a ‘netting-friendly jurisdiction’.

The publication of the Informal Country Update is also an important contribution to Kazakhstan’s financial market infrastructure as the update will provide insights for globally active firms that want to carry out their financial transactions in the local market.

ISDA is one of the world’s largest global financial trade associations and the Informal Country Update covers a number of legal issues relevant to the trading of derivatives, including the enforceability of close-out netting.

Netting entails offsetting the value of multiple payments due to be exchanged between two or more parties. It can be used to determine which party is owed remuneration in a multiparty agreement. Netting may be used in trade when parties offset one position with an opposing one, to balance out losses from one with gains in another.

Having certainty on the enforceability of ‘close-out netting’, one of the types of netting, is one of the key factors that determines the location of the market participants’ trading activities.  This proposed update will create greater market interest in exploring the AIFC jurisdiction for local derivatives market and create conditions for its prosperity.

Close-out netting provides a means of mitigating credit risks associated with over-the-counter derivatives and is widely used in the financial market by private sector entities, in particular banks and private non-financial institutions. To date, ISDA recognises more than 80 jurisdictions as ‘netting-friendly’ and the AIFC aims to seek ISDA recognition for its close-out netting regime as the next step in future.

Close-out netting is crucial in promoting financial stability and the development of a robust, liquid, and efficient derivatives market as it enables derivatives participants to protect against adverse market changes following default of a counterparty. In the absence of certainty regarding close-out netting, financial institutions may face higher transaction costs and increased liquidity and regulatory capital requirements.

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 1,500 firms from 64 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 that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz

Contact information:

Dina Teltayeva

+7 701 765 40 10

[email protected]

Binance, the world’s largest crypto exchange, has received its In-Principle Approval from the Astana Financial Services Authority (AFSA) to operate a Digital Asset Trading Facility and Provide Custody in the Astana International Financial Centre (AIFC). AIFC is the first financial centre in the Commonwealth of Independent States (CIS) to have started working with Binance. 

AFSA is an independent regulator of the Astana International Financial Centre and a unique body that regulates activities relating to digital assets in Kazakhstan and the wider region of the CIS. AFSA’s robust regulatory framework governing FinTech has helped the AIFC to establish itself as the leading regional platform for the development of services involving digital assets.

“Large investors seeking new markets need clear-cut and well-managed rules as well as high standards of regulatory practice. When a regulator meets these requirements, it creates collaboration based on trust and an ecosystem where players can work safely and efficiently. We believe that Binance’s work will further develop this vibrant ecosystem of digital assets industry locally and regionally,” said Nurkhat Kushimov, Chief Executive Officer of AFSA.

AFSA’s FinTech regulations are designed to motivate innovative business solutions while balancing them with a fine regulatory framework to create an environment that delivers fair and transparent financial and capital markets, in which individuals and institutions act with integrity.

Binance, with its wealth of experience, technologies and opportunities will contribute to the development of the digital assets market in Kazakhstan and is going to create larger impetus for further establishing the country as the region’s cryptohub.

“Kazakhstan has shown to be a pioneer in Central Asia crypto adoption and regulation,” said Changpeng Zhao (CZ), founder and CEO of Binance. “This further signifies Binance’s commitment to being a compliance-first exchange and providing products and services in a safe and well-regulated environment across the globe.”

Gleb Kostarev, Regional Head of Asia at Binance, said: “This is a landmark achievement for Binance in Kazakhstan. We are grateful to the Astana International Financial Centre for their support and vision in granting Binance Kazakhstan this in-principle license approval”.

In-Principle Approval is one of the steps to obtain a license in the AIFC. Upon successful finalization of its licensing application, Binance will be able to provide its services as an operator of a Digital Asset Trading Facility and Provider of Custody in the Astana International Financial Centre.

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 1,400 firms from 64 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 that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz

Binance is the world’s leading cryptocurrency infrastructure provider with a range of financial products, including the largest digital asset exchange by volume. Trusted by millions of people around the world, Binance is designed to enhance the freedom of money for users and offers an unrivaled portfolio of crypto-currency products and offerings, including trading and finance, education, data and research, philanthropy, investment and incubation, decentralization, and more. For more information visit https://www.binance.com 

The Organisation for Economic Co-operation and Development (OECD) has released a report declaring that the Astana International Financial Centre (AIFC’s) tax regime is compliant with global standards of tax transparency. This recognition is an important step in demonstrating the AIFC’s compliance with global tax transparency standards.

According to OECD, Base Erosion and Profit Shifting (BEPS) practices cost countries 100–240 billion US dollars in lost revenues annually, which is the equivalent of 4-10% of the global corporate income tax revenues. This is the result of the abuse of gaps and inconsistencies between the tax systems of different countries.

To address this problem, in 2016 the OECD jointly with the G20 created the Inclusive Framework on Base Erosion and Profit Shifting. Today within the Framework there are over 135 countries and jurisdictions, implementing 15 actions to combat tax evasion, improve consistency of international tax rules, ensure a more transparent tax environment and address tax problems arising from the digitalisation of economy.

The OECD recommended that the AIFC implement “Substantial Presence” requirements for Kazakhstan to comply with BEPS. In this regard, in 2021 the Astana Financial Services Authority in agreement with the Ministry of Finance of the Republic of Kazakhstan adopted the Rules on Substantial Presence of the of AIFC participants applying tax exemptions for the payment of corporate income tax, value added tax. According to the Rules, AIFC participants enjoying tax benefits for the payment of corporate income tax and value added tax must confirm their presence in the AIFC. This is corroborated by meeting the requirements for core income generating activities in the AIFC, as well as ensuring amount of expenses and full-time employees are commensurate to the scope of activities.

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 1,400 firms from 64 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 that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz

The Astana Financial Services Authority (“AFSA”) informs that Representative Office of HITBEAT MUSIC INC. in the AIFC (“Hitbeat Music”), registered in the Astana International Financial Centre (the “AIFC”), continues to release information in the public domain which risks misleading persons into believing that this firm is authorised by AFSA to carry on such Regulated Activities as Advising on or Managing Investments.

On its website www.xetrade.mu the firm offers access to high yield investments on the U.S. stock market. However, Hitbeat Music is not authorised to offer these activities in the AIFC.  The firm advertises AFSA as a ‘partner’ when this is a false statement and is not the case.

AFSA has previously advised the firm to correct the public record in any public resources of the firm. As this information continues to be released into the public domain, AFSA considers it appropriate to set the public record straight to protect the interests of the AIFC community and members of the public.

Consumer enquiries in relation to Hitbeat Music may be directed to https://afsa.aifc.kz/submit-your-complaint or by email to [email protected].

AFSA requests consumers to exercise caution when dealing with firms claiming links with the AIFC who are soliciting investments in Cryptocurrencies and other investments without holding the relevant licence or authorisation from AFSA. The message from AFSA is for consumers to be careful, and only invest with authorised firms that are appropriately regulated by the AFSA.  It is important to note that the AIFC Participant status does not allow offering financial services without obtaining a licence for carrying on regulated financial activities from the AFSA. It is also critical that consumers distinguish between an entity registered/incorporated within the AIFC from an entity that is authorised to carry on regulated activities or other permitted activities. Consumers are advised to check the status of authorisation on AFSA’s website at https://publicreg.myafsa.com/authorised/, and avoid dealing with firms not permitted by AFSA to carry out the activities they market.

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 1,400 firms from 64 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 that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz

Dr Iain Saville was a member of the Board of Directors of the AFSA from April 2017 till December 2021. His exceptional performance in this service was invaluable. He was with the AFSA from its establishment as the financial regulator of the Astana International Financial Centre in the role of a member of the Board of Directors and member of all its committees (Audit and Risk Committee, Nomination and Remuneration Committee and Legislative Committee).

The achievements of the AFSA are due in large part to Dr Saville’s leadership, hard work and commitment to quality.

President of the Republic of Kazakhstan Kassym-Jomart Tokayev signed the Law of the Republic of Kazakhstan “On amendments and additions to certain legislative acts of the Republic of Kazakhstan on the regulation and development of the insurance and the securities markets, as well as the banking activities.”

The amendments cover such Laws as those governing “Insurance Activities”, “Securities Market”, “State Regulation, Control and Supervision of the Financial Market and Financial Organisations”, “State Property”, “The National Bank of the Republic of Kazakhstan”, and “Payments and payment systems.”

The law will provide opportunities to expand the activities of insurance and re-insurance companies that are AIFC participants. It will also provide opportunities for AIFC participant-banks to open correspondent accounts in second-tier banks in Kazakhstan.