A high-level meeting involving financial regulators of AIFC’s independent jurisdiction, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, as well as a number of international financial organizations was held on December 3, 2021 at the AIFC premises.

The meeting was an important step towards the implementation of the Joint Statement adopted at the meeting of the Consultative Group of the Heads of Central Asian States, held on August 6 this year in Turkmenbashi city (Turkmenistan). The Joint statement underlined the importance of joint development of the financial system and attraction of investment to the region. AIFC was identified as an economic platform connecting the countries of the Central Asian region, as well as with foreign investors.

The purpose of the Meeting of Regulators was to develop regional cooperation in the area of financial supervision and exchange of experience in the regulation of the stock, banking and insurance markets. The event will promote the role of the financial sector in supporting the region’s economic development.

The Governor of AIFC Kairat Kelimbetov noted the importance of mutual understanding and strengthening regulatory cooperation at the regional level.

“The analysis of the impact of coronavirus pandemic and the crisis caused by it showed the need to integrate economies and strengthen cross-border interaction. This also applies to the Central Asian region, where deepening economic ties can give new impetus to the development of all five countries. The AIFC platform can provide access for neighboring countries to the world capital markets to attract investment, with countries to be able to cooperate more actively with foreign partners to implement new projects”.

“The development of regulatory cooperation between Central Asian countries can contribute to reducing the fragmentation of regulatory requirements in support of cross-border economic initiatives, for example in the field of financial technologies, payment systems, issuance of Islamic securities, green financing, etc. A region with close economic ties and rapidly developing markets will be even more interesting to investors, Mukhtar Bubeyev, the Chief Executive Officer of the Astana Financial Services Authority said.

Following the meeting, the financial regulators of Central Asia adopted a joint declaration, confirming the possibility of using the potential of the AIFC in order to jointly develop the financial system, support cross-border economic initiatives in the field of financial services, attract investment to the region and strengthen cooperation between regulators in accordance with the spirit of the Joint Statement. The parties also agreed to create a Group of Central Asian Regulators and hold its meetings annually on the basis of the AIFC. 

 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 authorization, registration, recognition and supervision of financial firms and market institutions in the AIFC. www.afsa.kz 

 Over 1,100 companies from 60 countries are registered in AIFC. These companies provide banking, insurance, investment, professional and other services. The range of financial services offered at 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. AIFC participants from Central Asian states are mainly represented in the sectors that are unrelated to financial activities.

 Astana International Financial Centre was established on the initiative of the First President of the Republic of Kazakhstan – Elbasy Nursultan Nazarbayev as part of the National Plan “100 steps to implement five institutional reforms”. On July 2, 2020, as part of the meeting of the AIFC Management Council, the Center’s Development Strategy was adopted until 2025. According to it, the vision of the AIFC is to become a leading international financial centre in the region, including Central Asia, the Caucasus, the EAEU countries, Western China, Mongolia and Eastern Europe.

The mission of AIFC is to promote the sustainable long-term development of the region. As the Head of State noted, K.Tokayev, “The AIFC with its unique capabilities can act as a universal platform connecting the countries of the region.” aifc.kz 

The ceremony was conducted in recognition of Lady Judge’s service as the first Chair of the AFSA Board of Directors and her contribution to the development of AIFC.

Lady Judge was an American British lawyer, the commissioner of the US Securities and Exchange Commission, Chairperson of CIFAS, the United Kingdom’s fraud prevention service. Lady Barbara Judge was also a Deputy Chairperson of the UK Financial Reporting Council and a non-executive director of a number of other public and private tech companies. She was the first Chairperson of the Board of Directors of the AFSA, serving from 2018 to 2019.

Mr. Marc Holtzman, Chairman of the AFSA Board of Directors officiated the ceremony with participation of the AFSA management team.

IX Congress of Financiers of Kazakhstan has taken place today.

In his address to the Congress, President K.J.Tokayev noted the need to develop the domestic stock market, including AIFC, which should become one of the important sources of financing for the country’s economy.

Governor of the National Bank of the Republic of Kazakhstan Erbolat Dossaev in his address to the delegates of the Congress highlighted that the expansion of access for AIFC participants to the Kazakh market will help attract investments to the country and ensure further development of the financial market of Kazakhstan.

A separate session of the Congress was devoted to regulatory activities “Regulation and Supervision of the Financial Sector: a look into the future”, which was attended by Mukhtar Bubeyev, CEO of Astana Financial Services Authority. The event recording is available here.

According to M. Bubeyev, the Act of Currency Regulation, which had been recently signed between the regulators of Kazakhstan, gives more clarity to residents of the Astana International Financial Center. As it was not clear to AIFC organisations whether they could provide services to Kazakhstani clients, in what currency as well as what is allowed and what isn’t.

As M.Bubeyev noted, AIFC is committed to assist the financial system of Kazakhstan to develop further.

“This Act focused on investment banking, asset management and insurance, as it seems to us that these sectors can supplement the development of the financial market in Kazakhstan,” M. Bubeyev summarized.

The National Bank of Kazakhstan, the Agency for Regulation and Development of Financial Market of Kazakhstan and the Astana International Financial Centre (AIFC) have reached an agreement on currency regulation and AIFC Participants’ terms of access to financial market of Kazakhstan.

The Governor of the National Bank of Kazakhstan Mr. Yerbolat Dossayev, Chairperson of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market Ms. Madina Abylkassymova and the Governor of the Astana International Financial Centre Mr. Kairat Kelimbetov have signed the relevant joint document.

The agreed framework governs the terms and procedures for foreign currency transactions in AIFC, issues governing the provision of financial services by AIFC participants and their access to the financial infrastructure of Kazakhstan.

The Rules define a list of financial services, which AIFC participants will be able to provide to Kazakhstan’s residents, including in the banking and insurance areas, as well as the securities market.

The Act takes effect on 1 December 2021.

For more detailed media information please contact

The Astana Financial Services Authority (AFSA) is delighted to invite you to join the Policy Town Hall meeting, to be held on 12 November 2021 from 11:00 to 12:30 via Zoom.

This Policy Town Hall would be dedicated to the discussion of the practical aspects of the proposed updates to the AIFC legislation which were published for public consultation both in AIFC and AFSA websites. The AFSA aims to get suggestions from the market on the proposed updates, proposals and amendments, as well as, answer to the questions of the audience. There will be no formal votes or decisions taken at this meeting, however, AFSA will consider all suggestions and additions.

AGENDA
Presentations
– Update on regulatory policy initiates
Ishaq Burney, Chief Legal Officer, AFSA
– Аmendments to the AIFC AML Framework
Aliya Zhumabek, Senior Associate of the Legal Advisory Division, AFSA
– Proposed AIFC Multilateral and Organised Trading Facilities Framework
Ainur Alpys, Senior Associate of the Policy and Strategy Division, AFSA
– Amendments to AIFC Banking Business Rules and proposed Captive Finance regime
Ainur Alpys, Senior Associate of the Policy and Strategy Division, AFSA
– Q&A session

You are kindly invited to REGISTER ONLINE by 9 AM 12 November 2021.
All questions can be directed to [email protected]. 

Astana Financial Services Authority (AFSA) and Kazakhstan’s Agency on Financial Monitoring (AFM) have agreed to work together in anti-money laundering, combatting the financing of terrorism, and proliferation of weapons of mass destruction (AML/CFT). The parties will exchange information, including confidential, to effectively perform the regulatory objectives of the AFSA in the related field.  

AFSA and AFM agreed to cooperate based on acknowledging international standards (the FATF Recommendations), guidelines and assessment methodology of the Eurasian group on combating money laundering and financing of terrorism (EAG) and the Financial Action Task Force (FATF).

This cooperation reflects AFSA’s commitment to ensure the high adherence of the Authority’s   AML/CFT regulation to standards and recommendations of FATF.

The Chairman of the Financial Monitoring Agency of the Republic of Kazakhstan Mr. Zhanat Elimanov and the CEO of AFSA Mr. Mukhtar Bubeyev have taken part in the signing of the agreement.

Mr. Zhanat Elimanov said, “Today we have gathered to sign a memorandum aimed at taking joint measures in the field of combating money laundering and terrorist financing. In the future, Kazakhstan will have to pass the EAG Mutual Evaluation for compliance with the FATF international standards. During the assessment, personal attention will be paid to the activities of the AIFC, which has no analogues among the EAG member countries. Meanwhile, the Agency is ready to provide all the necessary assistance and support in this matter. “

Mr. Mukhtar Bubeyev said, “At the heart of this agreement is the objective to work together and share critical information that will help both AFM and AFSA in preventing and combatting money laundering in AIFC and in Kazakhstan in general. This can be achieved by joining our efforts and ensuring the compliance of the Republic of Kazakhstan with the FATF recommendations and standards.”

Nur-Sultan, Kazakhstan – virtual World Investor Week will be held in the AIFC from 4 to 8 October 2021.

This year the central theme of the World Investor Week in AIFC is “Promotion of investment intelligence”. The main objectives of the event are: (1) informing about investment opportunities and tools; (2) raising awareness about consumer protection and investment risks; (3) facilitating financial education and financial literacy through informing about investing smart; (4) discussion of innovations in financial markets. Thematically, the world investor week at AIFC will be devoted to understanding the basics of investing, smart investing, digital assets, sustainable finance, fraud and scams prevention, financial literacy and education.

World Investor Week is held annually by regulators in 80 countries all over the world under the auspices of the International Organization of Securities Commissions (IOSCO) – an international organisation that unites world’s securities regulators. IOSCO members regulate more than 95% of the world’s securities market in more than 115 jurisdictions. Hosting of the World Investors Week reflects AIFC’s adherence to the IOSCO standards on consumer protection in financial services. The organizer of virtual World Investor Week in the AIFC is the Astana Financial Services Authority (AFSA).

In 2021 the AIFC is conducting the World Investor Week 2021 for fourth consecutive year. This year’s events will be held in the format of webinars, live sessions on social networks and online panel sessions. The speakers of the events will be experts from AIFC, as well as domestic and foreign experts in the field of stock market, consumer and investor protection, financial technology, green and Islamic finance, financial instruments of the securities market, as well as continuing professional development.

More details on the event, agenda and the registration link are available here.

Nur-Sultan, Kazakhstan – The Astana Financial Services Authority (“AFSA”) informs that a company named “C.Invest Hedge Fund” released information in the public domain which claimed that the Company was undertaking authorised activities in regard to Crypto-Currency Trading, including but not limited to, offering advice on investments, managing investments and dealing in investments as a principal and an agent.

As this information was released in the public domain, AFSA considers it appropriate to set the public record straight to protect the interests of the Astana International Financial Centre (“AIFC”) community and members of the public.

C.INVEST HEDGE FUND IS NOT AUTHORISED BY THE ASTANA FINANCIAL SERVICES AUTHORITY TO CONDUCT ANY REGULATED ACTIVITIES.

AFSA is aware that the following claims were released in the public domain on the website cinvest.kz:

• “C.Invest is a member of the Astana InternationaI Financial Centre”: AFSA clarification – С.Invest is not a participant of the AIFC. C.Invest is not authorized to carry out any Regulated Activities;
• “C.Invest is a Hedge Fund”: AFSA clarification – there is no fund registered in the AIFC with the name “C.Invest” or any authorised person associated with a “C.Invest”;
• Profits of 5-30% per month or 160% per annum may be expected and Guaranteed Returns may be expected: AFSA clarification – AFSA is unable to verify the veracity of these claims.

C.Invest Hedge Fund has, as instructed by AFSA, removed its website cinvest.kz from the public domain.

Members of the public who may have become aware of information released by C.Invest Hedge Fund are advised to take note of this release. AFSA advises consumers to only deal with companies appropriately authorised to provide such services and therefore properly regulated in any jurisdiction.

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

AFSA advises consumers to exercise caution when dealing with firms claiming links with the AIFC who are soliciting investment in Cryptocurrencies. The message from AFSA is for consumers to be careful, and only invest with authorised firms. 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 important 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.