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.

Astana Financial Services Authority (AFSA) and Central Bank of Hungary (Magyar Nemzeti Bank – the MNB) signed a Memorandum of Understanding for cooperation in supervision of alternative investment fund managers (AIFM) under the EU’s AIFM directive. This MoU sets the framework conditions for AIFC fund managers to market and manage alternative investment funds, such as hedge funds, private equity and real estate funds to professional investors in Hungary, as well as for Hungary to manage or market alternative investment funds in the AIFC.

In view of growing globalization of the world’s financial markets and the increase in cross-border operations and activities of managers of alternative investment funds formalization of cooperation between AFSA and MNB will allow mutual assistance in the supervision of Managers of alternative investment funds, their delegates and depositaries that operate on a cross-border basis. Through the MoU, supervisory authorities expressed their willingness to cooperate with each other in the interest of fulfilling their respective regulatory mandates, particularly in the areas of investor protection, fostering market and financial integrity, and maintaining confidence and financial stability.

Razaak Busari, Head of Authorisations Division at Astana Financial Services Authority was appointed as member of the Board of the Eurasia Chapter of ACAMS (Association of Certified Anti-Money Laundering Specialists), which was officially launched on 23 June 2021 with the support of the European Bank for Reconstruction and Development (EBRD). The Chapter bringing together Certified Anti-Money Laundering Specialists from Kazakhstan, Armenia, Azerbaijan, Georgia, Kyrgyzstan, Moldova and Ukraine.

CAMS (Certified Anti-Money Laundering Specialist) is a global gold standard in AML certifications, graduated more than 40,000 CAMS professionals worldwide.

The ACAMS Eurasia Chapter as ACAMS Community representatives will provide a platform for continuous development and networking among AFC (Anti-Financial Crime) and Sanctions professionals in the region; encourage participation in the anti-financial crime community to share professional experience and best practices and focus and augment ACAMS’ overall anti-financial crime education and training efforts.

More information about ACAMS can be found on their official website www.acams.org.

Nur-Sultan, Kazakhstan – the Astana Finance Days, annual conference of AIFC, highlighted promising perspectives for fund management industry of AIFC. Representatives of Astana Financial Services Authority (AFSA), European Securities and Markets Authority (ESMA), as well as fund managers from AIFC and Luxembourg have contributed to the discussion concerning the AIFC – EU Perspectives of Alternative Investment Funds on margins of the Astana Finance Days conference.

AIFC fund managers might take advantage of EU’s market of alternative investments funds. More specifically, AIFC fund managers may access EU market for alternative investments funds either through national private placement regimes or take advantage of existing passport regimes through securing proper arrangement with EU based fund and its manager. The discussion also covered practical aspects of fund domiciles in EU, which requires either setting up of own fund or recruiting of existing fund managers. EU has not yet activated third country passports, yet fund managers in AIFC and EU see mutually beneficial opportunities in the area of alternative investment funds.

AIFC fund regime offers tax exemptions both for investment business companies and their clients. As a result, almost doubling of investments under management since the start of 2021 has been observed, while the number of registered investment funds tripled from the start of 2021. AIFC has seen a significant increase over second quarter of 2021 in interest from fund managers considering establishing funds in the AIFC both from private and public sectors.

AFSA in coordination with the ESMA has reached agreements with securities regulators of EU concerning cooperation in supervision of alternative investment fund managers (AIFM) under the European Union (EU) AIFM directive. These agreements set the framework conditions and represent new opportunities for AIFC fund managers to market and manage alternative investment funds, such as hedge funds, private equity and real estate funds to professional investors in relevant countries of EU, as well as for EU firms to manage or market alternative investment funds in the AIFC.

Mukhtar Bubeyev, Chief Executive Officer of the AFSA, commented: “I believe that AIFC is a very promising destination for fund management industry. This sector is integral to financial markets of any successful financial centre and the AIFC has an aspiration of becoming a leading hub in Eurasia for financial services. AIFC naturally leverages its geographic position to provide international investors with access to markets in Central Asia and Eurasia. Our recent agreements with EU securities regulators give new opportunities for AIFC based fund managers to access EU markets”.