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]
World Bank and AFSA host Regional Conference on Disaster Risk Financing and Insurance in Central Asia
The World Bank, in collaboration with the Astana Financial Services Authority (AFSA), is hosting a regional conference on Disaster Risk Financing and Insurance (DRFI) in Central Asia to discuss solutions the region can adopt to be financially prepared for the mounting disaster risks.
Disasters, both natural and man-made, pose significant threats to communities, economies, and infrastructure worldwide. Central Asia, comprising Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan, is particularly vulnerable due to its intense seismic risk and climatic hazards. The World Bank estimates that earthquakes alone can cause annual losses of $2 billion in the region, affecting approximately 4 million people each year. However, due to the climate change, floods are becoming a major risk factor for the Central Asian economies, with the extreme event losses ranging between 1-6 percent of GDP. Effective disaster risk financing strategies are essential to mitigate these financial impacts and ensure timely recovery efforts.
“Disaster risk financing and insurance are crucial for the resilience of Central Asian countries. Today Central Asia faces a financial shortfall in disaster preparedness. Tajikistan and Uzbekistan alone could experience gaps of up to $1.5 billion and $15 billion in case of large disasters, respectively. With shallow insurance markets, these gaps may require budget reallocation, borrowing, or donor aid, likely crowding out much-needed spending on education and healthcare or leaving critical infrastructure unrepaired,” said Indu John-Abraham, Operations Manager, World Bank Regional Office for Central Asia.
The conference will feature a diverse group of participants, including government representatives from Central Asian countries: Ministries of Finance, Debt Management Offices, and Ministries of Disaster Management and Planning, central banks and insurance regulators, private sector insurance companies and credit institutions, academia, and international organizations working on disaster risk finance and insurance in the region.
“This timely initiative, co-hosted with the World Bank, brings together public and private sectors to identify effective DRFI solutions and financial protection strategies for natural disasters in Kazakhstan and Central Asia. At AIFC, we have established an efficient insurance regulation framework to accommodate tailored disaster insurance programs. Additionally, our fund framework allows governments to form disaster funds for immediate relief and reconstruction. Our regulatory framework also allows issuing catastrophe bonds through AIFC and may offer another way to spread the risk of large-scale disasters across multiple insurers or investors,” saidAFSA Chief Executive Officer Evgeniya Bogdanova.
During the event, participants had the opportunity to share experiences, best practices, and innovative approaches in disaster risk financing. The goal is to identify viable solutions to meet the growing costs of disasters, shorten recovery times, and rebuild better after disasters.
The conference is organized with support from the Risk Finance Umbrella Program of the World Bank, with contributions from the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO), Swiss State Secretariat for Economic Affairs (SECO), and United States Agency for International Development (USAID).
Contacts:
World Bank: Shynar Jetpissova at [email protected], +77015242844
AFSA: Dina Teltayeva at [email protected], + 77017654010
About the World Bank:
The World Bank is a vital source of financial and technical assistance to developing countries around the world. Our mission is to reduce poverty on a livable planet and support development by providing loans, grants, and expertise to help countries implement projects and programs that improve economic prospects and quality of life for people in developing countries.
About AFSA:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC). AFSA is committed to establishing an environment that delivers fair and transparent financial and capital markets, in which individuals and institutions act with integrity.
AFSA extends the consultation period on the proposed AIFC Providing Money Services framework. The new deadline for providing comments is 31 December 2024.
The Astana Financial Services Authority (AFSA) has extended a deadline for a Consultation Paper on Providing Money Services (PMS) framework until 31 December 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
The initial consultation period was set until 23 October 2024. However, given the importance of the framework and potential consequences of certain policy measures proposed to the industry, AFSA expects to collect more feedback from a wider number of stakeholders and, therefore, decided to extend the consultation period until the end of December 2024.
Specifically, the framework aims to promote innovations in the AIFC by proposing to use digital assets for payment purposes within the perimeter of money services providers. If accepted, this approach might have wider implications for providing financial services with digital assets and will result in the expanding of the regulatory perimeter of AFSA by embracing more types of financial services (e.g. the proposed requirement on digital asset self-custody service providers to be licenced in the AIFC). Another related proposal is on defining the scope of the activity of Providing Money Services in relation to Digital Assets, as it aims to cover money services related to both fiat and digital assets.
Another proposal where AFSA considers that feedback would contribute for the framework is where the paper proposes to extend the scope of money services beyond the existing services and thus offers to include the following: acquiring of payment transactions[1], payment initiation[2], account information[3], providing or operating of a payment account and arranging of currency exchange[4]. In addition to the above, in the proposal we offer to distinguish what constitutes providing money services and what doesn’t as this distinction has raised multiple questions and requests for clarification.
However, to have a comprehensive and holistic view, we suggest that market participants review the entire framework and get acquainted with all public consultation questions as per the link below.
The proposals in this paper will be of interest to current or potential applicants, who are seeking to engage in money services activities from the AIFC, ancillary service providers and professional advisors.
During the public consultation, both existing and potential AIFC participants, as well as other stakeholder are invited to comment on the questions outlined in the Consultation Paper.
AFSA prefers to receive comments by email at [email protected].
The Consultation Paper may be accessed via this link:https://orderly.myafsa.com/articles/consultation-paper-afsa-f-ce-2024-0001-from-23-september-2024-on-on-providing-money-services-framework
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 3300 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] Facilitating transactions on behalf of merchants, allowing them to accept payment methods like credit or debit cards from customers (e.g. accepting payments for online shopping etc.)
[2] An online service that is usually more user-friendly and/or more convenient provided by a fintech firm that lets a customer start a payment from their account at another financial service provider (e.g. bank)
[3] A service that allows to aggregate financial information (account balance, transaction history etc.) from several financial services providers (e.g. banks)
[4] Facilitating for clients currency exchange services by engaging entities that are permitted to provide such currency exchange services under the AIFC Rules on Currency Regulation and Provision of Information.
AFSA extends the consultation period on the proposed AIFC Providing Money Services framework. The new deadline for providing comments is 31 December 2024.
The Astana Financial Services Authority (AFSA) has extended a deadline for a Consultation Paper on Providing Money Services (PMS) framework until 31 December 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
The initial consultation period was set until 23 October 2024. However, given the importance of the framework and potential consequences of certain policy measures proposed to the industry, AFSA expects to collect more feedback from a wider number of stakeholders and, therefore, decided to extend the consultation period until the end of December 2024.
Specifically, the framework aims to promote innovations in the AIFC by proposing to use digital assets for payment purposes within the perimeter of money services providers. If accepted, this approach might have wider implications for providing financial services with digital assets and will result in the expanding of the regulatory perimeter of AFSA by embracing more types of financial services (e.g. the proposed requirement on digital asset self-custody service providers to be licenced in the AIFC). Another related proposal is on defining the scope of the activity of Providing Money Services in relation to Digital Assets, as it aims to cover money services related to both fiat and digital assets.
Another proposal where AFSA considers that feedback would contribute for the framework is where the paper proposes to extend the scope of money services beyond the existing services and thus offers to include the following: acquiring of payment transactions[1], payment initiation[2], account information[3], providing or operating of a payment account and arranging of currency exchange[4]. In addition to the above, in the proposal we offer to distinguish what constitutes providing money services and what doesn’t as this distinction has raised multiple questions and requests for clarification.
However, to have a comprehensive and holistic view, we suggest that market participants review the entire framework and get acquainted with all public consultation questions as per the link below.
The proposals in this paper will be of interest to current or potential applicants, who are seeking to engage in money services activities from the AIFC, ancillary service providers and professional advisors.
During the public consultation both existing and potential AIFC participants, as well as other stakeholder are invited to comment on the questions outlined in the Consultation Paper.
AFSA prefers to receive comments by email at [email protected].
The Consultation Paper may be accessed via this link:https://orderly.myafsa.com/articles/consultation-paper-afsa-f-ce-2024-0001-from-23-september-2024-on-on-providing-money-services-framework
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 3300 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] Facilitating transactions on behalf of merchants, allowing them to accept payment methods like credit or debit cards from customers (e.g. accepting payments for online shopping etc.)
[2] An online service that is usually more user-friendly and/or more convenient provided by a fintech firm that lets a customer start a payment from their account at another financial service provider (e.g. bank)
[3] A service that allows to aggregate financial information (account balance, transaction history etc.) from several financial services providers (e.g. banks)
[4] Facilitating for clients currency exchange services by engaging entities that are permitted to provide such currency exchange services under the AIFC Rules on Currency Regulation and Provision of Information.
AFSA introduces dedicated regime for low-risk financial services firms
The Astana Financial Services Authority has introduced a dedicated regime for low-risk financial services firms in the Astana International Financial Centre (AIFC). The new framework, grounded in AFSA’s risk-based regulation approach, addresses the unique needs of boutique financial firms, offering them a streamlined regulatory process. It recognises that businesses with limited scope and complexity do not pose the same risks as larger entities. By easing governance and operational requirements, AFSA aims to support the growth of these firms while maintaining robust oversight. The regime is designed to reduce the regulatory burden without compromising financial integrity, ensuring a more efficient, competitive financial ecosystem within the AIFC.
The proposed regime sets criteria for identifying entities eligible to be classified as low-risk financial services firms. One of the key regulatory reliefs under this regime is the flexibility in forming the Governing Body. For such firms, Controllers (natural persons), Senior Executive Officers, either individually or jointly with Controllers and/or other Approved Individuals, may fulfil the role of the Governing Body. Additionally, the mandatory appointment of a Finance Officer is waived for entities offering advisory and arranging services, provided they have an adequate accountancy arrangement in place. The regime further allows the outsourcing of Controlled Functions[1], thereby permitting the firms to outsource certain Controlled Functions to third-party service providers.
The proposed regime for low-risk financial services firm is applicable for both new applicants and existing Authorised Firms falling under the scope of this regime. The existing Authorised Firms seeking to be classified as low-risk financial services firms are required to contact the relevant Supervision Relationship Manager.
The Policy Statement on the approach of the Astana Financial Services Authority to low-risk financial services firms, has been published on the AFSA 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 3200 firms from 82 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 function of an Authorised Person that may only be carried out by an Approved Individual.
AFSA introduces amendments to Multilateral and Organised Trading Facilities rules
The Astana Financial Services Authority has introduced Amendments to the AIFC Multilateral and Organised Trading Facilities Rules to enhance the regulatory regime regarding safeguards and to offer Multilateral and Organised Trading Facilities the capacity to facilitate secondary trading across a broad spectrum of financial instruments.
In accordance with the AFSA`s gradual approach to frameworks for tokenised financial instruments, the regulatory regime has been enhanced to allow Multilateral and Organised Trading Facilities (MTF/OTF) to facilitate secondary trading of Qualified Investment Tokens.
The existing regulatory regime for MTF/OTF continues to apply to platforms dealing in Qualified Investment Tokens.
These enhancements, including amendments to the AIFC Multilateral and Organised Trading Facilities Rules, AIFC Conduct of Business Rules and AIFC Glossary, are published on the AIFC website and will come into force on 18 October 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 3,200 firms from 82 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 enacts AIFC Investment Token Framework
The Astana Financial Services Authority has enacted the AIFC Investment Token Framework to introduce a comprehensive regulatory regime that governs trading of Investment Tokens within the Astana International Financial Centre (AIFC).
In line with AFSA’s policy approach, the regulatory regime for Investment Exchanges and Clearing Houses continues to apply to platforms that trade and/or clear Investment Tokens.
The regulatory framework now includes Derivative Tokens, alongside Security Tokens and Environmental Instrument Tokens, all unified under the term “Investment Token.”
The Investment Token Framework aims to provide clarity, legal certainty, and investor protection in the field of tokenised financial instruments, fostering a secure and well-regulated environment for businesses and investors.
The Investment Token Framework has been developed by introducing the amendments to the AIFC Financial Services Framework Regulations, AIFC Authorised Market Institution Rules, AIFC Conduct of Business Rules, AIFC Fees Rules and AIFC Glossary, which are published on the AIFC website and will come into force on 18 October 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 3,200 firms from 82 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 enacts AIFC Tokenised Commodities framework
The Astana Financial Services Authority (AFSA) has enacted the AIFC Tokenised Commodities framework.
The framework is focused on trading of Commodity Derivative Tokens and Environmental Instrument Tokens, which are part of the Investment Token scope, on Exchange platforms. It also covers the issuance of Commodity stablecoins that may be traded on Digital Asset Trading Facilities.
The new regulatory regime on tokenised commodities builds on AFSA’s efforts to create a strong infrastructure for both financial and commodities markets. By extending its regulatory perimeter to include tokenised instruments linked to commodities, the regime promotes market innovation, facilitates trading of new types of instruments, and encourages broader participation on digital asset and investment exchange platforms. This move further strengthens the AIFC’s position as a leading hub for fintech and commodities trading.
The framework consists of the amendments to the following AIFC Acts:
The amendments to the Acts listed above come into effect on 18 October 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 3,200 firms from 82 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]
