The Astana Financial Services Authority (AFSA) has introduced comprehensive amendments to the Anti-Money Laundering, Counter-Terrorist Financing, and Sanctions Framework within the Astana International Financial Centre (AIFC), effective January 1, 2025.

These amendments have been meticulously designed to enhance existing norms by incorporating necessary clarifications and eliminating ambiguities that have emerged from the practical application of the rules, as addressed through numerous requests from the AIFC Participants and analysed outcomes of inspections and thematic reviews of the AIFC Participants over the recent years.

At the core of these amendments are revisions to the AIFC Anti-Money Laundering, Counter-Terrorist Financing, and Sanctions Rules (AML Rules):

• New Annex to AML Rules contains AML/CFT-specific abbreviations and definitions like “sanctions violation”[1], “watchlists”[2], “geographic area (state or territory) considered to be an area of high risk”[3].
• Key definitions such as “Relevant Person”[4], “Money Laundering Reporting Officer (MLRO)”[5], and “Know Your Employee”[6] have been clarified.
• Additionally, the reference to the AML Practical Guidance will specify economic and financial unilateral sanctions regimes applicable in the AIFC (other than UNSC sanctions)[7].

The revisions also bring the detailed description regarding the application of the Risk-Based Approach, enhancing the processes surrounding Customer Risk Assessment and Customer Due Diligence (CDD):

• Noteworthy is the outright prohibition of reliance on third parties for ongoing CDD monitoring[8], reinforcing accountability among the AIFC Participants.
• Further clarifications have been established concerning the submission of Suspicious Transaction Reports[9] and Threshold Transaction Reports[10], further promoting transparency in reporting obligations.
  In aligning the definition of MLRO with the necessity for independence from senior management, the amendments aim to fortify the position’s integrity and effectiveness:
• The revised definition will ensure that the MLRO operates in conditions free from undue influence or conflicts of interest. Thus the MLRO should not combine the role of the business owner, shareholder or CEO/executive management.
• To accommodate compliance with these new stipulations, a transitional period of six months will be granted for existing firms where the functions of an MLRO overlap with senior executive management roles, allowing sufficient time for alignment with the new requirements while implementing essential safeguards.

Moreover, consequential amendments have been made to several guidance documents, including the AML Practical Guidance, the Guidance on the Rules of Internal Control, and the Guidance on Customer Due Diligence[i]:

• These documents have been revised to incorporate clarifications on risk scoring and Business Risk Assessment, customer risk profiles, CDD, relying on third-party consultants, MLRO, and etc.
• The updates have been designed to streamline compliance procedures without introducing completely new obligations, reinforcing the AFSA’s dedication to facilitating a practical and effective compliance environment.

Collectively, these updates serve to align the legislative framework with international best practices, significantly enhancing the efficacy of AML/CFT measures within the AIFC. The AFSA remains committed to fostering a robust culture of compliance and encourages all stakeholders to review the updated documents, which are now accessible on the AFSA website.

Relevant amendments can be found in Practical Guidance to AIFC Anti-Money Laundering and Counter – Terrorist Financing Framework (“Practical Guidance”); Guidance (Requirements) applicable to the Rules of Internal Control for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism for financial monitoring entities of the Astana International Financial Centre (the Relevant Persons) (“Guidance on the Rules of Internal Control”); Guidance (Requirements) for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism, applicable to the Customer Due Diligence in cases when the Astana International Financial Centre Participants (the Relevant Persons) establish non-face to face business relations with customers (“Guidance on CDD”), AIFC General Rules and Anti-Money Laundering And Counter-Terrorist Financing Rules.

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]

[1] Sanctions violation is an action aimed the violation, evasion or circumvention of EU, US, or UK sanctions. This definition is provided for general understanding, while the official definition can be found in the Annex 1 to the AML Rules.

[2] Watchlists are a set of information on individuals, organisations, and countries that deserve special attention and appropriate actions. This definition is provided for general understanding, while the official definition can be found in the Annex 1 to the AML Rules.

[3] Geographic areas considered to be an area of high risk include countries identified by the FATF as having strategic AML/CFT deficiencies, those under sanctions or similar measures by UN, EU, US or UK, jurisdictions vulnerable to corruption, those with ties to terrorist activities, and known tax havens. This definition is provided for general understanding, while the official definition can be found in the Annex 1 to the AML Rules.

[4] The definition of the Relevant Person now formally includes FinTech Lab Participants. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary and Rule 1.2.(a) of the AML Rules.

[5] The new definition of the MLRO envisages options when MLRO function is carried out solely and as a special function delegated by a Compliance Officer. This definition is provided for general understanding, while the official definition can be found in Rule 13.1.1. of the AML Rules.

[6] Know Your Employee envisages adequate screening procedures to ensure high standards when hiring employees. This definition is provided for general understanding, while the official definition can be found in the Annex 1 to the AML Rules.

[7] Such regimes include unilateral sanctions imposed by the EU, US, and UK. This definition is provided for general understanding, while the official definition can be found in section 8.4. of the AML Practical Guidance.

[8] A Relevant Person must not rely on third parties to provide ongoing monitoring CDD procedures for its customers and counterparties on AML and sanctions matters. More details can be found in Rule 9.1.7 of the AML Rules.

[9] A Suspicious Transaction Report is a report in a prescribed format regarding suspicious activity or suspicious transactions made by Relevant Persons to the Agency of Financial Monitoring. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

[10] A Threshold Transaction Report is a report about a transaction above defined thresholds. This definition is provided for general understanding, while the official definition can be found in the Rule 13.7.2. of the AML Rules.

[i] Practical Guidance to AIFC Anti-Money Laundering and Counter – Terrorist Financing Framework (“Practical Guidance”); Guidance (Requirements) applicable to the Rules of Internal Control for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism for financial monitoring entities of the Astana International Financial Centre (the Relevant Persons) (“Guidance on the Rules of Internal Control”); Guidance (Requirements) for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism, applicable to the Customer Due Diligence in cases when the Astana International Financial Centre Participants (the Relevant Persons) establish non-face to face business relations with customers (“Guidance on CDD”).

Considering the developments in the AIFC asset management sector and insights gained during the supervision of the regulated community the Astana Financial Services Authority (AFSA) has enacted the Amendments to the AIFC Asset Management Framework. This step is to further enhance the legislative framework governing investment funds or collective investment schemes in the AIFC and activities of the asset and fund managers operating in or from the AIFC.

AFSA has expanded the list of Specialist Funds available in the AIFC, to include Credit Funds[1], Digital Asset Funds[2], Exchange Traded Funds[3], Money Market Funds[4], Investment Token Funds[5] and Qualified Investment Token Funds. Due to the development of the AIFC asset management sector and the assessment of market needs, AFSA recognises the necessity to broaden the range of Specialist Funds available in the AIFC. This facilitates the diversification of investment options, empowering investors to tailor portfolios to specific sectors and strategies. Offering a comprehensive list of Specialist Funds not only gives a competitive advantage, but also aligns with global investment trends, demonstrating regulatory adaptability.

AFSA also enhanced the Venture Capital Fund framework to attract greater participation in the venture capital market by introducing amendments that broaden opportunities for investors. Currently, Venture Capital Funds are Exempt Domestic Funds focused on equity investments in early-stage unlisted businesses. The changes include allowing Venture Capital Funds to operate as Foreign Funds for Professional Clients, thereby attracting international investors; expanding investment options beyond equity to include securities and units of early-stage unlisted companies; and enabling funds to adopt a Master-Feeder structure[6] for greater diversification and efficiency.

The AIFC CIS Rules currently apply to Domestic Fund Managers, Foreign Fund Managers, and Centre Participants marketing Collective Investment Schemes in or from the AIFC. Since there has been confusion among stakeholders regarding whether Centre Participants must hold a license, to address this, the CIS Rules have been amended to clarify that Centre Participants refer to individuals or entities authorised by the AFSA to conduct relevant Regulated Activities.

The relevant amendments to the AIFC General Rules, AIFC Collective Investment Scheme Rules and Glossary are published on the AIFC website and will come into force on 1 January 2025.

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]

[1] A Credit Fund is an investment vehicle that pools investor capital to provide financing through debt instruments, such as loans, bonds, and other fixed-income securities. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

[2] A Digital Asset Fund is an investment vehicle that pools capital from investors to allocate into digital assets. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

[3] An Exchange Traded Fund is a type of investment fund that is traded on stock exchanges, similar to stocks. It holds a diversified portfolio of assets, such as stocks, bonds, commodities, or other securities, and is designed to track the performance of a specific index, sector, or asset class. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

[4] A Money Market Fund is a type of investment fund that invests in short-term, low-risk, and highly liquid instruments. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

[5] An Investment Token Fund or Qualified Investment Token Fund is a Fund whose main purpose is investing in Investment Tokens or Qualified Investment Tokens respectively. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

[6] A Master-Feeder Structure is an investment fund arrangement where the “Master Fund” manages core investments and trading strategies, while one or more “Feeder Funds” gather capital from investors and allocate it to the Master Fund. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

The Astana Financial Services Authority (AFSA) has introduced enhancements to the Derivatives[1] framework in the Astana International Financial Centre (AIFC). The enhancements, grounded in benchmarking on the best practices and the analysis of feedback received from the market, offers some refinements to the framework and introduces enhancements to conduct requirements for Derivatives transactions.

The amendments aim to establish a clear regulatory framework for Derivatives traded on Authorised Market Institutions[2] and Multilateral/Organised Trading Facilities (MTF/OTF)[3], ensuring effective pricing, settlement and operations, applying market conduct requirements from the AIFC Market Rules, and prohibiting Market Manipulation and Market Sounding.

Given the elevated risks associated with Derivatives operations, the framework establishes the following conduct requirements to protect Clients in Derivatives transactions:

• Requiring risk warning on marketing and other communications to ensure Clients are aware of the high risks associated with Derivatives transactions;
• Mandating additional disclosures in the key features document to ensure Clients understand the nature, risks, and essential characteristics of Derivative instruments and operations. This information, along with a risk warning, must be included in the key features document provided to Clients, enabling them to make an informed decision about proceeding with the service;
• Setting limits on Derivatives operations to mitigate risk exposure.

• In response to the possibility of regulatory arbitrage involving Digital Assets Derivatives, the framework implements amendments aimed to ensure that the regulation of Digital Assets Derivatives aligns proportionally with the Derivatives framework.

The introduced enhancements to the Derivatives framework are applicable to both new applicants and existing Authorised Persons falling under the scope of this regime.

The commencement date is 1 January 2025.

The relevant amendments to the AIFC Market Rules, AIFC Glossary, AIFC Authorised Market Institution Rules, AIFC Multilateral and Organised Trading Facilities Rules, AIFC Conduct of Business Rules, AIFC Rules on Digital Asset Activities, AIFC General 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]

[1] Derivatives are financial instruments that derive their value from an underlying asset, index, rate, or financial instrument. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

[2] Authorised Market Institution is a Centre Participant which has been licensed by AFSA to carry on one or more Market Activities.

[3] Multilateral or Organised Trading Facility is an alternative trading venue that facilitates the exchange of financial instruments between multiple parties. This definition is provided for general understanding, while the official definition can be found in the AIFC Glossary.

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]

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]

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.

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.

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.