The Astana Financial Services Authority (AFSA) issued 32 licences in the first half of 2024, including 14 authorised firms in the full regulatory regime, 4 FinTech Lab participants and 14 Ancillary Services Providers (ASPs), over twice as many compared to the figures for 2023.

Fourteen firms received AFSA licences to provide financial services in the first half of 2024, which is more than double the number licenced in the same period last year. As of the end of June 2024 the total stands at 103 licenced participants. The firms licenced this year include: Aspan Prime Capital, VPE Capital Fund Management, One Capital Ltd, Aquila Management Ltd, SQIF AM Ltd, JAS Ventures Limited., ITS Central Securities Depository Limited, Zubr Capital Limited, Tayyab Finance Ltd., Upside Lab Advisors Ltd., RCS Trust and Corporate Services Ltd, Radiance Capital Management Limited, Vizier Asset Management Company Limited, and Gesher Finance Ltd.

Four new FinTech firms joined AFSA in 1^st half of 2024, among them Cepheus Pay Limited, Impact Capital Ltd., Swiftex.io Limited and deliryo Ltd. In general, there are now 14 companies currently operating within the regulatory sandbox. In March this year AFSA called on Digital Assets Services providers to test out new products and services involving digital assets. The new types of digital assets may involve margin trading, peer-to-peer, derivatives trading, staking, non-fungible trading, digital asset loans and other services. Besides, a Guidance clarifying the requirements for conducting Over-the-Counter (OTC) transactions[1]  involving digital assets in AIFC was released.

In the first six months of 2024 AFSA licenced 14 Ancillary Services Providers (ASPs), which is double the number licenced throughout the whole of last year. This brings the total of ASPs as of today to 127 firms. The new ASPs licenced in the past six months are: Squire Patton Boggs Kazakhstan Ltd., Branch of SFAI Kazakhstan in the AIFC, Branch of Moore Kazakhstan LLP in the AIFC, Nexus For Success Ltd., B&G Solutions Ltd., FI.CENTER Ltd., Amicorp Kazakhstan Limited, Branch of “Independent Audit Company “Centeraudit-Kazakhstan” Limited Liability Partnership in the AIFC, AnalyticaPro Solutions Ltd, Branch of Scope Audit Kazakhstan LLP in the AIFC., Branch of Alma Audit LLP in the AIFC, AR Solutions Ltd., Pactum Legal Ltd. and Branch of Independent Audit Company Concord in the AIFC.

The Ancillary Services Providers’ industry is one of the fastest growing at AIFC. It received an added impetus following the arrival of larger companies in recent years, which necessitated forming the required infrastructure provided by ASPs.

Among important regulatory updates, in March 2024 AFSA informed Fund Managers of the modification made to the Section 92 (2) of the AIFC Financial Services Framework Regulations. The modification implies that, provided specific conditions are met, Fund Managers and their Approved Individuals responsible for executing day-to-day property management control will have the opportunity to participate in the Collective Investment Scheme they manage. This will allow fund managers to co-invest along with their investors.

In June 2024 AFSA recognised 12 jurisdictions as equivalent jurisdictions. This means that unlike before now firms applying to be recognised as Foreign Fund Managers in the AIFC are not required to conduct and provide a gap analysis to AFSA, thus expediting the whole process.

Meanwhile, the total number of AIFC participants registered within the first six months of this year stands at 508 – twice as many as in the same period 2023 – bringing the total to 2,858.

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.

The firms registered at AIFC 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] In decentralised finance, OTC is considered as a separate trading option widely used for large undertaking or transaction by large or institutional players because OTC transactions allows to discharge large volumes of Digital Assets quicker and in large blocks.

The Astana Financial Services Authority (AFSA) has issued this Consultation Paper to seek suggestions from the market on enabling trading of tokenised Investments and Qualified Investments and proposed enhancements to the AIFC Multilateral and Organised Trading Facilities Rules (“MOTF”).

The proposals in this paper will be of interest to current and potential AIFC participants dealing in tokenised Investments or Qualified Investments, Authorised Firms involved in operation of a Multilateral Trading Facility (“MTF”) or an Organised Trading Facility (“OTF”) in or from the AIFC, as well as other interested parties.

This Consultation Paper outlines several key proposals focused on:

• enabling the trading of tokenised Investments on Investment Exchanges.

• enhancements to the AIFC MOTF Rules, including general amendments and provisions for enabling the trading of tokenised Qualified Investments on MTF/OTF platforms.

• We invite comments from interested stakeholders.

The deadline for providing comments on the proposed framework is 31 July 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.

AFSA prefers to receive comments by email at [email protected]

The Consultation paper can be accessed via the link:

https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0006-from-01-july-2024-on-enabling-trading-of-tokenised-investments-and-qualified-investments-and-proposed-enhancements-to-the-aifc-multilateral-and-organised-trading-facilities-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 2,700 firms from 78 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/

The Astana Financial Services Authority (AFSA) has enacted the AIFC Family Offices framework effective from 1 July 2024.

The Framework introduces specific regulations tailored for operations of Single Family Office (SFO) in the AIFC, which are able to open the SFO Funds. Such vehicles will allow managing family wealth in line with international practices. Recognising the unique nature of SFOs and their limited investor base, the framework includes streamlined regulatory provisions for SFO Fund Managers.

The AIFC Family Offices Framework represents a significant step towards strengthening the AIFC’s position as a leading international financial centre in Eurasia. This framework offers a robust regulatory and tax environment that caters specifically to the needs of SFOs, making the AIFC an attractive location for establishing and managing family wealth.

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 2,700 firms from 78 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/

Astana Financial Services Authority has reviewed and approved Toncoin (Telegram Open Network’s native cryptocurrency) for Trading on Digital Asset Trading Facilities in AIFC.

AFSA’s decision follows a comprehensive review process, ensuring that Toncoin meets the regulatory standards set forth by the authority. With this approval, investors can now trade Toncoin on AFSA-licenced platforms, benefiting from the robust regulatory framework and investor protection measures established by the AIFC.

The inclusion of Toncoin in the AIFC’s regulated environment is expected to attract a new wave of institutional and retail investors seeking secure and transparent trading options.

To get familiarised with the updated list of digital assets approved by AFSA for trading, which is now comprised of 107 digital assets, please visit this link: https://orderly.myafsa.com/articles/table-of-digital-assets-approved-afsa-notice-no-afsa-f-nb-2023-007.

Reference:

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 2,800 firms from 78 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 issued this Consultation Paper to seek suggestions from the market on the proposed ESG Debentures framework.

The framework introduces minimal standards of regulation and requirements for issuance and offering of green and sustainable debt instruments including sukuk under an overarching concept of the “AIFC ESG Debentures”. The intention is to provide clear guidelines to issuers, making it simpler to design and market these financial products while also helping investors identify sustainable investing opportunities.

The proposals in this paper will be of interest to current and potential AIFC participants who are interested in issuing or offering sustainable bonds and/or sukuk in or from the AIFC, including but not limited to Authorised Market Institutions, Authorised Firms and legal advisors.

We invite comments from interested stakeholders.

The deadline for providing comments on the proposed framework is 29 July 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.

AFSA prefers to receive comments by email at [email protected]

The Consultation paper can be accessed via the link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0008-from-28-june-2024-on-the-proposals-to-the-aifc-esg-debentures.

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 2,700 firms from 78 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 issued the Consultation Paper on proposals to enhancements to Credit Rating Agencies framework to seek public’s opinion.

Credit Rating Agencies (CRA) play a critical role in promoting transparency and efficiency in financial markets by providing independent assessments of credit risk and help enhance the safety and soundness of the financial system by providing insights into risk exposures and guiding regulatory actions to maintain stability. Investors and financial institutions heavily rely on credit ratings to make informed investment decisions.

Based on the analysis of best international practices, AFSA proposes two options for further enhancement of the CRAs framework in the AIFC: (1) transition of CRAs from being an Ancillary Services Provider to an Authorised Firm and further enhancement of the existing regulation, and (2) maintaining the current practice of treating CRAs as Ancillary Services Providers with further enhancement of the existing regulation. These proposals aim to refine the regulatory environment for CRAs, ensuring robust and effective supervision and enhancing the quality and reliability of credit ratings.

The proposals in this paper will be of interest to CRAs, Authorised Persons, legal entities seeking credit ratings from CRAs, all users of credit ratings and any other interested stakeholders, including government and regulatory authorities in Kazakhstan.

We invite comments from interested stakeholders.

The deadline for providing comments is 28 July 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.

AFSA prefers to receive comments by email at [email protected].

The Consultation paper can be accessed via this link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0007-from-27-june-2024-on-proposals-to-enhancements-to-credit-rating-agencies-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 2,700 firms from 78 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 issued a Consultation Paper on the proposed AIFC treasury framework to seek suggestions from the market.

AFSA proposes developing a tailored framework for Corporate Treasury Centres (CTCs), which usually help multinational corporations in achieving cost-savings, managing liquidity across various subsidiaries within a region, improving cash management efficiency, conducting hedging and investment operations amongst other benefits.  CTC operations are proposed to be part of the AIFC Collective Investment Scheme Rules with less stringent provisions in relation to a Fund Manager of the CTC Fund as CTCs do not pool assets from non-Group member companies.

The proposals in this paper will be of interest to current or potential applicants, such as multinational corporations, ancillary service providers and professional advisors, seeking to engage in conducting regional treasury activities in or from the AIFC.

The deadline for providing comments is 26 July 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.

AFSA prefers to receive comments by email at [email protected].

The Consultation paper can be accessed via the link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0005-from-26-june-2024-on-the-aifc-treasury-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 2,700 firms from 78 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 has registered Fonte Emerging Markets Umbrella Fund OEIC Limited as the first Umbrella Fund in AIFC, which represents an investment vehicle comprising several Sub-Funds, each with its unique investment objectives and strategies, while remaining as a single legal entity.

The sub-funds represent distinct investment portfolios within the main Fund, each with its own investment objectives, strategies, and assets. Thus, the Fund utilises internal mechanisms to segregate the assets and liabilities of the Sub-Funds.

Umbrella Funds are considered beneficial for investment firms for a number of reasons. One of them is being that it allows for economies of scale, as pooling the assets of multiple Sub-Funds together can lead to lower operating costs. This strategy is particularly advantageous for smaller investment firms, which might otherwise struggle with the financial and administrative burdens associated with managing multiple standalone Funds.

In addition to cost savings, an Umbrella Fund also offers flexibility in terms of the types of investment products that can be offered. Investment Managers and Advisors can create a variety of Sub-Funds that cater to different investment strategies and asset classes, allowing them to meet the needs of a wider range of clients. This can be particularly useful for firms that want to offer, for example, a range of socially responsible investment options, as they can create Sub-Funds focused on specific environmental, social, and governance (ESG) criteria.

Another advantage of an Umbrella Fund is that it allows for easier administration and management. Since all the Sub-Funds operate under a single legal and organisational structure, there is a unified set of rules and regulations to follow. This simplifies compliance with regulatory requirements for Investment Managers and Advisors, ensuring that all investment products are managed consistently. The streamlined administrative framework reduces the complexity and potential for errors, making the overall management process more efficient and effective.

AFSA Chief Executive Officer Nurkhat Kushimov: “Regulations that enable new types of Fund structures mean more options for investors and consequently greater economic diversification. As our regulatory environment at AFSA continues to evolve, we come up with more advanced concepts providing better value for markets and consumers.”

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 2,700 firms from 78 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]

A “Sanctions Training: International and Regional Insights” has taken place at the Astana International Financial Centre (AIFC). The workshop convened a community of compliance and anti-money laundering (AML) professionals from amongst the AIFC participants and beyond. It focused on the sanctions regimes implemented by the UK and US.

The event was organised by the British Embassy in Astana, the Astana Financial Services Authority (AFSA), Eldwick Law, Outer Temple and Unicase Law Firm.

The training was designed to arm employees with the knowledge and skills necessary to adapt effectively to ongoing changes. It covered such topics as designated persons, ownership and control, financial and trade sanctions, enforcement and compliance within the UK context, the role of sanctions in litigation and arbitration as well as provided an overview of secondary sanctions in the US context.

Managing Partner at Unicase Law Artem Timoshenko: “I find the topic of the training most relevant and interesting because economic sanctions as a type of government policy is one of the most problematic themes in the context of international relations. Nowadays we can observe that most countries don’t have any specific national legislation to define the rules of behavior within the country to comply with the sanctions regime and not to fall under secondary sanctions, but there are lots of obligations for non-sanction countries such as following the new rules of trade. Due to increasing demand from clients to Unicase for compliance with and understanding of economic sanctions I am convinced that it is a great opportunity for local business to establish new methods and due-diligence algorithms.”

Barrister at Outer Temple Chambers Alex Haines: “The training is designed to assist the participants in making their day-to-day practice more efficient so that they can provide better value to their clients.”

Rashid Gaissin, Partner at Eldwick London Office: “I travelled across the region intensively including Kazakhstan, Uzbekistan, Turkey, and the United Arab Emirates over the last 10 months. We were asked everywhere about the sanctions, their application, consequences for non-compliance etc. We thought it would be great to put together the training on sanctions to get to the bottom of many tricky issues hence the idea of what we plan to discuss now in Astana”.

AIFC’s AML/CFT and Sanctions systems and controls are risk-based supervision model comprising the main lines of prevention and protections, such as conducting due diligence and disclosure of ultimate beneficial ownerships at registration and authorisation stages; firms’ managers are examined for professional compliance while Money-Laundering Reporting Officers are interviewed to ensure they are fit and proper; firms are assigned appropriate risk ratings and, if necessary, prescribed “Risk Mitigation Programmes” (RMP), which is a list of requirements and recommendations for an applicant firm. Only after the firm’s mandatory fulfillment of their RMP it can proceed to operating at AIFC. Subsequently, firms are placed under the supervision of case managers who conduct ongoing monitoring, with remote and on-site scheduled or unscheduled inspections. It is important to note that AFSA has sufficient powers, including the right to demand any information and to impose various disciplinary and financial sanctions of a proportionate nature for non-compliance with AIFC’s AML/CFT requirements.

AFSA Chief Executive Officer Nurkhat Kushimov: “Gaining regional and international insights into sanctions helps boost protections against sanctions risks. By sharing expertise and experience with respect to sanctions regimes that are developing at such a rapid pace as today we help ensure that jurisdictions continue to deliver fair and transparent financial and capital markets.”

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 2,700 firms from 78 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]