Fintech V3

FinTech Lab is a tailored live environment, where firms can offer innovative financial and RegTech services without being immediately subject to the full set of regulatory requirements.

FinTech Lab allows:

• Firms licenced in foreign jurisdictions to test the regional markets with minimum resources and presence in AIFC.
• Start-up firms to provide activities regulated in the AIFC by gradually complying with regulatory requirements.
• Both incumbent and start-up firms to test new products and technologies in live environment with real clients.

For more information on eligibility criteria for FinTech Lab, please see the AIFC Financial Technology Rules.

Authorisation process:

Step 1: Pre-application

Submit a short pre-application form to introduce your project. AFSA Authorisations team will assign a case officer for your application and get in touch with you.

Document to be submitted:

1. Application form (to access application forms to FinTech Lab, please login to our Self-Service Portal (https://digitalresident.kz/)
2. Business Plan*;
3. Source of Funds and Source of Wealth;
4. ID and CV of Controllers** and UBO***;
5. Evidence of offline/online-payment (application fee for Pre-application – 100 USD)

Step 2: Application

If your pre-application was approved, please submit a full application form via the Self-Service Portal. Make sure that all required information is included, and all supportive documents are attached to your application.

Document to be submitted as part of the full application:

1) AML policies and procedures;

AML policies and procedures should be in compliance with AIFC AML Rules, AIFC AML Guidance (Requirements) on Internal Control, AIFC AML Guidance (Requirements) on CDD. It is also highly recommended to use the AIFC AML Practical Guidance for drafting of AML policies and procedures. In these documents, you might consider including client onboarding and classification/reclassification procedures, as required by the AIFC Conduct of Business Rules. If these procedures are not part of your AML framework, please upload them as a separate document.

2) Client agreement template (i.e., “terms of use”, “terms and conditions”, etc.)

Client agreement template should be in compliance with the Chapter 4 of the AIFC Conduct of Business Rules and other applicable AIFC Rules. It must set out the essential rights and obligations of both parties and include core key information reflected in Schedule 2 of the AIFC Conduct of Business Rules. You are also required to include disclosures provided in this document. (From 1^st of September: if you are Providing Custody with Digital Assets, please consider including additional information as required by 2.11.4 of the AIFC Rules On Digital Asset Activities (DAA))

 
3) Exit strategy (plan)

Exit strategy (plan) should be in compliance with the AIFC Financial Technology Rules. The content of the exit strategy (plan) may vary based on commercial needs, and may include ceasing the business, or transferring the FinTech and customers to other authorised financial institution(s) in the event of suspension or revocation of the License.

4) Policies and procedures on safeguarding Client Assets.

Policies and procedures on safeguarding Client Assets should be in compliance with Chapter 8 of the AIFC Conduct of Business Rules. The purpose of these documents is to ensure that, where a FinTech Lab Participant holds or controls Money or Investments belonging to a Client, such Money or Investments will be protected in the event of that FinTech Lab Participant's insolvency.

5) Information on all Approved Individuals (the fee of 50 USD, for each individual for whom Approved Individual status who will conduct Controlled Functions Application forms for Approved Individual Status (for Senior Executive Officer, Finance Officer, Compliance Officer, MLRO and Director attached); and

6) Information on material outsourcing (if Any)

Material outsourcing means outsourcing by FinTech Lab Participant of any functions or activities directly related to its Regulated Activities or Market Activities to a third service provider (including a service provider within its Group). However please note that the FinTech Lab Participant remains responsible for compliance with the requirements of the Acting Law of the AIFC.

Applications fee:

As part of the full application, the Applicant must pay the Application fees and provide the projected Base Capital to cover at least 12 months of operational expenses.

If an Applicant intends to carry on more than one Regulated activity, or Regulated and Market Activities, the highest fee specified in the table for any of those activities applies:

Base Capital Requirement

Step 3: In-Principle Approval

AFSA will assess your proposal for admission to the FinTech Lab. If your application is accepted, AFSA jointly with you will elaborate on regulatory requirements and conditions for carrying on FinTech Activities in the FinTech Lab.

Step 4. Fulfilling In-Principle Conditions

At this stage an applicant can begin incorporating/registering the legal entity, holding organisational meetings, appointing, injecting the regulatory capital and providing the AFSA with documentation confirming that the Licence conditions and recommendations have been completed.

Step 5: Obtaining a Licence

Upon the applicant’s satisfaction of the conditions within the In-Principle Approval Letter, such as, establishing a legal entity, injecting the regulatory capital, and resolving other regulatory matters, the AFSA will issue a Licence.