The Astana Financial Services Authority (AFSA) announces that it has agreed a settlement with GB Firms (GB Finance ltd. and GB Insurance ltd.) pertaining to regulatory non-compliance uncovered during supervision in 2022.
Between April-November 2022, GB Firms failed to properly comply with their systems and controls and recognised that their conduct was inconsistent with multiple rules and fundamental principles outlined in the AIFC Acts. GB Finance acknowledged deficiencies across several operational areas, including the inability to meet prudential standards, such as maintaining minimum capital adequacy ratios, adhering to restrictions on related party lending[1], and complying with limits on large exposures[2]. GB Insurance also issued captive insurance contracts outside the scope of its authorisation, admitted to non-compliance with AFSA’s core principles for Authorised Firms, as well as the AIFC Rules on Currency Regulation.
Through the acknowledgment of AFSA’s findings and the payment of financial penalties, GB Firms committed to executing remediation measures aimed at comprehensively addressing the identified cases of regulatory breach.
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 3,000 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] The AIFC Banking Business Prudential Rules set specific requirements to avoid conflicts of interest in transactions with related parties.
[2] According to the AIFC Banking Business Prudential Rules, the total of the Bank’s net exposures to any counterparty or any group of connected counterparties must not exceed 25% of the Bank’s regulatory capital and the total of all of the Bank’s net large exposures must not exceed 800% of that capital.
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