23 companies received a licence from the Astana Financial Services Authority (AFSA) in 2021 to carry out financial activities, which is twice as many as in the previous year. Firms under AFSA’s supervision help create jobs in the banking, investment and insurance sectors of Kazakhstan. Overall, since AIFC’s inception 46 companies that prefer to do business through the Astana International Financial Centre have received a license to carry out financial activities. Their assets have totaled USD 1 bln.
“The increase in the number of firms choosing the jurisdiction of the Astana International Financial Center indicates growing confidence in the AIFC as an international business hub and shows the expansion of its activities. For example, in 2021 there was a significant increase in interest in the asset management and investment fund industry in the AIFC,” said Mukhtar Bubeyev, Chief Executive Officer of the Astana Financial Services Authority.
In total, 550 new AIFC participants were registered in 2021. The top five international jurisdictions with the biggest presence in the AIFC are China (9.4%), the European Union (5.6%), Russia (5.5%), the United Kingdom (3%) and the United States (2.5%). 75% of new firms that received a licence in 2021 to provide financial services showed an interest in the investment business (asset management, investment funds, brokerage services etc.).
The AIFC acts adopted in 2021 will give a significant impetus to the further development of the AIFC financial system. Thus, together with national regulators, the Currency Regulation Rules were adopted, which for the first time determined the terms of access of AIFC participants to the financial market of Kazakhstan. The Substantial Presence Rules for AIFC participants applying tax exemptions for the payment of corporate income tax and value added tax were the result of work on further bringing standards of transparency for tax purposes in AIFC in line with the best world practices.
In terms of international relations, AFSA has strengthened cooperation with regulators in Europe and Asia, and following the Meeting with Central Asian Regulators, the regulators of the AIFC, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan adopted a Joint Declaration. Through the Declaration, the participants of the Meeting confirmed the possibility of using the potential of the AIFC for the joint development of the financial system, as well as agreed to create a Group of Central Asian Regulators and hold its meetings annually at the AIFC premises.
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 1,200 firms from 63 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.
The Astana International Financial Centre (AIFC) is an independent jurisdiction that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz
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