Посты с тэгом: AFSA

A series of points concerning AIFC legislative initiatives have been discussed at the Regulatory Townhall organised by the Astana Financial Services Authority (AFSA). The following points have been discussed:

1. Proposed AIFC Recovery and Resolution Framework;
2. Guidance on Establishment of Collective Investment Scheme for Fund Managers;
3. Enhancements to the Asset Management Framework;
4. Regulatory Guidance on Assessment, Competency and Trainings for Controlled and Designated Functions;
5. Policy paper on the Enhancement of the Digital Asset Trading Facility Framework.

Around 200 participants have attended the online meeting as per advance registration. AFSA staff have answered all the questions that the audience had asked.

The Astana Financial Services Authority (“AFSA”) has taken enforcement action (“Action”) against KBI Partners Limited, a private company registered in the AIFC, for contravention of Section 24 of the AIFC Financial Services Framework Regulations (“FSFR”) and for contravention of Rule 3.3.1 (a) of the AIFC Conduct of Business Rules (“COB”) for undertaking financial services activities without being authorised to provide the relevant financial services by AFSA. A financial penalty of USD 7,000 has been levied on KBI Partners Limited under Section 118 (1) (a) of the FSFR.

The Regulatory Authority has decided to take the Action because KBI Partners Limited contravened the following provisions of the AIFC Acts:

1. Section 24 of the FSFR which prohibits a Centre Participant undertaking a Regulated Activity, Market Activity or Ancillary Service without being licensed by the AFSA; and
2. Rule 3.3.1(a) of the COB which prohibits a Person from making a Financial Promotion in relation to a Regulated Activity carried on by an Authorised Firm licensed by the AFSA unless the Person is an Authorised Firm.

The AFSA’s Deputy CEO, Mr Gareth Ling said that “The conduct of business with appropriate licenses is critical to the maintenance of confidence and integrity of the financial system of the AIFC. Consumers should ensure that they receive the full protections afforded by the State and its regulatory framework but making sure that any AIFC financial services firms they deal with have appropriate licenses from the AFSA”.

The AFSA considers that the Action supports its Regulatory Objectives specified in Section 7 (3) of the FSFR and that the Action is appropriate and proportionate in the circumstances having regard to the Acting Law of the AIFC and the conduct of KBI Partners Limited.

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 1,700 firms from 70 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 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

2022 has been a productive year in the Astana Financial Services Authority’s (AFSA’s) work, which was reflected in the following:

• Over 500 companies were registered by AFSA.
• 20 companies received a licence to carry on financial and market activities. A license was issued to an Islamic bank – this is the second Islamic bank in the AIFC. In addition to this, for the first time a FinTech Lab participant has graduated from the regulatory sandbox and received a full license. Of all the licenses, 75% were issued to investment companies.
• AIFC financial sector’s assets including investment and insurance companies, banks and the banking sector is worth 689 mln US dollars.
• Assets under management (AUM) of AIFC investment companies are worth 555 mln US dollars, including investment funds’ assets (128 mln US dollars), whose number has reached 20.
• Successful execution of the largest IPO (JSC NC “KazMunayGas”) in the history of the stock market of Kazakhstan in accordance with the AFSA regulatory rules, reflecting the best international standards.
• A pilot project on interaction of AIFC-registered crypto exchanges and Kazakhstan’s second-tier banks was launched in 2022.
• The Organisation for Economic Co-operation and Development (OECD) declared that the AIFC’s tax regime is compliant with global standards of tax transparency.
• The International Swaps and Derivatives Association (ISDA) published an Informal Country Update, recognising the AIFC as a “netting-friendly jurisdiction.”
• The Law “On amendments and additions to certain legislative acts of the Republic of Kazakhstan on the regulation and development of the insurance and the securities markets” was adopted. The law expands the activities of insurance and re-insurance companies that are AIFC participants and provides opportunities for AIFC participant-banks to open correspondent accounts in second-tier banks in Kazakhstan.
• AFSA played a substantial role in the preparation of the 2030 Financial Sector Development Concept
• In 2022, the AIFC hosted a mutual evaluation mission of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG), which demonstrated key aspects of the AIFC AML/CFT systems and their compliance with the requirements of the 40 FATF
• In 2022 the AIFC hosted a high-level meeting of Central Asia’s financial regulators, and a Memorandum of Understanding with the Ministry of Finance of Tajikistan was signed.

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 1,700 firms from 70 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

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

Starting January 1, 2023, two framework amendments commenced in the AIFC:

• AML/CTF Framework Amendments
• fees Framework Amendments.

All relevant AIFC participants shall get familiar with the amended frameworks. All respective proposals were available to the public during their respective public consultation periods.

AML/CTF Framework Amendments

In December 2021, AFSA made amendments to AIFC Anti-Money Laundering, Counter-Terrorist Financing (AML/CTF) and Sanctions Rules to increase adherence of AIFC AML/CTF framework to the Recommendations of the Financial Action Task Force (FATF).

To continue its work on increasing adherence, in December 2022 AFSA introduced amendments to the following acts:

1. AIFC Financial Services Framework Regulations (FSFR);
2. AIFC Companies Regulations;
3. AIFC Foundations Regulations;
4. AIFC Limited Partnership Regulations;
5. AIFC General Partnership Rules;
6. AIFC Limited Liability Partnership Rules; and
7. AIFC Glossary.

The introduced amendments into FSFR define more clearly AFSA’s supervisory powers in the AML/CTF area.  Now it is explicitly stated that AFSA exercises control and supervision over the compliance of AIFC Participants with the AIFC AML Rules by conducting inspections, taking appropriate enforcement actions and imposing sanctions.

The Legal Entities Legislation Framework is amended, inter alia, by imposing a requirement to have and maintain a register of founders, partners and beneficial owners in the registered office of the participant in the AIFC and reducing the period when a participant must notify on any changes on its beneficial owner (from 30 to 14 days).

Also, a threshold in determining the beneficial owner is introduced. While the AFSA’s required approach to determination of beneficial owners still remains risk based, the FATF recommended threshold of 25% has been adopted in the AIFC.

The amendments commenced on 1 January 2023.

Fees Framework Amendments

The AFSA strategy for 2022 envisaged the implementation of amendments to the Fees framework. These amendments constitute phase 2 of this workstream and include the following components:

(a) Revised supervision fee for the Market Activities of Operating an Exchange and Operating a Clearing House;

(b) Supervision fee for Recognized Non-AIFC Members (RNAMs) and Recognised Non-AIFC Market Institutions (RNAMIs);

(c) Increased registration and post-registration fees for Foundation and Non- Profit Incorporated Organisation (NPIO);

(d) Filing fees and gradual late filing fees payable to the Office of Registrar;

(e) Clear amounts of application fees payable to the AFSA in respect of waivers, modifications, and other reliefs; (available here)

(f) Clarification on application fees for Ancillary Services.

As a result of the proposed changes to the AIFC Fees Framework, it is expected:

(a) To set a proportionate supervision fee for the Market Activities of Operating an Exchange and Operating a Clearing House, connected to market performance;

(b) To stimulate market activity of RNAMs, to receive supervision fee from potential RNAMIs;

(c) To ensure that only proper Foundations and Non-Profit Incorporated Organisations are registered in the AIFC, to reduce oversight effort, to manage reputational risk;

(d) To encourage AIFC participants to follow Legal Framework requirements;

(e) To bring clarity in regard to the fees payable to the AFSA in respect of waivers, modifications, and other reliefs;

(f) To bring clarity in regard to application fees charged for Ancillary Services.

The amendments commenced on 1 January 2023.

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 1,700 firms from 67 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

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

The Astana International Financial Centre (AIFC) has hosted a high-level meeting involving financial regulators of the AIFC, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. The event involved 40 participants, including representatives of international organisations such as the European Bank for Reconstruction and Development, the Islamic Financial Services Board, Frankfurt Main Finance, Asian Development Bank, Centre for Global Development and representatives of the business.

The high-level meeting comes as a timely contribution to implementation of Treaty between the Republics of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan on friendship, good neighborliness and cooperation for the development of Central Asia in the 21st century effected in Cholpon-Ata on 21 July 2022. During the previous year’s meeting of financial regulators of Central Asia in December 2021, a Joint declaration was adopted reflecting intentions for using the potential of the AIFC in order to jointly develop the financial system, support cross-border economic initiatives in the area of financial services, attract investment to the region and strengthen cooperation between regulators.

The high-level meeting participants remarked that the AIFC encompasses best experience of international financial centres and is an efficient platform to stimulate direct portfolio investments into regional projects.

The meeting featured thematic sessions to discuss prospects of the development of Central Asian markets, Islamic finance, the role of insurance and reinsurance, regional infrastructure and new trends in financial services. A regulatory roundtable meeting focused on the current state and prospects of the development of national financial 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 1,600 firms from 67 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 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

The Astana Financial Services Authority (“AFSA”) has suspended the Licence of GB Finance Ltd. after the firm had breached multiple AIFC Rules that are critical for companies to be able to carry on regulated activities.

In particular, the company has breached a range of rules including:

• requirements of the AIFC Rules on Currency Regulation;
• minimum levels of capital adequacy ratios;
• limits on lending to related parties;
• limits on large (prudential) exposures to counterparties;
• failure to notify the AFSA of breaches or potential breaches of prudential requirements, and how it is proposed to remedy them;
• failure to advise the AFSA of certain acquisitions having a significant impact on the firm’s risk profile and resources; and
• multiple breaches of management oversight and control over the firm’s activities indicative of a lack of understanding or appreciation of regulatory requirements and obligations.

The AFSA’s mission is to establish an environment that delivers fair and transparent financial and capital markets, in which individuals and institutions act with integrity and maintain the highest standards of corporate governance and international standards on which the AFSA and the AIFC is based.

Gareth Ling, Deputy CEO of the AFSA said: “GB Finance Ltd., its management, and its majority controller, have demonstrated little comprehension of regulatory expectations and requirements, whilst embarking on numerous transactions with its related parties in a manner that has lacked acceptable governance and effective compliance controls.

The AFSA’s highest priority is the protection of consumers’ rights and well-being, as well as the integrity of the financial system in the AIFC. Firms that do not appreciate this, or choose to disregard this, are not firms that the AFSA or the AIFC welcome, and the AFSA takes no hesitation in dealing with them expeditiously”.

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 1,600 firms from 67 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 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

Astana Financial Services Authority (AFSA) has closed World Investor Week (WIW) themed “Sustaining Resilience Investing” by engaging around 5,000 participants from 20 countries and holding 30 events featuring over 100 speakers. 

A series of forums, including ESG (Environmental, Social, and Corporate Governance) Investment Forum, Islamic Finance Forum, New Financial Instruments Forum, Digital Assets Investment Forum and others were held within the framework of the event. AFSA raised topics of investor resilience, fraud prevention, sustainable finance, crypto literacy and smart investing. The Astana Financial Services Authority works to establish an environment that delivers fair and transparent financial and capital markets by ensuring registration, authorisation, supervision and overall regulation of firms. In addition, AFSA promotes and provides the necessary framework for protection of rights of financial services consumers.

One of the main events at the ESG Investment Forum was a panel session organised by the AIFC Green Finance Centre “National ESG Club as a platform for sustainable business”. The participants exchanged views on the ongoing work to promote and implement the principles of sustainable development and discussed such trending topics as the development of a Strategy to achieve carbon neutrality in Kazakhstan until 2060.

World Investor Week is held annually under the auspices of IOSCO, the International Organisation of Securities Commissions. Its main goal is to encourage a behaviour whereby people have more understanding of financial risks, embrace financial education and are able to invest smart.

“World Investor Week is one of the key annual events in the AIFC and AFSA is committed to continue promoting investor education and protection. Throughout the events we have emphasized the key messages of the International Organisation of Securities Commissions which are the basis for financial literacy, such as  avoiding “get rich quick” and “can’t lose” schemes; not investing based solely on a celebrity endorsement; verifying that an investment company is licensed; understanding that risk exists in all investments; overcoming  financial shocks with an adequate emergency fund; conducting research before investing to protect against financial scams etc.,” – said AFSA Chief Executive Officer Nurkhat Kushimov.

AFSA was the organizer of the World Investor Week. Co-organizers and contributors included the AIFC Authority, AIFC Court and International Arbitration Centre, Green Finance Centre, Astana International Exchange, Bureau for Continuing Professional Development, Tech Hub, and AIFC Business Connect.

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 1,500 firms from 65 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 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

3-7 October 2022 Astana Financial Services Authority (AFSA) is hosting its fifth annual World Investor Week (WIW) themed “Sustaining Resilience Investing”. 

Thematically, the event is devoted to raising awareness on investor resilience, investor education and protection, crypto assets, sustainable finance, Islamic finance, prevention of frauds and scams.

Several thematic forums, such as ESG (Environmental, Social, and Corporate Governance) Investments Forum, New Financial Instruments Forum, Digital Assets Investments Forum, Islamic Finance Forum, Financial Literacy Forum and others will be held on margins of the WIW.

World Investor Week is held annually by regulators in 100 countries all over the world under the auspices of the International Organization of Securities Commissions (IOSCO) – an international organisation that unites world’s securities regulators. IOSCO members regulate more than 95% of the world’s securities market in more than 115 jurisdictions. Hosting of the World Investors Week reflects AIFC’s adherence to the IOSCO goals and standards on consumer protection in financial services.

“Resilient and smart investors are the backbone of a healthy economy because they understand risks, can withstand financial shocks and promote sustainable businesses. As such, investor protection plays a critical role in AFSA’s work to establish an environment that delivers fair and transparent financial and capital markets, in which individuals and institutions act with integrity,” – said AFSA Chief Executive Officer Nurkhat Kushimov.

AFSA is the organiser of the World Investor Week. Co-organisers and contributors include the AIFC Authority, AIFC Court and International Arbitration Centre, AIFC Green Finance Centre, Astana International Exchange, Bureau for Continuing Professional Development, Tech Hub, and AIFC Business Connect.

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 1,500 firms from 65 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 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

The Astana Financial Services Authority (the “AFSA”) has suspended the License of GB Insurance Ltd with immediate effect after the Firm had failed to satisfy the pre-conditions on which its conditional license from the AFSA had been granted.

In particular, the company disregarded or ignored the pre-conditions that had been imposed upon it by the AFSA and, in so doing:

• chose to commence live operations without the AFSA’s agreement or knowledge;
• failed to fulfil its mandatory pre-conditions before undertaking the activities of an insurance company;
• failed to have in place actuarial policies, procedures, systems and controls that had been developed by the company to the AFSA’s satisfaction;
• allowed persons who were not approved by the AFSA to perform the Controlled Functions of Insurance Risk Manager, Internal Audit Manager and Approver Actuary; and
• consequently undertook the writing of insurance risks whist failing to have in place the appropriate arrangements and people to undertake such activities.

The AFSA’s mission is to establish an environment that delivers fair and transparent financial and capital markets, in which individuals and institutions act with integrity and maintain the highest standards of corporate governance and international standards on which the AFSA and the AIFC is based.

Gareth Ling, Deputy CEO of the AFSA said, “It is imperative that firms granted conditional licenses by the AFSA must fulfil those conditions to the AFSA’s full satisfaction before undertaking those activities for which they have sought authorisation. The fact that GB Insurance Ltd completely disregarded critical pre-conditions of its license was an act of recklessness and irresponsibility and cannot be tolerated under any circumstances”.

Protection of consumer rights is one of the AFSA’s highest priorities. The AFSA will not permit companies to operate that fail to comply with the core requirements set by the regulator where such failures may expose consumers to unwarranted risks.

As a Class 3 Captive Insurer, the firm’s business was limited to insuring risks of entities owned by the same persons as the owners of GB Insurance Ltd. Nevertheless, the firm has been ordered, amongst other actions, to wind-down or run-off its existing insurance contracts.

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 1,500 firms from 65 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 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