Посты с тэгом: AFSA

The Astana Financial Services Authority (the “AFSA”) has agreed to the voluntary withdrawal of the Licence of Otan Private Bank Ltd for the Regulated Activities of Accepting Deposits, Providing Credit, Advising on a Credit Facility, Arranging a Credit Facility and Providing Money Services.

One of the AFSA’s core principles for Authorised Persons (Principle 10 – Client assets and money) is that where an Authorised Person has control of or is otherwise responsible for assets or money belonging to Clients which it is required to safeguard, it must arrange proper protection for them in accordance with the responsibilities it has accepted. In this regard, the AFSA has ensured that all clients’ funds and deposits have been returned in full by the Bank prior to its Licence being withdrawn.

After withdrawal of the Licence, the Bank (now called OPB Ltd) is now -registered as a Private Company operating in the AIFC undertaking, for the time being, the activity of a holding company.     

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 1,900 firms from 74 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 been awarded the Corporate Registers Forum (CRF) 2023 Innovation Award – Commendation. AFSA received the award for the project of digitalisation of registration services.

Over four years, AFSA has achieved fully automated services provided by its Registration Division. These include registration, event-driven filings, annual report filings, name reservation, receipt of extracts from the public register, certificates and receiving reminders. The digitalised services, conducted entirely online, allow AIFC participants and potential participants to receive services from 30 minutes to 3 hours depending on the type of services. The services are designed very simply with maximum convenience and business-oriented approach, as well as maximum logic to prevent errors and mistakes by the applicants while filling out the application forms. Since the services have been digitalised, 98% of applications for registration are carried out online, which helps reduce the application processing time by staff. Some of the processes, such as event-driven filings, receiving Certificate of Good Standing, extracts from the Public Register or name reservation are processed instantly without the involvement of employees.

“AFSA has completely digitised company registration services thanks to the Digital Resident self-service portal. This has helped us to reduce the registration process for participants from five days to just 3 hours maximum. 98% of all AIFC company registration applications are submitted online, which leads to speedier turnaround times for applicants. Last year, the number of registered firms reached 1738 by the end of 2022, representing an 68% increase compared to 2021. Since registration is the point of entrance to the AIFC, automation plays an especially important role in making sure that participants receive fast and quality services,” said AFSA Registrar of Companies Laura Nurgaliyeva.

The CRF is an international association for administrators of corporate and securities registers involving over 70 countries as member jurisdictions, such as the UK, Singapore, Hong Kong, USA, Australia, UAE and others.

The CRF Innovation Awards celebrate the spirit of innovation and honours CRF jurisdiction members which have successfully put in place world-class initiatives, as well as those which have creatively implemented customised solutions, to make a real difference to their stakeholders.  The award recipients are annually recognised as a frontrunner or innovator by having their achievements acknowledged and celebrated.

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 1,800 firms from 72 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

Contact information:

PR and Communications Division of AFSA

+7 (717) 264 73 43; +7 7172 61-37-45, [email protected] 

Representatives of the Astana Financial Services Authority (AFSA) have had a face-to-face meeting with assessors of the Eurasian group on combating money laundering and financing of terrorism (EAG).

A mutual evaluation of the national AML/CFT system of Kazakhstan (The Republic of Kazakhstan and AIFC) is currently underway for conformity to international AML/CFT standards.

The purpose of the meeting was to reach consensus on the key issues arisen during the formation of the Mutual Evaluation Report.

During the session, the assessment team and the assessed State should work to resolve disagreements on technical compliance and effectiveness and identify potential priority issues for discussion at the Working Group on Mutual Evaluations and Legal Issues meeting / Plenary Meeting. This is a key step before the defense of the Mutual Evaluation Report in June 2023 at the EAG meeting.

During 2021–2022, with the direct participation of the Financial Monitoring Agency of the Republic of Kazakhstan, the AIFC financial regulator (AFSA) has implemented the main measures aimed at strengthening the AML/CFT regime and increasing the level of technical compliance with the requirements of the Recommendations of the Financial Action Task Force (FATF).

EAG assists member-states in the implementation of 40 FATF Recommendations. The results of typological research allow us to identify the most high-risk areas and sectors and build an effective risk management methodology. As a result of the work carried out to date, AML/CFT requirements are reflected and detailed in more than 80 AIFC Acts that regulate various areas of our participants’ activities.

According to the AML/CFT Law of the Republic of Kazakhstan, AIFC participants are subjects of financial monitoring, and AFSA as the Financial Regulator is designated as the body that controls their compliance with the current AIFC law on AML/CFT issues.

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 1,800 firms from 72 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

Contact information:

PR and Communications Division of AFSA

+7 (717) 264 73 43; +7 7172 61-37-45

[email protected] 

The Astana Financial Services Authority (AFSA) announces that it has agreed a settlement with Freedom Finance Global PLC (FFG) regarding regulatory deficiencies identified during a supervisory inspection concluded in 2022.

FFG acknowledged that it lacked the appropriate systems and controls, and its conduct was in breach of a wide number of rules and core principles set out in the AIFC acts.  FFG further acknowledged inadequacies in multiple areas of its operations.

Following acceptance by FFG of the AFSA’s findings and payment of a financial penalty, FFG has cooperated with the AFSA and quickly remediated certain areas and has agreed to implement a remediation action plan in the other areas raised by the AFSA.

Gareth Ling, Deputy Chief Executive and Chief Regulatory Officer of the AFSA said “The AFSA expects all Authorised Firms to meet the high expectations and requirements of the AFSA, in both the letter of its rules and the spirit of the principles underlying them, and notes that FFG has acknowledged this and is committed to doing so. It is important that Authorised Firms are aware of all applicable requirements and have proper arrangements in place to ensure compliance with them both initially and on an ongoing basis”.

Sergey Lukyanov, Chairman of the Board of Directors of Freedom Finance Global PLC said “FFG acknowledges its failings and is committed to addressing in a timely manner the matters that the AFSA has raised.   FFG remains committed to the AIFC and to bringing economic benefits to the citizens and economy of both the AIFC and Kazakhstan”.

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

Contact information:

PR and Communications Division of AFSA

+7 (717) 264 73 43

[email protected] 

The Astana Financial Services Authority (“AFSA”) reminds AIFC Participants that according to Rule 3.3.1 of the AIFC Conduct of Business Rules (“COB”), a Person is prohibited from making a Financial Promotion in relation to a Regulated Activity carried on by an Authorised Firm licensed by the AFSA unless: a) that Person is an Authorised Firm; b) the content of the Financial Promotion is approved by an Authorised Firm; or c) the Financial Promotion is exempt under COB 3.3.3.

A Financial Promotion is any communication (made via any medium including brochures, telephone calls, and presentations) the purpose or effect of which is a) to promote or advertise Investments or any Regulated Activity; or b) to invite or induce any Person either to enter into an agreement with any Person in relation to a Financial Product or to engage in any Regulated Activity.

Thus, a Financial Promotion could include any oral, written, or electronic communication (e.g., emails, advertisements, letters, telephone calls, face-to-face meetings, conferences).

All Financial Promotions made in or from the AIFC should be fair, clear, and not misleading. Authorised Promoters should ensure that all Financial Promotions which they communicate or approve contain the information specified in Schedule 5 to COB (e.g., the name of the Authorised Firm communicating the Financial Promotion or on whose behalf it is being communicated, the Authorised Firm’s regulatory status and address, the date of issue and expiry date of the Financial Promotion).

The AFSA also would like to emphasise that in accordance with the AIFC Collective Investment Scheme Rules (“CIS”), any person Offering Units or other Securities of both Exempt and Non-Exempt Funds must comply with the rules regarding Financial Promotions. Besides, the Exempt Funds’ Units could be Offered in the AIFC only by way of a private placement to Persons who are Professional Clients and in minimum subscription amounts of USD 50,000.

In this respect, Authorised Promoters should ensure that if a Financial Promotion is intended only for Professional Clients, it should not be sent or directed to any Person who appears on reasonable grounds not to be a Professional Client. The Financial Promotion, if it is intended only for Professional Clients or Market Counterparties, must clearly state who the intended audience is, and that no other person should act upon it.

As the regulator of financial services and related activities in the AIFC, the AFSA seeks to provide protection for investors and potential investors against misleading promotions. In case of breach of the relevant AIFC acts, the AFSA may take disciplinary and enforcement actions in respect of unlawful Financial Promotions if this would support its Regulatory Objectives specified in Section 7(3) of the AIFC Financial Services Framework Regulations.

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