Посты с тэгом: AFSA

Astana Financial Services Authority’s Registrar of Companies introduces series of amendments to the Legal Entities Framework which will come into force from 1 January 2022. These latest amendments relate to following:

1. Extending powers of Board of Directors

New amendments to the AIFC Companies Regulations extend the powers of the Board of Directors to issue new shares in addition to its right to allot shares.

2. Clarity of “allotment” and “issue” concepts

New amendments also bring clarity to the understanding of “issue” and “allotment” concepts for Private and Public Companies. Sections 43 (Minimum share capital) and 98 (General provisions about meetings and votes) of the AIFC Companies Regulations have been revised to support the concept that “allotment” refers to the giving of the shares to a new shareholder, whereas “issue” covers the additional step of actually registering a new shareholder so that they can enjoy legal governance rights. Thus, section 43 (Minimum share capital) states that a Public Company must have an allotted share capital (instead of “issued and allotted”) of no less than 100,000 USD at any time and section 98 (General provisions about meetings and votes) states that quorum at the meetings dealing with a variation of any class rights is the number of shareholders holding or representing by proxy at least 1/3 in nominal value of the issued shares of the class (instead of issued and allotted).

3. Standard constitutional documents available for more legal entities

From 1 January 2022 standard constitutional documents will be available for such types of legal entities as:

• Foundations – Standard Foundation Charter and By-laws
• General Partnerships – General Partnership Agreement
• Limited Partnership – Limited Partnership Agreement
• Limited Liability Partnerships – Limited Liability Partnership Agreement.

Currently, standard articles of association and charter exist only for Public Companies, Private Companies and Non-Profit Incorporated Organisations (NPIOs).

4. New audit requirements for Private Companies, Limited Liability Partnerships and NPIOs as part of their obligations to the Registrar of Companies

New amendments also apply to audit requirements in relation to Private Companies, Limited Liability Partnerships and NPIOs. Thus, Private Companies and Limited Liability Partnerships whose annual turnover is not more than $5,000,000 USD will be subject to audit exemption. The current Shareholders requirement (an average of not more than 20 Shareholders) for Private Companies will be excluded. NPIOs will be exempted from audit if their gross annual income is not more than $500,000 USD.

5. New AML/CFT requirements for NPIOs and Foundations

Foundations and NPIOs will carry new obligations related to anti-money laundering and combatting the financing of terrorism (AML/CFT). This means that Foundations and NPIOs will have to:

• carry out transactions through financial institutions under AML/CFT supervision;
• notify the AFSA on complex or unusual transactions etc.;
• keep records and file report on suspicious activities to the Financial Intelligence Unit of Kazakhstan.

6. Amendments to status of Director

Under the new amendments, Companies will decide themselves if they want their Director to be called an Employee and have a contract of employment or have a Director perform their duties without getting into an employment relationship. Currently, the AIFC Companies Regulations considers a Director as an Employee.

7. Online and offline registration fees

There is also going to be a distinction in the registration fee for documents submitted online and offline. The fee for online registration will stay the same (300 USD), while a paper-based one will cost 500 USD. From 1 September 2020 registration process for applicants has been fully digitalised.

The Astana International Financial Centre (AIFC) has approved amendments to AIFC Conduct of Business Rules and Authorised Market Institution Rules.

The amendments proposed by the Astana Financial Services Authority (AFSA) sets the limits to ensure a greater client protection level of buyers of Digital Assets and aim at facilitating access for Authorised Digital Asset Trading Facilities (crypto–exchanges) to the local banking services, licenced and regulated by the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market (Agency) and the National Bank of Kazakhstan (NBK).

A retail client can now only invest up to US$1,000 per month without providing proof of income or assets or up to either (i) 10 percent of the annual income or (ii) 5 percent of the net worth of such retail client totalling to a maximum aggregate of US$100,000 provided that income or assets are confirmed, whichever is lesser.

You can find the newly introduced amendments here https://afsa.orderly.kz/articles/6.7.-clients-of-an-authorised-digital-asset-trading-facility-and-investment-limits

The Astana International Financial Centre (AIFC) has introduced a new AIFC Act, the Rules on the Substantial Presence of the AIFC Participants Applying Tax Exemptions for the payment of Corporate Income Tax, Value Added Tax.

The Act was adopted by the Astana Financial Services Authority (AFSA) in coordination with the Ministry of Finance of the Republic of Kazakhstan.

According to the Rules, AIFC participants enjoying tax benefits for the payment of corporate income tax and value added tax must confirm their presence at the AIFC. This is corroborated by implementing requirements in relation to core income-generating activities in the AIFC, and by ensuring that the expenses incurred and the number of full-time employees involved are commensurate with the volume of activities.

Adoption of the Rules is an important step towards ensuring that the AIFC is compliant with global transparency standards for tax purposes and that the AIFC jurisdiction is not used for harmful tax practices.

In January 2017, Kazakhstan joined the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) under which it commits to comply with minimum four standards contained in OECD Action 5, including Harmful tax practices. To comply with this standard and prevent tax base erosion and profit shifting, the AIFC has implemented the “substantial presence” Rules in this new Act.

The Rules apply to certain Centre Participants who are exempt from corporate income tax and value added tax in accordance with the Constitutional Statute of the Republic of Kazakhstan dated 7 December 2015 “On the Astana International Financial Centre” and commence starting from the 1 January 2022.

You can find the newly introduced act here [Rules on the Substantial Presence of the AIFC Participants applying tax exemptions for the payment of CIT, VAT].

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 authorization, registration, recognition and supervision of financial firms and market institutions in the AIFC. 

www.afsa.kz 

Over 1,100 companies from 60 countries are registered in AIFC. These companies provide banking, insurance, investment, professional and other services. The range of financial services offered at 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. AIFC participants from Central Asian states are mainly represented in the sectors that are unrelated to financial activities.

Astana International Financial Centre was established on the initiative of the First President of the Republic of Kazakhstan – Elbasy Nursultan Nazarbayev as part of the National Plan “100 steps to implement five institutional reforms”. On July 2, 2020, as part of the meeting of the AIFC Management Council, the Center’s Development Strategy was adopted until 2025. According to it, the vision of the AIFC is to become a leading international financial centre in the region, including Central Asia, the Caucasus, the EAEU countries, Western China, Mongolia and Eastern Europe.

The mission of AIFC is to promote the sustainable long-term development of the region. As the Head of State noted, K.Tokayev, “The AIFC with its unique capabilities can act as a universal platform connecting the countries of the region.” aifc.kz

A high-level meeting involving financial regulators of AIFC’s independent jurisdiction, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, as well as a number of international financial organizations was held on December 3, 2021 at the AIFC premises.

The meeting was an important step towards the implementation of the Joint Statement adopted at the meeting of the Consultative Group of the Heads of Central Asian States, held on August 6 this year in Turkmenbashi city (Turkmenistan). The Joint statement underlined the importance of joint development of the financial system and attraction of investment to the region. AIFC was identified as an economic platform connecting the countries of the Central Asian region, as well as with foreign investors.

The purpose of the Meeting of Regulators was to develop regional cooperation in the area of financial supervision and exchange of experience in the regulation of the stock, banking and insurance markets. The event will promote the role of the financial sector in supporting the region’s economic development.

The Governor of AIFC Kairat Kelimbetov noted the importance of mutual understanding and strengthening regulatory cooperation at the regional level.

“The analysis of the impact of coronavirus pandemic and the crisis caused by it showed the need to integrate economies and strengthen cross-border interaction. This also applies to the Central Asian region, where deepening economic ties can give new impetus to the development of all five countries. The AIFC platform can provide access for neighboring countries to the world capital markets to attract investment, with countries to be able to cooperate more actively with foreign partners to implement new projects”.

“The development of regulatory cooperation between Central Asian countries can contribute to reducing the fragmentation of regulatory requirements in support of cross-border economic initiatives, for example in the field of financial technologies, payment systems, issuance of Islamic securities, green financing, etc. A region with close economic ties and rapidly developing markets will be even more interesting to investors, Mukhtar Bubeyev, the Chief Executive Officer of the Astana Financial Services Authority said.

Following the meeting, the financial regulators of Central Asia adopted a joint declaration, confirming the possibility of using the potential of the AIFC in order to jointly develop the financial system, support cross-border economic initiatives in the field of financial services, attract investment to the region and strengthen cooperation between regulators in accordance with the spirit of the Joint Statement. The parties also agreed to create a Group of Central Asian Regulators and hold its meetings annually on the basis of the AIFC. 

 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 authorization, registration, recognition and supervision of financial firms and market institutions in the AIFC. www.afsa.kz 

 Over 1,100 companies from 60 countries are registered in AIFC. These companies provide banking, insurance, investment, professional and other services. The range of financial services offered at 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. AIFC participants from Central Asian states are mainly represented in the sectors that are unrelated to financial activities.

 Astana International Financial Centre was established on the initiative of the First President of the Republic of Kazakhstan – Elbasy Nursultan Nazarbayev as part of the National Plan “100 steps to implement five institutional reforms”. On July 2, 2020, as part of the meeting of the AIFC Management Council, the Center’s Development Strategy was adopted until 2025. According to it, the vision of the AIFC is to become a leading international financial centre in the region, including Central Asia, the Caucasus, the EAEU countries, Western China, Mongolia and Eastern Europe.

The mission of AIFC is to promote the sustainable long-term development of the region. As the Head of State noted, K.Tokayev, “The AIFC with its unique capabilities can act as a universal platform connecting the countries of the region.” aifc.kz 

The ceremony was conducted in recognition of Lady Judge’s service as the first Chair of the AFSA Board of Directors and her contribution to the development of AIFC.

Lady Judge was an American British lawyer, the commissioner of the US Securities and Exchange Commission, Chairperson of CIFAS, the United Kingdom’s fraud prevention service. Lady Barbara Judge was also a Deputy Chairperson of the UK Financial Reporting Council and a non-executive director of a number of other public and private tech companies. She was the first Chairperson of the Board of Directors of the AFSA, serving from 2018 to 2019.

Mr. Marc Holtzman, Chairman of the AFSA Board of Directors officiated the ceremony with participation of the AFSA management team.

IX Congress of Financiers of Kazakhstan has taken place today.

In his address to the Congress, President K.J.Tokayev noted the need to develop the domestic stock market, including AIFC, which should become one of the important sources of financing for the country’s economy.

Governor of the National Bank of the Republic of Kazakhstan Erbolat Dossaev in his address to the delegates of the Congress highlighted that the expansion of access for AIFC participants to the Kazakh market will help attract investments to the country and ensure further development of the financial market of Kazakhstan.

A separate session of the Congress was devoted to regulatory activities “Regulation and Supervision of the Financial Sector: a look into the future”, which was attended by Mukhtar Bubeyev, CEO of Astana Financial Services Authority. The event recording is available here.

According to M. Bubeyev, the Act of Currency Regulation, which had been recently signed between the regulators of Kazakhstan, gives more clarity to residents of the Astana International Financial Center. As it was not clear to AIFC organisations whether they could provide services to Kazakhstani clients, in what currency as well as what is allowed and what isn’t.

As M.Bubeyev noted, AIFC is committed to assist the financial system of Kazakhstan to develop further.

“This Act focused on investment banking, asset management and insurance, as it seems to us that these sectors can supplement the development of the financial market in Kazakhstan,” M. Bubeyev summarized.

The National Bank of Kazakhstan, the Agency for Regulation and Development of Financial Market of Kazakhstan and the Astana International Financial Centre (AIFC) have reached an agreement on currency regulation and AIFC Participants’ terms of access to financial market of Kazakhstan.

The Governor of the National Bank of Kazakhstan Mr. Yerbolat Dossayev, Chairperson of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market Ms. Madina Abylkassymova and the Governor of the Astana International Financial Centre Mr. Kairat Kelimbetov have signed the relevant joint document.

The agreed framework governs the terms and procedures for foreign currency transactions in AIFC, issues governing the provision of financial services by AIFC participants and their access to the financial infrastructure of Kazakhstan.

The Rules define a list of financial services, which AIFC participants will be able to provide to Kazakhstan’s residents, including in the banking and insurance areas, as well as the securities market.

The Act takes effect on 1 December 2021.

For more detailed media information please contact

The Astana Financial Services Authority (AFSA) is delighted to invite you to join the Policy Town Hall meeting, to be held on 12 November 2021 from 11:00 to 12:30 via Zoom.

This Policy Town Hall would be dedicated to the discussion of the practical aspects of the proposed updates to the AIFC legislation which were published for public consultation both in AIFC and AFSA websites. The AFSA aims to get suggestions from the market on the proposed updates, proposals and amendments, as well as, answer to the questions of the audience. There will be no formal votes or decisions taken at this meeting, however, AFSA will consider all suggestions and additions.

AGENDA
Presentations
– Update on regulatory policy initiates
Ishaq Burney, Chief Legal Officer, AFSA
– Аmendments to the AIFC AML Framework
Aliya Zhumabek, Senior Associate of the Legal Advisory Division, AFSA
– Proposed AIFC Multilateral and Organised Trading Facilities Framework
Ainur Alpys, Senior Associate of the Policy and Strategy Division, AFSA
– Amendments to AIFC Banking Business Rules and proposed Captive Finance regime
Ainur Alpys, Senior Associate of the Policy and Strategy Division, AFSA
– Q&A session

You are kindly invited to REGISTER ONLINE by 9 AM 12 November 2021.
All questions can be directed to [email protected]. 

Astana Financial Services Authority (AFSA) and Kazakhstan’s Agency on Financial Monitoring (AFM) have agreed to work together in anti-money laundering, combatting the financing of terrorism, and proliferation of weapons of mass destruction (AML/CFT). The parties will exchange information, including confidential, to effectively perform the regulatory objectives of the AFSA in the related field.  

AFSA and AFM agreed to cooperate based on acknowledging international standards (the FATF Recommendations), guidelines and assessment methodology of the Eurasian group on combating money laundering and financing of terrorism (EAG) and the Financial Action Task Force (FATF).

This cooperation reflects AFSA’s commitment to ensure the high adherence of the Authority’s   AML/CFT regulation to standards and recommendations of FATF.

The Chairman of the Financial Monitoring Agency of the Republic of Kazakhstan Mr. Zhanat Elimanov and the CEO of AFSA Mr. Mukhtar Bubeyev have taken part in the signing of the agreement.

Mr. Zhanat Elimanov said, “Today we have gathered to sign a memorandum aimed at taking joint measures in the field of combating money laundering and terrorist financing. In the future, Kazakhstan will have to pass the EAG Mutual Evaluation for compliance with the FATF international standards. During the assessment, personal attention will be paid to the activities of the AIFC, which has no analogues among the EAG member countries. Meanwhile, the Agency is ready to provide all the necessary assistance and support in this matter. “

Mr. Mukhtar Bubeyev said, “At the heart of this agreement is the objective to work together and share critical information that will help both AFM and AFSA in preventing and combatting money laundering in AIFC and in Kazakhstan in general. This can be achieved by joining our efforts and ensuring the compliance of the Republic of Kazakhstan with the FATF recommendations and standards.”