Посты с тэгом: AFSA

The session “Anti-Money Laundering: Challenges and Benefits for the Accelerated Growth of the Financial Industry” has taken place as part of Astana Finance Days 2022. The panel session was organised by the AIFC Financial Services Authority (AFSA). International and Kazakhstan experts reviewed global trends in the field of combating money laundering, discussed the specifics of compliance with the rules for controlling transfers in cryptocurrency, considered combatting anonymity mechanisms, and ensuring transparency of financial transactions to accelerate the growth of the financial sector and other issues.

The speakers of the session included AFSA Deputy CEO and Chief Regulatory Officer Gareth Ling, Executive Secretary of the Eurasian group on combating money laundering and financing of terrorism (EAG) Sergey Teterukov, XReg Consulting Partner Ernest Lima, Senior APAC Policy Advisor at Elliptic Tung Li, and Risk Strategy Specialist for the Customer Risk Intelligence group of Refinitiv Renata Galvao.

As a destination for international business, the AIFC strictly adheres to the standards of the FATF (Financial Action Task Force on Money Laundering), and the AIFC’s effective regulatory system allows it to combat these risks through international financial services regulation standards.

“The beneficial ownership transparency movement is currently in the spotlight around the world, while the AIFC has integrated ultimate beneficial owner disclosure rules from the outset to prevent illicit financial flows from flowing through the AIFC,” said AFSA Deputy CEO Gareth Ling. – The ability to conduct business transparently and without reputational risks is key for international companies. The AIFC is a place where companies can apply high standards of conduct with confidence”.

This year, the Eurasian Group on Combating Money Laundering and the Financing of Terrorism (EAG) will conduct a second round of mutual assessment of the technical compliance of the legislation of the Republic of Kazakhstan with international standards for combating money laundering and the financing of terrorism (AML / CFT).

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 1,400 firms from 64 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 started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus. www.aifc.kz

A panel session “Rise of Digital Assets: New Opportunities, Risks and Regulation” has taken place within the Regulatory Landscape Forum at Astana Finance Days 2022. The panel session’s speakers included non-executive independent member of the Board of Astana Financial Services Authority (AFSA) and Head of Regulatory Affairs at Fnality International Daniel Heller, Head of Operations at Bitfinex Securities Jesse Knutson, Law Professor at University of Hong Kong Douglas Arner, Director at Binance for Asia Gleb Kostarev and Chief Executive Officer of AFSA Nurkhat Kushimov.

The session participants have discussed global regulatory trends concerning digital assets, discussed the issues of “balancing” the management of risks and support for FinTech innovations, ensuring protection of retail investors and maintaining financial stability amid volatility of digital assets. The speakers also shared views about the role of big crypto players as gatekeepers of crypto community.

To support financial innovation in 2018 AFSA launched FinTech Lab regulatory sandbox. Companies licensed within the sandbox have an opportunity to test innovative financial services in a controlled environment. At the moment, there are six crypto-exchanges, one crypto-broker and one tokenised investment exhange in the sandbox.

“Creating balanced regulatory conditions for the crypto market allows to manage the risks of the industry without impeding its further development”, said Chief Executive Officer of AFSA Nurkhat Kushimov.

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 1,400 firms from 64 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 started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus. www.aifc.kz

Panel session “Development of Financial Services in Central Asia” has taken place at the annual financial conference Astana Finance Days 2022. The session speakers shared views on how joint efforts can make Central Asia more attractive to investors and increase profitability when introducing new financial products and discussed the potential of the FinTech industry through commercial and social perspectives. 

The panel session’s speakers included Managing Director and Chief Legal Officer at AFSA Ishaq Burney, non-executive independent member of the Board of AFSA and former Secretary General of the International Organisation of Securities Commissions Gregory Tanzer, Director of the Capital Markets Development Department at Ministry of Finance of the Republic of Uzbekistan Sarvarbek Akhmedov, Head of the European Bank for Reconstruction and Development (EBRD) for Kazakhstan Huseyin Ozhan, Acting Chairman of the Board at the Republican Stock Exchange Toshkent Abduazimxuja Abdujabborov and Chief Executive Officer at Astana International Exchange Renat Bekturov.

The session speakers discussed cooperation between Central Asia’s regulatory bodies as a factor facilitating access to cross-border financial services and improving capital flows. With a population of 75.3 mln people, Central Asia is an attractive market for investors. Furthermore, joint efforts of financial regulators can improve the introduction of new financial products.

“Regional cooperation initiatives to develop the financial markets in Central Asia can solve the problems associated with the size of the markets, their low liquidity and supply of suitable securities,” said AFSA Managing Director and Chief Legal Officer Ishaq Burney. “In this sense, the AIFC, and in particular the AFSA, can play a leading role for testing innovative and reliable regulation of developing financial services in the region.”

In 2022 a Joint Declaration was adopted at a high-level meeting involving financial regulators of AIFC’s independent jurisdiction, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan and a number of international financial organisations. The Declaration confirms 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.

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 1,400 firms from 64 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 started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus. www.aifc.kz

The delegation of the Astana International Financial Centre (AIFC), headed by acting IsDB Governor for Kazakhstan and Chief Executive Officer of the Astana Financial Services Authority (AFSA) Nurkhat Kushimov, has participated in the Islamic Development Bank Group 2022 Annual Meetings in Sharm el-Sheikh. The event was organised with the assistance of the government of the Arab Republic of Egypt.

Heads and representatives of government agencies from 57 IsDB member countries as well as regional and international financial and development institutions, business leaders and the general public participated in the annual event.

IsDB Group Board Meetings, conventions of IsDB Group members, as well as side-events and panel sessions were held within the Annual Meetings. Among many others, issues of sustainable development, Islamic finance, and digitalisation were on the agenda. Acting IsDB Governor for Kazakhstan Mr Kushimov spoke at a special event “Digital Transformation in Financial Services: The Age of Fintech” and focused on the development of FinTech in the AIFC, as well as the proper regulation and supervision of AFSA companies in the area of FinTech.

“From the standpoint of regulation, digital transformation presents a number of challenges, notably the need to prepare innovative legislation and prioritise consumer protection. Nevertheless, we see FinTech as an enabling power that can build bridges between those in business who are financially secure and those who are “unbanked”. In FinTech at AFSA we strive to motivate innovation whilst ensuring that adequate regulation and oversight are in place to bring out the best that FinTech can offer in a safe manner,” said AFSA Chief Executive Officer Mr Kushimov.

During the visit meetings were held with the leadership of the Islamic Development Bank and with companies of the IsDB Group (ICD, ITFC, ICIEC). The discussions focused on issues of strengthening cooperation between the IsDB Group and the Republic of Kazakhstan, the possibility of financing Kazakhstan’s projects, as well as IsDB’s assistance in the development of the industry of Islamic financial services.

In addition, meetings were held with representatives of various banks and companies, including the CEO of the OPEC Fund, the Secretary General of the Islamic Financial Services Board and representatives of other organisations.

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 1,300 firms from 64 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 Islamic Development Bank (IsDB) is an AAA-rated supranational and international development finance institution with 57 member countries that promote socio-economic and sustainable development in IsDB member countries. Its main activities include promoting global development, building partnerships, strengthening global value chains, and advancing science, technology and innovation. 

The Astana Financial Services Authority (AFSA) has suspended the Licence of Sanity Capital Ltd after the firm had breached regulatory requirements in relation to the AFSA’s capital and liquidity requirements. Sanity Capital Ltd also failed to ensure that all mandatory appointments were filled at all times by Approved Individuals or Designated Individuals as required by the AFSA.

Despite Sanity Capital Ltd previously being ordered to resolve the above matters in a timely manner, it has not done so, so AFSA had to take measures.

The AFSA requires companies to comply with the minimum requirements set by the regulator and will not hesitate to take appropriate action against participants who persist in ignoring the regulator’s requirements and failing to present credible plans to meet them.

Deputy CEO of the AFSA Mr Gareth Ling said: “No clients of Sanity Capital Ltd suffered any detriment or were exposed to any undue risks, but this does not mean the AFSA’s minimum requirements to be a “fit and proper” person should be taken any less seriously by firms wishing to remain authorised to provide financial services in or from 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 authorisation, registration, recognition and supervision of financial firms and market institutions in the AIFC.

Over 1,300 firms from 64 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 has held the 2nd Regulatory Townhall in Nur-Sultan in an online format.

A number of topics were on the agenda of the Townhall. Among them are:

• The enhancements to the Recognition and Market Frameworks;
• Policy proposals regarding Banking Business Firms;
• Summary of Regulatory Guidance on Fitness and Propriety;
• Application of Rules on Currency Regulation and
• Proposed Guidance on the use of Security Token Offerings (STO) at the AFSA FinTech Lab.

On 1 May 2022 the AFSA introduced fees for participants for supervision, late filings and for when firms change key individuals. These changes are stipulated in the AIFC Fees Rules and are introduced following a four-year grace period in order to allow firms in the AIFC to properly commence their operations. The relating Consultation paper was published on the AFSA website for public consultation and the last date for comments was 29 April 2022.  

The fees will apply to several categories of participants, namely firms that carry on regulated activities, that is those involving the provision of financial services; financial institutions; ancillary service providers; and FinTech companies. Amounts of fees are accessible in the AIFC Fees Rules via this link (AIFC Fees Rules).

Supervision fees are a common market practice in many international jurisdictions, including Dubai, Abu-Dhabi, Qatar, Singapore, Hong Kong, London and other global financial centres.  AFSA benchmarked the supervision fees to those charged in its peer international financial centres, while balancing the need to foster growth and financial stability in 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 authorisation, registration, recognition and supervision of financial firms and market institutions in the AIFC.

Over 1,300 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.

 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:

Dina Teltayeva

+7 701 765 40 10

[email protected]

The Astana Financial Services Authority (AFSA) has issued the Consultation Paper № AFSA-P-CE-2022-0002 to seek suggestions on the proposed Regulatory Guidance on Fitness and Propriety. According to the proposed guidance, the fitness and propriety assessment will apply to Authorised Persons (including applicants and FinTech Lab participants), Ancillary Service Providers, Approved Individuals, where applicable in accordance with the AIFC Rules and Regulations. The proposed guidance is developed to bring in more clarity on the AFSA’s approach to Fitness and Propriety standards.

This year the Eurasian group on combating money laundering and financing of terrorism (EAG) will conduct the second round of the Mutual Evaluation of technical compliance of the legislation of the Republic of Kazakhstan, against international standards of combating money laundering and terrorist financing. Furthermore, according to the Financial Action Task Force’s (FATF) recommendations, supervising authorities should demonstrate measures taken to prevent criminals from holding a significant controlling interest or a management function in firms.

Full content of the consultation paper may be found via this link https://aifc.kz/files/legals/450/file/cp-on-proposed-regulatory-guidance-on-fitness-and-propriety.pdf.

All comments should be in writing and sent to the address indicated below or by email:

Policy and Strategy Division

Astana Financial Services Authority (AFSA)

55/17 Mangilik El, building C3.2, Kazakhstan

Email: [email protected]

The deadline for providing comments is 14 May 2022

When sending your comments, please indicate in a subject line: “Consultation Paper # AFSA-P-CE-2022-0002”. You may, if relevant, identify the organisation you represent when providing your comments. The AFSA reserves the right to publish, including on its website, any comments you provide, unless you expressly request otherwise. Comments supported by reasoning and evidence will be given more weight by the AFSA.

In December 2021 a first case of voluntary winding-up of a Private Company under the acts of Astana International Financial Centre was successfully completed. This was a pilot project implemented by the AIFC Office of the Registrar of Companies and RSP International LLP acting as the Kazakhstani legal counsel to Private Company in connection with all aspects of its voluntary liquidation.

This article  will outline the basic procedural steps required for the voluntary winding-up of a Private Company under applicable AIFC legislation. These notes are not exhaustive and do not constitute legal advice.

Voluntary winding-up under AIFC law is an  independent liquidation of a Company approved by a simple majority of its members (shareholders). Such a decision is made  as soon as the Board of Directors of the Company decides that the Company has no reason to continue its operations. Voluntary liquidation can only be carried out if the Company is solvent, i.e. the assets of the Company must be sufficient to pay all debts in full, together with interest at the statutory rate, within a period not exceeding 12 months from the commencement of liquidation.

In the case of voluntary winding-up, the Company must cease to operate from the commencement of the winding-up proceedings, unless the carrying on of the business may be required for its liquidation. However, the corporate legal personality and corporate powers of the Company shall continue until liquidation.

As part of the preliminary stages of voluntary liquidation, the directors of the Company must make a formal Declaration of Solvency, which is approved by a simple majority of the board of directors.

The Declaration of Solvency must be made within 5 weeks immediately before the date of the liquidation resolution, or on the same day but before the resolution is approved.

In case of voluntary winding-up of the Company one or more liquidators must be appointed at a general meeting of members for the purpose of liquidating the Company and distributing its assets. The Liquidator appointed for the voluntary winding-up of the Company must be registered with the AIFC Register of Insolvency Practitioners and Official Liquidators.

From the appointment of the Liquidator for the Company, all the powers of directors shall cease unless their continuation is approved by the Company in its general meeting or the Liquidator.

During the period of voluntary winding up of the company, the directors must:

− provide information on the operations of the company to the Liquidator and attend meetings when reasonably necessary;

− keep track of the company’s assets and hand them over to the Liquidator together with all books, records, bank statements, insurance policies and other documents relating to the company’s assets and liabilities.

All tax requirements under the Company’s voluntary liquidation procedure are fulfilled in accordance with the tax legislation of the Republic of Kazakhstan, as the tax regime in the territory of the Astana International Financial Centre is determined by the Tax Code of the Republic of Kazakhstan, except for certain exemptions.

The liquidation of the Company is considered completed when the company is dissolved after the final general meeting of the members conducted by the Liquidator. The voluntary liquidation procedure for a Private Company can last from 4 to 6 months. Once the liquidation process has been successfully completed, the legal entity ceases to exist.

If during the voluntary liquidation procedure it transpires that the Company is not solvent, the Liquidator shall convene a meeting of creditors and the liquidation shall become a voluntary liquidation of the creditors.

Accounting Records of Companies

Pursuant to AIFC acts, if a Company ceases to exist the directors immediately shall ensure that its Accounting Records are preserved for at least 6 years from the date of cessation in compliance with international standards of transparency.

This article has been written by RSP International LLP, a  legal and consulting services provider which implemented the first ever voluntary liquidation project for a Private Company in Astana International Financial Centre in December 2021.

Contact Information:
Republic of Kazakhstan, Almaty, 050051, micro district Samal-2, h. 33A, 2nd block, 21st floor
Tel.: +7 (727) 259 91 66
Fax: +7 (727) 259 91 64
eMail: [email protected]
Web: www.rsp-i.com