Посты с тэгом: AFSA

Astana International Financial Centre (AIFC) informs this week that the Astana Financial Services Authority (AFSA) registers the 500th firm in the AIFC. 

AIFC has rapidly grown over the last years and became home for firms from more than 42 countries. Including Kazakhstan, United Kingdom, USA, China, Russia, Estonia, Latvia, Italy, Finland, China, South Korea, Singapore, Malaysia, India, the United Arab Emirates, Turkey, and many other countries. Today, AIFC participants offer a range of financing vehicles and mechanisms for arranging deals in a transparent and efficient manner.

SWISSFE CENTRAL ASIA LTD became the 500th company in the jurisdiction of the AIFC. SWISSFE LTD is a privately-owned global real estate investment and asset management firm with a unique portfolio in Germany, Holland, Australia, United States, India, Malaysia, United Kingdom, Serbia, Czech Republic, China, South Korea, Spain, Denmark and by 2020 has 1,8 Billion Swiss francs in assets under management. SWISSFE LTD invests in high-quality, innovative assets, focusing on industrial properties and infrastructure assets.

Kairat Kelimbetov, Governor of AIFC, noted:

“Today we share a historical event which is made possible in 2 years after the official inauguration of the AIFC in July 2018, officiated by Nursultan Nazarbayev, First President of Kazakhstan and founder of AIFC. Celebrating this milestone, we are pleased to announce a new stage of development in which we gradually move from establishing infrastructure to focusing on facilitation of business activity and investment into the region.”

James Martin, CEO, AIFC Business Connect, added:

“The role of AIFC Business Connect is to support the commercial objectives of our participant organisations, promoting the benefits of registering at AIFC and ensuring the ease of doing business once a company is established within the Centre. I am delighted that a company with the global reach of SWISSFE CENTRAL ASIA LTD. has chosen to develop its business in Kazakhstan and the region as an AIFC participant – and has become the 500th firm to register at AIFC.”

Gokan Yessilgoz, CEO, SWISSFE CENTRAL ASIA LTD, added:

“AIFC offers a great platform for the international investment companies that we are already familiar with, including English Law and Tax Benefits as well as Foreign Investor Protection. As SWISSFE CENTRAL ASIA LTD, we see the opening of new opportunities for our investment portfolio in Kazakhstan.”

AIFC participants operate in such areas as banking, insurance, stock market, asset management, private banking, Islamic finance, credit rating, legal advisory, accounting, holding company activities and others. As of now, banking sector assets in the AIFC reached USD 680 million, capital markets also demonstrated growth, and equity capital raised comprised USD 291 million.

Reference:

AIFC. In December 2015 President of the Republic of Kazakhstan Nursultan Nazarbayev signed the Constitutional law “On the Astana International Financial Centre” (AIFC). The aim of the AIFC is to form a leading international centre of financial services. For the first time in post-Soviet Region, Common law framework will be introduced in the AIFC. English shall be the official language of the AIFC.

The objectives of the AIFC are to attract investment into the economy through the establishment of an attractive environment for investment in the financial services, to develop local capital markets, to ensure their integration with the international capital market, and to develop markets for insurance and banking services and for Islamic financing in the Republic of Kazakhstan. www.aifc.kz

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. As such the AFSA administers the AIFC Regulations and Rules, which provides, among other things, for the authorization, registration, recognition and supervision of financial firms and market institutions. www.afsa.kz

AIFC Business Connect was established as a private not-for-profit company focused on driving sustainable growth in the Astana International Financial Centre (AIFC); understanding international business practices and drivers, and defining suitable projects for potential investment in the Republic of Kazakhstan. www.aifc.kz

Astana Financial Services Authority (AFSA) has simplified supervisory requirements for Authorised Firms carrying on Regulated Activity of Operating a Representative Office.

The liberalisation of the supervisory measures for the Representative Office relate to the waiver of the following requirements:

(1) residency requirement for a Principal Representative;

(2) mandatory appointments of Approved and Designated Individuals;

(3) applicability of the AIFC AML Rules.

These measures are intended to ease supervisory requirements and allow Representations to focus on marketing of services and products in the AIFC. This will improve the overall conditions and environment for operating of the Representative Offices in the AIFC, facilitate establishment in the Centre and development of business. Accordingly, Representations will face rather simplified authorisation and risk-based supervision processes.

Full texts of the notices are published here (link to notice).

In case of further inquiries please feel free to contact AFSA Communications team at pr@afsa.kz.

Astana Financial Services Authority (AFSA) has adopted a Guide on Authorisation process and a Guide on setting up an investment fund in the AIFC. Both documents were developed to enhance understanding of applicants on the matters AFSA takes into consideration when assessing applications for authorisation of firms and establishing Fund Manager and Funds in the AIFC.

The Guide on the Authorisation process contains: (1) description of AFSA’s authorisation function and types of activities that are licensed or recognised; (2) description of the authorisation process that AFSA follows to be satisfied that an applicant is fit and proper; (3) information that may assist applicant firms in completing the application forms for authorisation; (4) information as to AFSA’s risk-based approach to authorisation; (5) information on matters which AFSA may assess when considering applications for authorisation.

The Guide is therefore relevant to a Person who is seeking to be authorised or recognised by the AFSA or to a Person who is already subject to applicable laws, Rules and policies administered by the AFSA such as Authorised Persons (i.e. Authorised Firms or Authorised Market Institutions), Designated Non-Financial Business and Professions, Registered Auditors, Audit Principals, Approved and Designated Individuals, Principal Representatives and any other Persons subject to the AFSA’s regulatory oversight.

Fund Management Guide includes information on authorisation of Fund Managers in the AIFC, including: (1) investment fund regime and types of funds available in the AIFC; (2) establishment of a fund and fund management company; (3) Preparation to application process; (4) tax regime in the AIFC and FAQs.

The Guides are published under Guides section on the AFSA website (link to guides).

In case of further inquiries please feel free to contact AFSA Communications team at pr@afsa.kz.

Astana Financial Services Authority (AFSA) has established minimum threshold requirements concerning anti-money laundering (AML) trainings undertaken by relevant AIFC participants. AFSA considers the trainings as important tools for building necessary capacity of AIFC Participant to comply with AIFC AML Rules. New requirements relate to the AML training certification and recommends the List of recognised organisations which meet with the requirements to AML training.  These measures include:

1. a) Requirements to the AML training courses for the Relevant Persons:
2. b) List of recognised organisations which meet with the requirements of the AML training courses imposed by AFSA (list of recognised organisations will be updated as the Financial Intelligence Unit list changes).

AFSA as a supervisory authority is committed to maintaining the quality of training and awareness of the relevant AIFC Participants in the field of AML/CFT. Therefore, AFSA considers that the new requirements will assist relevant AIFC Participants in increasing understanding of AML/CFT legislation of Kazakhstan and obtain knowledge they need to comply with the requirements of AML/CFT legislation of Kazakhstan and AIFC AML Rules.

Full texts of the notices are published here (link to notice).

Astana Financial Services Authority (AFSA) has simplified procedures for obtaining a licence for certain types of regulated activities. This reflects AFSA’s general approach to constantly evolve regulatory environment towards business-friendly principles and risk-based supervision.

Application process has been simplified in relation to six regulated activities: (1) advising on investments, (2) arranging deals in investments, (3) advising on a credit facility, (4) arranging a credit facility, (5) insurance intermediation (without Client Money) and (6) insurance management.

AFSA has significantly simplified the application form and excluded requirements to provide certain documentation following requests from potential participants to simplify AFSA’s processes and requirements.

A new simplified application form is tailored for the regulated activities mentioned above and yet provides AFSA with key information necessary for discharging its regulatory functions.

In addition, the AFSA has also developed guidelines to assist firms intending to carry on regulated activities in the AIFC with developing the required policies and procedures (compliance, risk management, AML/CFT, controls and procedures, business continuity, conflicts of interest).

Guidelines provide an indication of AFSA’s minimum expectations and outline key points that should be included in a firms’ policies and procedures.

In addition, the guidelines provide links to publications of international standard setting bodies that might be useful for the establishment of the firm’s own policies depending on the type of proposed business.

These moves are intended to facilitate firms to make a decision on establishing a presence in the AIFC, help to establish their own systems and controls and thus aid firms through the authorisation process.

(Link to the simplified Application Form)

(Link to the Guidelines)

Reference:

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 activities related to financial services in the AIFC. As such the AFSA administers the AIFC Regulations and Rules, which provides, among other things, for the authorization, registration, recognition and supervision of financial firms and market institutions. 

www.afsa.kz

AIFC. In December 2015 President of the Republic of Kazakhstan Nursultan Nazarbayev signed the Constitutional law “On the Astana International Financial Centre” (AIFC). The aim of the AIFC is to form a leading international centre of financial services. For the first time in post-Soviet Region, Common law framework will be introduced in the AIFC. English shall be the official language of the AIFC.

The objectives of the AIFC are to attract investment into the economy through the establishment of an attractive environment for investment in the financial services, to develop local capital markets, to ensure their integration with the international capital market, and to develop markets for insurance and banking services and for Islamic financing in the Republic of Kazakhstan.

www.aifc.kz

Astana Financial Services Authority (‘AFSA’) has recently hosted an online workshop for banks and investment firms, registered in AIFC. The aim of the workshop was to provide an opportunity to discuss the expectations set out in the manuals for preparations of returns and build a shared understanding of what this looks like in practice.

As AFSA Director of Prudential Division Anuar Kaliyev comments: “we want to raise greater awareness and build an understanding of effective reporting of various prudential returns along with instructions for completing the regulatory forms”.

The workshop had been built around a set of guidelines and provided an opportunity for representatives of authorised banks and investment firms to learn from first-hand experience of the regulator. During the Q&A session the Prudential division had provided extra information and answered to questions from workshop attendees.

Feedback from the workshop participants has been very positive with industry welcoming the opportunity to engage directly with AFSA staff and many indicating that they wanted further similar interactions in the future.

Workshop participants noted that “the workshop for authorised banks and investments firms was well structured and gave both the financial community and the regulator an opportunity to discuss existing issues and to explore the possible ways in which the firms can fulfil their duties. One of the other main benefits of the workshop was the opportunity for participants to engage with each other and with the regulator on various issues. This is something that AFSA would like to develop with the participants of AIFC, to encourage and develop better communication between the regulator and the financial community generally”.

Astana Financial Services Authority (AFSA) hereby informs AIFC Participants that the amendments to Kazakhstan’s anti-money laundering (AML) and counter terrorist financing (CTF) law signed by the President of Kazakhstan on 13 May 2020 will also extend to AIFC Participants. AFSA identified around 50 new norms which will extend to AIFC Participants subject to AML supervision pursuant to AIFC AML Rules.

AFSA supervises and regulates AIFC Participants pursuant to AIFC AML Rules, which are made in application of the AML Law of the Republic of Kazakhstan (No 191-IV dated 28 August 2009), the Criminal Code of the Republic of Kazakhstan No 226-Vdated 3 July 2014 (the “Criminal Code”) and international conventions and treaties ratified by the Republic of Kazakhstan

The amendments relate to financial monitoring procedures, such as customer due diligence, internal control and reporting of suspicious transactions, gives the authorised body in the field of financial monitoring the authority to draw up reports on administrative offenses in relation to financial monitoring entities that do not have a state regulatory body. This category includes five subjects of financial monitoring, including independent legal consultants, lessors without a license, accounting organizations, realtors and distributors of precious metals, stones and jewelry.

The law regulates international cooperation procedures for authorized bodies in the field of combating the legalization and laundering of proceeds from crime and the financing of terrorism, including the search and return of criminal assets.

These amendments will begin to take effect from 14 November 2020.

Summary of amendments relevant AIFC Participants supervised by AFSA are as follows:

• Expansion of the scope of regulated sectors to add new categories of “financial monitoring entity” (subparagraph 19) in paragraph 1 of Article 3). It means that the appropriate requirements of the AML/CTF Law will apply to the relevant AIFC Participants. The list of relevant activities of the AIFC Participants for the purpose of AML/CTF Law will be adopted by AFSA in consultation with the Ministry of Finance of the Republic of Kazakhstan in compliance with the FATF Recommendations.
• AFSA should adopt the Requirements applicable to the Rules of Internal Control for AML/CTF purposes for the AIFC Participants (paragraph 3-2 of Article 11). This paragraph was amended and the relevant amendments to the Requirements will be adopted by AFSA in consultation with the Ministry of Finance of the Republic of Kazakhstan.
• AFSA should adopt the Requirements to Customer Due Diligence in cases when the AIFC Participants establish the non-face to face business relations with its customers (paragraph 11 of Article 5). The Requirements will be adopted by AFSA in consultation with the Ministry of Finance of the Republic of Kazakhstan.

Other amendments to the AML/CTF Law of Kazakhstan include the following:

• Expanded definition of implementation of the Targeted Financial Sanctions and combating the Financing of Proliferation of Weapons of Mass Destruction (as required by the FATF Recommendations).
• Financial monitoring entities are provided an opportunity to identify and detect suspicious transactions in accordance with its AML policies, controls and procedures as per the amendments in paragraph 3 of Article 4. Therefore, the signs of suspicious activity should be established in the AML policies, controls and procedures of the financial monitoring entities.
• Requirements to obtain additional information on the customer’s nature of activities and source of funds in case of Enhanced Due Diligence and describe the new cases when the measures of the Customer Due Diligence are not applicable in line with the amendments in Article 5. In addition, the amendments make new prohibitions addressing the process of the non-face to face establishing business relationships by financial monitoring entities with its customers and provide new measures for the Enhanced Due Diligence regarding persons from the countries which failed to implement or not sufficiently implemented the FATF Recommendations.
• Procedures and requirements on providing information to the Financial Intelligence Unit (FIU) by financial monitoring entities (amendments to Article 10).
• Requirements in relation to recordkeeping and AML training (amendments to paragraphs 4 and 8 of Article 11)
• Procedures for conducting the National Risk Assessment and cooperation between FIU, law enforcement authorities and supervisory state authorities (new paragraphs 3,4,5 and 6 in Article 11-1).
• Requirements in relation to the Targeted financial sanctions relating to the financing of terrorism and proliferation of weapons of mass destruction in line (new Article 12-1 and the amendments in Article 12).
• Measures to protect the charity funds and religious organisations against the financing of terrorism (new Article 12-2).

Requirements in relation to freezing of assets/transactions in case of identification of customers from the list of persons or organisations related to the financing of terrorism or proliferation of weapons of mass destruction (paragraphs 1-1 and 2 of Article 13).

On May 21, 2020, AFSA approved the Guidance (Requirements) applicable to the Rules of Internal Control for the AML/CFT purposes. It is designed for the relevant AIFC Participants supervised by AFSA in consultation with the Ministry of Finance of the Republic of Kazakhstan (the “Guidance”).

This Guidance is developed in accordance with:

• paragraph 3-2 of Article 11 of the Law of the Republic of Kazakhstan “On counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism” (AML/CFT Law);
• section 4.3.1 of the AIFC Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Rules (AML Rules) and;
• paragraph 4 of the Joint Order of the Governor of the Astana International Financial Centre (dated 11 July 2018 No.65) and the Ministry of Finance of the Republic of Kazakhstan (dated 19 July 2018 No.678) “On Concerning some issues related to counteracting legalisation (laundering) of proceeds obtained through criminal means and financing of terrorism”.

The Guidance sets out requirements in relation to the programmes of risk management, customer identification, transaction monitoring and studying, employees training and awareness which should be established in AML policies, controls and procedures of the Relevant Persons.

The Guidance expands and disclose the scope of regulations of the AML/CFT legislation of Kazakhstan which include:

• establishing and maintaining of the AML policies, controls and procedures;
• identification of Money Laundering/Financing of Terrorism risks and managing the risks identified including business and customer risks;
• monitoring and assessment of customers transactions and activities including Politically Exposed Persons and Ultimate Beneficial Owner;
• producers of the Customer Due Diligence, Enhanced Due Diligence and Simplified Due Diligence;
• obtaining the relevant AML training for employees.

(Link to Guidance)

Astana Financial Services Authority (AFSA) and Bulgarian Financial Supervision Commission (FSC) have signed the Memorandum on cooperation in financial markets supervision.

The parties will exchange supervisory information and expand cooperation in the field of capital markets and insurance supervision. This will enable framework conditions for the development of the financial services between two jurisdictions. The regulators have agreed to supervise the operations of cross-border branches, representative offices and subsidiaries of financial enterprises in their respective jurisdictions.

This will ensure that head offices and head financial enterprises exercise adequate and effective control over the activities of their cross-border branches and subsidiaries. According to the signed document, AFSA and FSC will also help each other in ensuring continuous supervision of cross-border organizations on a consolidated basis.

Mukhtar Bubeyev, acting CEO of AFSA, stated: “The signed document is another important step towards expanding cooperation between our institutions. It will contribute to the development of the financial markets in both countries by improving the mechanisms for the exchange of information and regulatory experience.”

Boyko Atanasov, Chairman of the FSC, noted: “The goal set by both parties signing the Memorandum, is to establish a procedure for cooperation between the two institutions in the regulation and exercise of control over cross-border entities in the capital markets and the insurance sector. The Financial Supervision Commission pursues a policy of international partnership and cooperation in order to share good practices and exchange information. I do believe that the signed Memorandum of Understanding with the Financial Services Authority of the Astana International Financial Centre will be a prerequisite for creating the conditions for better supervision of the relevant markets and for end users’ security.”