AFSA revises requirements of financial and ancillary services to be monitored for purposes of AML/CFT

In order to further guide and assist on AML/CFT matters the AFSA would like to bring the attention of the Participants of the Astana International Financial Centre to the following:

(1) List of financial and ancillary services for purposes of anti-money laundering and combatting the financing of terrorism
On 30 December 2020, Astana Financial Services Authority approved the revised the List of financial and ancillary services for purposes of anti-money laundering and combatting the financing of terrorism (AML/CFT) (List). The List includes the Regulated Activities, Market Activities, Ancillary Services and Designated Non-Financial Business and Profession (DNFBPs) indicated in the AIFC General Rules and AIFC Glossary.

The List was developed in accordance with the AML/CFT Law of Kazakhstan (subparagraph 19) of paragraph 1 of article 3) and AIFC AML Rules (Section 2.1 (b).

(2) Guidance on Customer Due Diligence
On 30 December 2020, AFSA approved the Guidance (Requirements) for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism, applicable to the Customer Due Diligence in cases when the Participants of the Astana International Financial Centre (the Relevant Persons) establish non-face to face business relations with customers in consultation with the Ministry of Finance of the Republic of Kazakhstan (the CDD Guidance).

The CDD Guidance covers the relevant requirements of Kazakhstan’s AML/CFT Law, AIFC AML Rules and the AML Guidance in relation to the programmes of risk assessment, customer identification and verification, and remote CDD measures which should be established in AML policies, controls and procedures of the Relevant Persons.

(3) Amended AML Guidance
On 30 December 2020, AFSA approved the amendments to the Guidance (Requirements) applicable to the Rules of Internal Control for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism for financial monitoring entities of the Astana International Financial Centre (the Relevant Persons) in consultation with the Ministry of Finance of the Republic of Kazakhstan (the AML Guidance).

The amendments to AML Guidance are developed in accordance with paragraph 3-2 of Article 11 of the AML/CFT Law of Kazakhstan and other amendments to the AML/CFT Law signed by the President of the Republic of Kazakhstan on 13 May 2020.

The amendments to AML Guidance include:

• Applicability to all relevant AIFC Participants
• Obligations on taking measures of freezing transactions with money and/or other property

Requirements on the classification of clients’ operations as complex, unusually large and other unusual taking into account the typologies, schemes and methods of money laundering/financing of terrorism (ML/FT).

• New requirements for ML/FT risk management
• Obligation to provide the results of ML/FT risks assessment upon request of FIU and AFSA
• Obligations to conduct CDD of the customers including the checks and screening through at least following Lists:
• List of persons involved in terrorist activity
• List of persons and organisations associated with the financing of terrorism and extremism,
• List of persons and organisations associated with the financing of proliferation of weapons of mass destruction
• New reference on the List of states with preferential taxation instead of List of offshore zones
• New reference on the List of signs of unusual and suspicious operations approved by FIU (the Government’s Decree No. 1484 was cancelled)
• New requirement regarding customer’s operations which are subject to study

Should you have any questions, please direct your queries to [email protected].