AFSA suspends the Licence of GB Finance Ltd.
The Astana Financial Services Authority (“AFSA”) has suspended the Licence of GB Finance Ltd. after the firm had breached multiple AIFC Rules that are critical for companies to be able to carry on regulated activities.
In particular, the company has breached a range of rules including:
- requirements of the AIFC Rules on Currency Regulation;
- minimum levels of capital adequacy ratios;
- limits on lending to related parties;
- limits on large (prudential) exposures to counterparties;
- failure to notify the AFSA of breaches or potential breaches of prudential requirements, and how it is proposed to remedy them;
- failure to advise the AFSA of certain acquisitions having a significant impact on the firm’s risk profile and resources; and
- multiple breaches of management oversight and control over the firm’s activities indicative of a lack of understanding or appreciation of regulatory requirements and obligations.
The AFSA’s mission is to establish an environment that delivers fair and transparent financial and capital markets, in which individuals and institutions act with integrity and maintain the highest standards of corporate governance and international standards on which the AFSA and the AIFC is based.
Gareth Ling, Deputy CEO of the AFSA said: “GB Finance Ltd., its management, and its majority controller, have demonstrated little comprehension of regulatory expectations and requirements, whilst embarking on numerous transactions with its related parties in a manner that has lacked acceptable governance and effective compliance controls.
The AFSA’s highest priority is the protection of consumers’ rights and well-being, as well as the integrity of the financial system in the AIFC. Firms that do not appreciate this, or choose to disregard this, are not firms that the AFSA or the AIFC welcome, and the AFSA takes no hesitation in dealing with them expeditiously”.
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 1,600 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.
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.
