AFSA levies fine on KBI Partners Limited for contravention of AIFC Rules

The Astana Financial Services Authority (“AFSA”) has taken enforcement action (“Action”) against KBI Partners Limited, a private company registered in the AIFC, for contravention of Section 24 of the AIFC Financial Services Framework Regulations (“FSFR”) and for contravention of Rule 3.3.1 (a) of the AIFC Conduct of Business Rules (“COB”) for undertaking financial services activities without being authorised to provide the relevant financial services by AFSA. A financial penalty of USD 7,000 has been levied on KBI Partners Limited under Section 118 (1) (a) of the FSFR.

The Regulatory Authority has decided to take the Action because KBI Partners Limited contravened the following provisions of the AIFC Acts:

1. Section 24 of the FSFR which prohibits a Centre Participant undertaking a Regulated Activity, Market Activity or Ancillary Service without being licensed by the AFSA; and
2. Rule 3.3.1(a) of the COB which prohibits a Person from making a Financial Promotion in relation to a Regulated Activity carried on by an Authorised Firm licensed by the AFSA unless the Person is an Authorised Firm.

The AFSA’s Deputy CEO, Mr Gareth Ling said that “The conduct of business with appropriate licenses is critical to the maintenance of confidence and integrity of the financial system of the AIFC. Consumers should ensure that they receive the full protections afforded by the State and its regulatory framework but making sure that any AIFC financial services firms they deal with have appropriate licenses from the AFSA”.

The AFSA considers that the Action supports its Regulatory Objectives specified in Section 7 (3) of the FSFR and that the Action is appropriate and proportionate in the circumstances having regard to the Acting Law of the AIFC and the conduct of KBI Partners Limited.

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 1,700 firms from 70 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