AFSA has released its Policy Statement on its Approach to Banks and Start-Up Banks

The Astana Financial Services Authority (AFSA) has released its Policy Statement on AFSA’s approach to Banks and start-up Banks (Policy Statement). This statement clarifies the approach of AFSA to entities applying for authorisation to become a bank in the AIFC.

AFSA defines “start-up entities” as (i) newly formed business entities that are not owned by or are not a branch of an existing regulated financial institution, or (ii) entities (whether newly formed or not) that are part of a Group that does not contain any entities within the Group that are subject to financial services regulation broadly equivalent to the AFSA’s regulatory regime.

The risks posed by start-up Banks are unique and broader compared to related entities of pre-existing bank. Therefore, the AFSA considers that generally, an applicant for authorization to become a Bank must be either a branch or a Subsidiary of an existing bank, or a newly incorporated entity that is part of a Group that contains a regulated bank or similar comparable financial institution.

The Policy Statement also covers additional requirements for an applicant seeking authorization in the AIFC as a Bank, and details on risk assessment.

This approach does not apply to a start-up entity applying for authorization to become an Islamic Bank.

For more information on the Policy Statement, please visit our website https://afsa.orderly.kz/articles/policy-statement-on-the-afsa’s-approach-to-banks-and-start-up-banks.

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.

Around 2,000 firms from 75 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 with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/  

Contact information:

Public Relations and Communications Division of AFSA:

+7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]