1. General Provisions

1.1.These rules are the Rules on Currency Regulation and Provision of Information on Currency Transactions in the AIFC (hereafter, the Rules).

1.2.These Rules commence on December 1, 2021.

1.3. These Rules have been developed in furtherance of paragraphs 3, 4 and 5 of Article 5 of the Constitutional Statute of the Republic of Kazakhstan "On the Astana International Financial Centre" No 438-V ZRK of December 7, 2015.

1.4. The provisions of these Rules apply to:

(a) AIFC participants, AIFC Bodies and their organisations;

(b) AIFC banks;

(c)residents and non-residents of RK carrying out transactions with AIFC participants, AIFC Bodies and their organisations or using bank accounts opened in AIFC banks;

(d)STBs of RK to the extent of transactions regulated by these Rules.

Transactions that are not regulated by these Rules are carried out by STBs of RK in accordance with the legislation of RK and by AIFC banks in accordance with the Acting Law of the AIFC.

1.5.Definitions

1.5.1.Schedule 1 (Terms and Definitions) contains definitions of the key terms used in these Rules.

1.5.2.Other terms and definitions used in these Rules and not defined by Schedule 1 to these Rules are used in accordance with the definitions stipulated by the Acting Law of the AIFC and the legislation of RK.

1.6.Objectives

The Rules define: 

(a)conditions and procedure for currency transactions related to the provision of financial services by AIFC participants;

(b)conditions and procedure for currency transactions related to the provision of professional services by AIFC participants;

(c)conditions and procedure for currency transactions on the territory of the AIFC that do not fall under subparagraphs (a) and (b) of this paragraph;

(d)list of the financial and professional services provided by AIFC participants to residents of RK that are not AIFC participants.

2. Currency Residency in the AIFC

2.1 Currency Residency

For the purposes of these Rules: 

(a)AIFC participants are recognised as residents;

(b)natural and legal entities are recognised as residents in accordance with terms and definitions given in Schedule 1;

(c)natural and legal entities are recognised as non-residents in accordance with terms and definitions given in Schedule 1.

3. Rights of AIFC participants, AIFC Bodies and their organisations. Transactions in the AIFC

3.1 Rights of AIFC participants, AIFC Bodies and their organisations  

3.1.1 Unless otherwise prohibited under the Acting Law of the AIFC and (or) the legislation of RK, AIFC participants have the right to provide financial and related services to residents that are not AIFC participants only in accordance with Schedule 2 to these Rules.

3.1.2 AIFC participants (except for the AIFC banks), AIFC Bodies and their organisations have the right to:

(a) open bank accounts in foreign banks in any currency and make payments and money transfers using such accounts, subject to the requirements specified under the Acting Law of the AIFC and (or) the legislation of RK;

(b) open bank accounts in AIFC banks (except Islamic banks) in foreign currency only and make payments and money transfers using such accounts, subject to the requirements specified under the Acting Law of the AIFC;

(с) open bank accounts in STBs of RK or in Islamic banks of the AIFC in any currency and make payments and money transfers using such accounts, subject to the requirements specified under the Acting Law of the AIFC and (or) the legislation of RK.

3.1.3 AIFC banks, including Islamic banks of the AIFC, have the right to:

(а) open bank accounts in other banks, including foreign banks, and transfer own funds using such bank accounts in national or foreign currency, subject to the requirements specified under the Acting Law of the AIFC and the legislation of RK;

(b) open bank accounts for residents that are AIFC participants and non-residents, subject to the requirements of subparagraph (b) of paragraph 3.1.4 of these Rules and make payments and (or) money transfers using such accounts, subject to the requirements set out in these Rules;

(с) open correspondent accounts in the STBs of RK in the national and foreign currency in accordance with the procedure established by the legislation of RK and carry out transactions using such correspondent accounts subject to the requirements set out in these Rules and (or) the legislation of RK;

(d) open savings (deposit) accounts in foreign currency for non-residents, and AIFC participants the controlling shareholder (controlling shareholders) of which is non-resident;

(e) carry out transactions envisaged by Schedule 4 to these Rules through their correspondent accounts in national currency in STBs of RK.

3.1.4AIFC banks (except Islamic banks of the AIFC) are prohibited to:

(a) open bank accounts in the national currency for residents, including AIFC participants and non-residents;

(b) open savings (deposits) accounts for residents, including AIFC participants, except for the case specified in subparagraph (d) of paragraph 3.1.3;

(c) carry out transactions of residents related to export or import of goods (works, services), and (or) transactions subject to assignment of registration number in accordance with the currency legislation of RK;

(d) carry out exchange transactions under instructions of clients using national currency, except for the cases of executing the instructions of clients as part of transactions set out in Schedule 4 to these Rules;

(e) make payments and (or) money transfers with respect to the services which are, under the Acting Law of the AIFC and (or) the legislation of RK, prohibited to be provided by AIFC participants to residents that are not AIFC participants;

(f) provide services to residents that are not AIFC participants, the provision of which by AIFC banks is prohibited in accordance with the Acting Law of the AIFC and (or) the legislation of RK; and

(g) carry out transactions through correspondent accounts in the national currency in STBs of RK that are not in the list set out in Schedule 4 to these Rules.

3.1.5 Islamic banks of the AIFC are prohibited to:

(a) carry out transactions of residents related to export or import of goods (works, services) and (or) transactions subject to assigning of registration number in accordance with the currency legislation of the RK;

(b) carry out exchange transactions under instruction of clients using the national currency;

(c) make payments and (or) transfers of clients' money for the services not related to Islamic financing and (or) with the realisation of the project for which a client of the AIFC Islamic bank attracted financing from this bank; 

(d) provide services to residents that are not AIFC participants, the provision of which by Islamic banks of the AIFC is prohibited in accordance with the Acting law of the AIFC and (or) the legislation of RK.

3.2 Transactions of AIFC Bodies, their organisations and the AIFC participants 

3.2.1 Transactions between AIFC Bodies, their organisations and the AIFC participants are carried out in national or foreign currency, subject to the requirements set out in these Rules.

3.2.2 Transactions between AIFC Bodies, their organisations or the AIFC participants (except AIFC banks) and non-residents are carried out in any currency at the discretion of the parties in accordance with the requirements specified under the Acting Law of the AIFC and (or) the legislation of RK.

3.2.3 Transactions between AIFC participants and residents that are not the AIFC participants are carried out in national or foreign currency in accordance with the requirements specified under the Acting Law of the AIFC and (or) the legislation of RK.

3.3 Provision of financial services by AIFC participants

3.3.1 AIFC banks provide financial services to residents that are not AIFC participants in accordance with the list of financial services set out in Schedule 2 to these Rules, subject to the Acting Law of AIFC and (or) the legislation of RK.

3.3.2 AIFC participants, except AIFC banks, have the right to provide financial services to other AIFC participants, AIFC Bodies and their organisations, non-residents in accordance with their AFSA licence in national or foreign currency, subject to the following requirements:

- financial services to be rendered in the national currency are provided using the bank accounts of AIFC participants opened in STBs of RK;

- financial services to be rendered in foreign currency are provided using the bank accounts of AIFC participants opened in AIFC banks or STBs of RK.

3.3.3 AIFC participants, (except for the AIFC banks), provide financial and related services to residents that are not AIFC participants in accordance with the list of financial services and in the currency set out in Schedule 2 to these Rules, subject to the Acting Law of the AIFC and (or) the legislation of RK, and in compliance with the following requirements:

- financial and related services to be rendered in the national currency are provided using the bank accounts of AIFC participants opened in STBs of RK;

- financial and related services to be rendered in foreign currency are provided using the bank accounts of AIFC participants opened in AIFC banks or STBs of RK.

3.4 Provision of professional services by AIFC participants

3.4.1 AIFC participants provide professional services to other AIFC participants, AIFC Bodies and their organisations and non-residents in accordance with the list, determined in the Schedule 2 of the AIFC General Rules, in any currency, subject to the following requirements:

- professional services to be rendered in the national currency are provided using the bank accounts of AIFC participants, AIFC Bodies and their organisations opened in STBs of RK;

- professional services to be rendered in foreign currency are provided using the bank accounts of AIFC participants, AIFC Bodies and their organisations opened in AIFC banks or STBs of RK.

3.5 AIFC participants (except AIFC banks) carry out transactions related to export or import of goods (works, services), exchange transactions using the national currency and transactions subject to assignment of registration number in accordance with the currency legislation of the RK, using bank accounts of AIFC participants opened in STBs of RK only.

3.6 AIFC participants carry out transactions with residents that are not AIFC participants in accordance with these Rules and (or) the currency legislation of RK.

3.7 AIFC participants have the right to provide professional services in foreign currency to residents that are not AIFC participants, only in accordance with the list set out in Schedule 3 to these Rules.

3.8 The AIFC participants, the AIFC Bodies and their organisations have the right to carry out operations for the formation of share capital through the STB of the RK in any currency and AIFC banks in foreign currency under the Acting Law of the AIFC. 

4. Payments and (or) money transfers on transactions of residents and non-residents in the AIFC

4.1 Payments and (or) money transfers on foreign exchange transactions of AIFC participants (except AIFC banks) are carried out through bank accounts in AIFC banks and (or) the STBs of RK in compliance with the conditions specified by the Acting Law of the AIFC and the legislation of RK.

4.2 The AIFC bank transfers money of AIFC participants from their accounts in the AIFC bank to their accounts in a STB of RK, as well as from their accounts in the STB of RK to their accounts in the AIFC bank in foreign currency.

4.3 Payments and (or) money transfers for client transactions are made in accordance with the following conditions:

(a) The AIFC bank requests from the client the following identifying documents and information:

(i) currency contract (for transactions in the equivalent of over USD 10,000);

(ii) BIN;

(iii) if the client is a legal entity or an organisation that are not legal entities – documents defining the country of registration and the founders of the entity or organisation, if these documents have not been submitted or have been changed.

(b) The AIFC bank must have sufficient identification information about the client to determine the client’s residency, link to the AIFC public register and, if applicable, client’s status as an AIFC participant;

(c) The AIFC bank must have sufficient information about the transaction or operation for which the payment and (or) transfer of money is carried out to determine matters, including, but not limited to:

(i) the country of registration or residence of the payer and beneficiary;

(ii) the sender of the payment and (or) money transfer and its ultimate beneficiary;

(iii) the affiliation of the payer and the beneficiary (for the allocation of intra-corporate transfers and payments between affiliated parties);

(iv)the economic sector for the payer and the beneficiary;

(v) the purpose of the payment.

(d) The AIFC bank must refuse to make a payment and (or) to transfer money to the client if:

(i) the payment and (or) money transfer is made in the national currency (for the AIFC banks that are not Islamic banks);

(ii) the payment and (or) money transfer is made in the national currency and is not in respect of provision of Islamic finance services (for Islamic banks of the AIFC);

(iii)the payment and (or) money transfer is made under the transactions stipulated by paragraphs 3.5 and 4.4 of these Rules;

(iv) the payment and (or) transfer of money contravenes the Acting Law of the AIFC and (or) the legislation of RK.

(e) This pragragh does not apply to payments and money transfers made between non-residents not registered in RK and (or) not operating in the territory on RK.

4.4 Residents that are not AIFC participants, are not entitled to carry out, through AIFC banks, currency transactions related to export or import of goods (works, services), exchange transactions using the national currency, and transactions subject to assignment of registration number in accordance with the currency legislation of RK. These transactions are carried out solely through the STBs of RK or foreign banks to the extent permitted by the currency legislation of RK.

5. Exchange transactions in the AIFC

5.  A purchase and (or) sale of foreign currency can be carried out only through AIFC banks, brokers and (or) dealers of the AIFC licensed by AFSA to carry out exchange transactions or STBs of RK and foreign banks, subject to the following requirements:

(a) the purchase or sale of non-cash foreign currency is carried out on the basis of a request indicating the purpose of the purchase or sale;

(b) the purchase or sale of non-cash foreign currency for the national currency is carried out solely through STBs of RK;

(c) the purchase or sale of non-cash foreign currency for other non-cash foreign currency is carried out through AIFC banks, brokers and (or) dealers of the AIFC licensed by AFSA to carry out exchange transactions, or STBs of RK and foreign banks; 

(d) purchase or sale of foreign currency in cash is carried out through STBs of RK or through legal entities carrying out the transactions solely through exchange offices on the basis of a NBRK licence for exchange transactions with foreign currency in cash, in accordance with the procedure established by the legislation of RK.

6. Provision of information on currency transactions in the AIFC for the purposes of currency regulation

6.1  The list and procedure for providing information on carried out transactions is established in accordance with Schedule 5 to these Rules.

7. Exchange of information between the AIFC and NBRK bodies

7.1 Procedure for information interaction

The procedure for exchanging information on the matters related to currency transactions carried out in the AIFC is determined in accordance with Schedule 5 to these Rules.

8. Confidentiality

Any commercial, banking and other information, protected by the Acting Law of AIFC, that AIFC participants, their employees and agents became aware of while carrying out the transactions both on their own behalf and on behalf of other persons must be kept secret.

9. Responsibility for Rules contravention

9.1Contravention

An AIFC participant who:

(a)commits an act prohibited under the Acting Law of the AIFC and (or) the legislation of RK;

(b)omits to do an act that is required under the Acting Law of the AIFC and (or) the legislation of RK; or

(c)otherwise contravenes the Acting Law of the AIFC and (or) the legislation of RK,

commits contravention of these Rules, which entails responsibility established by the Acting Law of the AIFC, the legislation of RK and AFSA policy.

9.2 In case of non-submission or late submission by the AIFC participants of the reporting provided by these Rules, the AFSA will apply measures to them in accordance with subsection 7.1.3 of AIFC Fees Rules.

Schedule 1

TERMS AND DEFINITIONS

1) AFSA – Astana Financial Services Authority;

2) ARDFM – Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market;

3) AIFC bank – an AIFC participant licensed by AFSA to provide the following services, subject to the requirements set out in these Rules:

a)accepting deposits, granting the loans, providing money services, opening and maintaining bank accounts;

b)Islamic banking and Islamic financing;

4) STB of RK - an authorised bank recognised as such in accordance with the currency legislation of RK;

5) national currency – national currency of the Republic of Kazakhstan;

6) NBRK – National Bank of the Republic of Kazakhstan;

7) non-residents – legal and natural entities recognised as non-residents under the Law of the Republic of Kazakhstan "On Currency Regulation and Currency” Control";

8) AIFC Bodies – as defined in Article 9 of the Constitutional Statute of the Republic of Kazakhstan "On the Astana International Financial Centre", No. 438-V ZRK of 7 December 2015;

9) RK – Republic of Kazakhstan;

10) for the purposes of currency regulation the following persons are recognised as residents of the Republic of Kazakhstan:

(a)legal and natural entities as well as branches (and representative offices) of foreign entities recognised as residents under the Law of the Republic of Kazakhstan "On Currency Regulation and Currency Control";

(b) AIFC participants.

11) AIFC participants – legal entities registered in accordance with the Acting Law of the AIFC as well as other legal entities accredited by the AIFC;

12) KASE – JSC "Kazakhstan Stock Exchange";

13) Controlling shareholder – a shareholder who owns, whether on its own or jointly with its affiliates, 50%+1 of the shares of an AIFC participant.

14) Credit provider - the AIFC participant, licensed by the AFSA to provide services for granting the loans, subject to the requirements established by these Rules;

15) AIFC Islamic  bank is the AIFC participant, except AIFC bank, that has license from the AFSA to provide banking services, accept deposits and (or) open and maintain bank accounts in accordance with the principles of Islamic financing in the territory of the AIFC;

16) Islamic financial organisation is the AIFC participant, with the exception of the AIFC Islamic bank, the exclusive activity of which is the provision of financial services that comply with principles of Islamic financing, based on license of AFSA;

17) AIFC Broker and (or) Dealer - an AIFC participant licensed by AFSA to carry out investment transactions as an Agent and (or) Proncipal.   

Schedule 2

LIST OF FINANCIAL SERVICES PROVIDED BY AIFC PARTICIPANTS TO RESIDENTS THAT ARE NOT AIFC PARTICIPANTS

LIST OF RELATED SERVICES PROVIDED BY AIFC PARTICIPANTS TO RESIDENTS THAT ARE NOT AIFC PARTICIPANTS

Schedule 3

LIST OF PROFESSIONAL SERVICES THAT CAN BE PROVIDED BY AIFC PARTICIPANTS TO RESIDENTS THAT ARE NOT AIFC PARTICIPANTS, IN ANY CURRENCY

Schedule 4

LIST OF TRANSACTIONS THAT AIFC BANKS ARE ENTITLED TO CARRY OUT THROUGH THEIR CORRESPONDENT ACCOUNTS IN THE NATIONAL CURRENCY IN STBs OF RK

Schedule 5

PROCEDURE FOR PROVIDING INFORMATION ON CURRENCY TRANSACTIONS IN THE AIFC

1. GENERAL PROVISIONS

1.1.This Schedule sets out requirements for AIFC participants to provide information for purposes of currency regulation on currency transactions carried out by them, including on behalf of clients, as well as for STBs of RK on currency transactions carried out on behalf of AIFC participants.

1.2. The information on currency transactions including client operations provided by AIFC participants includes:

(a) information on payments and (or) money transfers on currency transactions carried out by AIFC banks, including on behalf of clients, as well as by a STB of RK - on behalf of AIFC participants;

(b) information on resident clients' transactions and the status of their accounts provided by AIFC banks;

(c)information on deals and transactions carried out by AIFC participants, including on behalf of clients, that affected the change in requirements for non-residents and obligations in front of them;

(d) information on transactions with securities and derivatives carried out by AIFC participants with non-residents;

(e) information on income accrued and received from foreign exchange transactions with financial instruments of AIFC participants.

1.3. Information on currency transactions carried out, including on behalf of clients, is provided by AIFC participants and STBs of RK to the AFSA in the form of regular reports, the format and timing of which are determined by these Rules, or at the request of the AFSA.

1.4. AIFC participants provide the AFSA with the data and information in accordance with these Rules electronically through secure communication channels with confirmation by an electronic digital signature.

1.5.AIFC participants are responsible for non-submission, late submission, as well as the provision of false data in accordance with the Acting Law of the AIFC.

1.6.AIFC Bodies and their organisations include information about their own transactions in the reports submitted by the AFSA to the NBRK on the transactions carried out by AIFC participants.

1.7. The data in the reports related to monetary obligations and payments (or transfers) of money are reflected in USD. Unless otherwise indicated, if the currency of the obligation or payment (or transfer) of money differs from the USD, the equivalent in USD is calculated using the market exchange rate at the date of the transaction.

1.8 Zero values are provided for types of operations prohibited for AIFC participants provision of information on which is required by these Rules.

1.9 For all types of reporting provided by the AIFC participants, including AIFC banks, and STBs of RK to the AFSA, in the absence of transactions, the provision of information on which is provided for by these Rules, during the reporting period, it is necessary to submit zero values reports to the AFSA. This paragragh does not apply to Annex 4 of Schedule 5 of these Rules.  

2. TERMS AND DEFINITIONS

2.1. For the purposes of this Schedule of the Rules, the key definitions specified in the Rules on Currency Regulation in the AIFC are used, together with the following definitions:

(a) the object of investment is a legal entity, investment fund, whose securities (votes of participants) are being acquired (acquired), as well as organisations to whose property contributions are being made (were made). In the case of depositary receipts, the object of investment is an issuer of the security that is their underlying asset;

(b) own transactions – currency transactions of a resident who is a party to an agreement, carried out on his own behalf and at his own expense. 

2.2.Accepting Deposits is a type of regulated activity, as defined in paragraph 17 of Schedule 1 of the AIFC General Rules.

2.3.Providing Custody is a type of regulated activity, as defined in paragraph 5 of Schedule 1 of the AIFC General Rules.

3. PROCEDURE FOR PROVIDING INFORMATION ON CURRENCY TRANSACTIONS BY AIFC BANKS AND STBs OF RK

3.1. An AIFC bank and a STB of RK provide to the AFSA the following:

(a) a report on payments and (or) transfers made on foreign currency transactions, including on behalf of AIFC participants, made in the AIFC territory, for an amount equal to or exceeding the equivalent of USD 50,000, in accordance with Annex 1 to this Schedule. The report is submitted monthly no later than the 15th (fifteenth) day of the month following the reporting month;

(b) a report on clients' bank accounts in foreign currency, including a list of residents who have bank accounts in foreign currency with the AIFC bank, and aggregated data on cash balances on them, in accordance with Annex 2 to this Schedule. The report is submitted monthly no later than the 10th (tenth) day of the month following the reporting month;

(c) a report on the bank accounts of the AIFC participants who have opened deposit accounts in STBs of RK in the form in accordance with Annex 5 to this Schedule. The report is submitted quarterly no later than the 10th (tenth) day of the month following the reporting quarter.

3.2. In order to clarify the circumstances of currency transactions, the AFSA has the right to request from the AIFC bank the provision of a contract on the basis and (or) pursuant to which a payment and (or) money transfer was made or a corresponding obligation of the AIFC bank arises.

3.3. The AFSA, no later than the 18th (eighteenth) day of the month following the reporting month, provides information to the NBRK in the form of Annex 1 to this Schedule and no later than the 15th (fifteenth) day of the month following the reporting month, provides information to the NBRK in the form of Annex 2 to this Schedule electronically via secure communication channels.

4.PROCEDURE FOR PROVIDING INFORMATION BY AIFC PARTICIPANTS PROVIDING DEPOSITORY AND BROKERAGE SERVICES

4.1. AIFC participants providing dealer, and (or) brokerage; custodian; depository services in accordance with the their AFSA licence (hereinafter referred to as participants), quarterly no later than the 10th (tenth) 15 (fifteenth) day of the month following the reporting month, submit reports on securities to AFSA in accordance with Annex 3 to this Schedule.

The AFSA submits the participants' reports on Annex 3 to the NBRK no later than the 20th (twentieth) day of the month following the reporting quarter.

The AFSA, no later than the 10th day of the second month following the reporting quarter, provides to the NBRK in accordance with Annex 6 to this Schedule data on the volume of investments managed by AIFC participants providing investment management services.

4.2. The report is submitted on the AIFC participants' own transactions and transactions of their clients:

AIFC participants providing dealer and/or brokerage; custodial services in accordance with the Committee's license shall not provide data on transactions conducted on behalf of the following clients

- which are other participants of the AIFC;

- Joint Stock Company Development Bank of Kazakhstan;

- professional participants of the securities market of the Republic of Kazakhstan, having an appropriate license of the Agency of the Republic of Kazakhstan on Regulation and Development of Financial Market.:

4.3. The report reflects data on transactions carried out during the reporting period.

1) with securities issued by residents in the Republic of Kazakhstan and owned by a non-resident client of an AIFC participant (transaction code - 1111);

2) with securities issued by non-residents and owned by an AIFC participant and a client-resident of an AIFC participant (transaction code - 2220);

3) with securities issued by residents abroad and belonging to the AIFC participant or  client-resident of the AIFC participant (operation code 2120);

4) with securities issued by residents abroad and belonging to the client-nonresident of the AIFC participant (transaction code - 2121).

The report proviede data on the number of securities, their value at the beginning and end of the reporting period, and, if available, investment income from the ownership of securities and service fees, including in the absence of transactions in the reporting period.

Transactions of securities repurchased (direct and reverse repurchase agreements) are not reflected in Annex 3 to this Schedule. Data at the beginning and end of the reporting period on the security involved in repo transactions are reflected by the original owner of the security.

4.4. The data is presented separately for each type of security by final beneficiary:

A) country code - three-digit numerical code of account owner's country – final beneficiary in accordance with national classifier of the Republic of Kazakhstan "Codes for representation of names of countries and their administrative-territorial subdivisions";

 B) sector code of account owner-beneficiary:

«1» central government;

«2» regional and local governments;

«3» central (national) banks;

«4» other depositary organisations;

«5» other financial organisations;

«6» state non-financial organisations;

«7» non-state non-financial organisations;

«8» non-profit organisations serving households;

«9» households.

An AIFC participant providing custody services specifies the country and sector code for its AIFC depositary customer in an aggregated manner.

4.5. Financial transactions include transactions between a resident and a non-resident involving a change of economic ownership of securities and are recorded at the value specified in the transaction (if not, the price quoted in the market on the date of the agreement): purchase (sale) on the primary and secondary securities markets, crediting/writing of securities by mutual agreement; receipt (transfer) of securities as a gift, by inheritance.

4.6. Other transactions include:

1) Transactions between a resident and a non-resident which do not result in the transfer of ownership of securities (transfer of securities into nominal holding, transfer of clients from one nominee holder or registrar to another nominee holder or registrar);

2) Transactions between residents and non-residents with transfer of ownership, except those classified as financial transactions: alienation of securities by court decision;

3) Transactions between non-residents with transfer of ownership (purchase at the secondary market, sale at the secondary market);

4) Transactions between residents with transfer of ownership (purchase on the secondary market, sale on the secondary market).

4.7. Financial transactions include transactions between a resident and a non-resident involving a change in the economic ownership of securities, and are reflected at the value specified in the transaction (in case of absence of the value - at the price quoted on the market on the date of the agreement): purchase (sale) on the primary and secondary securities markets, receipt (transfer) of securities as a gift, by inheritance.

4.8. Only data on debt securities are reflected in column 23:

1) accrual of announced fees for days of holding a security by the respondent or his/her client during the reporting period;

2) amortization of premium or discount for the days of holding a security by the respondent or his client during the reporting period.

4.9. Column 24 are reflected data on income received in the reporting period:

1) dividends received by the respondent or his/her client during the reporting period;

2) remuneration received by the respondent or his/her client during the reporting period upon repayment of accrued interest on debt securities by the issuer.

The income referred to in this paragraph are reflected in the amount including any fees or taxes withheld therefrom.

4.10. Column 25 are reflected the fee income for brokerage, advisory, information and other services paid by a non-resident client to the respondent.

For the Depositary of AIFC, it is allowed to show fees and commissions in aggregate for each non-resident client of the Depositary. In this case, the fee is recorded for the security (at the highest amount at the end of the period) owned by the non-resident customer.

4.11. Purchases and sales of securities on the secondary market are reflected in columns 13 and 15 at the current market value, or the value corresponding to the price indicated by the buyer or seller customer.

4.12. The securities positions at the beginning of the reporting period in columns 6 and 7 are reflected equal to their positions at the end of the previous period. The securities position at the end of the reporting period in column 22 are reflected determined on the basis of the market price announced on the organised securities market at the end of the reporting period.

4.13. In the case of securities for which transactions are executed on the unorganised market, the following prices shall be applied in order of preference to assess the position of securities at the end of the reporting period:

(a) the price of the security on the last transaction;

(b) price of the security at purchase value, excluding acquisition related costs (brokerage fees, bank fees);

(c) the nominal value of the security.

4.14. Financial transactions and other items denominated in other foreign currencies are translated into US dollars at cross rates determined as follows:

1) the value at the beginning of the period is translated at the cross rate at the end of the preceding period;

2) the value at the end of the period - at the cross rate at the end of the reporting period;

3) financial and other operations, investment income and commissions - at cross-exchange rate as of the date of operation or at the average weighted cross-exchange rate for the reporting period.

5. PROCEDURE FOR PROVIDING INFORMATION ON CURRENCY TRANSACTIONS OF CAPITAL MOVEMENTS BY AIFC PARTICIPANTS

5.1. The AIFC participant provides the AFSA with information on the contract, on the basis of and pursuant to which capital movement transactions are carried out, for an amount equal to or exceeding the equivalent of USD 500,000, in accordance with Annex 4 to this Schedule. The information is provided before the expiration of 30 (thirty) calendar days from the date of commencement of payments under this contract. For financial loans attracted by AIFC banks from non-residents, Part 1 of the form is completed in case of conclusion of an agreement for a period of more than 180 days

If the party and (or) the currency of the contract change, the AIFC participant submits information to the AFSA in accordance with Annex 4 to this Schedule. The information is provided before the expiration of 30 (thirty) calendar days from the date of amendments to the contract.

5.2. At the request of the NBRK, the AIFC participant submits to the AFSA information on forecast data on repayment of debt on financial loans.

5.3. The AFSA provides information to the NBRK in the form of Annex 4 to this Schedule, and on the forecast data on repayment of debt on financial loans (if any) - monthly, no later the 10th day of the month following the reporting period.

Annex 1 to Schedule 5

Report on executed currency transactions

(structure of payment information in the bank's report)

BIN of AIFC Bank/STB of RK

Frequency: monthly

Reporting period: _______ month ____ year

Submission deadline: before the 15th (fifteenth) day (inclusive) of the month following the reporting period

Appendix to the report form on executed currency transactions

Guidance for Completing the Form 

Report on executed currency transactions 

1. The Form does not include information on the purchase (sale) of foreign currency in cash through exchange offices.

Information on payments and (or) money transfers on foreign exchange transactions made using payment cards is corrected by the AIFC Bank and (or) STB of the Republic of Kazakhstan as information about such payments and (or) money transfers is received from a resident or non-resident.

2. Parts 1, 6 and 7 of the Form are filled out in case of carrying out foreign currency transactions based on a currency contract.

3. Part 1 of the Form contains details of the currency contract. Column 1.3 is filled in if the currency contract has been assigned an account number.

4. Parts 2 and 3 of the Form contain information about the sender of money and the beneficiary in accordance with the payment document.

Columns 2.3 and 3.3 indicate the two-letter code of the country of registration (for a legal entity, branch (representative office) of a legal entity) or country of permanent residence (for an individual on the basis of citizenship or the right granted in accordance with the legislation of the Republic of Kazakhstan or a foreign state) of the sender of money, beneficiary in accordance with the national classifier of the Republic of Kazakhstan NC RK ISO 3166-1 “Codes for representing the names of countries and units of their administrative-territorial divisions. Part 1. Country codes”.

Columns 2.4, 2.5, 3.4 and 3.5 are filled in in accordance with the rules for the application of codes of sectors of the economy and the purpose of payments, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated August 31, 2016 No. 203, registered in the Register of State Registration of Regulatory Legal Acts under No. 14365, (hereinafter - Rules for the use of codes of sectors of the economy and the purpose of payments).

When depositing (withdrawing) cash from a bank account, in parts 2 and 3, information about the account holder is filled in, except for cases of depositing (withdrawing) cash by a third party to the bank account of an individual. When depositing cash by a third party to the bank account of an individual, in part 2, information about the person who deposits the money shall be filled, in part 3 - on the owner of the account.

When withdrawing cash from a bank account of an individual by a third party, information about the account holder shall be filled in part 2, information about the person who withdraws money shall be filled in part 3.

When AIFC Bank and (or) STBs of RK sell foreign currency, checks, bills of exchange, other payment documents or other currency valuables, part 2 of the Form reflects information about the AIFC Bank and (or) STBs of RK, part 3 of the Form - about the client-buyer. When the AIFC Bank and (or) STBs of RK purchase foreign currency, checks, bills, other payment documents or other currency valuables, part 2 of the Form reflects information about the client-seller, part 3 of the Form - about the AIFC Bank and (or) STBs of RK.

5. Part 4 of the Form contains information about the currency transaction.

Column 4.2 shall indicate the reference of the currency operation consisting of four parts:

1) the first part shall indicate the three-digit code of the STB RK or the code of the AIFC bank assigned by the Committee, 

2) the second part shall indicate the code of the branch of STB RK or the code of the AIFC bank assigned by the Committee, consisting of three digits;

3) the third part shall indicate the serial number of the currency operation in the report;

4) the fourth part shall indicate the reporting date in the format "DDMMYYYY".

Column 4.3 shall be filled in in accordance with the table of currency transaction codes, which is an Annex to the explanation for filling out the form "Information on the currency transaction" of the Rules for the implementation of currency transactions in the Republic of Kazakhstan, approved by the Resolution of the Board of the NB RK dated March 30, 2019 No. 40.

Column 4.4 is filled in in accordance with the Rules for the use of codes of sectors of the economy and the purpose of payments.

In column 4.6, a three-digit alphabetic currency code is indicated in accordance with the national classifier of the Republic of Kazakhstan NC RK 07 ISO 4217 "Codes for representing currencies and funds".

In column 4.7, "01" is indicated - for sent payments or money transfers, operations for withdrawing cash foreign currency or selling by the AIFC Bank and (or) STB of RK foreign currency, checks, bills, other payment documents or other currency values, "02" - for incoming payments or money transfers, operations to credit foreign currency in cash or purchase by the AIFC Bank and (or) STB of RK foreign currency, checks, bills of exchange, other payment documents or other currency values.

In column 4.8, shall be indicated “1” if the payment and (or) money transfer is carried out between a legal entity and its structural divisions or between structural divisions of one legal entity, in other cases, shall be indicated “0”.

Column 4.9 shall be filled in  accordance with paragraphs 16-1 and 16-2  of  Rules for carrying out currency transactions in the Republic of Kazakhstan as follows:

"1.1" - a financial loan providing for the provision of money by a non-resident to a resident (except for the STB of the RK), if the terms of the relevant currency agreement (initially or after amendments and (or) additions to the currency agreement) do not provide for the transfer of money to be received from a non-resident to the resident's bank accounts in the STB of the RK;

"1.2" - a financial loan that provides for the emergence of a resident's (except for the STB of the RK) claims against a non-resident for the return of money, if the terms of the relevant currency agreement (initially or after amendments and (or) additions to the currency agreement) do not provide for the transfer of money to be received from a non-resident to the resident's bank accounts in the STB of the RK;

"1.3" - a financial loan providing for the provision of money by a resident to a non-resident who is not an affiliated person, if the terms and conditions of the relevant currency agreement (initially or after amendments and (or) additions to the currency agreement) do not provide for the payment of remuneration for the use of the subject of the financial loan;

"1.4" - export operations, if the terms of the respective currency agreement (initially or after amendments and (or) additions to the currency agreement) stipulate that the term of fulfillment of the non-resident's obligations to pay for exports exceeds 720 (seven hundred and twenty) days from the date of fulfillment of obligations by the resident;

"1.5" - import operations, if the terms of the respective currency agreement (initially or after amendments and (or) additions to the currency agreement) stipulate that the term of fulfillment of the non-resident's obligations on delivery of goods (performance of work, rendering of services) or on return of money, including advance payment or prepayment amount in full (in case of non-fulfillment by the non-resident of its obligations on import), exceeds 720 (seven hundred and twenty) days from the date of fulfillment of obligations by the resident;

"1.6" - transfer of money by a resident to a non-resident professional participant of the securities market, performing currency transactions on clients' instructions, for an amount exceeding 50,000 (fifty thousand) US dollars in equivalent;

"1.7" - transfer by a resident of money to his/her own account abroad in an amount exceeding 50,000 (fifty thousand) US dollars in equivalent;

"1.8" - gratuitous money transfer made by a resident in favor of a non-resident for the amount exceeding 50,000 (fifty thousand) US dollars in equivalent;

"2" - payments and (or) money transfers of one person in a calendar month under two or more currency contracts concluded with the same non-resident for the total amount exceeding the threshold value above which such currency contracts shall be subject to assignment of the accounting number;

“0”- in other cases.

6. Part 5 of the Form contains information about the organisation (bank) of the counterparty for the currency transaction - the organisation (bank) of the sender of money for received payments and (or) money transfers, the organisation (bank) of the beneficiary for sent payments and (or) money transfers. For intra-bank currency transactions, information on the reporting AIFC Bank and (or) STB of the RK is indicated. If there is no information about the organisation (bank) of the sender of money in the documents based on which the payment and (or) money transfer is made, Part 5 shall not fill out.

Column 5.3 indicates the two-letter code of the country of the organisation (bank) of the sender of money or the beneficiary in accordance with the national classifier of the Republic of Kazakhstan NC RK ISO 3166-1 “Codes for representing the names of countries and units of their administrative-territorial divisions. Part 1. Country codes. For intra-bank currency transactions, the code "KZ" shall be indicated.

7. Parts 6 and 7 of the Form contain information about the sender of money or the recipient of money under a currency contract. If the sender (recipient) of money under the currency contract matches the sender of money (beneficiary) under the payment document, then in part 6 (7) information shall be filled in similarly to part 2 (3) of the Form.

Columns 6.3 and 7.3 indicate the two-letter code of the country of registration (for a legal entity, branch (representative office) of a legal entity) or country of permanent residence (for an individual on the basis of citizenship or a right granted in accordance with the legislation of the Republic of Kazakhstan or a foreign state) of the sender or recipient money under a currency contract in accordance with the national classifier of the Republic of Kazakhstan NC RK ISO 3166-1 “Codes for representing the names of countries and units of their administrative-territorial divisions. Part 1. Country codes.

Columns 6.4, 6.5, 7.4 and 7.5 shall be filled in in accordance with the Rules for the use of codes of sectors of the economy and the purpose of payments.

8. Part 8 of the Form contains additional information that is not included in parts 1, 2, 3, 4, 5, 6 and 7 of the Form: information about the investment object, issuer of securities, country of the property, special payment terms, date of crediting money to the account of storage of instructions of the sender under the currency legislation.

9. The absence of clarifying information in part 8 of the Form is not a violation. Inclusion in the Form of currency transactions in the amount less than the established threshold value is not a violation.

10. In the absence of information for the reporting period, the Form is submitted with zero values.

11. Corrections (changes, additions) to the Form shall be made within 1 (one) month after the submission deadline.

Annex 2 to Schedule 5

Report on the monetary movement on clients' bank accounts in foreign currency __________

Name of AIFC Bank/STB of RK

BIN of AIFC Bank/STB of RK

Frequency: monthly

Reporting period: on "____" __________ 20____

Submission deadline: monthly until the 10th (tenth) day (inclusive) of the month following the reporting

Name of the AIFC Bank / STBs of RK_____________

 Form in currency

Address____________________________

Phone _____________________________

E-mail address ________________________________________________

Type of activity ________________________________________________

Contractor ______________________________________ ________________

                         surname, name and patronymic (if any) signature, phone number

Chief accountant or person authorised to sign the report

_________________________________________________ __________________

             surname, name and patronymic (if any) signature, phone number

First manager or person authorised to sign the report

___________________________________________ ______________________

       surname, name and patronymic (if any) signature, phone number

Date of signing the report "____" ______________ 20___

Appendix to the report form for foreign currency movement in customer bank accounts

Guidance for Completing the Form

This section provides an explanation for properly filling out the form titled "Report on Foreign Currency Movements in Client Bank Accounts" 

Part 1. General Provisions

1.   This explanation outlines the standardised guidelines for completing the designated administrative data collection form titled "Report on Foreign Currency Movements in Client Bank Accounts" (hereinafter referred to as "the Form").

2.   The Form should be endorsed by the primary manager or an authorised representative responsible for report signatures, the chief accountant or an authorised representative responsible for report signatures, and the executing party. 

Part 2. Guidance for Completing the Form

3. The Form shall be completed for every individual bank client, encompassing an overview of their foreign currency bank account status, this includes: the balances at both the commencement and conclusion of the reporting period, with notable emphasis on alterations that occurred during the period due to transactions involving bank accounts held in US dollars, Euros, Russian rubles and Chinese yuans.  The data on the total column shall be filled in tenge, the columns by types of currencies shall be filled in units of bank account currency.

4. In instances where the AIFC Bank and/or STB of RK initiate a payment (transfer) on behalf of a client in a currency differing from that of the client's bank account, the transaction should be documented based on its actual purpose, rather than being treated as a currency conversion.

5. When completing the Form, adhere to the following conditions:

for all rows of the table, columns 1, 2, 3, 4, 5 are equal to the sums of values for all clients;

line with code 100000 = lines with code 300000 for the previous reporting period;

line with code 300000 = line with code 100000 + (line with code 210000 - line with code 210400) + line with code 410400 - (line with code 220000 - line with code 220400) - line with code 420400;

line with code 210000 = line with code 211000 + line with code 212000 + line with code 210300 + line with code 210400 + line with code 210500;

line with code 211000 = line with code 211110 + line with code 211120 + line with code 211130 + line with code 211140 + line with code 211150 + line with code 211160;

in line with code 211140, operations to attract loans from resident banks also include loans attracted from the reporting bank;

line with code 212000 = line with code 212110 + line with code 212120 + line with code 212130 + line with code 212140 + line with code 212150 + line with code 212160;

line with code 210300 = line with code 210301 + line with code 210302;

in the line with code 210301, transfers by clients of money from their bank accounts opened with resident banks also include transfers by clients of money from a bank account opened with the reporting bank (intrabank transfers);

line with code 220000 = line with code 221000 + line with code 222000 + line with code 220300 + line with code 220400 + line with code 220500;

line with code 221000 = line with code 221110 + line with code 221120 + line with code 221130 + line with code 221140 + line with code 221150 + line with code 221160;

in the line with code 221140, the operation to fulfill obligations on loans attracted from resident banks also includes operations to fulfill obligations on loans attracted from the reporting bank;

line with code 222000 = line with code 222110 + line with code 222120 + line with code 222130 + line with code 222140 + line with code 222150 + line with code 222160;

line with code 220300 = line with code 220301 + line with code 220302;

in the line with code 220301, transfers by clients of money to their bank accounts opened with resident banks also include transfers by clients of money to their bank account opened with the reporting bank (intrabank transfers);

line with code 410400 > = line with code 412400.

6. Corrections, alterations, or additions to the data within the Form should be made within 1 (one)  month following the submission deadline.

7. If information is unavailable for the reporting period, the Form should be submitted with zero values.

Annex 3 to Schedule 5

Report on transactions of resident clients with securities of foreign issuers, with securities issued by residents in accordance with the legislation of other states and on their territory, and on transactions of non-resident clients with securities issued by residents of the Republic of Kazakhstan

Transaction code - 1111. Securities issued by residents in the Republic of Kazakhstan and owned by a non-resident customer of an AIFC participant;

Transaction code - 2220. Securities issued by non-residents and owned by an AIFC participant or  a client-resident of an AIFC participant;

Transaction code - 2120. Securities issued by residents abroad and owned by the AIFC participant or  the client-resident of the AIFC participant;

Transaction code - 2121. Securities issued by residents abroad and held by a client which is a non-resident of an AIFC participant.

Annex 4 to Schedule 5

Information on contracts on the basis of and pursuant to which currency transactions of capital movements are carried out

The information is provided under currency contracts, on the basis of and pursuant to which currency transactions of capital movements are carried out, for an amount equal to or exceeding the equivalent of USD 500,000. The equivalent in USD is calculated at the market exchange rate (cross-rate) on the effective date of the contract.

The information is provided according to the following structure:

Name of the AIFC participant ________________________ BIN____________

1.Information on financial loans attracted by AIFC participant from a non-resident (issued by AIFC participants to a non-resident)

2. Information about participation of a non-resident in the capital of AIFC participant (AIFC participant in the capital of a non-resident)

3. Information on other capital transactions of an AIFC participant

Explanation of completion:

1. non-resident to resident ratio is selected from the list:

1) _direct ownership by non-resident of 10 (ten) per cent or more of voting shares, votes of resident participants;

2) _indirect ownership by non-resident of 10 (ten) percent or more of voting shares, votes of resident participants;

3) _direct ownership by a resident of 10 (ten) per cent or more of voting shares, votes of non-resident participants;

4) _indirect ownership by a resident of 10 (ten) per cent or more of voting shares, votes of non-resident participants;

5) _ resident and non-resident do not have any control or influence over each other but are controlled or influenced by the same investor owning directly or indirectly at least 10 (ten) per cent of voting shares, votes of participants of a resident;

6) _cases not specified in subparagraphs 1), 2), 3), 4) and 5) of this paragraph.

1.              Debt repayment schedule (in thousand units of the loan currency):

Annex 5 to Schedule 5

List of AIFC participants which opened deposit accounts in a STB

Annex 6 to Schedule 5

Report on the volume of investments of AIFC participants providing investment management services