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2.2.21. Providing Money Services
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2.2. Becoming regulated as an Authorised Firm
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Entire Act

2.2.21. Providing Money Services

2.2.21.1. General description

Providing Money Services is listed in section 21 of Schedule 1 of GEN. This Regulated Activity means engaging in, among others, the following activities:

(a)     providing currency exchange;

(b)     selling or issuing payment instruments;

(c)     selling or issuing stored value;

(d)     execution of payment transactions, including transfers of funds on a settlement account, (including a bank account), with the user's payment service provider or with another payment service provider:

(i)     execution of direct debits, including one-off direct debits;

(ii)    execution of payment transactions through a payment card or a similar device; and

(e)     execution of payment transactions where the funds are covered by a credit line for a payment service user:

(i)     execution of direct debits, including one-off direct debits;

(ii)    execution of payment transactions through a payment card or a similar device; and

(f)       money remittance; and

(g)     execution of payment transactions where the consent of the payer to execute a payment transaction is given by means of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or network operator, acting only as an intermediary between the payment service user and the supplier of the goods and services.

An Authorised Firm authorised to carry on the regulated activity of Providing Money Services is subject to prudential supervision and must comply with AIFC Banking Business Prudential Rules.

Currency regulation

Currency transactions will be performed via AIFC Banks if processed in only foreign currency, and via second-tier banks in any currency. For more details of transactional implications see Chapter 4 of PERG.

The table below illustrates currency regulation implications if services are offered to residents of Kazakhstan that are not AIFC Participants.

Are you planning to offer your services to legal entities or natural persons – residents of Kazakhstan that are not AIFC Participants?

Yes:

 

Your services will be subject to the AIFC Rules on Currency Regulation:

 

Name of allowed activity:

Receiving and making payments and (or) money transfers using current bank account (within the permitted types of services)

 

Relevant reference to Schedule 2 to the AIFC Rules on Currency Regulation:

1.4 in the list of financial services.

 

Type of currency:

Foreign currency

 

Transaction:

Foreign currency transactions can be performed both via AIFC Banks and second-tier banks

 

Currency reporting:

No specific reporting for a financial service.

Transactional reporting may be applicable (see Chapter 4 of PERG for more details). 

 

No:

Subrule 3.3.2 of AIFC Rules on Currency Regulation applies. 

For more details see Chapter 4 of PERG.

2.2.21.2. Exclusions

An Authorised Firm, does not Provide Money Services if it does so in relation to the carrying on of another financial service where Providing Money Services is in connection with and a necessary part of that other financial service, for example, money service activities carried on in connection with, and as a necessary part of, Providing Credit, Dealing in Investments (as principal or agent), Operating an Exchange or Clearing House, Managing Investments or Providing Custody.