Role of the International Financial Center Astana (AIFC) in combating money laundering and terrorism financing

The central aim of AML/CFT AIFC’s regulation is to protect the financial system from risks associated with money laundering and terrorism financing. These rules entail the establishment of effective mechanisms for customer identification and monitoring of transactions, which enables the detection and prevention of potentially suspicious activity. An important component also includes sanction management, which is implemented in response to violations of international law and threats to international peace and security. Compliance with these requirements not only aids in preventing financial crimes but also in maintaining trust in the financial system as a whole.

Customer Due Diligence and Risk-Based Approach

One of the cornerstones in the system of combating money laundering and the financing of terrorism is customer due diligence. This process involves the identification of the customer and verification of their identity based on documents, data, or information obtained from a reliable and independent source. A key aspect here is not only the initial verification at the establishment of business relations but also ongoing monitoring of customer activity to identify any deviations from normal behavioral patterns, which may indicate money laundering or terrorism financing.

The AIFC risk-based approach requires financial institutions to assess and apply AML/CFT measures considering the specific risks associated with customers, countries or geographic regions, products, services, transactions, or delivery channels. This means that higher risks necessitate more stringent control measures, while situations with low risk may be subject to more simplified procedures.

AML/CFT principles are applicable not only in the banking sector but also in other areas such as insurance, real estate, legal and accounting services, as well as in the technology and innovation sector. Each sector has its unique challenges and risks associated with money laundering and terrorism financing, requiring specialized approaches and solutions. Internal policies and procedures developed to comply with AML/CFT rules should reflect the specifics of the company's activities, its clients, and geographic location.

Sanctions play a crucial role in combating threats to peace and security, preventing terrorism, and other forms of illicit activity. They can be directed against countries, organizations, individuals, and sectors, necessitating the implementation of effective mechanisms for their compliance. Sanction risk management requires companies to implement procedures for thorough verification and monitoring of their clients and partners to avoid violations of sanction regimes and potential consequences, including fines and reputational damage.

Combating money laundering and the financing of terrorism, as well as compliance with sanctions, are integral parts of responsible business conduct in the modern world. Effective implementation and adherence to relevant rules and procedures not only protect the financial system from abuse but also contribute to maintaining a high level of trust and reputation among clients and partners. To achieve these goals, companies must continuously improve their internal control systems, employee training, and adaptation to the changing regulatory landscape.