Chapter 1. General Provisions
1. This Guidance (Requirements) to the Rules of Internal Control for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism for financial monitoring entities of the Astana International Financial Centre (hereinafter referred to as “the Guidance”) is developed in accordance with paragraph 3-2 of Article 11 of the Law of the Republic of Kazakhstan dated August 28, 2009 “On counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism” (hereinafter referred to as “the AML/CFT Law”) and the Recommendations of the Financial Action Task Force. This Guidance is applicable to the Rules of Internal Control for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism of the Relevant Persons, indicated in subparagraph 19) of paragraph 1 of Article 3 of the AML/CFT Law.
2. The definitions used in this Guidance shall have the same meaning as set forth in the AML/CFT Law.
For the purposes of the Guidance, the following basic definitions are used:
1) unusual operation (transaction) - an operation (transaction), which is subject to compulsory analysis on the grounds specified in paragraph 4 of Article 4 of the AML/CFT Law;
2) risks of money laundering and the financing of terrorism (hereinafter referred to as “ML/FT”) - the possibility of intentional or unintentional involvement of a financial monitoring entity (hereinafter – a Relevant Person as described in AIFC AML Rules 1.2 (a)) in ML/FT processes or other criminal activities;
3) ML/FT risk management - a set of measures taken by the Relevant Person to identify, assess, monitor and minimise the ML/FT risks (in relation to products/services, clients, and/or transactions performed by clients);
4) threshold transaction - a transaction with money and/or other property subject to financial monitoring in accordance with paragraph 1 of Article 4 of the AML/CFT Law;
5) impeccable business reputation - the presence of facts confirming professionalism, integrity, lack of outstanding convictions or criminal history.
3. Internal control for the purposes of counteracting the legalisation (laundering) of proceeds from crime and the financing of terrorism (AML/CFT) shall be carried out by the Relevant Person to:
1) ensure compliance with the requirements of the AML/CFT Law;
2) maintain the effectiveness of the internal control system of the Relevant Person at a level sufficient for the management of the ML/FT risks and associated risks (operational, reputational, legal);
3) prevention of involvement of the Relevant Person, its officials and employees in any ML/FT process.
4. As a routine part of the framework of the organisation of internal control for AML/CFT purposes, the Relevant Persons shall develop internal control rules, including requirements for conducting regular audits to evaluate the effectiveness of the internal control of the Relevant Person for AML/CFT purposes.
The internal control rules shall contain programmes provided for in the Article 11 of the AML/CFT Law, that shall be developed by the Relevant Person independently in accordance with this Guidance and shall constitute an internal document of the Relevant Person or a combination of such documents.
In case of amendments to the AML/CFT legislation, the Relevant Persons must, make the appropriate amendments to the internal control rules within thirty 30 calendar days.