The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan announced the adoption of amendments to certain regulatory acts to develop the securities market, including creating an “account operator” role under which Kazakh banks can provide services to manage depositor accounts opened at the Central Securities Depository in the depositor’s name. The changes are intended to allow global custodians to execute transactions in Kazakh securities via a trusted account manager and manage operational risks in the local market. The Central Securities Depository’s remit was also expanded to provide settlement services for clients’ financial instruments and transactions executed within the Astana International Financial Centre (AIFC) and on foreign exchanges, where Kazakh market participants previously relied on foreign settlement organisations. In addition, the Central Securities Depository was authorised to carry out tax administration functions for taxes levied under foreign law on income its clients receive from securities.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-02-04
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan authorises banks to operate central depository accounts and expands settlement and tax administration functions
Kazakhstan's Financial Market Agency amended regulations to enhance the securities market, introducing an "account operator" role for banks to manage depositor accounts at the Central Securities Depository. These changes allow global custodians to transact in Kazakh securities and expand the Depository's remit to include settlement services and tax administration for foreign income, aiming to improve risk management and facilitate transactions within the Astana International Financial Centre and on foreign exchanges.