The Astana Financial Services Authority (AFSA) fined Proportunity Management Company Limited (USD 249,770) and ACLB Management Company Limited (USD 139,533) after an investigation into regulatory breaches, and prohibited their Chief Executive Officer, Arman Bayev, from holding office or being a director or employee of any Authorised Person or Ancillary Service Provider. With AFSA’s prior consent, AFSA’s Registrar of Companies has also petitioned the Astana International Financial Centre (AIFC) Court for the compulsory winding up of both companies and two related special purpose companies, and applied for a disqualification order against Bayev. The investigation, initiated after a special on-site inspection by the FinTech Lab and investor complaints, found that Proportunity and ACLB carried on the regulated activities of Providing Islamic Financing and Islamic Banking Business without AFSA authorisation, and that Proportunity actively marketed these activities via its website and social media. AFSA also cited widespread breaches by Proportunity of AIFC rules including Anti-Money Laundering Rules, General Rules, FinTech Rules, Conduct of Business Rules, and Authorised Market Institution Rules, and said Project SI SPC Ltd. and BC Inteh Plus Ltd. were used to pool investor funds under false pretences and for purposes outside the scope of permitted activities. The winding-up petition is brought under Section 176(1)(b) of the AIFC Companies Regulations on the basis that it is just, equitable and in the interests of the AIFC, following what AFSA described as continued non-compliance with cease-and-desist directions. If the AIFC Court grants the winding-up order, an independent liquidator would be appointed to take control of the companies, secure remaining assets, investigate their financial affairs and distribute recovered funds to creditors under the AIFC Insolvency Regulations. AFSA also determined it will voluntarily subordinate its claims for the imposed fines so other creditors, including investors, are paid in priority before the fines are satisfied.