The Astana Financial Services Authority (AFSA), an independent regulator of financial services and related activities in the Astana International Financial Center (AIFC), has suspended the License of GB Finance Ltd. after the firm breached multiple AIFC Rules that are critical for companies to be able to carry on regulated activities.
According to the AFSA, the company breached some key rules in the field of currency regulation, minimum levels of capital adequacy ratios, limits on lending to related parties and limits on large exposures to counterparties. GB Finance also failed to advise the AFSA of the significant impact that certain acquisitions would have on the firm’s risk profile and resources and notify the agency about potential breaches of prudential requirements, and how it is proposed to remedy them.
As a result, the AFSA reported “multiple breaches of management oversight and control over the firm’s activities indicative of a lack of understanding or appreciation of regulatory requirements and obligations.”
“GB Finance Ltd., its management, and its majority controller, have demonstrated little comprehension of regulatory expectations and requirements, whilst embarking on numerous transactions with its related parties in a manner that has lacked acceptable governance and effective compliance controls… And the AFSA is taking no hesitation in dealing with them expeditiously,” said Gareth Ling, deputy CEO of the AFSA.
GB Finance Ltd. was established in Astana in April 2022 with a nominal capital of $700,000. The only owner of the company is Denis Cherkashin. GB Finance issues loans for businesses and individuals.