AIFC Has Become an Offshore Haven for Oligarchs — Deputy Sairov

Majilis deputy Yerlan Sairov has spoken about the Astana International Financial Centre (AIFC) 's operations, calling it an "offshore haven" for Kazakhstan's wealthy business elites, Orda.kz reports.

Speaking during a discussion on tax reform, Sairov voiced strong concerns about the AIFC’s role in the country’s financial system.

There’s another serious issue — the Astana International Financial Centre, which has become an offshore haven for domestic oligarchs. Its main purpose was to attract foreign investors. If you look at the list of its participants, you’ll see branches of Halyk Bank, CenterCredit, Jusan, Freedom Finance, Kazpost, and others,Sairov said. 

He pointed out that more than 70 Kazakhstani companies, many of which directly own shares in subsoil user firms, are registered with the AIFC. 

Including companies like Kaz Minerals and KazPhosphat. The paradox is that while the government is trying to bring order to the tax system, right next door we have the AIFC — an official Kazakhstani offshore zone for businesses, created by the state itself. I believe the new Tax Code should put an end to Kazakhstani companies using the AIFC as an offshore gateway. This loophole is already costing the budget hundreds of billions of tenge.  

Original Author: Zhadra Zhulmukhametova