Threshold deduction: 10% per item 'or' 15% aggregate; (4) deducts the excess over '(3)(a) or (b)' - outcome indeterminate

4.30(3) grants full recognition (300%/400% risk weight, no deduction) 'provided that (a) each item is no more than 10% ...; or (b) in total, the 3 items are no more than 15%'. With 'or', a bank whose items are each under 10% but total over 15% satisfies (a) and needs no deduction, while 4.30(4) requires deduction of 'any amount in excess of the threshold in (3)(a) or (b)', which can be read as the excess over 15%. The same 'or' is in IBB 4.46(3). (Also '(net of all regulatory adjustments except those under this Subdivision)': there are no Subdivisions in BBR.) With three items of USD 9 million each and CET1 of USD 100 million, the text yields a deduction of 0 (sub-rule (3)(a)) and of USD 12 million (sub-rule (4) by reference to (3)(b)). A bank with other credit risk-weighted assets of USD 800 million and a market risk requirement of USD 10 million then both meets and breaches its capital requirement under 4.9 (USD 100 million against 97.64 million; USD 88 million against 93.8 million). Lines 38-40 and 44 of Form 30 in the Manual for Preparation of Returns apply the 10% and 15% limits together.

Proposed correction

Please make the two caps work together: either (a) replace "or" in 4.30(3) with "and" and deduct the amount above each 10% cap and then the amount above the 15% aggregate cap, or (b) keep alternative caps and state in 4.30(4) which excess is deducted. IBB 4.46(3) needs the same change.

Jurisdiction

Kazakhstan — AIFC

Act

AIFC Banking Business Prudential Rules (BBR), V6

Place

BBR 4.30(3)(a)

Record

Discrepancy

Class

Text of the act

Where it arose

The text of the act

Arxo's conclusion

Confirmed

Official text

Unchanged at last check

Last checked

2026-10-24

Evidence

Reproduced by execution. Quotations are verbatim from the official material; translations are ours and marked.

each item is no more than 10% of the Bank’s CET 1 Capital (net of all regulatory adjustments except those under this Subdivision); or

A Bank must deduct from CET 1 Capital any amount in excess of the threshold in sub-rule (3) (a) or (b) above.

each item is no more than 10% of an Islamic Bank’s CET 1 Capital (net of all regulatory adjustments except those under this section); or

How to check it without Arxo's tools

1. Open AIFC Banking Prudential Rules_V6 (with amendments as of 13 April 2025, which commence on 13 October 2025) and find BBR 4.30(3)(a); BBR 4.30(4). Compare the text with the quotation above. A copy is kept in this register: 6384caa7b1938818-bbr_v6_13.10.2025_ma.pdf (SHA-256 6384caa7b19388180b780ec19044e1261cae3021c63c670f14ceb35285107022, copy of the official file).
2. Open AIFC Islamic Banking Business Prudential Rules and find IBB 4.46(3)(a). Compare the text with the quotation above. A copy is kept in this register: e8b3c15b1ff574fd-aifc-islamic-banking-business-prudential-rules.pdf (SHA-256 e8b3c15b1ff574fd59504ade7cc9e0488ed5fa6ecfdc7816e3dc603bf4caedeb, copy of the official file).
3. The finding holds if the quoted passages read as shown and the comparison gives the result stated at the top of this page. If it does not, write to us with the record ID.

How this finding was made

AI agents read the official texts, turned the provisions concerned into executable rules and ran the comparison; they also drafted this record. A person at Arxo checked the finding and approved the report before it was sent (2026-10-27).

Responsible institutions

• Astana Financial Services Authority (AFSA) — author of the AIFC Rules

Reported to

Responses

No response recorded.

Documents and reproduction

• AIFC Banking Prudential Rules_V6 (with amendments as of 13 April 2025, which commence on 13 October 2025)
• AIFC Islamic Banking Business Prudential Rules

History

1. 2026-10-24Confirmed by Arxo
2. 2026-10-27Entered in the register
3. 2026-10-27Reported to Astana Financial Services Authority (AFSA) (e-mail)

Cite this record

Arxo Law, Arxo Findings Register, ARXO-2026-0125, https://arxo.io/findings/ARXO-2026-0125/ (status as of 2026-10-24). Data: ARXO-2026-0125.json.