Financial Crime World

Banks May Exchange Information Without Court Decision

The Kyrgyz Republic has made significant progress in addressing technical compliance deficiencies identified by international experts, according to a recent report. One of the notable developments is that banks may now exchange information constituting bank secrecy on mutually agreed contractual terms.

Strengthening Financial Intelligence

  • The State Financial Intelligence Service (SFIS) Order No. 61/п has been amended to set out typical criteria for high and low-risk customers.
  • Banks and other entities supervised by the National Bank are now required to comply with the Combating Financing of Terrorism and Money Laundering (CFT/ML) legislation of the Kyrgyz Republic.

New Constitutional Law and Gambling Regulations

  • A new Constitutional Law on the National Bank of the Kyrgyz Republic has been adopted, determining its legal status, objectives, and procedures.
  • The law sets out the bank’s supervision and regulation standards for banks, non-bank financial institutions, and other entities.
  • Amendments to the Law on Gambling in the Kyrgyz Republic have introduced a simplified registration mechanism for terminating operations of gambling facilities.

Cooperation with Other States

  • The Kyrgyz Republic has ratified several international agreements aimed at combating legalization of criminal proceeds and financing of terrorism.
  • These include the Protocol on Amendments to the Treaty on Combating Legalization (Laundering) of Criminal Proceeds and the Financing of Terrorism Involving Transportation of Currency and (or) Cash (Financial) Instruments across the Border of the Customs Union.

Conclusion

The Kyrgyz Republic has made significant progress in addressing technical compliance deficiencies identified by international experts. The country’s efforts have led to an upgrade in one Recommendation, from “NC” to “PC”. The report highlights the importance of continued cooperation and information exchange between the Kyrgyz Republic and other states to combat financial crimes.

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