Kyrgyzstan Eyes Financial Crime Legislation Updates to Boost Rating
Kyrgyzstan’s efforts to combat financial crime have received a significant boost with the country implementing several key measures aimed at improving its rating on the Financial Action Task Force (FATF) Recommendations.
Strengthening Anti-Money Laundering and Combating the Financing of Terrorism Framework
According to sources, Kyrgyzstan has made significant strides in strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) framework. The country’s ratings, which reflect its implementation of the technical requirements of the FATF Recommendations, have shown marked improvement across several key areas.
Risk Assessment and National Cooperation
- In assessing risk and applying a risk-based approach, Kyrgyzstan has been rated “partially compliant”.
- National cooperation and coordination have also received a “partially compliant” rating.
Notable Progress in Enacting Legislation
Kyrgyzstan has made notable progress in enacting legislation to criminalize money laundering and terrorist financing. The country’s:
Confiscation and Provisional Measures Framework
- Has received a “largely compliant” rating.
Targeted Financial Sanctions Related to Terrorism and Terrorist Financing
- Have been deemed “largely compliant”.
Regulation and Supervision of Financial Institutions
Kyrgyzstan has also shown improvement in its regulation and supervision of financial institutions, powers of supervisors, and financial intelligence units. All of these areas have received “largely compliant” ratings.
Areas for Improvement
However, there are still some areas where the country needs to improve, including:
Implementing Targeted Financial Sanctions Related to Proliferation
- Kyrgyzstan’s rating is only “partially compliant”.
Transparency and Beneficial Ownership of Legal Persons and Arrangements
- Requires further improvement.
Positive Impact on Economic Development and Financial Stability
Despite these challenges, Kyrgyzstan’s efforts to strengthen its AML/CFT framework are expected to have a positive impact on the country’s economic development and financial stability. The government has pledged to continue working towards full compliance with the FATF Recommendations and is committed to implementing the necessary reforms to achieve this goal.