Uzbekistan’s Banking Sector Plagued by Widespread Corruption, Says Anti-Corruption Agency
The banking sector in Uzbekistan has been ravaged by corruption, with a staggering 676 bank employees accused of stealing over 354.2 billion sums ($32 million) in the past two years alone. According to Akmal Burkhanov, director of the Anti-Corruption Agency, this is just one example of the widespread corruption that remains rampant in the sector.
Corruption Remains Rampant
Despite efforts to reform the sector, corruption continues to plague Uzbekistan’s banking system. In the first quarter of 2022 alone, there were 128 reported cases of corruption crimes committed by bank employees, making it second only to the education sector. The situation is so dire that the National Anti-Corruption Council has launched a project aimed at transforming the banking sector into a corruption-free zone.
Egregious Examples of Corruption
Burkhanov cited several egregious examples of corruption, including cases where budgetary funds for social projects were embezzled by bank employees. For example:
- Over 20 billion sums were stolen from the “Every Family is an Entrepreneur” program.
- Large sums were siphoned off from the National Bank of Ukraine, Microcredit bank, Halk Bank, and Agro bank.
High-Ranking Officials Involved?
The situation is further complicated by allegations that high-ranking officials are involved in corrupt schemes, manipulating banks to embezzle funds allocated by international organizations. This raises concerns about state capture by self-interested individuals.
Government Efforts to Combat Corruption
To combat corruption, Uzbekistan’s government has introduced measures aimed at increasing transparency and fighting graft in the civil service. However, gaps remain in the regulatory framework, and conflicts of interest are prevalent throughout the vertical of power. A law aimed at preventing such conflicts is expected to be submitted to Parliament in 2022.
Anti-Money Laundering Legislation Criticized
Uzbekistan’s anti-money laundering legislation has also been criticized as one of the most regressive in Europe and Central Asia, with the country consistently ranking among the top three worst countries in the world in this regard. This highlights the urgent need for reform and accountability in Uzbekistan’s banking sector to ensure the integrity of its financial system.
Conclusion
The widespread corruption in Uzbekistan’s banking sector is a major concern, with far-reaching consequences for the country’s economy and reputation. It is essential that the government takes immediate action to address these issues and ensure that the sector is transformed into a corruption-free zone.