Financial Crime World

EU Launches Initiative to Enhance Kyrgyzstan’s Anti-Money Laundering Framework

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The European Union (EU) has launched a new initiative aimed at supporting Kyrgyzstan’s efforts to strengthen its national anti-money laundering and counter-terrorism financing framework. The initiative is designed to enhance the country’s compliance with the EU Fourth and Fifth Anti-Money Laundering Directives, which set out strict requirements for preventing money laundering and terrorist financing.

Report Reveals Compliance Gaps

A recent report on the implementation of anti-money laundering and counter-terrorism financing standards in Kyrgyzstan has revealed that the country is largely compliant with international regulations, but faces areas for improvement. The Follow-up Mutual Evaluation Report, conducted in 2019, found that Kyrgyzstan was deemed compliant with four of the Financial Action Task Force’s (FATF) 40 recommendations and largely compliant with 35 others.

However, the report also identified some shortcomings, with Kyrgyzstan deemed highly effective or substantially effective in only zero areas. These gaps were identified as key areas for improvement, and the EU has launched this initiative to support Kyrgyzstan in addressing these shortcomings.

Key Areas for Improvement

  • Highly effective or substantially effective in zero areas
  • Compliance gaps in anti-money laundering and counter-terrorism financing standards

EU Initiative Objectives

The EU Global Facility on Anti-Money Laundering and Combating the Financing of Terrorism has launched this initiative to support Kyrgyzstan’s efforts to strengthen its national anti-money laundering and counter-terrorism financing framework. The objectives of the initiative include:

  • Enhancing Kyrgyzstan’s compliance with the EU Fourth and Fifth Anti-Money Laundering Directives
  • Improving the country’s AML/CFT framework through training and activities
  • Reducing the risk of illicit financial flows and protecting the integrity of its financial system

Activities Under the Initiative

  • Training for financial authorities and stakeholders
  • Capacity building for AML/CFT compliance
  • Development of guidance and best practices for AML/CFT implementation

By working closely with Kyrgyzstan’s financial authorities and stakeholders, the EU Global Facility aims to support the country in addressing its compliance gaps and implementing effective anti-money laundering and counter-terrorism financing measures.