KYRGYZ REPUBLIC TAKES STEPS TO COMBAT FINANCIAL CRIMES
The Kyrgyz Republic has made significant progress in addressing technical compliance deficiencies identified in a recent Mutual Evaluation Report (MER). As a result, several key laws and regulations have been amended or ratified, further strengthening the country’s efforts to combat financial crimes.
Simplified Registration Mechanism for Termination of Operations
A new law, which entered into force on June 17, 2022, has introduced a simplified registration mechanism for terminating the operations of legal entities. This move aims to reduce bureaucratic hurdles and enhance transparency in the business sector.
Bearer Shares Phased Out
The concept of bearer shares has been excluded from Article 47 of the Civil Code, effective July 4, 2022. All equity securities on the territory of the Kyrgyz Republic are now issued in the form of registered securities, with rights certified by an entry on a register or account.
National Bank’s Enhanced Supervision
A new Constitutional Law has been adopted to determine the legal status, objectives, and procedures of the National Bank of the Kyrgyz Republic. The bank is now empowered to exercise enhanced supervision over banks, banking groups, and other financial institutions, in line with anti-money laundering (AML) and combating the financing of terrorism (CFT) legislation.
Gambling Regulation
A new law has been ratified to regulate gambling activities on the territory of the Kyrgyz Republic. The law sets out procedures for creating and operating gambling facilities, as well as organizing games of chance and licensing.
International Cooperation
The Kyrgyz Republic has ratified two international protocols aimed at combating financial crimes:
- 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
- Agreement on Information Exchange in the Field of Combating Legalization (Laundering) of Criminal Proceeds and the Financing of Terrorism
Taxation of Gambling Operators
A new law has been enacted to determine liability and taxation procedures for gambling operators. This move aims to ensure fair play and transparency in the gaming industry.
The Kyrgyz Republic’s efforts to address technical compliance deficiencies have resulted in an upgrade of Recommendation R.8 from “NC” (Needs Improvement) to “PC” (Partial Compliance). The country continues to work towards full compliance with international standards for combating financial crimes.