Terrorist Financing Risks and Mitigation Strategies in Kyrgyzstan

Introduction

A recent evaluation by the Financial Action Task Force (FATF) has highlighted significant gaps in Kyrgyzstan’s efforts to combat terrorist financing, posing a substantial risk to global security.

Assessing Risk and Applying a Risk-Based Approach

Kyrgyzstan was found to be partially compliant with Recommendation R.1, which requires countries to assess their risk and apply a risk-based approach in addressing money laundering and terrorist financing concerns.

• The country has made efforts to develop its risk assessment framework, but lacks sufficient data and analysis to effectively target high-risk areas.
• Improving data collection and analysis is crucial for developing a more robust risk assessment framework.

National Cooperation and Coordination

The FATF evaluation also revealed that Kyrgyzstan is partially compliant with Recommendation R.2, which emphasizes the importance of national cooperation and coordination in combating terrorist financing.

• The country has established several agencies responsible for countering terrorism, but these institutions often lack clear mandates, resources, and communication channels.
• Strengthening communication channels and coordination among agencies responsible for countering terrorism is essential.

Money Laundering Offence

Kyrgyzstan was found to be only compliant with Recommendation R.3, which requires countries to establish a money laundering offence.

• The country’s criminal code does include provisions related to money laundering, but these laws are not effectively enforced.
• Increasing public awareness about the consequences of engaging in such activities is crucial for effective enforcement.

Terrorist Financing Offence

The FATF evaluation also revealed that Kyrgyzstan is only compliant with Recommendation R.5, which requires countries to establish a terrorist financing offence.

• The country’s criminal code includes provisions related to terrorism, but these laws are not comprehensive enough to address all aspects of terrorist financing.
• Developing clear laws and regulations related to money laundering, terrorist financing, and counter-terrorism is essential for effective enforcement.

Mitigation Strategies

To mitigate the risks associated with terrorist financing in Kyrgyzstan, experts recommend the following:

1. Enhance risk assessment: Improve data collection and analysis to develop a more robust risk assessment framework.
2. Improve national cooperation: Strengthen communication channels and coordination among agencies responsible for countering terrorism.
3. Enhance public awareness: Increase public awareness about the consequences of engaging in money laundering and terrorist financing activities.
4. Develop a comprehensive legal framework: Establish clear laws and regulations related to money laundering, terrorist financing, and counter-terrorism.
5. Increase international cooperation: Enhance collaboration with other countries to share best practices and intelligence on terrorist financing.

By implementing these mitigation strategies, Kyrgyzstan can reduce the risks associated with terrorist financing and contribute to global efforts to combat this threat.