Financial Crime World

Kyrgyz Republic’s Progress in Anti-Money Laundering and Combating the Financing of Terrorism

The Kyrgyz Republic has made significant progress in addressing technical compliance deficiencies identified in the Mutual Evaluation Report (MER). This article highlights key points extracted from a recent report assessing the country’s compliance with international standards and recommendations.

Progress Made by the National Bank

  • A new Constitutional Law “On the National Bank of the Kyrgyz Republic” has been adopted, outlining the legal status, objectives, and procedures of the National Bank.
  • The National Bank exercises supervision over banks, banking groups, non-banking financial and credit institutions, and other legal entities supervised by the National Bank.

Importance of Assessing Bank Compliance

The report emphasizes that assessing bank compliance with AML/CFT regulations is a critical component of an audit.

Recent Legislation and Ratifications

  • Law No. 50 “On Gambling in the Kyrgyz Republic” allows for the operation of gambling facilities on the territory of the Kyrgyz Republic.
  • The 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 has been ratified.
  • An Agreement on Information Exchange in the Field of 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 has also been ratified.

Recommendations

The report provides the following recommendations:

  • The rating for recommendation R.8 has been upgraded from “NC” to “PC”.
  • Law No. 37 dated May 30, 2022, 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 dated December 19, 2011, signed on July 20, 2021 in the City of Moscow.
  • Law No. 38 dated May 30, 2022, Agreement on Information Exchange in the Field of 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, signed on July 20, 2021 in the City of Moscow.