Kyrgyzstan Makes Progress in Compliance Risks in Finance

The Kyrgyz Republic has made notable strides in addressing technical compliance shortcomings identified in its 2020 mutual evaluation, a report released by the country’s financial authorities revealed today. This progress has led to significant improvements in two key areas, earning upgraded ratings from international watchdogs.

Notable Improvements in Compliance

• Recommendation 8: Anti-Money Laundering and Terrorist Financing Systems

  The Kyrgyz Republic has been re-rated from “partially compliant” to “largely compliant” with regards to ensuring that financial institutions have effective systems in place to prevent and detect money laundering and terrorist financing.

• Recommendation 15: Money Laundering and Terrorist Financing Risk Assessment

  Recommendation 15, focused on the need for a comprehensive understanding of the money laundering and terrorist financing risks faced by the country’s financial sector, has also seen an upgrade from “partially compliant” to “largely compliant”.

Enhanced Monitoring Remains in Place

While these developments are seen as positive steps forward, the Kyrgyz Republic remains under enhanced monitoring, indicating that its national Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) system still requires close attention and oversight. As such, the country will continue to report regularly to the Eurasian Group (EAG), an international organization dedicated to promoting AML/CFT best practices among member states.

Industry Observations

Industry observers see these developments as a welcome sign that the Kyrgyz Republic is taking concrete steps towards strengthening its financial regulatory framework and reducing compliance risks in finance. However, they also caution that ongoing vigilance will be necessary to ensure sustained progress and continued improvement in this critical area.