Financial Crime World

FATF Evaluation of Kyrgyzstan’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Measures

Progress Made by Kyrgyzstan

Kyrgyzstan has made significant progress in addressing its deficiencies related to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) measures. The country has implemented several key requirements, including:

Customer Due Diligence (CDD)

  • Partial Implementation: Real estate agents are required to perform CDD, but a lack of legal provisions limits their ability to conduct CDD on both sellers and buyers.
  • Benefits: Partial implementation of CDD measures allows for some level of risk management.

List of Designated Non-Financial Businesses and Professions (DNFBPs)

  • Limited List: The list of DNFBPs mentioned in Article 5, par.2 of Law No.87 is limited.
  • Electronic Database: The state authority designated by the Government should compile and publish an electronic database of financial institutions and DNFBPs.

Suspicious Transaction Reporting

  • Obligation Established: The obligation established in Article 23 of Law No.87 extends to DNFBPs, applying in situations where there’s a suspicion or reasonable grounds to suspect that funds are proceeds obtained through crime or related to laundering of criminal proceeds.
  • Benefits: Effective reporting of suspicious transactions helps prevent money laundering and terrorist financing.

Internal Control Programs

  • Corporate (Group-Wide) Internal Control Programs: The obligation to implement internal control programs, including corporate (group-wide) internal control programs, enables effective compliance with AML/CFT legislation and applies to DNFBPs.
  • Benefits: Effective internal control programs help ensure compliance with AML/CFT measures.

Enhanced CDD Measures

  • High-Risk Countries: The obligation to apply enhanced CDD measures commensurate with risks when establishing business relationships and carrying out transactions with high-risk countries applies to DNFBPs.
  • Benefits: Enhanced CDD measures help manage risk associated with high-risk countries.

Shortcomings in Kyrgyzstan’s AML/CFT Measures

Despite progress made by Kyrgyzstan, the country still faces some shortcomings related to:

Politically Exposed Persons (PEPs)

  • Improved Criteria: The country should improve its criteria for identifying PEPs.
  • Benefits: Effective identification of PEPs helps prevent money laundering and terrorist financing.

New Technologies

  • Enhanced Understanding: Kyrgyzstan needs to enhance its understanding of new technologies and their impact on AML/CFT measures.
  • Benefits: Effective management of new technologies helps prevent money laundering and terrorist financing.

High-Risk Countries

  • Special List: The country has not provided information on the special list of high-risk countries approved by the AML/CFT Commission under the Kyrgyz Government.
  • Benefits: Effective management of high-risk countries helps prevent money laundering and terrorist financing.