Financial Inclusion Anti-Money Laundering Measures in Kyrgyzstan Face Scrutiny

Kyrgyzstan’s efforts to combat money laundering and terrorist financing have been assessed by international experts, with varying degrees of compliance found across different areas.

Compliance Assessment Highlights

• Kyrgyzstan has made significant strides in implementing anti-money laundering measures, but still faces challenges in several key areas.
• The country is partially compliant with Recommendation R.1, which requires countries to assess risk and apply a risk-based approach to combating money laundering.
  • Lacks adequate transparency and public disclosure of its risk assessment results.

National Cooperation and Coordination

• Kyrgyzstan was found to be largely compliant with Recommendation R.2, which requires national cooperation and coordination.
  • Effective communication and collaboration between different law enforcement agencies and financial institutions.
  • Room for improvement in sharing information and best practices across government agencies.

Money Laundering Offence and Confiscation Measures

• Kyrgyzstan was deemed compliant with Recommendations R.3 and R.4, which require countries to have adequate definitions of money laundering and terrorist financing offences, as well as mechanisms in place to seize and forfeit illegal funds.
  • Criminal laws and regulations provide adequate definitions of money laundering and terrorist financing offences.
  • Range of mechanisms in place to confiscate and provisionally seize illegal funds.

Challenges Ahead

• Kyrgyzstan faces challenges in implementing targeted financial sanctions related to terrorism and terrorist financing (R.6).
  • Lack of transparency and public disclosure of sanctions lists.
• The country also requires improvement in:
  • Customer due diligence (R.10)
  • Record keeping (R.11)
  • Reporting of suspicious transactions (R.20)
  • Relying on third parties (R.17)
  • Providing adequate guidance and feedback to financial institutions

Conclusion

• Despite the challenges, Kyrgyzstan has made significant progress in implementing anti-money laundering measures.
• To further strengthen its efforts, the country will need to address the outstanding issues identified in the report and continue to work towards full compliance with international standards.
• The assessment highlights the importance of continued vigilance and cooperation between Kyrgyzstan’s government agencies, financial institutions, and international partners to combat money laundering and terrorist financing.