Financial Crime World

Kyrgyzstan Takes Major Step in Fight Against Money Laundering and Terrorist Financing

Strengthening Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Measures

The Government of Kyrgyzstan has taken a significant step to enhance its AML/CTF measures by initiating a national risk assessment, in line with international standards. This move aims to identify key shortcomings in the country’s AML/CFT system, set priorities for further improvements, and efficiently allocate available resources.

Conducting a National Risk Assessment

The State Financial Intelligence Service (SFIS) is conducting the assessment with technical support from the European Union Action against Drugs and Organized Crime project. The initiative follows recommendations made by the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG), which identified several areas requiring improvement in Kyrgyzstan’s AML/CFT system.

Key Objectives of the National Risk Assessment

  • Identify key shortcomings in the country’s AML/CFT system
  • Set priorities for further improvements
  • Efficiently allocate available resources
  • Develop a systemic approach to data gathering and analysis

Expert Support and International Cooperation

The assessment is being carried out with expert assistance from Todor Kolarov, an expert from Bulgaria. Representatives from 21 Kyrgyz government agencies, including law enforcement and regulatory authorities, are working together to study international best practices in conducting national risk assessments.

Benefits of the National Risk Assessment

  • Enable authorities to identify key areas of illegal financial activities
  • Allocate resources accordingly
  • Comply with international standards embodied in the 40 FATF Recommendations

Conclusion

The initiation of a national risk assessment by the Government of Kyrgyzstan marks an important step towards strengthening its AML/CFT measures, in line with international standards. The exercise is expected to yield valuable insights into the country’s ML/TF risks, vulnerabilities, and typologies, ultimately contributing to the development of effective strategies to mitigate these threats.