Financial Crime World

Regulatory Requirements for Financial Institutions in Tajikistan

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Overview

The Republic of Tajikistan’s financial sector operates within the framework of its Roman-Germanic law system, with the Constitution serving as the main law of the state. In this article, we will discuss the regulatory requirements for financial institutions in Tajikistan and the efforts to combat money laundering and financing of terrorism.

Economic Structure

Tajikistan’s economy is predominantly agro-industrial, with a significant shift in employment structure during its years of independence. The National Development Strategy until 2030 aims to promote industrial production, and the financial sector is represented by various institutions including:

  • Banks
  • Micro-credit organizations
  • Insurance companies
  • Professional securities market participants
  • Leasing companies

Regulatory Framework

The Financial Intelligence Unit (FIU) in Tajikistan is headed by the Financial Monitoring Department under the National Bank of Tajikistan (FMD), which serves as the national center for collection and analysis of Suspicious Transaction Reports (STRs). The FMD regulates and supervises reporting entities to ensure compliance with Anti-Money Laundering/Countering Financing of Terrorism/Counerpating Proliferation Financing (AML/CFT/CPF) legislation.

International Cooperation

Tajikistan has established an Interagency Commission on AML/CFT/CPF, which coordinates the activities of state agencies in this area. The country’s legal framework for combating financial crimes is governed by laws including:

  • AML/CFT Law
  • Criminal Code
  • Civil Code

The government of Tajikistan actively participates in international efforts to combat money laundering and terrorism financing through its membership in organizations such as:

  • United Nations (UN)
  • Shanghai Cooperation Organization (SCO)
  • Collective Security Treaty Organization (CSTO)
  • International Monetary Fund (IMF)
  • Commonwealth of Independent States (CIS)

Eurasian Group on Combating Money Laundering and Terrorism Financing

Tajikistan is a member of the Eurasian Group on Combating Money Laundering and Terrorism Financing (EAG) and has been actively involved in its work since the group’s foundation. The country’s delegation to EAG is headed by the Director of the Financial Monitoring Department under the National Bank of Tajikistan, Mr. Halim Mirzoaliev.

Conclusion

Overall, regulatory requirements for financial institutions in Tajikistan are governed by a combination of domestic laws and international cooperation efforts aimed at preventing money laundering and financing of terrorism.