Banking Regulations in Turkmenistan: A Overview of 2020

Banking Sector Overview

Turkmenistan’s banking sector is subject to a range of regulations and laws, aimed at promoting a socially-oriented market economy. The country’s financial system is dominated by the Central Bank of Turkmenistan, which regulates the activities of the 11 licensed banks operating in the country.

• Types of Banks: The banking sector is comprised of six state-owned banks, three joint-stock banks, and two branches of foreign banks.
• Financial Services: These institutions are responsible for providing a range of financial services to individuals and businesses, including loans, deposits, and investments.

Regulatory Bodies

One of the key regulatory bodies in Turkmenistan’s financial sector is the Financial Monitoring Service (FMS), which was established in 2018 to combat money laundering and terrorist financing. The FMS is responsible for monitoring and reporting suspicious transactions, as well as enforcing anti-money laundering regulations.

Laws Against Money Laundering and Terrorist Financing

Turkmenistan has implemented a range of laws aimed at preventing money laundering and terrorist financing. In 2009, the country adopted the Law “On Countering the Legalization of Criminal Proceeds,” which was updated in 2015 and again in 2020 to improve its effectiveness.

International Cooperation

The country is also a member of various international organizations, including the United Nations, the International Monetary Fund, and the World Bank. Turkmenistan has signed over 150 international treaties and agreements, and recognizes the priority of universally recognized norms of international law.

Conclusion

Overall, Turkmenistan’s banking regulations are designed to promote financial stability and combat money laundering and terrorist financing. The country’s regulatory bodies work closely with international organizations and other governments to ensure compliance with global standards and best practices in the financial sector.