Financial Crime World

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Turkmenistan Steps Up Financial Crime Prevention Measures

In its latest follow-up report, Turkmenistan has shown significant progress in implementing measures to prevent financial crimes, earning a largely compliant rating from the global anti-money laundering watchdog, FATF.

Evaluation and Compliance

The report, published earlier this year, evaluates Turkmenistan’s compliance with the 40 Recommendations of the Financial Action Task Force (FATF), aimed at preventing money laundering and terrorist financing. The country received a scorecard with ratings ranging from C (compliant) to NC (non-compliant).

Key Areas of Progress

Turkmenistan achieved largely compliant ratings in several key areas, including:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Targeted financial sanctions related to terrorism and terrorist financing

The country also made significant progress in implementing measures to prevent money laundering and terrorist financing through the confiscation of assets and provisional measures. Additionally, Turkmenistan has strengthened its regulation and supervision of financial institutions and designated non-profit organizations.

Areas for Improvement

However, there are areas where the country still needs improvement. Turkmenistan’s ratings were partially compliant in several areas, including:

  • Customer due diligence
  • Record keeping
  • Correspondent banking

The FATF report highlighted the need for Turkmenistan to enhance its transparency and beneficial ownership of legal persons and arrangements, as well as strengthen its regulation and supervision of designated non-financial businesses and professions (DNFBPs).

International Cooperation

Despite these challenges, the report acknowledged Turkmenistan’s efforts to improve its financial crime prevention measures, citing progress in implementing internal controls and foreign branches and subsidiaries. The country has also strengthened its cooperation with international partners, including through mutual legal assistance and extradition agreements.

Conclusion

Turkmenistan’s commitment to combating financial crimes is critical to maintaining stability and integrity in the global financial system. The country’s continued efforts to strengthen its financial crime prevention measures will be closely monitored by FATF and other international organizations.