Financial Crime Definition in Turkmenistan Sparks Concerns Amid Ratings Hiccup
Turkmenistan’s efforts to combat financial crime have been met with mixed results, according to a recent report from the Financial Action Task Force (FATF). The country’s compliance with international anti-money laundering and counter-terrorism financing standards has been deemed “partially compliant” in several areas, sparking concerns about its ability to prevent and prosecute financial crimes.
FATF’s Ratings System
The FATF’s ratings system assesses countries’ implementation of technical requirements aimed at preventing the misuse of their financial systems. Turkmenistan’s rating is a far cry from the coveted “compliant” mark, which is only achieved by countries that fully implement all 40 recommendations.
Areas for Improvement
- Non-Profit Organizations: Turkmenistan received an “non-compliant” (NC) rating in this area.
- New Technologies and Wire Transfers: The country also received poor marks in these areas, earning a “partially compliant” (PC) rating.
- Regulation and Supervision of Financial Institutions, DNFBPs, and Cash Couriers: Turkmenistan’s lack of transparency in this area drew criticism.
- Beneficial Ownership of Legal Persons and Arrangements: The country’s inconsistent performance in this area also raised concerns.
Areas of Strength
- Confiscation of Assets Linked to Terrorism and Terrorist Financing: Turkmenistan received a “partially compliant” rating for its efforts in this area.
- Internal Controls and Foreign Branches and Subsidiaries: The country’s internal controls were deemed largely compliant (LC).
Concerns and Recommendations
Turkmenistan’s inconsistent performance has raised concerns about the effectiveness of its anti-money laundering and counter-terrorism financing regime. The government must take concrete steps to address these weaknesses if it is to prevent its financial system from being exploited by criminals.
In response to the report, Turkmenistan’s authorities have vowed to strengthen their efforts to combat financial crime. However, time will tell whether they can make good on their promises and bring their rating up to par with other countries in the region.