Uzbekistan’s Financial Institutions Boost Security Measures to Combat Money Laundering and Terrorism Financing

Strengthening the Financial Sector

Uzbekistan has taken significant steps to enhance its security measures in a bid to strengthen its financial sector and combat the threat of money laundering and terrorism financing. According to the latest report by the Financial Action Task Force (FATF), Uzbekistan has made progress in implementing technical requirements to prevent the misuse of its financial system.

Key Areas of Progress

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

However, Uzbekistan still faces challenges in some areas, particularly with regards to non-profit organizations, financial institution secrecy laws, and transparency and beneficial ownership of legal persons.

Areas Requiring Improvement

• Non-profit organizations
• Financial institution secrecy laws
• Transparency and beneficial ownership of legal persons

The country has been rated “non-compliant” or “partially compliant” in these areas, highlighting the need for further improvements.

Enhanced Security Measures

One of the key measures taken by Uzbekistan is the implementation of customer due diligence requirements. These requirements aim to ensure that financial institutions have adequate procedures in place to identify and verify the identity of their customers.

Strengthened Regulation and Supervision

Uzbekistan has also strengthened its regulation and supervision of financial institutions, as well as its powers of supervisors.

International Cooperation

The country has improved its cooperation with international partners, including the FATF and other countries, to combat money laundering and terrorism financing. Uzbekistan has established a financial intelligence unit and enhanced its ability to share information and conduct joint investigations with foreign authorities.

Commitment to Strengthening the Financial Sector

While there is still more work to be done, Uzbekistan’s efforts are commendable and demonstrate the country’s commitment to strengthening its financial sector and combating the threat of money laundering and terrorism financing. As the country continues to implement these measures, it will be important to monitor progress and address any remaining weaknesses to ensure that its financial system remains secure and effective.

Conclusion

Uzbekistan’s financial institutions are taking significant steps to enhance their security measures and combat money laundering and terrorism financing. While there is still more work to be done, the country’s efforts demonstrate its commitment to strengthening its financial sector and protecting its citizens from these threats.