Financial Crime World

Uzbekistan Steps Up Efforts to Combat Money Laundering and Terror Financing

The Republic of Uzbekistan has made significant strides to strengthen its anti-money laundering (AML), combating the financing of terrorism (CFT), and financing of proliferation of weapons of mass destruction (FPWMD) systems. The country’s Ministry of Internal Affairs, Prosecutor General’s Office, State Committee for Industrial Safety, and other relevant authorities have been working together to implement effective measures to prevent and detect these types of crimes.

Internal Control Measures

Under Uzbekistan’s AML/CFT/FPWMD regulations, organizations engaged in transactions with cash or other property are required to conduct internal control activities to identify suspicious transactions. These organizations must:

  • Verify their customers’ identities and beneficial owners
  • Monitor their transactions regularly
  • Report any suspicious activity to the relevant authorities

The rules also cover specific industries, such as:

  • Lottery organizers
  • Crypto asset traders
  • Postal service providers
  • Real estate companies
  • Exchange members
  • Securities market participants
  • Insurers
  • Auditors

These organizations must implement internal control measures to prevent money laundering and terrorist financing.

Suspicious Transaction Reporting

If an organization identifies a suspicious transaction, it must report it to the relevant authorities immediately. The Department for Combating Economic Crimes under the Prosecutor General’s Office is responsible for receiving and investigating such reports.

To ensure confidentiality and safety of information:

  • Employees involved in AML/CFT/FPWMD activities are prohibited from disclosing sensitive data about individuals or organizations being monitored

Currency Transaction Monitoring

The State Tax Service monitors currency transactions conducted by legal entities and individuals. Commercial banks submit information on these transactions to the relevant tax authorities, which then monitor for suspicious activity.

In cases where questionable transactions are detected:

  • The State Tax Service can request additional information from commercial banks and customs authorities
  • The service also notifies the Department for Combating Economic Crimes under the Prosecutor General’s Office in writing within three days if it identifies potential AML/CFT/FPWMD violations

Central Bank Monitoring

The Central Bank of Uzbekistan also monitors organizations licensed by the bank, as well as pawnshops and mortgage refinancing companies, to ensure compliance with AML/CFT/FPWMD regulations.

Strategy for Development

Uzbekistan’s Strategy for Developing the National AML/CFT/FPWMD System aims to bring the country’s system in line with international standards set by the Financial Action Task Force (FATF) and other international organizations. The strategy prioritizes:

  • Risk minimization
  • Strengthening state policy
  • Improving cooperation with international organizations
  • Introducing modern information technologies

The goal of the strategy is to ensure that Uzbekistan’s AML/CFT/FPWMD system is effective in preventing money laundering and terrorist financing, while also promoting economic stability and international cooperation.