Uzbekistan Under the Spotlight for Financial Sanctions Enforcement

A recent report has evaluated Uzbekistan’s implementation of the Financial Action Task Force (FATF) Recommendations, providing insight into the country’s progress in meeting international standards for combating money laundering and terrorist financing.

Strengths

• National Cooperation and Coordination (R.2): Uzbekistan scored high marks in this area, demonstrating a strong commitment to fighting financial crimes.
• Financial Intelligence Units (R.29): The country has made significant progress in establishing effective financial intelligence units.
• Responsibilities of Law Enforcement and Investigative Authorities (R.30): Uzbekistan’s law enforcement and investigative authorities have demonstrated a clear understanding of their roles and responsibilities in combating financial crimes.

Areas for Improvement

• Targeted Financial Sanctions related to Terrorism and Terrorist Financing (R.6) and Proliferation (R.7): While Uzbekistan has made some progress, it still needs to improve its implementation of targeted financial sanctions.
• Transparency and Beneficial Ownership of Legal Persons and Arrangements (R.24-25): There are concerns about the transparency and beneficial ownership of legal persons and arrangements in Uzbekistan.

Non-Compliance

• Regulation and Supervision of DNFBPs (R.28)
• Confiscation and Provisional Measures (R.4)
• Powers of Supervisors (R.27)

These areas require attention if Uzbekistan is to meet its commitments under the FATF Recommendations.

Conclusion

While there are areas for improvement, Uzbekistan’s progress in implementing the FATF Recommendations is a positive step towards strengthening its financial sanctions enforcement regime. The country has demonstrated a strong commitment to combating money laundering and terrorist financing, but still needs to address certain deficiencies to achieve full compliance with international standards.