Financial Crime World

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Uzbekistan Fails to Meet International Standards on Anti-Money Laundering and Counter-Terrorist Financing

A recent report by the Financial Action Task Force (FATF) has revealed that Uzbekistan has failed to implement key measures to prevent money laundering and terrorist financing. The report, which assesses the country’s compliance with FATF recommendations, found significant shortcomings in several areas.

Assessing Risk and Applying a Risk-Based Approach

Uzbekistan was rated as “Largely Compliant” (LC) in this area, meaning that while it has taken steps to implement the necessary measures, there are still some gaps. The country’s financial institutions have not fully implemented customer due diligence requirements, which makes them vulnerable to money laundering and terrorist financing.

National Cooperation and Coordination

Uzbekistan was rated as “Compliant” (C) in this area, indicating that it has made significant progress in coordinating efforts between different government agencies and financial institutions. However, there are still some areas where cooperation is lacking.

Money Laundering Offence

The country was rated as “Largely Compliant” (LC) in this area, meaning that while it has implemented the necessary laws and regulations to prevent money laundering, there are still some gaps. The penalties for money laundering offences are not sufficient to deter offenders.

Terrorist Financing Offence

Uzbekistan was also rated as “Largely Compliant” (LC) in this area, indicating that while it has taken steps to implement the necessary measures, there are still some shortcomings. The country’s laws and regulations do not fully cover terrorist financing offences.

Other Areas of Concern

The report highlighted several other areas where Uzbekistan needs to improve its compliance with FATF recommendations, including:

  • Confiscation and Provisional Measures: Uzbekistan needs to improve its ability to confiscate assets and impose provisional measures to prevent money laundering and terrorist financing.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing: The country’s laws and regulations do not fully cover targeted financial sanctions related to terrorism and terrorist financing.
  • Financial Institution Secrecy Laws: Uzbekistan needs to improve its financial institution secrecy laws to prevent money laundering and terrorist financing.
  • Politically Exposed Persons: The country needs to implement measures to prevent politically exposed persons from engaging in corrupt activities.
  • Correspondent Banking: Uzbekistan needs to improve its correspondent banking relationships to prevent money laundering and terrorist financing.

Overall, the report highlights the need for Uzbekistan to take concrete steps to address these gaps and improve its compliance with FATF recommendations.