Financial Crime World

Uzbekistan Scores High in Banking Fraud Prevention, But Room for Improvement Remains

Significant Progress in Implementing Measures to Prevent Banking Fraud

According to the latest assessment by international financial watchdogs, Uzbekistan has made significant strides in implementing measures to prevent banking fraud. The country scored high marks for its efforts to assess risk and apply a risk-based approach to combating money laundering and terrorist financing.

Compliant with Key Recommendations from FATF

Uzbekistan’s Follow-Up Report 2023 shows that the country is largely compliant with key recommendations from the Financial Action Task Force (FATF), a global standard-setting body that sets guidelines for anti-money laundering and combatting the financing of terrorism. The report highlights several areas where Uzbekistan has made progress, including:

  • National cooperation and coordination
  • Confiscation and provisional measures
  • Financial intelligence units

Areas for Improvement

However, the report also identifies some areas where Uzbekistan needs to improve, including:

  • Regulation and supervision of financial institutions
  • Powers of supervisors
  • Transparency and beneficial ownership of legal persons

Additionally, the country was found to be partially compliant in several areas, including:

  • Correspondent banking
  • Non-profit organizations
  • Internal controls and foreign branches and subsidiaries

Positive Efforts towards Strengthening Anti-Money Laundering Regime

Despite these shortcomings, the report praises Uzbekistan’s efforts to strengthen its anti-money laundering and counter-terrorism financing regime. The country has made progress in:

  • Customer due diligence
  • Record keeping
  • Reporting of suspicious transactions

The country has also implemented measures to prevent the use of new technologies for money laundering and terrorist financing.

Conclusion: Progress towards Strengthening Financial System

While Uzbekistan still faces challenges in certain areas, it is making significant strides towards strengthening its financial system and preventing banking fraud. The country’s efforts are seen as a positive step forward in its commitment to international cooperation and compliance with global standards.