Financial Crime World

Uzbekistan’s Banking Regulations Compliance Scores Highly in Recent Mutual Evaluation

In a recent evaluation by the Financial Action Task Force (FATF), Uzbekistan’s banking regulations compliance was found to be largely compliant with international standards for anti-money laundering and combating the financing of terrorism (AML/CFT).

Strengths and Weaknesses

The evaluation assessed Uzbekistan’s compliance against 40 recommendations, which reflect the extent to which a country has implemented technical requirements for AML/CFT. The ratings were categorized as compliant (C), largely compliant (LC), partially compliant (PC), or non-compliant (NC).

  • Uzbekistan showed strengths in:
    • National cooperation and coordination
    • Financial intelligence units
    • Mutual legal assistance
  • Areas for improvement include:
    • Financial institution secrecy laws
    • Customer due diligence
    • Record keeping

Compliance Highlights

Uzbekistan demonstrated compliance in areas such as:

  • Assessing risk and applying a risk-based approach
  • Confiscation and provisional measures
  • Financial sanctions related to terrorism and terrorist financing

However, some recommendations required improvement, including:

  • Targeted financial sanctions related to proliferation
  • Transparency and beneficial ownership of legal persons
  • Regulation and supervision of financial institutions

FATF’s Mutual Evaluation

The FATF’s Mutual Evaluation is a comprehensive assessment of a country’s AML/CFT regime, aimed at ensuring that countries work together to prevent the misuse of their financial systems for criminal activities. Uzbekistan’s high ratings reflect its efforts to strengthen its regulatory framework and improve cooperation with international partners.

Commitment to Reforms

In response to the evaluation, Uzbekistan has committed to implementing reforms to address identified weaknesses and improve its overall compliance with FATF recommendations. The country is expected to submit a follow-up report in the near future, outlining progress made towards addressing these issues.

Overall, Uzbekistan’s high ratings demonstrate its commitment to strengthening its AML/CFT regime and improving cooperation with international partners.