Financial Crime World

Uzbekistan Struggles with Identity Theft and Financial Crimes Amidst Economic Growth Targets

Uzbekistan’s efforts to achieve sustainable development by 2030 are being hindered by rampant identity theft and financial crimes, according to a new report. The country’s interdepartmental working group on SDG indicators has identified the need for improved methodologies to measure illicit financial flows (IFFs) in order to combat these issues.

National Risk Assessment Highlights Challenges

The National Risk Assessment of money laundering and terrorist financing activities has been conducted, and preliminary measurements of IFFs were carried out with the assistance of ESCATO in 2021-2022. The results showed that not all measurement methods are applicable to Uzbekistan, requiring further refinement to take into account national specifics.

Key Challenges and Solutions

Limited Access to Data and Information

  • Limited access to data and information at the national level
  • Lack of internal legal frameworks
  • Confidentiality concerns

To address these issues, the government plans to:

  • Develop national legal frameworks
  • Create tools for further implementation of proposed methods for IFFs measurement

Measuring IFFs: Key Areas and Challenges

Commercial Activities and Taxation

  • Embezzlement
  • Robbery
  • Human trafficking

Financing of Crime and Terrorism

  • Corruption
  • Criminal activities such as drug trafficking and human trafficking

The authorities have identified key areas where IFFs are most prevalent and plan to:

  • Break down IFFs into sub-indicators based on sources and measurement methods
  • Assign sub-indicators to each ministry and department
  • Conduct training events with involving specialists from government agencies

International Cooperation: A Key Component

Uzbekistan is working closely with regional partners to share best practices and coordinate efforts to combat identity theft and financial crimes. Successful initiatives in countries such as Bangladesh, Maldives, and Nepal have been cited as examples.

Government Commitment

In a statement, a government spokesperson said:

“Uzbekistan is committed to achieving sustainable development by 2030, but this will require concerted efforts to combat identity theft and financial crimes. We are working closely with international partners and domestic agencies to develop effective methodologies for measuring IFFs and bring offenders to justice.”