Financial Crime World

Uzbekistan Enhances Fight Against Money Laundering, Terror Financing

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Tashkent, Uzbekistan - The Republic of Uzbekistan has taken significant steps to strengthen its anti-money laundering (AML), combating the financing of terrorism (CFT) and proliferation of weapons of mass destruction (FPWMD) measures. According to official sources, the country’s authorities have been working closely with international organizations and foreign states to improve its AML/CFT/FPWMD system.

Internal Control Measures

The Ministry of Internal Affairs of Uzbekistan has implemented internal control measures for organizations engaged in transactions with cash or other property. These measures include:

  • Identifying suspicious transactions
  • Verifying customers and beneficial owners
  • Monitoring existing databases

The State Committee for Industrial Safety of the Republic of Uzbekistan is also involved in these efforts.

Suspension of Operations and Freezing of Funds

If a transaction is recognized as suspicious, organizations are required to report it to the authorities. In such cases:

  • Operations may be suspended
  • Funds or other property may be frozen
  • Employees of organizations and government agencies involved in countering money laundering and terror financing are obligated to maintain confidentiality and ensure the safety of sensitive information

Currency Transaction Monitoring

Commercial banks submit information on currency transactions conducted by clients with certain characteristics to:

  • The relevant territorial state tax administrations or the Interregional State Tax Inspectorate for Large taxpayers
  • These transactions include:
    • Payments to non-residents registered in offshore zones
    • Payment of fines
    • Transfer of dividends or profits abroad

Monitoring and Enforcement

The State tax service monitors information received from commercial banks and customs authorities. If suspicious transactions are detected:

  • Legal impact measures are not applied immediately, but further investigation is conducted
  • The Central Bank of Uzbekistan also monitors compliance by licensed organizations with AML/CFT/FPWMD rules

Strategy for Development

Uzbekistan’s Strategy for the development of its national AML/CFT/FPWMD system aims to bring the country in line with international standards and best practices. The strategy prioritizes:

  • Minimizing risks
  • Improving state policy
  • Strengthening cooperation with international organizations
  • Introducing modern information technologies
  • Professional development of employees involved in this field

Goals

The strategy aims to achieve several key goals, including:

  • Ensuring the implementation of international standards
  • Eliminating shortcomings in legislation
  • Strengthening the national system
  • Improving financial stability
  • Uzbekistan’s indicators in international ratings and indices are expected to improve as a result of these efforts

International Cooperation

Uzbekistan has been working closely with international organizations such as:

  • The Group for the Development of Financial Measures to Combat Money Laundering (FATF)
  • To improve its AML/CFT/FPWMD system
  • The country’s authorities have also established a systematic dialogue with foreign states to share best practices and coordinate efforts in this area

Conclusion

Uzbekistan’s efforts to strengthen its AML/CFT/FPWMD measures demonstrate the country’s commitment to combating money laundering, terror financing, and proliferation of weapons of mass destruction. The implementation of these measures is expected to improve financial stability, enhance cooperation with international organizations, and reduce the risks associated with these threats.