Uzbekistan Tightens Financial Institution Security Measures to Combat Money Laundering and Terrorism Funding
Enhancing Financial System Security
In an effort to strengthen its financial system and prevent illegal activities, Uzbekistan has taken significant steps to enhance security measures at its financial institutions. The country’s central bank has been working closely with licensed organizations to ensure compliance with anti-money laundering (AML), combating the financing of terrorism (CFT) and preventing the proliferation of weapons of mass destruction (FMRU) regulations.
Measures Implemented
- Conducting remote and on-site inspections to ensure that organizations licensed by the central bank are adhering to AML/CFT/FMRU legislation
- Providing information related to these activities to authorized state bodies
- Monitoring compliance by commercial banks with currency regulation requirements during foreign exchange transactions
Identifying and Mitigating Risks
Uzbekistan’s financial regulators have been working to identify and mitigate risks in the banking sector and non-bank credit institutions. This includes:
- Conducting risk assessments, identifying threats and vulnerabilities
- Taking measures to reduce identified risks and prevent the legalization of criminal proceeds and terrorism financing
International Cooperation
The country has established procedures for exchanging information with international organizations in the field of AML/CFT/FMRU, ensuring that its financial system remains connected and informed about global efforts to combat these illegal activities.
Remote and On-Site Inspections
- Conducting remote and on-site inspections to ensure the legality of foreign exchange transactions conducted by commercial banks
- Taking appropriate measures to eliminate identified deficiencies and prevent any potential threats to the country’s financial stability
Objectives
The enhanced security measures aim to:
- Prevent the misuse of Uzbekistan’s financial system for illegal activities
- Maintain the country’s reputation as a reliable partner in international financial transactions
- Protect its citizens from the risks associated with money laundering and terrorism financing