Uzbekistan Enhances Anti-Money Laundering Regulations

Strengthening Financial Framework Against Money Crimes

In its bid to prevent financial crimes, Uzbekistan has implemented various banking regulations aimed at strengthening its anti-money laundering (AML) framework. International watchdogs have rated the country’s efforts as largely compliant with the Financial Action Task Force (FATF) Recommendations.

Risk Assessment and Coordination

Uzbekistan demonstrates a good understanding of money laundering and terrorist financing risks, conducting regular threat assessments. However, there is room for improvement in national cooperation and coordination among relevant agencies to enhance AML measure effectiveness.

• Regular risk assessment helps identify potential threats
• National cooperation needed to improve AML measure effectiveness

Money Laundering Offence and Confiscation

The country has established a money laundering offence but requires attention to ensure effective prevention of financial crimes. While confiscation and provisional measures are largely compliant with international standards, some improvements can be made:

• Established money laundering offence
• Need for improvement in ensuring effective prevention of financial crimes
• Largely compliant with international standards for confiscation and provisional measures

Terrorist Financing and Targeted Financial Sanctions

Uzbekistan’s regulations related to terrorist financing are partially compliant, requiring further improvement. The country has implemented targeted financial sanctions related to terrorism and terrorist financing but needs more effective coordination among agencies:

• Partially compliant regulations
• Need for improved agency coordination

Financial Institution Secrecy Laws and Customer Due Diligence

Uzbekistan’s financial institution secrecy laws require strengthening to prevent the misuse of bank accounts. While customer due diligence measures are largely compliant with international standards, some improvements can be made in this area:

• Largely compliant with international standards for customer due diligence
• Need for improvement in financial institution secrecy laws

Correspondent Banking and Wire Transfers

The country has implemented correspondent banking regulations that meet international standards. However, there is a need for more effective monitoring of high-risk transactions to prevent money laundering:

• Implemented correspondent banking regulations meeting international standards
• Need for improved monitoring of high-risk transactions

Internal Controls and Higher-Risk Countries

Uzbekistan’s internal controls and foreign branches and subsidiaries require strengthening to prevent financial crimes. The country has implemented regulations related to higher-risk countries, but there is a need for more effective monitoring of transactions from these jurisdictions:

• Strengthening internal controls needed
• Need for improved regulation of higher-risk countries

Reporting of Suspicious Transactions and Transparency

The country’s reporting of suspicious transactions is largely compliant with international standards. However, some improvements can be made in this area, as well as transparency and beneficial ownership requirements for legal persons and arrangements:

• Largely compliant with international standards for reporting suspicious transactions
• Need for improvement in transparency and beneficial ownership requirements