Bishkek, Kyrgyz Republic, June 13, 2024
Government authorities of the Kyrgyz Republic discussed and approved three key risk assessment reports on money laundering and terrorist financing in the securities market, insurance and virtual (online) casino sectors. The documents were developed by the United Nations Office on Drugs and Crime (UNODC), Programme Office in the Kyrgyz Republic together with competent state agencies of the Kyrgyz Republic.
The reports contain a detailed analysis of current threats and vulnerabilities in each of these sectors, as well as recommendations for mitigating the identified risks. In particular, the reports cover the following aspects:
- Securities market: analysis of the legal framework, trends in the sector, existing control mechanisms, and potential money laundering channels;
- Insurance sector: assessment of the risks associated with various insurance products, and mechanisms to counter potential abuse;
- Virtual (online) casinos: analysis of the specific risks associated with the anonymity and transnational nature of virtual gambling.
Along with the Sectoral Risk Assessment (SRA) Reports, the Kyrgyz Republic authorities approved the Risk Mitigation Plans for the identified sectors. These plans include the following measures:
The process that led to the approval of these SRA Reports involved several key steps:
1. Methodology development:
UNODC International AML/CFT Expert Mr. Igor Nebyvaev developed a Risk Assessment Methodology based on the Financial Action Task Force (FATF) Standards and best practices of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG).
2. Presentation and approval of the Methodology:
On May 20, 2024, the draft Methodology was presented and approved at the regular meeting of the Interagency Commission of the Kyrgyz Republic on Combating Money Laundering and Financing of Terrorism (AML/CFT Commission).
3. Discussion and agreement of the SRA Reports:
On May 31, 2024, within the framework of the 40th EAG Plenary Week, the high-level segment meeting of the AML/CFT Commission was conducted with the participation of representatives of ministries, agencies, EAG Secretariat, and UNODC Experts for preliminary agreement of the findings of the developed draft Reports.
4. Approval of the SRA Reports:
On June 13, 2024, at the regular meeting of the AML/CFT Commission, the SRA Reports along with its Risk Mitigation Plans were officially approved.
On June 4, 2024, the UNODC Programme Office organized a workshop for national partners from various sectors, such as the State Financial Intelligence Service, the Service for Regulation and Supervision of the Financial Market, the National Bank of the Kyrgyz Republic, the Ministry of Internal Affairs, and private sector of the Kyrgyz Republic. The workshop focused on discussing the mechanisms for applying the risk assessment methodology and implementing the recommendations of the developed SRA Reports.
These project activities, funded by the Russian Federation, are an integral part of the UNODC Project aimed at "Strengthening the capacity of the Kyrgyz Republic in the field of supervisory activities to counter the financing of terrorist activities and money laundering of criminal proceeds (AML/CFT)".
UNODC reaffirms its commitment to support the Kyrgyz Republic in combating money laundering and terrorist financing by promoting the implementation of international standards and best practices.
For more information on the workshop and future initiatives, please contact the UNODC Programme Office in the Kyrgyz Republic.
