September 19, 2024, Bishkek, Kyrgyzstan
Virtual assets, including cryptocurrencies and tokens, are rapidly integrating into the global financial system, offering new opportunities for innovation and investment. However, their anonymity, decentralized nature, and global accessibility also create a favorable environment for money laundering, terrorism financing, and other illegal activities.
On September 19, 2024, in Bishkek, the State Financial Intelligence Service (SFIS) under the Ministry of Finance of the Kyrgyz Republic, in collaboration with UNODC, held a round table titled "Methodological Guidelines for Identifying Suspicious Transactions Related to Virtual Assets". The event was organized within the framework of the UNODC project "Strengthening the Capacity of the Kyrgyz Republic in Supervisory Activities to Counter the Financing of Terrorist Activities and Legalization (Laundering) of Criminal Proceeds (AML/CFT)," funded by the Russian Federation.
Representatives from the State Financial Intelligence Service, the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce, the National Bank, the Ministry of Internal Affairs, the Counter Narcotics Service of the Ministry of Internal Affairs, and the State Committee for National Security of the Kyrgyz Republic participated in the round table meeting.
The discussions focused on general requirements for identifying suspicious transactions involving virtual assets and reporting them to the financial intelligence agency. Participants also examined indicators of such transactions related to the client's profile and unusual behavior, transaction patterns, sources of funds, anonymity, and geographical risks.
Deputy Chairman of the SFIS Mr. Chyngyz Kenenbayev highlighted: "The Methodological Guidelines have been prepared to implement part 3 of article 23 of the Law of the Kyrgyz Republic “On Countering the Financing of Terrorist Activities and Legalization (Laundering) of Criminal Proceeds' and to provide methodological assistance to virtual asset service providers in identifying suspicious transactions related to virtual assets."
The Methodological Guidelines hold particular significance in today's context, as virtual assets become an integral part of the global financial system, opening new avenues for innovation and investment. However, their anonymity and decentralized nature pose risks of illegal use. The document provides clear criteria and procedures for identifying suspicious transactions, ensuring uniform actions among virtual asset service providers and financial institutions, and assists national regulators in complying with international standards.
This initiative contributes to the timely detection and prevention of attempts to use virtual assets for illicit purposes, strengthening investors’ confidence and the country's overall financial stability. The event enhanced interagency cooperation and raised awareness of current risks, which is crucial for preventing negative consequences for Kyrgyzstan's international reputation.
"Virtual assets are a new frontier not only for Kyrgyzstan but for the entire region. Support from UNODC plays a key role in strengthening the capacity of national partners to effectively counter terrorism financing and the laundering of criminal proceeds in the field of virtual assets," emphasized Andrey Seleznev, Head of the UNODC Program Office in the Kyrgyz Republic.
UNODC reaffirms its commitment to supporting the Kyrgyz Republic in combating money laundering and terrorism financing, facilitating the implementation of international standards and best practices.
For more information about the round table meeting and future initiatives, please contact the UNODC Program Office in the Kyrgyz Republic.