The FATF mission welcomed the work of Kyrgyzstan on counteracting legalization of proceeds from crime 

Evaluation mission of the Group on development of financial measures in the fight against money laundering (FATF) was in Bishkek with working visit on April 24-25. Experts (Mr. Jens Fyurhoff, Co-Chairman of the Regional Review Group Europe/Eurasia at the Working Group on the Review of the FATF international cooperation, Ms. Christina Pitzer, representative of the Federal Financial Supervisory Authority of Germany, Ms. Solange Krieger, representative of the Commissariat of Insurance of the Grand Duchy of Luxembourg, Ms. Kuralaj Igembaeva, administrator Eurasian Group on counteracting Money Laundering and Financing of Terrorism) arrived in Kyrgyzstan in order to verify the performance by the Kyrgyz Republic of the action plan developed by the FATF for eliminating the defects of national AML/CFT of the Kyrgyz Republic. This program was created in 2011 after Kyrgyzstan was included in the list of countries under enhanced monitoring by the FATF. The cause for this became a monitoring as a result of which our country has received low scores on 33 of the 49 recommendations of the FATF. 

During the mission visit there were held the meetings with representatives of the Kyrgyz Republic Government, the supervisory authorities and the private sector. The FATF mission representatives noted the positive changes of the national system AML/CFT, stressing that most of the activities that were recommended to Kyrgyzstan were realized.  

The FATF representatives also announced the positive evaluation of the supervisory authorities of the Kyrgyz Republic. As well as the activities of the National Bank on counteracting legalization of proceeds from crime and financing of terrorist or extremist activity were noted. Thus, in the framework of the FATF plan the National Bank of the Kyrgyz Republic participated in drafting the new law "On AML/CFT", drafting amendments to the Law of the Kyrgyz Republic "On Licensing" and developed a draft law "On the payment system of the Kyrgyz Republic". Under the authority of the supervisory body the National Bank monitored the activities of commercial banks and other financial institutions of the country and in the case of violation of the requirements of the legislation of the Kyrgyz Republic in the field of AML/CFT administered, parallel transmitting information on the results of inspections to the State Financial Intelligence Service of the Kyrgyz Republic. Thus, by the results of 2013 under the interaction of the National Bank and the State Financial Intelligence Service, there was sent by the National Bank the information on the results of inspections of 760 financial institutions including commercial banks, non-banking financial institutions and exchange offices, 578 sanctions to the subjects were applied and the licenses of two financial credit institutions were revoked for non-compliance of the legislation in the field of AML/CFT. 

Mr. Zair Chokoev, Acting Chairman of the National Bank of the Kyrgyz Republic: "The National Bank attaches a great importance to the work on counteracting laundering proceeds of crime. This is not just a matter of confidence in the national financial system. This is primarily a matter of protecting the interests of depositors, whose funds may be subject to withdrawal of criminals and illegal enrichment. A high quality system of AML/CFT - is the issue of security and prestige of our country." 

The results of the work of the visiting assessment mission finished in Bishkek will be presented at the next plenary meeting of the FATF, which will be held on June 16-20 in Moscow. Also there will be taken a decision there on the status of the Kyrgyz Republic in the output from the "grey list". 

REFERENCE of the National Bank of the Kyrgyz Republic 

AML/ CFT system in Kyrgyzstan is organized in accordance with the recommendations of the International Organization for the Financial Action Task Force (FATF). 

It involved 14 ministries and government departments of the Kyrgyz Republic. The State Financial Intelligence Service (SFIS of the Kyrgyz Republic) performs the functions of the central and coordinating link in this system. 

National Bank, as a supervisory authority controls the execution of banking legislation by the licensed financial credit institutions which providing the information to the SFIS of the Kyrgyz Republic, and as a governmental body is involved in the harmonization of lists of states and operations of mandatory criteria and suspicion. The National Bank of the Kyrgyz Republic inspects the organization of system (or internal controls in order to) the AML/CFT in supervised financial credit institutions and sends information about its results to the SFIS of the Kyrgyz Republic. 

Commercial banks, as institutions providing information, have to establish a system (or internal controls) to AML/ CFT, including due diligence/ client identification, identification of suspicious transactions, the timely provision of information on suspicious transactions to the SFIS. The SFIS of the Kyrgyz Republic on the basis of processing and analysis of the information received must, if necessary, sent appropriate materials to the law enforcement. 

Regulation of the AML/ CFT system in Kyrgyzstan is carried out according to the Law of the Kyrgyz Republic "On counteracting terrorism financing and legalization (laundering) of proceeds from crime." 

FATF (FATF-The Financial Action Task Force) - an intergovernmental organization that produces international standards in counteracting laundering proceeds of crime and terrorism financing, as well as carrying out conformity assessment of national AML/ CFT systems to these standards. 

The FATF was established in 1989 by the decision of the "Big Seven" and is a major international institution involved in the development and implementation of international standards in the field of counteracting laundering proceeds of crime and terrorism financing (AML/CFT). 35 countries and two organizations are the FATF members, 20 organizations and one country - are observers. 

40 recommendations in AML are the main tool of the FATF in the implementation of its mandate, which are subject to revision in the average of once every 5 years, and 9 special recommendations in counteracting the financing of terrorism, which were developed after the events of September 11, 2001 in connection with the growing threat of international terrorism. 

Licenses/certificates have been issued to the following non-bank financial institutions and exchange offices: 

LLC "Option" (license No. 5124 from April 23, 2013 for conducting exchange operations with foreign currency) Legal address: 150, Abdrahmanov Str., Bishkek.  

Certificates/licenses of the following non-bank financial institutions have been cancelled/revoked: 

Since April 21, 2014 the certificate of registration of MCA "Ala-Too Finance" under the Ministry of Youth, Labor and Employment of the Kyrgyz Republic № 201 dated April 20, 2012 for micro-crediting of physical and legal entities was annulled. In connection with the entry into force of the Decree of the Government No. 178 of March 24, 2014 "On liquidation of MCA "Ala-Too Finance" under the Ministry of Youth, Labor and Employment of the Kyrgyz Republic. Legal address: 106 Chui prosp., Bishkek. 

Since April 22, 2014 the certificate of registration of JSC MCC "Kudzhin" No. 16 dated December 29, 2003 for micro-crediting of physical and legal entities was annulled. Decision No. 1 of 18 April 2014 of the founder on liquidation. Legal address: 157/1 Manas prosp., Bishkek.  

Since April 21, 2014 the certificate of registration of LLC MCC "Country of Credits" No. 64 dated January 9, 2007 for micro-crediting of physical and legal entities was annulled. Legal address: app. 3, building 99, Kojomberdiev Str., Karabalta, Chui region. 

Since April 22, 2014 the certificate of registration of LLC MCC "ABN and Partners" No. 89 dated August 29, 2012 for micro-crediting of physical and legal entities was annulled. Decision No. 23/4 of the founder of April 16, 2014, on self-liquidation. Legal address: 49 Karl Marks Str., Kyzyladyr village, Karabuura district, Talas region. 

Since April 21, 2014 the certificate of registration of LLC MCC "Taza Koom" No. 105 dated December 25, 2007 for micro-crediting of physical and legal entities was revoked. Decision of April 17, 2014 on self-liquidation. Legal address: 96 S. Kutmanaliev Str., Aksai village, Talas district, Talas region. 

Interbank payments