Combating Money Laundering, Terrorist Financing, and Financing of the Proliferation of Weapons of Mass Destruction

About Combating Money Laundering, Terrorist Financing, and Financing of the Proliferation of Weapons of Mass Destruction

The Financial Monitoring Department of the Central Bank supervises the activities of commercial banks, payment organizations, and non-bank credit institutions in the area of combating money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction (AML/CFT/CPF).

The Department’s main duties are to monitor compliance by entities licensed by the Central Bank with legislative requirements in the AML/CFT/CPF sphere, to align laws and subordinate regulations governing this area with the FATF Recommendations, and to minimize risks.

International Standards and the Role of the FATF

The key body responsible for developing and coordinating international standards in the AML/CFT/CPF sphere is the Financial Action Task Force (FATF). Established in 1989, the FATF has developed the 40 Recommendations, which set forth the requirements necessary for the establishment and effective functioning of a national AML/CFT/CPF system. In addition, the FATF conducts mutual evaluations to assess the effectiveness of countries’ implementation and application of these standards. The results of these evaluations influence a country’s international reputation, opportunities for global cooperation, and participation in financial markets.

The Role of the United Nations and Security Council Resolutions

The United Nations, in particular the Security Council, establishes mandatory international measures for States in the AML/CFT/CPF sphere. These include United Nations Security Council Resolutions 1267 (1999), 1373 (2001), 1988 (2011), and others, which set out comprehensive measures to counter terrorist financing and proliferation financing. These instruments are binding on all UN Member States and are integrated into national legal systems.

The National AML/CFT/CPF System in the Republic of Uzbekistan

Uzbekistan has established a comprehensive AML/CFT/CPF system aligned with international standards, which includes:

• The Law of the Republic of Uzbekistan dated 26 August 2004 No. 660-II “On Combating Legalization of Proceeds of Crime, Financing of Terrorism, and Financing of Proliferation of Weapons of Mass Destruction” and subordinate regulations setting out requirements in this area;
• The Interagency Commission on Combating Legalization of Proceeds of Crime, Financing of Terrorism, and Financing of Proliferation of Weapons of Mass Destruction, established in accordance with the Decree of the President of the Republic of Uzbekistan dated 20 September 2018 No. PP-3947;
• Cooperation with international organizations such as the FATF, the EAG (Eurasian Group on Combating Money Laundering and Financing of Terrorism), and the United Nations.

The Central Bank actively participates in the implementation of national policy in this sphere, ensuring the stability and transparency of the financial sector and protecting it from criminal threats.