|
|
FATF Statement re AML Strategic Deficiencies:
Date: 16 February 2012
In June 2010, Turkmenistan made a high-level political
commitment to work with the FATF and EAG to address its
strategic AML/CFT deficiencies. Since that time, Turkmenistan has
demonstrated progress in improving its AML/CFT regime,
including by adopting legislation to criminalising terrorist financing
and money laundering, passing legislation to improve CDD
measures, establishing a legal framework to freeze terrorist
assets, and working to build up its Financial Intelligence Unit. The
FATF will conduct an on-site visit to confirm that the process of
implementing the required reforms and actions is underway to
address deficiencies previously identified by the FATF.
____________________________________________________
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Turkmenistan is not a regional financial center. There are only
five international banks and a small, underdeveloped domestic
financial sector. Foreign companies operate three casinos in
Turkmenistan, which under certain conditions could become
vulnerable to financial fraud and used for money laundering.
Corruption related to natural resource extraction is a problem and
transfer of funds remains opaque. Given Turkmenistan’s shared
border with Afghanistan, money laundering in the country could
involve proceeds from illegal narcotics (primarily opium and
heroin) trafficking and trade, derived primarily from domestic
criminal activities. Although there is no information on cash
smuggling, gasoline and other commodities are smuggled
routinely across the national borders.
There are no offshore centers in the country. The current Law on
Free Economic Zones (FEZs) in Turkmenistan regulates business
in these zones. There are ten FEZs in Turkmenistan that were all
created prior to 1998. Businesses operating in a FEZ are exempt
from taxes on profits for the first three years of profitable
operation.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: NO
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks and other credit institutions
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks and other credit institutions, money
remitters, foreign currency dealers, and money exchangers;
professional participants in the securities market, commodity
exchangers, and firms taking cash payments for investments;
leasing organizations; insurance organizations; precious metals
and stones dealers; accountants, lawyers, notaries, and other
legal professionals; real estate agents; lottery prizes or gaming
entities; charitable foundations; and, pawnshops
Number of STRs received and time frame: 12,551 in 2010
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None in 2010
Convictions: None in 2010
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
In June 2010, Turkmenistan became a member of Eurasian
Group on Combating Money Laundering and Financing of
Terrorism (EAG), a Financial Action Task Force (FATF)-style
regional body. Turkmenistan had its first mutual evaluation in
November 2010. Once adopted, the evaluation report will be
available here: http://www.eurasiangroup.org/mers.php
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
On June 25, 2010 the FATF moved Turkmenistan from the Public
Statement List, which includes countries with the worst AML/CFT
records, to the list of those countries which have demonstrated
political will and have adopted action plans to improve their
AML/CFT regimes.
In May 2009, the government adopted a law “On Combating the
Legalization of Criminal Proceeds and the Financing of Terrorism”
(AML/CFT Law). In January 2010, the government established a
financial intelligence unit under the Ministry of Finance to
strengthen its anti-money laundering efforts. However, the FIU
lacks sufficient autonomy, resources and capacity to function
effectively and to ensure all covered entities are aware of their
responsibilities under the law, including the requirement to report
suspicious transactions, ensure proper customer identification
and conform to international standards. The government does not
provide the necessary training and capacity building to
government entities with supervisory, investigative and
prosecutorial responsibilities.
Foreign embassies provide terrorist financing information
regarding UN and U.S.-designated individuals and organizations
subject to asset forfeiture to the Ministry of Foreign Affairs (MFA).
The MFA reports that it distributes such information to the Ministry
of Finance, the Ministry of National Security, the Ministry of
Internal Affairs, and other concerned agencies. It is not clear
whether financial institutions receive the information. There have
been no reports of arrests, prosecutions or convictions for money
laundering or terrorist financing during 2010.
Amendments and addenda put into the Criminal Code on May 14,
2010 include the criminalization of terrorist financing. While laws
exist, the government does not have an independent national
system or mechanism for freezing terrorist assets. There are no
reports that authorities identified, froze, seized, and forfeited
assets related to terrorist financing in 2010.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Turkmenistan is a transshipment route for Afghan opiates moving
to Turkish, Russian and European markets, either directly or
through Iran. Turkmenistan is not a major producer for illegal
drugs or precursor chemicals. Most illegal drug seizures occur
along Turkmenistan’s rugged and remote 744-kilometer border
with Afghanistan and its 992-kilometer frontier with Iran.
Counternarcotics efforts continue to be a government policy
priority. Domestic narcotics sales have reportedly dropped since
the government stopped the practice of granting pardons to
defendants convicted of drug-related crimes. Prices for heroin
and opium have increased by roughly 50 percent, marijuana by
30 percent over the last year.
Major developments during 2011 include the election of
Turkmenistan to the United Nations Commission on Narcotic
Drugs (for the period 2012-2015), the adoption of the National
Program for Combating Illegal Drug Trafficking and Assistance to
Drug and Psychotropic Substance Addicts for 2011-2015, and
improved information sharing by the government with international
partners. Turkmenistan became the first Central Asian state to
offer formal support for the Central Asian Counternarcotics
Initiative and the first to ratify its membership in the Central Asian
Regional Information and Coordination Center (CARICC).
According to official statistics, the total amount of drugs seized in
Turkmenistan in 2010 was 1,017 kilograms, which is 56 percent
less than the total amount of drugs seized in 2009. 343 kilograms
of drugs were seized during the first six months of 2011.
Turkmenistan is a party to the 1988 UN Drug Convention and
other major multilateral law enforcement conventions. The United
States does not have a bilateral extradition treaty with
Turkmenistan.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 3)
Turkmenistan is a source country for men and women subjected
to forced labor and forced prostitution. Women from Turkmenistan
are subjected to forced prostitution in Turkey, and men and
women from Turkmenistan are subjected to conditions of forced
labor in Turkey, including in textile sweatshops, construction sites,
and in domestic servitude. Turkmen trafficking victims were also
identified for the first time in Russia, the United Kingdom, and
within Turkmenistan.
The Government of Turkmenistan does not fully comply with the
minimum standards for the elimination of trafficking, and is not
making significant efforts to do so. Although the government
continued discussions with IOM on providing shelter space, it did
not fulfill its commitment to allocate financial or in-kind assistance
to anti-trafficking organizations. Moreover, it did not work with IOM
to carry out a human trafficking awareness program for students
in the country’s five provinces, as anticipated in the 2010 TIP
Report. Furthermore, the government did not show any significant
efforts to investigate and prosecute trafficking crimes or to identify
and protect victims of trafficking during the last year.
For full report click here
____________________________________________________
_____
US State Dept Terrorism Report 2009
Overview: Turkmenistan adopted new counterterrorism legislation
and continued its efforts to improve border security, including
training for law enforcement officials. Turkmenistan's border
guards, customs service, and law enforcement agencies lacked
adequate personnel and remained in need of further training.
Legislation and Law Enforcement: Turkmenistan adopted a
revised Criminal Code that went into effect on July 1, 2010. The
new Code specifies punishment for terrorism and terrorist
financing. Punishment for terrorism ranges from five to 20 years in
prison, depending on the seriousness of the terrorist act.
Punishment for terrorist financing ranges from four to 15 years in
prison and confiscation of property, with the length of the
sentence determined by the seriousness of the crime, whether it
was premeditated and whether the offender was a government
official who misused his position in committing the crime.
The Government of Turkmenistan is in the process of improving
its border crossing checkpoints. In 2010, the government
purchased modern equipment to enhance detection capacity and
renovated checkpoints on the Uzbek and Kazakh borders. In
addition, the U.S. government provided new radio equipment to
the State Border Service that, together with new trucks provided
by the Turkmen government, will improve communications in
border areas.
Countering Terrorist Finance: In January, Turkmenistan
established a Financial Intelligence Unit under the Ministry of
Finance to strengthen the government's efforts to combat money
laundering/counterterrorist finance (AML/CTF). In June,
Turkmenistan became a full member of the Eurasian Group, a
regional AML/CTF organization and part of the Financial Action
Task Force (FATF). That month, the FATF placed Turkmenistan
on the Improving Global AML/CTF Compliance On-Going Process
List stating that while it had demonstrated progress in improving
its AML/CTF regime, there remained certain strategic deficiencies
that needed to be addressed. Turkmenistan indicated it will
implement an action plan to address these deficiencies.
Regional and International Cooperation: Turkmenistan
participated in regional and international training programs to
bolster its border security. As part of the Border Operations
Management Program in Central Asia (BOMCA), the Turkmenistan
State Border Service and State Counternarcotics Service sent
officers to attend regional training in Tashkent and Almaty on dog
handling techniques to search for drugs and explosives.
Turkmenistan Migration Service, Customs Service, and Border
Service officers participated in BOMCA training programs on
integrated border management for the Ashgabat airport and
Turkmenbashy seaport. In May, Turkmen officials participated in
NATO’s Advanced Training Course designed to teach the latest
counterterrorism methods and strategies. Turkmenistan is a
partner nation in the Global Initiative to Combat Nuclear Terrorism.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
Date: 16 February 2012
In June 2010, Turkmenistan made a high-level political
commitment to work with the FATF and EAG to address its
strategic AML/CFT deficiencies. Since that time, Turkmenistan has
demonstrated progress in improving its AML/CFT regime,
including by adopting legislation to criminalising terrorist financing
and money laundering, passing legislation to improve CDD
measures, establishing a legal framework to freeze terrorist
assets, and working to build up its Financial Intelligence Unit. The
FATF will conduct an on-site visit to confirm that the process of
implementing the required reforms and actions is underway to
address deficiencies previously identified by the FATF.
____________________________________________________
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Turkmenistan is not a regional financial center. There are only
five international banks and a small, underdeveloped domestic
financial sector. Foreign companies operate three casinos in
Turkmenistan, which under certain conditions could become
vulnerable to financial fraud and used for money laundering.
Corruption related to natural resource extraction is a problem and
transfer of funds remains opaque. Given Turkmenistan’s shared
border with Afghanistan, money laundering in the country could
involve proceeds from illegal narcotics (primarily opium and
heroin) trafficking and trade, derived primarily from domestic
criminal activities. Although there is no information on cash
smuggling, gasoline and other commodities are smuggled
routinely across the national borders.
There are no offshore centers in the country. The current Law on
Free Economic Zones (FEZs) in Turkmenistan regulates business
in these zones. There are ten FEZs in Turkmenistan that were all
created prior to 1998. Businesses operating in a FEZ are exempt
from taxes on profits for the first three years of profitable
operation.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: NO
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks and other credit institutions
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks and other credit institutions, money
remitters, foreign currency dealers, and money exchangers;
professional participants in the securities market, commodity
exchangers, and firms taking cash payments for investments;
leasing organizations; insurance organizations; precious metals
and stones dealers; accountants, lawyers, notaries, and other
legal professionals; real estate agents; lottery prizes or gaming
entities; charitable foundations; and, pawnshops
Number of STRs received and time frame: 12,551 in 2010
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None in 2010
Convictions: None in 2010
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
In June 2010, Turkmenistan became a member of Eurasian
Group on Combating Money Laundering and Financing of
Terrorism (EAG), a Financial Action Task Force (FATF)-style
regional body. Turkmenistan had its first mutual evaluation in
November 2010. Once adopted, the evaluation report will be
available here: http://www.eurasiangroup.org/mers.php
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
On June 25, 2010 the FATF moved Turkmenistan from the Public
Statement List, which includes countries with the worst AML/CFT
records, to the list of those countries which have demonstrated
political will and have adopted action plans to improve their
AML/CFT regimes.
In May 2009, the government adopted a law “On Combating the
Legalization of Criminal Proceeds and the Financing of Terrorism”
(AML/CFT Law). In January 2010, the government established a
financial intelligence unit under the Ministry of Finance to
strengthen its anti-money laundering efforts. However, the FIU
lacks sufficient autonomy, resources and capacity to function
effectively and to ensure all covered entities are aware of their
responsibilities under the law, including the requirement to report
suspicious transactions, ensure proper customer identification
and conform to international standards. The government does not
provide the necessary training and capacity building to
government entities with supervisory, investigative and
prosecutorial responsibilities.
Foreign embassies provide terrorist financing information
regarding UN and U.S.-designated individuals and organizations
subject to asset forfeiture to the Ministry of Foreign Affairs (MFA).
The MFA reports that it distributes such information to the Ministry
of Finance, the Ministry of National Security, the Ministry of
Internal Affairs, and other concerned agencies. It is not clear
whether financial institutions receive the information. There have
been no reports of arrests, prosecutions or convictions for money
laundering or terrorist financing during 2010.
Amendments and addenda put into the Criminal Code on May 14,
2010 include the criminalization of terrorist financing. While laws
exist, the government does not have an independent national
system or mechanism for freezing terrorist assets. There are no
reports that authorities identified, froze, seized, and forfeited
assets related to terrorist financing in 2010.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Turkmenistan is a transshipment route for Afghan opiates moving
to Turkish, Russian and European markets, either directly or
through Iran. Turkmenistan is not a major producer for illegal
drugs or precursor chemicals. Most illegal drug seizures occur
along Turkmenistan’s rugged and remote 744-kilometer border
with Afghanistan and its 992-kilometer frontier with Iran.
Counternarcotics efforts continue to be a government policy
priority. Domestic narcotics sales have reportedly dropped since
the government stopped the practice of granting pardons to
defendants convicted of drug-related crimes. Prices for heroin
and opium have increased by roughly 50 percent, marijuana by
30 percent over the last year.
Major developments during 2011 include the election of
Turkmenistan to the United Nations Commission on Narcotic
Drugs (for the period 2012-2015), the adoption of the National
Program for Combating Illegal Drug Trafficking and Assistance to
Drug and Psychotropic Substance Addicts for 2011-2015, and
improved information sharing by the government with international
partners. Turkmenistan became the first Central Asian state to
offer formal support for the Central Asian Counternarcotics
Initiative and the first to ratify its membership in the Central Asian
Regional Information and Coordination Center (CARICC).
According to official statistics, the total amount of drugs seized in
Turkmenistan in 2010 was 1,017 kilograms, which is 56 percent
less than the total amount of drugs seized in 2009. 343 kilograms
of drugs were seized during the first six months of 2011.
Turkmenistan is a party to the 1988 UN Drug Convention and
other major multilateral law enforcement conventions. The United
States does not have a bilateral extradition treaty with
Turkmenistan.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 3)
Turkmenistan is a source country for men and women subjected
to forced labor and forced prostitution. Women from Turkmenistan
are subjected to forced prostitution in Turkey, and men and
women from Turkmenistan are subjected to conditions of forced
labor in Turkey, including in textile sweatshops, construction sites,
and in domestic servitude. Turkmen trafficking victims were also
identified for the first time in Russia, the United Kingdom, and
within Turkmenistan.
The Government of Turkmenistan does not fully comply with the
minimum standards for the elimination of trafficking, and is not
making significant efforts to do so. Although the government
continued discussions with IOM on providing shelter space, it did
not fulfill its commitment to allocate financial or in-kind assistance
to anti-trafficking organizations. Moreover, it did not work with IOM
to carry out a human trafficking awareness program for students
in the country’s five provinces, as anticipated in the 2010 TIP
Report. Furthermore, the government did not show any significant
efforts to investigate and prosecute trafficking crimes or to identify
and protect victims of trafficking during the last year.
For full report click here
____________________________________________________
_____
US State Dept Terrorism Report 2009
Overview: Turkmenistan adopted new counterterrorism legislation
and continued its efforts to improve border security, including
training for law enforcement officials. Turkmenistan's border
guards, customs service, and law enforcement agencies lacked
adequate personnel and remained in need of further training.
Legislation and Law Enforcement: Turkmenistan adopted a
revised Criminal Code that went into effect on July 1, 2010. The
new Code specifies punishment for terrorism and terrorist
financing. Punishment for terrorism ranges from five to 20 years in
prison, depending on the seriousness of the terrorist act.
Punishment for terrorist financing ranges from four to 15 years in
prison and confiscation of property, with the length of the
sentence determined by the seriousness of the crime, whether it
was premeditated and whether the offender was a government
official who misused his position in committing the crime.
The Government of Turkmenistan is in the process of improving
its border crossing checkpoints. In 2010, the government
purchased modern equipment to enhance detection capacity and
renovated checkpoints on the Uzbek and Kazakh borders. In
addition, the U.S. government provided new radio equipment to
the State Border Service that, together with new trucks provided
by the Turkmen government, will improve communications in
border areas.
Countering Terrorist Finance: In January, Turkmenistan
established a Financial Intelligence Unit under the Ministry of
Finance to strengthen the government's efforts to combat money
laundering/counterterrorist finance (AML/CTF). In June,
Turkmenistan became a full member of the Eurasian Group, a
regional AML/CTF organization and part of the Financial Action
Task Force (FATF). That month, the FATF placed Turkmenistan
on the Improving Global AML/CTF Compliance On-Going Process
List stating that while it had demonstrated progress in improving
its AML/CTF regime, there remained certain strategic deficiencies
that needed to be addressed. Turkmenistan indicated it will
implement an action plan to address these deficiencies.
Regional and International Cooperation: Turkmenistan
participated in regional and international training programs to
bolster its border security. As part of the Border Operations
Management Program in Central Asia (BOMCA), the Turkmenistan
State Border Service and State Counternarcotics Service sent
officers to attend regional training in Tashkent and Almaty on dog
handling techniques to search for drugs and explosives.
Turkmenistan Migration Service, Customs Service, and Border
Service officers participated in BOMCA training programs on
integrated border management for the Ashgabat airport and
Turkmenbashy seaport. In May, Turkmen officials participated in
NATO’s Advanced Training Course designed to teach the latest
counterterrorism methods and strategies. Turkmenistan is a
partner nation in the Global Initiative to Combat Nuclear Terrorism.
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| TURKMENISTAN |
| KnowYourCountry |
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
Background
The foundation of Turkmenistan's AML / CFT system was laid in 2009,
when both ML and FT were criminalized. Law of the Republic of
Turkmenistan "On Combating Money Laundering and Terrorist
Financing" (AML/CFT Law) came into force on August 28, 2009. This
Law on AML / CFT required all financial institutions to report suspicious
transactions, implement CDD measures and establish an internal
control system and other mechanisms for the purpose of AML / CFT.
At present, the oversight and law enforcement agencies are carrying
out the necessary resource and structure-related reforms and
stepping up work on AML / CFT as it pertains to refinement of the
regulatory framework. There are concerns about the existence of
certain deficiencies in the system of preventive measures (customer
due diligence, internal controls, etc.) applicable to designated financial
institutions and non-financial businesses and professions (DNFBPs).
The main source of criminal revenues in Turkmenistan is drug
trafficking. This is due to the fact that Turkmenistan is used as a
transit country for shipment of drugs from Afghanistan.
Turkmenistan is a constitutional, secular and democratic republic with
a presidential form of government. Turkmenistan's GDP is roughly
US$16 billion (2009). The banking system, which includes 11 banks, is
the most developed part of the financial sector. The country's
securities market is still in its infancy. There is also only one state
insurance company (Turkmengosstah) in the country, and no
non-banking credit institutions present. The money and value
remittance services may only be provided by banks and a postal
service operator represented by the state postal service company
Turkmenpost (hereinafter the "SPSC Turkmenpost"). The DNFBPs are
represented by companies organizing lotteries and other risk-based
games; persons carrying out operations with precious metals and
stones; persons providing services and participating in operations
involving purchase and sale of real estate property; as well as notary
offices (notaries), lawyers' groups (lawyers) and audit firms.
Click here to view full Mutual Evaluation Report
The foundation of Turkmenistan's AML / CFT system was laid in 2009,
when both ML and FT were criminalized. Law of the Republic of
Turkmenistan "On Combating Money Laundering and Terrorist
Financing" (AML/CFT Law) came into force on August 28, 2009. This
Law on AML / CFT required all financial institutions to report suspicious
transactions, implement CDD measures and establish an internal
control system and other mechanisms for the purpose of AML / CFT.
At present, the oversight and law enforcement agencies are carrying
out the necessary resource and structure-related reforms and
stepping up work on AML / CFT as it pertains to refinement of the
regulatory framework. There are concerns about the existence of
certain deficiencies in the system of preventive measures (customer
due diligence, internal controls, etc.) applicable to designated financial
institutions and non-financial businesses and professions (DNFBPs).
The main source of criminal revenues in Turkmenistan is drug
trafficking. This is due to the fact that Turkmenistan is used as a
transit country for shipment of drugs from Afghanistan.
Turkmenistan is a constitutional, secular and democratic republic with
a presidential form of government. Turkmenistan's GDP is roughly
US$16 billion (2009). The banking system, which includes 11 banks, is
the most developed part of the financial sector. The country's
securities market is still in its infancy. There is also only one state
insurance company (Turkmengosstah) in the country, and no
non-banking credit institutions present. The money and value
remittance services may only be provided by banks and a postal
service operator represented by the state postal service company
Turkmenpost (hereinafter the "SPSC Turkmenpost"). The DNFBPs are
represented by companies organizing lotteries and other risk-based
games; persons carrying out operations with precious metals and
stones; persons providing services and participating in operations
involving purchase and sale of real estate property; as well as notary
offices (notaries), lawyers' groups (lawyers) and audit firms.
Click here to view full Mutual Evaluation Report
| Further Tables |
| Last Updated: 16 April 2012 |