Uzbekistan Country Summary

FATF Status

Uzbekistan is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Uzbekistan was undertaken in 2023. According to that Evaluation, Uzbekistan was deemed Compliant for 8 and Largely Compliant for 26 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 6 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Since President Mirziyoyev's reform policy began in 2017, Uzbekistan has made strides in combating corruption through legislation and the establishment of the Anti-Corruption Agency in 2020. Despite these efforts, enforcement remains inconsistent, with a significant number of government officials prosecuted for corruption in 2023, highlighting ongoing challenges in transparency and accountability. The country continues to grapple with various forms of corruption and criminal activities, including human trafficking and financial crimes, while the effectiveness of anti-corruption measures is hampered by a corrupt judicial system and bureaucratic obstacles.

Uzbekistan is a rapidly developing lower-middle income economy in Central Asia, characterized by a population of 37 million and a focus on attracting foreign direct investment (FDI) to achieve its development goals. The government has implemented reforms since 2017 to liberalize the economy, resulting in a GDP growth of 6 percent in 2023 and nearly $7.2 billion in FDI, primarily from countries like China and Russia. Despite these advancements, challenges remain, including the need for further diversification of trade and investment, as well as the modernization of energy infrastructure.

Uzbekistan's investment climate is evolving, with the government actively promoting foreign direct investment (FDI) as a key component of its economic development strategy. In 2023, the country attracted over $7.2 billion in FDI, nearly double the previous year's amount, driven by reforms aimed at liberalizing the economy and enhancing the business environment. However, challenges remain, including a selective approach to investment incentives and the need for greater transparency and protection of investor rights.