Kyrgyzstan Country Summary

FATF Status

Kyrgyzstan is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The latest Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Kyrgyzstan was undertaken in 2023. According to that Evaluation, Kyrgyzstan was deemed Compliant for 4 and Largely Compliant for 36 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Kyrgyzstan faces significant challenges related to crime and corruption, with pervasive issues across all sectors of the economy. Despite recent legislative efforts to strengthen anti-corruption measures, including harsher penalties for corruption offenses, enforcement remains inconsistent and often politically motivated, undermining public trust and the effectiveness of these initiatives.

The economy of Kyrgyzstan has experienced significant growth under President Sadyr Japarov, driven by increased cross-border trade and remittances, particularly in the context of geopolitical shifts stemming from Russia's war against Ukraine. In 2024, the country's GDP surpassed 1.5 trillion Kyrgyz som, reflecting a growth rate exceeding 9%, while Foreign Direct Investment (FDI) rose to $873 million, albeit hindered by challenges such as nationalization of key assets, bureaucratic inefficiencies, and inconsistent property rights. Despite the government's efforts to attract investment through incentives and simplified registration processes, concerns about corruption, political instability, and a lack of robust legal enforcement continue to pose risks for foreign investors in this frontier market.