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 corruption and crime, with pervasive issues affecting all levels of society and various sectors of the economy. Despite some efforts to strengthen anti-corruption policies and institutions, enforcement remains inconsistent and often politically motivated, leading to a culture where bribery is seen as a necessary means to access government services.

The economy of the Kyrgyz Republic is currently grappling with significant challenges, including a severe contraction of 8.6% of GDP in 2020, largely due to declines in key sectors such as construction, tourism, and non-gold exports, compounded by a political upheaval that saw the government toppled in late 2020. The new administration under President Sadyr Japarov is attempting to stabilize the economy and attract foreign investment, particularly from Western nations, while simultaneously conducting an aggressive anti-corruption campaign that has raised concerns among investors regarding the security of their assets. Despite these difficulties, there are long-term opportunities in sectors like agribusiness, ICT, and energy, contingent upon the government’s ability to implement structural reforms that enhance competitiveness and transparency in the investment climate.