11:50, 18 февраля 2025, Bishkek - uzsushi.com news agency , Baktygul OSMONALIEVA
The National Bank of the Kyrgyz Republic (NBKR) once again urged commercial banks to tighten control over sanctions compliance. The central bank sent an official letter to financial institutions.
It emphasizes the importance of strict adherence to international sanctions imposed by the U.S. Office of Foreign Assets Control (OFAC), the European Union, and other countries.
In particular, it is strongly recommended to tighten control over international transfers, check clients and their counterparties, and analyze transactions for compliance with sanctions lists. Particular attention is recommended to be paid to transactions with partners from countries subject to sanctions.
Commercial banks are required to regularly update data on sanctions and carefully monitor the sources of clients’ funds.
Violation of requirements may lead to serious consequences, including severance of correspondent relations with foreign banks.
It is also emphasized that the heads of financial institutions, boards of directors and management boards are responsible for compliance with sanctions requirements and have to act in the interests of the bank, preventing transactions that may cause damage to it.
In August 2024, the U.S. sanctions regulator issued a warning to foreign financial institutions about the risks of cooperation with Russian banks abroad.
Previously, the U.S. Department of the Treasury placed Kyrgyzstan’s Keremet Bank on its sanctions list for assisting in circumventing sanctions against Russia. According to the department, Keremet Bank had collaborated with Russia’s Promsvyazbank, which finances Russia’s defense industry and has been under sanctions since 2022.
The issue of secondary sanctions was previously discussed between the National Bank and commercial banks in the spring of 2023. At that time, banks were also advised to strengthen internal control and conduct proper due diligence on clients, especially those from jurisdictions subject to sanctions.