Kyrgyz authorities have initiated the forced liquidation of 19 legal entities suspected of posing elevated sanctions risks, according to a statement by the country’s Economy and Commerce Ministry released on Aug. 18. The decision was made by an interagency group after a review of about 40 companies that authorities had begun examining in late June. Checks of the remaining companies on the list will continue, and further measures will be determined based on the results.
The decision was discussed at a meeting chaired by Bakyt Sydykov, the Kyrgyz president’s representative for special assignments. Also present were officials from government agencies, the National Bank, and commercial banks. State agencies were ordered to complete checks of the remaining companies within a week.
At the meeting, representatives of Kyrgyzstan’s National Bank reported on steps to strengthen oversight of the country’s payment services and platforms. The measures are intended to increase the transparency of financial transactions and ensure compliance with both local law and the country’s international obligations.
State-owned banks in Kyrgyzstan are also tightening compliance controls. In the weeks leading up to Aug. 14, Eldik Bank ended business relationships with about 109 companies, while about 20 more are in the process of having their accounts closed. Over the same period, Aiyl Bank ended its cooperation with about 35 companies, and about 40 more are undergoing checks.
The Economy Ministry said banks will continue conducting detailed reviews of payment documents, identifying the final recipients of goods and services and determining the destination countries for commercial shipments.
Several Kyrgyz banks and financial firms have previously come under EU, U.S. and UK sanctions over their ties to Russia. In May, for the first time in the country’s history, Kyrgyzstan’s Justice Ministry suspended the activities of 50 companies suspected of conducting transactions exposing them to high sanctions risks.
