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 legislative measures and the establishment of the Anti-Corruption Agency in 2020. Despite these efforts, including the introduction of asset declaration mandates and enhanced public procurement laws, enforcement remains inadequate, and corruption continues to be a significant issue affecting the economy and foreign investment. The country has seen a slight improvement in its Transparency International ranking, but challenges such as low public sector wages and insufficient law enforcement practices persist.

Uzbekistan is a rapidly developing lower-middle income economy with a population of 37 million, characterized by significant government efforts to attract foreign direct investment (FDI) to achieve its development goals. In 2023, the economy experienced a 6 percent GDP growth and received over $7.2 billion in FDI, nearly double the amount from the previous year, while the government continues to implement reforms aimed at liberalizing the economy and enhancing the business environment.

Uzbekistan's investment climate is characterized by a strong government commitment to attracting foreign direct investment (FDI), with over $7.2 billion received in 2023, nearly double the amount from the previous year. The government has implemented liberalization reforms since 2017, aiming to diversify the economy and create a favorable environment for public-private partnerships, particularly in energy and infrastructure sectors. However, challenges remain, including selective support for investments and a need for greater transparency in public procurement and enforcement of contracts.