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 efforts to combat corruption through legislative measures and the establishment of the Anti-Corruption Agency in 2020. Despite these initiatives, including the introduction of asset declaration requirements and a new public procurement law, enforcement remains weak, and corruption continues to be a significant issue, affecting both the economy and foreign investment. The country's ranking in Transparency International's Corruption Perceptions Index has improved, but challenges such as low public sector wages and insufficient law enforcement practices persist.

Uzbekistan is a dynamically developing lower-middle income economy with a population of 37 million, positioned as a potential regional economic leader due to its abundant natural resources and growing domestic market. The government actively promotes foreign direct investment (FDI) to achieve its development goals, including poverty eradication and transitioning to an upper middle-income status by 2030, evidenced by a 6% GDP growth in 2023 and a significant increase in FDI to over $7.2 billion. Despite ongoing reforms aimed at liberalizing the economy and enhancing the business environment, challenges remain, particularly in managing investment flows and ensuring transparency.

Uzbekistan's investment climate is evolving positively, with the government actively promoting foreign direct investment (FDI) as a key component of its development strategy. In 2023, the country attracted over $7.2 billion in FDI, nearly double that of the previous year, supported by ongoing reforms aimed at liberalizing the economy and enhancing the business environment. However, challenges remain, including a case-by-case approach to investment incentives and a need for greater transparency in public procurement and property rights enforcement.