Central Asia: Integrity Due Diligence. Third Parties Risks. Your Trusted Advisors for Central Asia International Investors Solutions: Managing Your Risks in Central Asia Doing Business in Central Asia: Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, Turkmenistan.

Corruption is pervasive in several countries of Central Asia, where a majority of respondents say they are either asked or are expected to pay bribes to receive public services...

If your company’s business is carried out in one of the post-Soviet Central Asian countries like Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, or Turkmenistan, then

Making your corporate ethics policies understood and routinely referred to by employees at your local offices in Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, and Turkmenistan is a huge challenge. Solving this challenge means getting rid of foreign corruption exposure

Sarsenov Corporate Governance Advisory
Compliance in Kazakhstan, Kyrgyzstan, Uzbekistan
Corporate Governance & Compliance Services
AML Advising in Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan

Advising on Anti-Money Laundering in Central Asia





Usage of offshore jurisdictions and legal structures in business in Central Asia is highly popular. There are plenty of forms of structures and ways money laundering out there in the region. During 2012 there were $1.78 trillion dollars cashed out through money-laundering mechanisms in Kazakhstan.

Why offshore structures here? First major reason is that almost every successful business owner tries to hide his earnings, artificially reducing his profits by using various combinations of shell companies and other legal vehicles and structures. As a result we have thousands of fake suppliers, consulting firms, partners, agents, vendors, etc.

Politically Exposed Persons (PEP). Specifically, offshore structures used extensively to hide both ownership and profits abroad. This schemes most often used by Politically Exposed Persons as well as by other lower level officials who deal with government procurements, government licenses, permissions or those who have some other controlling and investigative authorities over businesses entities.

Today almost every Politically Exposed Persons along with tens of his relatives in Central Asia are sucking resources from government and businesses by using various combinations of business structures and agents which facilitate both corruption and money laundering.

The most extensive way of embezzlement in Central Asia is that of over government procurements, just like it was happening in early 80th in the USA.

Regulatory and enforcement authorities, permissions and licenses are used by government official as instruments for soliciting bribes.

About $5 billion of such illegal money annually seeking their way back into legal business turnover in Central Asia. Here comes money laundering.

Again, look at the numbers: for year 2012 $1.78 trillion dollars cashed out through various money-laundering mechanisms in only one of Central Asian countries, Kazakhstan. And the hidden presence of Politically Exposed Persons among local businesses is a vastly popular thing.

Often, only the word of mouth and artful networking with local experts can help you to find right information about real owners of your business partners, vendors, suppliers, and especially, your buyers.

Whatever the reason for using offshore structures in Kazakhstan and Central Asia this means billions of dollars laundering and putting in business again. Many AML, Anti-Corruption and other acts and initiatives are being held so far. But none of those acts and initiative are effective.

If you represent a financial or other institution for which money laundering risk is one of the highest priorities, we can help you in identifying your specific risks exposure stemming from your company’s operations in Central Asia. We can aso advise you on your money laundering exposure and provide you appropriate trainings.

If you want to stay updated on your compliance risks in Central Asia and about possible ways of mitigating your risks, you may subscribe to our alert service — Compliance Updates from Central Asia — which will regularly provide you valuable compliance developments from Central Asia. This service is free.


Compliance Updates from Central Asia

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