Republic of Tajikistan

Republic of Tajikistan

Political and economic system

Tajikistan is a presidential republic. Legislative powers are exercised by parliament, Majlisi Oli.

Tajikistan is an agro-industrial country. Its main industries are natural gas extraction, coal mining, non-ferrous metallurgy and consumer goods manufacturing. Tajikistan boasts significant hydropower potential. 

There is a two-tier banking system in Tajikistan, which includes the National Bank of Tajikistan (TNB) and 17 commercial banks. The Somoni (TJS) is the currency of Tajikistan. 

Financial sector

The number of financial institutions operating in Tajikistan as of late 2018 is set out below.

Types of financial institutions Licensed/registered
Banks 17
Micro-credit custodial institutions 27
Micro-credit institutions 7
Micro-credit funds 33
Insurance companies 22
Professional securities market participants (registrars, brokers, dealers and the central depository) 4 licenses to operate as a registrar; 8 as a broker/dealer; and 1 as a depositary in the securities market
Leasing companies 19

DNFBP sector

The number of DNFBPs operating in Tajikistan as of late 2018 is set out below.

Types of DNFBP Licensed/registered
Legal exerts 360
Lawyers

17 bar associations

179 private legal practices

23 legal advisors

Notaries

68 notary offices

132 notaries

Auditors and audit firms 38 audit firms and 35 individual auditors
Dealers in precious metals and stones  755
Pawnshops 25
Businesses organizing and maintaining sweepstakes and betting offices, organizing lotteries and other gambling games 112 businesses organizing sweepstakes and betting offices;
51 lotteries and other gambling games
Real estate agents 240

National AML/CFT system

Money laundering and terrorist financing are criminalized in Tajikistan. The country continues to improve its AML/CFT/PF legal framework. 

AML/CFT strategy

The President of Tajikistan, by his decree, approved the National AML/CFT/PF Strategy 2018-2025 and its Action Plan on March 5, 2018. The National Strategy sets out the following strategic goals and directions for the development of the national AML/CFT system: develop and improve the legal framework; strengthen international cooperation in matters related to confiscation; provide harsher punishment for terrorist financing, corruption, fraud, and trafficking in weapons, nuclear and chemical materials; improve the methods of studying and identifying FI and DNFBP customers based on the level of risk; improve the effectiveness of supervisory activities, in particular by applying a risk-based approach; improve the methods for detecting, disclosing and investigating crimes; strengthen cooperation between the FMD and law enforcement agencies, etc. 

Financial intelligence unit (FIU)

The National Bank of Tajikistan's Financial Monitoring Department (FMD), an AML/CFT/PF authority, is responsible within its competence for AML/CFT/PF regulation and compliance monitoring, among others. 

In October, the President of Tajikistan signed Decree No. 724 "On the creation of the Financial Monitoring Department under the National Bank of Tajikistan". The Financial Monitoring Department under the National Bank of Tajikistan is an administrative-type FIU.

The FMD's main responsibilities include the gathering and analysis of data from reporting entities and provision of intelligence to the competent law enforcement authorities. To complement its operations, the FIU conducts an ongoing financial monitoring and analysis of incoming data.

There are six subdivisions within the Financial Monitoring Department. 

FARHOD I. BILOLOV

Director of the Financial Monitoring Department under the National Bank of Tajikistan

Born on July 2, 1986 in Dushanbe.
Graduated from Technological University of Tajikistan in 2008, majoring in Information Systems in Economics. 
In 2017, completed the Fletcher School Leadership Program for Financial Inclusion, Tufts University (USA).
Professional experience
2008-2014 – worked for Tajikistan's Ministry of Energy and Water Resources. 
2012-2013 – seconded officer/expert from Tajikistan at the Energy Charter Secretariat (Brussels, Belgium).
2015-2017 – Director of the Financial Monitoring Department under the National Bank of Tajikistan (Tajikistan's FIU).
2017-2019 – Head of the Department of International Relations, National Bank of Tajikistan
May 6, 2019 until present – Director of the Financial Monitoring Department under the National Bank of Tajikistan (Tajikistan's FIU).

State and departmental awards

Certificate of Recognition of Tajikistan's Ministry of Energy and Industry
Certificate of Recognition of Tajikistan's National Bank
Medals
Shanghai Cooperation Organization – For Contribution to the SCO's Efforts
Ministry of Internal Affairs – For Contribution 

Cooperation with the EAG

Tajikistan is one of the founding members of the EAG and its active participant.

The 1st round mutual evaluation (conducted by the World Bank) report was endorsed and adopted by the EAG at its 9th Plenary meeting. The EAG 2nd round mutual evaluation report was adopted at the EAG 29th Plenary meeting in November 2018 and published on the EAG website on December 28, 2018.

The EAG 21st Plenary meeting was held in Tajikistan in November 2014.