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									EAG-VII                                                                       FR (2011) 3 rev.1




                    FIRST MUTUAL EVALIATION OF TAJIKISTAN



                                 Sixth Follow-up Report
            on the Implementation of EAG mutual evaluation recommendations

I. INTRODUCTION


1. The purpose of this document is to present EAT Plenary meeting the 6th report of Tajikistan
that describes measures taken by Tajikistan to eliminate the shortfalls revealed in the course of
mutual evaluation. The EAT Plenary meeting was presented with the first progress report in June
2009, the second progress report in December 2009, the third progress report in June 2010, the
fourth progress report in December 2010, the fifth progress report in June 2011, respectively, and
Tajikistan was requested to present the next report by November 2011.
2. In accordance with Core and Key FATF Recommendations Tajikistan received “partially
compliant” evaluation for Recommendation 3 (Confiscation and provisional measures),
Recommendation 4 (Secrecy laws), Recommendation 10 (Record keeping) and “non-compliant”
for Recommendation 1 (ML offense), Recommendation 5 (Customer due diligence),
Recommendation 13 (Suspicious transaction reporting), Recommendation 23 (Regulation,
supervision and monitoring), Recommendation 26 (the FIU), Recommendation 35
(Conventions), Recommendation 36 (Mutual legal assistance), Recommendation 40 (Other
forms of cooperation), Special Recommendation 1 (Implementation of UN instruments), Special
Recommendation II (Criminalization of terrorist financing), Special Recommendation III (Freeze
and confiscation of terrorist assets), Special Recommendation IV (Report on suspicious
transactions), and Special Recommendation V (International cooperation). In accordance with
these ratings and paragraph 46 of the Procedure of mutual evaluations EAG
(EAG/PLEN(2007)rev.4) Tajikistan is subject to procedure of special monitoring 1 and shall
present progress reports with regularity established by the Plenary meeting. Tajikistan received
“partially complaint” and “non-compliant” evaluations for 44 Recommendations as indicated
below.

     Partially compliant (PC)                             Non-compliant (NC)

   R.2 (ML offense – mental      R.1 (ML offense)
   element    and  corporate
                                 R.5 (Customer due diligence)
   liability)
                                 R.6 (Politically exposed persons)
   R.3    (Confiscation    and
   provisional measure)          R.7 (Correspondent banking)
   R.4 (Secrecy laws)            R.8 (New technologies and non face-to-face business)
   R.10 (Record keeping)         R.11 (Unusual transactions)
   R.18 (Shell banks)            R.12 (DNFBP – R.5, 6, 8-11)

                                                 1
EAG-VII                                                                          FR (2011) 3 rev.1
                                R.13 (Suspicious transactions reporting)
                                R.14 (Protection and no tipping-off)
                                R.15 (Internal controls, compliance and audit)
                                R.16 (DNFBP – R.13-15 and 21)
                                R.17 (Sanctions)
                                R.19 (Other forms of reporting)
                                R.20 (Other NFBP)
                                R.21 (Special attention for higher risk countries)
                                R.23 (Regulation, supervision and monitoring)
                                R.24 (DNFBP – relations, supervision and monitoring)
                                R.25 (Guidelines and feedback)
                                R.26 (FIU)
                                R.29 (Supervisors)
                                R.30 (Resources, integrity and training)
                                R.31 (National cooperation)
                                R.32 (Statistics)
                                R.33 (Legal persons – beneficial owners)
                                R.35 (Conventions)
                                R.36 (Mutual legal assistance)
                                R.37 (Dual criminality)
                                R.38 (MLA on confiscation and freezing)
                                R.39 (Extradition)
                                R.40 (Other forms of cooperation)
                                SR.I (Implementation of UN instruments)
                                SR.II (Criminalization of terrorist financing)
                                SR.III (Freeze and confiscation of terrorist assets)
                                SR.IV (Suspicious transaction reporting)
                                SR.V (International cooperation)
                                SR.VI (AML/FT requirements for money/value transfer services)
                                SR.VII (Wire transfer rules)
                                SR.VIII (Non-profit organizations)
                                SR.IX (Cross-border declaration and disclosure)


3. Upon the results of discussion of the fifth progress report of Tajikistan in June 2011 several
steps were noted that were made by the Republic of Tajikistan on its way to further development
of national AML/CFT system. In March 2011 the Law on AML/CFT entered into force, and the
National bank issued several regulatory documents and introduced amendments and supplements
to current regulatory documents. These measures allowed essential improvement of the country
position with regards to Core and Key Recommendations. At the same time EAG Secretary
                                                    2
EAG-VII                                                                       FR (2011) 3 rev.1
noted that efficiency of taken measures cannot yet be evaluated. The country did not present
comprehensive statistics for several recommendations. With account of discussion on Tajikistan
at the meeting of the International Cooperation Review Group (FATF) the EAG Plenary meeting
resolved to extend the mode of enhanced monitoring. This report deals with measures taken only
in relation to Core and Key Recommendations.

II. REVIEW OF TAJIKISTAN PROGRESS FROM JUNE 2011

4. This section highlights the most significant measures taken by Tajikistan since June 2011 with
the aim of elimination of deficiencies revealed in the course of mutual evaluation.

Overall context


5. For the reporting period Tajikistan has adopted the following regulatory documents:
    Law “On securities market” (No.179 of June 19, 2011);
    Instruction No. 190 “On the procedure of provision services with the use of bank
     payment cards” (of May 20, 2011);
    Recommendations “On identification and verification of client and beneficial owner”
     (Regulation of the Board of the National Bank No. 199 of October 14, 2011);
    Recommendations “On identification and presentation of suspicious transactions during
     risk evaluation” (Regulation of the Board of the National Bank No. 121 of June 20,
     2011);
    Instruction No. 123/ff “On internal procedures of the Department of financial monitoring
     of the National Bank of Tajikistan” (of July 8, 2011);




Core recommendations (R.5)


Recommendation 5


6. The Republic of Tajikistan presented the text of the Order No. 190, Recommendations
approved by the National Bank Boards on client identification and detection of suspicious
transactions during risk evaluation. It shall be noted that these measures were taken following the
development of the Law on AML/CFT adopted in March 2011 and provide details of its
provisions related to CDD. Annexes to Recommendations on client identification contain
specific information that financial institutions shall receive from their client – physical or legal
entity or individual entrepreneur, as well as information received with the purpose of detection
and identification of a beneficial owner. Recommendations on detection of suspicious
transactions describe specific groups of risks that financial institutions may be guided by while
taking measures aimed at intense check of their clients. With account of measures taken earlier
                                                 3
EAG-VII                                                                       FR (2011) 3 rev.1
(FR (2011) 1) it can be established that the regulatory basis for measures aimed at client
identification is created and time is needed to evaluate the efficiency of the work done.


Key Recommendations (R.26, R.40)


Recommendation 26

7. The Republic of Tajikistan presented Instruction “On internal procedures of the Department of
financial monitoring of the National Bank of Tajikistan” approved by the Order of the Chairman
of the Board of the National Bank of Tajikistan following the Regulations on the Department of
financial monitoring (hereinafter – DFM) approved by the Decree of the President of the
Republic of Tajikistan. Previous progress reports (PR (2010) 7, PR (2011) 1) expressed concerns
that Regulation on DFM lacked the procedure for taking decision on submission of FIU analysis
results to law enforcement bodies as well as information on persons authorized to decide on such
submission. Presented Instruction contains provisions on specifics of DFM activity in
accordance with which procedures of working with reports on suspicious transactions (RST) and
instructions to reporting organizations were established. Instructions for reporting organizations
were presented by Tajikistan in this report and in the fifth progress report. Instructions determine
persons responsible for taking a decision on submission of information to law enforcement
bodies. In accordance with Chapter 7, Clause 25 “Head of DFM provides case materials
administering Deputy Chairman of the Board of the National Bank and then delivers them with
the note “CONFIDENTIAL” to a secretary… [who] ensures delivery of the official letter to a
corresponding law enforcement body…”. In this regard it is worth emphasizing that all FIU core
functions should be strictly under the FIU control and responsibility and while this is clearly the
case with the receiving, requesting and analytical functions, the mentioned Instruction requires
that the FIU dissemination function is shared with the Deputy Chairman of the National Bank.
Although according to the Tajik authorities this didn’t cause any delays or other problems in
practice, the fact that the FIU case materials are disseminated to the competent law enforcement
authorities via another authority may raise the issue of the operational independence of the Tajik
FIU with regard to its dissemination function.

8. Tajikistan presented the following RST statistics. During the reporting period FIU received 7
RST and 2018 reports on operations above the threshold amount. Presently there is no statistics
regarding investigations initiated by law enforcement bodies on the basis of FIU materials.

9. During the reporting period DFM sent 12 requests to financial institutions and received the
same amount of responses.


Recommendation 40


10. Tajikistan presented the following statistics on exchange of information with other FIU
during the reporting period. 10 requests from FIU were received, and 5 of them were responded.
11. In July 2011 the Agreement on Eurasian group for countering legalization of proceeds from
crime and terrorist financing was signed by Heads of delegations of EAG countries. Presently
this agreement is under internal state reconciliation procedure. During this period reconciliation
procedure has also been started for Agreements on cooperation between the Department of
financial monitoring of the National Bank of Tajikistan and the State Committee of financial
                                                 4
EAG-VII                                                                     FR (2011) 3 rev.1
monitoring of Ukraine, Committee for financial monitoring of the Ministry of Finance of the
Republic of Kazakhstan, Federal service of financial monitoring of the Russian Federation,
Department of financial monitoring under the Ministry of Finance of Turkmenistan.


III. RECOMMENDATIONS AND CONCLUSIONS
12. Presently the Republic of Tajikistan actively improve its AML/FT system, including in
accordance with the plan of activities approved by the Prime-Minister and considered at
meetings of the “Europe-Eurasia” subgroup of the Working Group for international cooperation
review of FATF.
13. Tajikistan should promote it work on addressing deficiencies related to Law
Recommendations (R.1, SR.II) as well as to mechanisms for freezing terrorists assets (SR.III).
14. A comprehensive analysis regarding elimination of shortfalls from the day of the report on
mutual evaluation will be prepared by June 2012, in one year after the new procedures of EAG
mutual evaluation will enter into force (PLEN (2007) 4 ed.5).
15. In this regard it seems appropriate to request the Republic of Tajikistan to present the next
follow-up report at the 16th EAG Plenary meeting.



EAG Secretariat
November 11, 2011




                                               5
 EAG-VII                                                              FR (2011) 3 rev.1/ANN.1



                                                               Annex
                                                               To letter No.__________
                                                               of «___» _______2011


       Resume on implementation of measures taken by the Republic of
             Tajikistan in the period till October 19, 2011


       1. On June 17m 2011 the Prime-Minister of the Republic of Tajikistan O.G.Okilov approved
the Plan of activities on bringing the legislation of the Republic of Tajikistan in compliance with the
Recommendations of the Financial Action Task Force (FATF), No. 2/107.


       2. Recommendation 5 (Customer due diligence);
      а) The Law of the Republic of Tajikistan of June 9, 2011, No.179 “On securities market” was
adopted, in accordance with its Articles 6, 7, 8, 9, 10, and 11 an Authorized state body was
determined, its functions and rights to regulate securities market were determined in Article 12
“Introduction of Unified state register of securities in the Republic of Tajikistan”, and Article 29
determined the procedure for transfer of rights to securities.
        b) Instruction No. 190 “On the procedure for provision of services with the use of bank
payment cards” was adopted by the Regulation of the Board of the National Bank of Tajikistan of
May 20, 2011, No. 100. This Instruction was registered by the Ministry of Justice of the Republic of
Tajikistan on June 30, 2011, No. 616.
        Chapter 1, Clause 1 states: “Issuer and acquirer shall observe the requirements to countering
legalization of proceeds from crime and terrorist financing in accordance with the legislation of the
Republic of Tajikistan”. (bringing of the legislation in compliance with FATF
recommendations).
       c) Recommendations “On identification and verification of client and beneficial owner”
were approved by the Regulation of the Board of the National Bank of Tajikistan of October 14,
2011, No. 199;
        d) Recommendations “On identification and presentation of suspicious transactions during
risk evaluation” were approved by the Regulation of the Board of the National Bank of Tajikistan of
June 20, 2011, No. 121.


       3. Recommendation 11 (Unusual transactions) and Recommendation 18 (Shell banks);
EAG-VII                                                             FR (2011) 3 rev.1/ANN.1

      The Ministry of Justice of the Republic of Tajikistan registered on September 26, 2011 with
No.624 “Rules of transactions and operation with off-shore zones subjects”.


       4. Recommendation 26 (FIU)
        In accordance with the Order of the Chairman of the Board of the National Bank of
Tajikistan of July 8, 2011, No. 123/ff the Instruction “On internal procedures of the Department of
financial monitoring of the National Bank of Tajikistan” was adopted.


       5. Recommendation 31 (National cooperation);
       The draft of the Regulation and composition of interdepartmental commission with
engagement of representatives of responsible ministries and departments was prepared. The
Chairman of the Board of the National Bank of Tajikistan was proposed as the Head of
interdepartmental commission.


       6. Recommendation 40 (Other forms of cooperation).
       On December 9, 2010 the President of the Republic of Tajikistan signed the Decree of the
Republic of Tajikistan “On the draft Agreement of Eurasian group for countering legalization of
proceeds from crime and terrorist financing”.
       On June 16, 2011 at the EAG Plenary meeting the Agreement on Eurasian group for
countering legalization of proceeds from crime and terrorist financing was signed by Heads of EAG
countries delegations.
       Presently this agreement is under the procedure of internal state reconciliation.
        During this period reconciliation procedure has also been started for Agreements on
cooperation between the Department of financial monitoring of the National Bank of Tajikistan and
the State Committee of financial monitoring of Ukraine, Committee for financial monitoring of the
Ministry of Finance of the Republic of Kazakhstan, Federal service of financial monitoring of the
Russian Federation, Department of financial monitoring under the Ministry of Finance of
Turkmenistan.
       Agreement drafts were also sent to FIU of Pakistan, India and Afghanistan.
      With the purpose of establishment of bilateral cooperation the Department of financial
monitoring during the reporting period sent requests to FIU of Cyprus, Great Britain and
Kyrgyzstan with regards to specific cases.




                                                  7
                           EAG-VII                                                                             FR (2011) 3 rev.1/ANN.2

                                                                            TAJIKISTAN

                                                SIXTH FOLLOW-UP REPORT TABLE (November 2011)


 I.   Measures taken to ensure compliance with core recommendations (R. 1, R. 5, R. 10, R. 13, SR. II, SR. IV)


 Recommendation       Summary of factors underlying       Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                                 rating                                evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                                    fifth follow-up report (June 2011
                                                                                                                                                         through November 2011)
1. ML offence        1. ML criminal offence does              The Criminal Code of the Republic of Tajikistan
                     not fully correspond to the
                                                              “Legalization (Laundering) of Illegally Acquired Monetary Assets or Other
                     Vienna and Palermo
                                                        Property”
                     Conventions, since it doesn’t
                     cover also “the concealment or            1) conducting property deals or other operations with cash assets or other
                     disguise of the true nature,       property, which are known to be obtained by unlawful means, as well as use of such
                     source, location, disposition,     assets or other property for entrepreneurial or other economic activities or their use by
                     movement or ownership of or        other ways
                     rights with respect to property”
                                                               - shall be punishable by a fine equal to a range from 500–1,000 times the
                     and the “acquisition, possession
                                                        minimum salary or a term of imprisonment of up to four years and a fine in the amount
                     or use of property.”
                                                        of up to two hundred minimum salaries.
                                                              2) The same action committed:
                                                              a) repeatedly;
                                                              b) by a group of persons by previous concert;
                                                              c) by a person abusing his official position :
                                                               shall be punishable by imprisonment for a term of four to eight years, with or
                                                        without the forfeiture of property and the right to hold certain positions or be involved
                                                        in a certain activity for a period of five years.
                                                              3) Actions specified in clauses 1 and 2 of this article, committed:
                                                              a) by an organized group;
                      EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                            rating                              evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                             fifth follow-up report (June 2011
                                                                                                                                                  through November 2011)
                                                       b) on a large scale,
                                                        shall be punishable by imprisonment for a term of seven to ten years, with or
                                                 without the forfeiture of property and the right to hold certain positions or be involved
                                                 in a certain activity for a period of five years.
                                                         Note: 1) A person who participated in legalization of illegal incomes is released
                                                 from criminal liability if he assisted in exposing the crime and voluntarily handed over
                                                 illegally obtained incomes.
                                                        2) for the purposes of this article, “a large scale” shall mean the illegally
                                                 obtained cash assets or the property of a value exceeding three thousand minimum
                                                 salaries.
                                                 Also, Pursuant to Executive Order of the President of the Republic of Tajikistan RP
                                                 No.985 dated May 12, 2008, a Working Group was established to prepare a draft law
                                                 on amending the Criminal Code of the Republic of Tajikistan.
                                                 The draft Law of the Republic of Tajikistan on amending the Criminal Code of the
                                                 Republic of Tajikistan suggests that the text of article 262 “Legalization (Laundering)
                                                 of Illegally Acquired Monetary Assets or Other Property” of the Criminal Code of the
                                                 Republic of Tajikistan should be reworded as follows: “Using or transferring cash
                                                 assets or other property obtained illegally through banking operations or other
                                                 activities carried out so as to legalize them, as well as storing, disguising the illegal
                                                 nature, source, location, and disposition of the property, where this is evident that the
                                                 property was obtained illegally or for the purpose of providing help to an offender,
                                                 shall be punishable by imprisonment for a term of five to eight years, with or without
                                                 the forfeiture of property».
                                                           General Prosecutor’s Office of the Republic of Tajikistan in order articles 262
                                                  and 179,2 of the Criminal Code of RT to comply, has elaborated a draft law “On
                                                  addenda and amendments to the Criminal Code of the Republic of Tajikistan” in view
                                                  of proposals of ministries and institutions of the Republic of Tajikistan, based on
                                                                              9
                       EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities undertaken
                            rating                                 evaluation report (December 2008 through June 2011)                            or planned after adopting of the
                                                                                                                                                 fifth follow-up report (June 2011
                                                                                                                                                      through November 2011)
                                                    requirements of Palermo Convention. Currently the draft law is under consideration of
                                                    the Parliament of RT.
                                                             - In accordance with article 262 of the CC of the RT, ML is a crime.
                                                    Articles 262 of the CC of the RT to “other activities” implicates “disguising the illegal
                                                    nature, source, location, and disposition of the property, title to it and other rights to
                                                    it”, awareness that such property is an illegally obtained income.
                 2. The Amnesty Law currently       The Law is currently not in force.
                 in force prohibits the
                 prosecution of Tajik natural and
                 legal persons for property
                 related money laundering
                 offenses.

                 3. ML offence was not              In 2008, six criminal cases related to money laundering offenses were instituted and
                 effectively implemented in         investigated. Upon completion of the preliminary investigation, they were referred to
                 practice since in 9 years there    court.
                 was only one investigation and
                 prosecution under article 262 of
                 the Criminal Code;




                                                                                10
                          EAG-VII                                                                            FR (2011) 3 rev.1/ANN.2

 Recommendation      Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities undertaken
                                rating                                 evaluation report (December 2008 through June 2011)                             or planned after adopting of the
                                                                                                                                                      fifth follow-up report (June 2011
                                                                                                                                                           through November 2011)
5. Customer   due   1. There are only minimal           Regulations of the National Bank of Tajikistan:                                                     а) The Law of the
diligence           identification requirements,                                                                                                      Republic of Tajikistan of
                    which are insufficient to address
                    CDD requirements.                   Instruction No. 112 “On Non-Cash Payments in the Republic of Tajikistan”                      June 9, 2011, No.179 “On
                                                        8. Payment documents shall comply with the requirements of applicable standards and           securities     market”       was
                                                        shall contain:                                                                                adopted, in accordance with
                                                        a) name of the payment document;                                                              its Articles 6, 7, 8, 9, 10, and
                                                        b) payment document number, date, month, and year of issuance. The date and the               11 an Authorized state body
                                                        year shall be stated in figures, the month – in words. Payment document filled out
                                                        using computing machines may state the month in figures;                                      was        determined,        its
                                                        c) name of the payer, his bank account number;
                                                                                                                                                      functions and rights to
                                                                                                                                                      regulate securities market
                                                        d) name of the payer’s bank (primary bank), the bank’s number;
                                                                                                                                                      were determined in Article
                                                        e) name of the payee, his bank account number;
                                                                                                                                                      12 “Introduction of Unified
                                                        f) name of the payee’s bank, the bank’s number;
                                                                                                                                                      state register of securities in
                                                        g) h) purpose of payment. In addition to a description in words, code symbols may be
                                                        used;                                                                                         the Republic of Tajikistan”,
                                                        i) amount of payment, in figures and words;                                                   and Article 29 determined
                                                        j) signatures of authorized persons of the enterprise and the enterprise’s seal (subject to
                                                                                                                                                      the procedure for transfer of
                                                        the presentation of the specimens thereof to the bank) shall be affixed to the first copy     rights to securities.
                                                        retained by the payer’s bank and to the third copy (except checks) sent to the payee’s
                                                        bank, irrespective of the method of issuing the payment document.                  b) Instruction No.
                                                                                                                                    190 “On the procedure for
                                                        Instruction No. 162 “On the Procedure of Carrying Out Remittance Operations provision of services with
                                                                                    11
                      EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                            rating                              evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                             fifth follow-up report (June 2011
                                                                                                                                                  through November 2011)
                                                 by Natural Persons Without Opening Foreign Currency Accounts”                               the use of bank payment
                                                                                                                                             cards” was adopted by the
                                                 5. Remittance of foreign currency from the Republic of Tajikistan by natural persons        Regulation of the Board of
                                                 (their representatives) shall be carried out upon presentation of the natural person’s
                                                                                                                                             the National Bank of
                                                 identification document, remittance order, and the taxpayer’s identification number
                                                 (TIN) to the bank.                                                                          Tajikistan of May 20, 2011,
                                                 6. Receipt of the foreign currency remitted to the Republic of Tajikistan by natural        No. 100. This Instruction
                                                 persons (their representatives) shall be carried out upon presentation of the natural       was registered by the
                                                 person’s identification document and the application for collection of the remitted
                                                 foreign currency to the bank.                                                               Ministry of Justice of the
                                                 7. The order for remittance of foreign currency from the Republic of Tajikistan, and        Republic of Tajikistan on
                                                 the application for collection of foreign currency remitted to the Republic of Tajikistan   June 30, 2011, No. 616.
                                                 shall contain the following information:
                                                                                                                                                     Chapter 1, Clause 1
                                                 - name (last, first, middle) and the identification document (name, number, series, date
                                                 of issue and the issuing authority) of the payer remitting the foreign currency from the    states: “Issuer and acquirer
                                                 Republic of Tajikistan;                                                                     shall       observe      the
                                                 - name (last, first, middle), full residential address, and the identification document     requirements to countering
                                                 (name, number, series, date of issue and the issuing authority) of the payee receiving
                                                 the foreign currency remitted to the Republic of Tajikistan;                                legalization of proceeds
                                                 - the amount and purpose of the remitted (received) funds. The purpose of payment           from crime and terrorist
                                                 shall be specified by the natural person himself in the remittance order. Banks shall       financing in accordance with
                                                 leave the payment destination field blank and require that their customers specify the
                                                 purpose of payment by their own hand;
                                                                                                                                             the legislation of the
                                                                                                                                             Republic of Tajikistan”.
                                                 - the date and the signature of the natural person transmitting or receiving the foreign
                                                 currency.                                                                                   (bringing of the legislation
                                                                             12
                      EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                            rating                              evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                             fifth follow-up report (June 2011
                                                                                                                                                  through November 2011)
                                                 8. If the presented documents do not conform to the requirements of clause 7, or if the     in compliance with FATF
                                                 specified documents are not made available in accordance with this Instruction, the
                                                 bank shall not transmit (pay out) the foreign currency.                                     recommendations).
                                                 21. If foreign currency is transmitted from the Republic of Tajikistan on a regular basis        c) Recommendations
                                                 (at least once a month from the same bank or this bank’s branch) or the transmitted
                                                                                                                                          “On      identification and
                                                 amount exceeds US$10, 000 (ten thousand), the bank shall open a file on the natural
                                                 person (entitled “Foreign Currency Remittances Carried Out Without Opening a             verification of client and
                                                 Foreign Currency Account”) (hereinafter – “the File”). The file shall be opened to       beneficial owner” were
                                                 identify the actual destination of the transactions and obtain complete information on
                                                 the remitter, and shall be assigned a number and specify the date of opening.            approved by the Regulation
                                                 The file shall be used for storing the documents submitted by the natural person. The of the Board of the National
                                                 documents submitted to the bank and the file shall be kept by the bank for at least five Bank     of Tajikistan of
                                                 years from the date of making a foreign currency transfer.
                                                                                                                                          October 14, 2011, No. 199;

                                                 Instruction No. 171 “On the Procedure of Opening, Re-registering, and Closing
                                                                                                                                     d) Recommendations “On
                                                 Bank Accounts by Credit Institutions in the Republic of Tajikistan”                 identification         and
                                                                                                                                     presentation of suspicious
                                                 13. The applicant, in order to open a bank account, shall provide the bank with the
                                                 following documents:                                                                transactions during risk
                                                                                                                                     evaluation” were approved
                                                 a) In case of legal persons being residents of the Republic of Tajikistan and their
                                                                                                                                     by the Regulation of the
                                                 standalone subdivisions (branches and representative offices):
                                                                                                                                     Board of the National Bank
                                                 - an application for opening an account (annex No.1);                               of Tajikistan of June 20,
                                                 -a copy of registration document along with the copies of notarized constitutional 2011, No. 121.
                                                 documents. If the bank trusts the customer, it may accept unnotarized copies of
                                                 constitutional documents. In this case the copies of constitutional documents shall be
                                                 certified by the bank’s chief accountant comparing them with the original documents
                                                                             13
                      EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                            rating                              evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                             fifth follow-up report (June 2011
                                                                                                                                                  through November 2011)
                                                 and affixing a “Compared to the Original” stamp and his signature to each sheet of the
                                                 document. After certification, the original documents shall be returned to the customer;
                                                 - in case of branches and representative offices:
                                                 - a power of attorney issued by the parent organization in the name of the head of the
                                                 branch or representative office;
                                                 - two signature and stamp cards and the identification documents of the persons with
                                                 the right of first and second signature (annex 2);
                                                 - a copy of the document evidencing registration with a state authority as a tax payer;
                                                 - copies of documents evidencing registration with statistical offices, social insurance
                                                 and pension agencies.
                                                 b) In case of legal persons being non-residents of the Republic of Tajikistan and their
                                                 standalone subdivisions (branches and representative offices):
                                                 - an application for opening an account specifying the account type (annex No.1);
                                                 - copies of notarized constitutional documents or regulations of the respective
                                                 customer’s branch or representative office, the document evidencing registration of the
                                                 non-resident, non-resident’s branch or representative office with the respective agency
                                                 of the Republic of Tajikistan. If the bank trusts the customer, it may accept unnotarized
                                                 copies of constitutional documents. In this case the copies of constitutional documents
                                                 shall be certified by the bank’s chief accountant in accordance with the procedure
                                                 specified in the second paragraph of subclause a) of this clause.
                                                 - a power of attorney drawn up in the national language issued by a legal person being
                                                 non-resident of the Republic of Tajikistan in the name of the head of the branch or
                                                 representative office and notarized by that legal person, branch or representative
                                                 office;

                                                                             14
                      EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual     Overview of activities undertaken
                            rating                               evaluation report (December 2008 through June 2011)                          or planned after adopting of the
                                                                                                                                             fifth follow-up report (June 2011
                                                                                                                                                  through November 2011)
                                                 - extracts from the trade register or any other document evidencing permission to carry
                                                 out activities set out in the charter;
                                                 - in case of a bank, a copy of extract from the bank register or other document
                                                 evidencing permission to carry out banking activities;
                                                 - a copy of the document issued by a tax authority and evidencing registration of the
                                                 non-resident legal person and its branches or representative offices with its local tax
                                                 authority in the Republic of Tajikistan. Non-residents carrying out their activities
                                                 without a permanent establishment shall not be obliged to submit a copy of such
                                                 document;
                                                 - two signature and stamp cards and the identification documents of the persons with
                                                 the right of first and second signature;
                                                 - a copy of permit (or a petition) for opening an account in a foreign state legalized at
                                                 the embassy (consulate) of the Republic of Tajikistan abroad or at the embassy
                                                 (consulate) of the non-resident’s country in the Republic of Tajikistan.
                                                 c) In case of dekhan farms:
                                                 - an application for opening an account;
                                                 - a copy of the certificate evidencing the right to use land;
                                                 - a copy of the document evidencing registration with a tax authority as a tax payer;
                                                 - copies of documents evidencing registration with statistical offices, social insurance
                                                 and pension agencies;
                                                 - two signature and stamp cards and the identification documents of the persons with
                                                 the right of first and second signature.
                                                 d) In case of foreign diplomatic and consular missions:

                                                                               15
                      EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual   Overview of activities undertaken
                            rating                               evaluation report (December 2008 through June 2011)                        or planned after adopting of the
                                                                                                                                           fifth follow-up report (June 2011
                                                                                                                                                through November 2011)
                                                 - an application for opening an account;
                                                 - two signature and stamp cards and the identification documents of the persons with
                                                 the right of first and second signature;
                                                 - a copy of a standard document issued by the Ministry of Foreign Affairs of the
                                                 Republic of Tajikistan evidencing their accreditation.
                                                 f) In case of natural persons being unincorporated entrepreneurs:
                                                 - an application for opening an account;
                                                 - a card with the specimen signature of the natural person (without specimen seal) in
                                                 duplicate and the natural person’s identification document;
                                                 - a copy of the document evidencing the natural person’s registration with the State as
                                                 an entrepreneur (a patent or certificate).
                                                 Besides, by Order No.23.4/6-25/10-1 dated February 13, 2009, the National Bank of
                                                 Tajikistan was entrusted with “developing a procedure ensuring complete
                                                 identification of their customers when carrying out banking operations».

                                                        Law of the Republic of Tajikistan “On combating money laundering and
                                                 financing of terrorism” dated March 25, 2011, No.684:
                                                         Article 5. Measures aimed at combating money laundering and financing of
                                                 terrorism
                                                        …2. Organizations, pursuing operations with monetary funds or other property,
                                                 shall be required to fulfill the following procedures on customer due diligence:
                                                          1)        to identify and check the customer’s identity, i.e. conduct a number
                                                 of activities, indentifying identity of a customer-natural person (last name, name,

                                                                             16
                      EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                            rating                               evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                              fifth follow-up report (June 2011
                                                                                                                                                   through November 2011)
                                                 patronymic, unless otherwise provided by law or traditions), citizenship, requisites of a
                                                 document, verifying identity, migration card data, document, verifying the right of a
                                                 foreign citizen or a person without citizenship for stay (residence) in the Republic of
                                                 Tajikistan, residential (registration) address, taxpayer identification number, account
                                                 number (if exists); legal entity (name, taxpayer identification number or code for
                                                 foreign organization, state registration number, place of state registration and location
                                                 address);
                                                           2) to identify and verify identity of a beneficiary owner;
                                                          3) to obtain information with regard to purpose and supposed nature of
                                                 business relations;
                                                          4) to conduct on a regular basis inspection of business relations and careful
                                                 examination of operations with monetary funds or other property, pursued during such
                                                 relations in order to provide for the conducted operations correspond to the
                                                 information about the customer, known to the organization, the customer’s activities
                                                 and nature of risks, including information on the source of funds, available at the
                                                 moment of the operation;
                                                          5) at least once in three years renew information, obtained about the customer
                                                 in accordance with items 1-3, part 2 of this article.
                                                        ….
                                                          3. Procedures, specified in items 1-3, part 2 of this article shall be pursued on
                                                 the following occasions:
                                                          1) establishment of business relations;
                                                          2) any occasional transactions above the specified threshold amount;
                                                          3) shall suspicion in money laundering, or terrorism financing exist;
                                                          4) shall a person, providing the information have any doubts with regard to
                                                                             17
                      EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities undertaken
                            rating                              evaluation report (December 2008 through June 2011)                            or planned after adopting of the
                                                                                                                                              fifth follow-up report (June 2011
                                                                                                                                                   through November 2011)
                                                 the truthfulness and compliance of earlier obtained information on identity of the
                                                 customer.
                                                           4. Organizations, pursuing operations with monetary funds or other property,
                                                 shall be obliged to maintain the procedures, specified in items 4 and 5, part 2 of this
                                                 article during the whole term of relations with the customer. Requirements, specified
                                                 in part 2 of this article shall be imposed on all new and existing customers.
                                                          5. Shall organization, pursuing operations with monetary funds or other
                                                 property, be unable to fulfill provisions of items 1-3 and 5, part 2 of this article, such
                                                 organization shall not be authorized to open an account, pursue an operation and must
                                                 cease business relations, as well as consider sending a message with regard to the
                                                 suspicious transaction of this customer.


                                                         …Article 7. Rights and obligations of organizations, pursuing operations with
                                                 monetary funds or other property
                                                          1. Organizations, pursuing operations with monetary funds or other property
                                                 shall be obliged to:
                                                         1) identify a person, serviced by the organization, pursuing operations with
                                                 monetary funds or other property;
                                                         2) document the following information while establishing business relations
                                                 or opening an account and on operations with monetary funds or other property subject
                                                 to mandatory control:
                                                          a) type of operation and basis for its commitment;
                                                         b) date of the operation with the monetary funds or other property, as well as
                                                 the sum of the operation;

                                                                             18
                      EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities undertaken
                            rating                              evaluation report (December 2008 through June 2011)                            or planned after adopting of the
                                                                                                                                              fifth follow-up report (June 2011
                                                                                                                                                   through November 2011)
                                                          c) information necessary for identification of a natural person, conducting the
                                                 operation with monetary funds or other property (passport data or other document,
                                                 identifying a person), taxpayer’s identification number (if such exists), residential
                                                 address;
                                                         d) name, taxpayer’s identification number (if such exists), registration
                                                 number, registration place and location of a legal entity, conducting an operation with
                                                 monetary funds or other property;
                                                           e) information, necessary for identification of a natural person or a legal
                                                 entity, under commission and on behalf of which the operation with monetary funds or
                                                 other property is conducted, taxpayer’s identification number (if such exists),
                                                 residential address of a natural person or location of a legal entity;
                                                          f) information, necessary for identification of a representative of a natural
                                                 person or legal entity, conducting an operation with monetary funds or other property
                                                 on behalf of another person/entity by virtue of authorization based on power of
                                                 attorney, law or act of an authorized state institution or local governance body,
                                                 residential address of representative of a natural person or a legal entity;
                                                           g) information necessary for identification of a recipient of monetary funds
                                                 under operation with monetary funds or other property and recipient’s representative,
                                                 including taxpayer’s identification number (if such exists), residential address or
                                                 location of the recipient or recipient’s representative, shall this be provided for by the
                                                 rules of respective operation;


                                                           3) present to an authorized body the information, specified in item 2, part 1 of
                                                 this article, with regard to operations subject to mandatory control. Procedure and
                                                 terms for provision of information to an authorized body shall be specified by the
                                                 National bank of Tajikistan.
                                                                             19
                          EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation       Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual    Overview of activities undertaken
                                rating                               evaluation report (December 2008 through June 2011)                         or planned after adopting of the
                                                                                                                                                fifth follow-up report (June 2011
                                                                                                                                                     through November 2011)
                                                               …6. Credit institutions shall be prohibited from opening or managing already
                                                      existing accounts (deposits) on anonymous owners and on fictious names, id est
                                                      without providing by a person or legal entity opening account (deposit) documents,
                                                      necessary for its identification.




                                                            Also,
                                                            On April 28, 2011 Managing Board of the National bank of Tajikistan has
                                                      adopted addenda and amendments to the Instruction No.171 “On procedure of
                                                      opening, transferring and closing of bank accounts by credit institutions in the
                                                      Republic of Tajikistan”


                                                             Managing Board of the National bank of Tajikistan by Regulation No.55 dated
                                                      March 31, 2011 has adopted Instruction No.181 “On requirements to risk management
                                                      and internal control system in credit institutions”, which is guaranteed by compliance
                                                      with requirements of Recommendation 5, specified in Article 3, part 15, 27, 28 and in
                                                      Annex “Requirements to credit institution risk management system”.


                                                            Law on “On Banking”
                                                      Article 26. Procedure for acquisition of controlling interest (under Application to the
                                                      NBT for acquisition of controlling share identification shall be conducted)
                     1. There are no minimal record   Law of the Republic of Tajikistan “On Banking Activity” No.524, dated May 19, 2009
10. Record keeping
                     keeping     requirements   for   (http://www.nbt.tj)
                     accounting purposes

                                                                                 20
                      EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                            rating                              evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                             fifth follow-up report (June 2011
                                                                                                                                                  through November 2011)


                                                 Article 38. Keeping of documents and records
                                                    1. Credit institutions shall keep, in respect of each transaction, the following
                                                    documents and records for a period of at least five years:
                                                 - customer identification data;
                                                 - applications and all transactional documents (including loan agreements and secured
                                                 guarantees) and credit institutions’ resolutions of their approval;
                                                 - records relating to the transactions with partners (including creditors, debtors, and
                                                 guarantors), and any other documentary records constituting the grounds on which
                                                 they were approved;
                                                 - records relating to opening their bank accounts;
                                                 - other documents prescribed by the regulations of the National Bank of Tajikistan.
                                                 2. Records shall be made in written form. A credit institution may keep records,
                                                 ledgers, reports, documents, correspondence (letters), wire transfers, notices, and other
                                                 documents relating to its financial activity in compressed form, instead of keeping their
                                                 originals (microfilms, other forms of electronic data storage, etc.) during the statutory
                                                 period, provided that appropriate data recovery systems and procedures are in place at
                                                 the same location. Such compressed copies shall be as valid as the original.
                                                 3. The National Bank of Tajikistan may adopt record keeping regulations.
                                                        Law of the Republic of Tajikistan “On combating money laundering and
                                                 financing of terrorism” dated March 25, 2011, No.684:
                                                      …Article 7. Rights and obligations of organizations, pursuing operations with
                                                 monetary funds and other property

                                                                             21
                              EAG-VII                                                                      FR (2011) 3 rev.1/ANN.2

 Recommendation         Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual     Overview of activities undertaken
                                   rating                              evaluation report (December 2008 through June 2011)                          or planned after adopting of the
                                                                                                                                                   fifth follow-up report (June 2011
                                                                                                                                                        through November 2011)
                                                               …4. Documents, proving information, specified in this article, copies of
                                                        documents, necessary for identification of personality, files of accounts and business
                                                        correspondence shall be kept for no less than five years starting from termination of
                                                        business relation and closure of the account (at that terms for keeping the documents
                                                        may be prolonged by an authorized body subject to approval by the respective state
                                                        authorities).


                                                              Law of the Republic of Tajikistan ‘On Accounting Records” dated March 25,
                                                        2011 No.702 states as follows:
                                                              Article 20: Storage of accounting records
                                                               1. Companies shall keep initial accounting records, financial records and
                                                        accounting registers and accounting reports in hard copy and in electronic form as
                                                        required by the legislation of the Republic of Tajikistan.
                                                        2. Director and Chief Accountant of the company are responsible for arranging the
                                                        storage of accounting documents, accounting registers and accounting reports


13.        Suspicious   1. There is no applicable       Law of the Republic of Tajikistan “On Banking Activity” No.524, dated May 19, 2009
transaction reporting   requirement.                    (http://www.nbt.tj)
                                                              Article 35. Suspicious transactions
                                                            1. If a credit institution finds out that carrying out any transaction, receiving or
                                                                paying any monies is or may be related to an offense or illegal action, the
                                                                credit institution must immediately inform the National Bank of
                                                                Tajikistan and the law enforcement agencies thereof.
                                                              Law of the Republic of Tajikistan “On combating money laundering and

                                                                                   22
                               EAG-VII                                                                              FR (2011) 3 rev.1/ANN.2

  Recommendation          Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                                     rating                                  evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                                          fifth follow-up report (June 2011
                                                                                                                                                               through November 2011)
                                                              financing of terrorism” dated March 25, 2011, No.684:
                                                                   …Article 6. Operations with monetary funds and other property, subject to
                                                              mandatory control
                                                                    ...5. Criteria for suspicious transaction shall be:
                                                                    1) transaction without evident economic sense;
                                                                     2) actions aimed at avoidance of financial monitoring procedures, provided by
                                                              this Law;
                                                                    3) organization pursuing operations with monetary funds or other property
                                                              having reasonable basis or suspicions of transactions being aimed at money
                                                              laundering or terrorism financing.
                                                                  Financial Monitoring Department has elaborated a Register of characteristics of
                                                                  suspicious transactions and operations, which has been approved by Management
                                                                  Board of the National bank of Tajikistan on April 28, 2011.
SR.II      Criminalize   1.   Terrorist financing             Applicable Criminal Code of the Republic of Tajikistan was amended by Law of the
terrorist financing      offences do not apply to             Republic of Tajikistan No.386 dated June 18, 2008, so as to exclude the words “as well
                         founding of individual terrorists.   as financing of terrorist act or terrorist organization” and add a separate article 179.2
                                                              “Financing Crimes of Terrorist Nature” which is based entirely on the definitions of
                                                              the International Convention for the Suppression of the Financing of Terrorism. The
                                                              draft Law of the Republic of Tajikistan “On Amending the Law of the Republic of
                                                              Tajikistan “On Combating Terrorism” suggests that the list of terrorist crimes should
                                                              be complemented with the following words: “, as well as provision or collection of
                                                              funds for terrorists.”
                                                              All articles of the special part of the Criminal Code of the Republic of Tajikistan are
                                                              worded so as to regard the perpetrator of the respective crime as an individual.
                                                              Commission of a crime by several persons is regarded as an aggravating circumstance

                                                                                          23
                      EAG-VII                                                                            FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual      Overview of activities undertaken
                            rating                               evaluation report (December 2008 through June 2011)                           or planned after adopting of the
                                                                                                                                              fifth follow-up report (June 2011
                                                                                                                                                   through November 2011)
                                                 of the crime and is stipulated in clause 2 of the respective article.
                                                        The Criminal Code of the Republic of Tajikistan
                                                        Article 179.2. Financing Crimes of Terrorist Nature
                                                        1) Direct or indirect provision or collection of funds with the intention that they
                                                 should be used, in full or in part, or in the knowledge that they are to be used to carry
                                                 out offenses provided for by articles 179, 179.1, 179.3, 181, 182, 184, 184.1, 184.2,
                                                 184.3, 184.4, 185, 193, 194, 194.1, 194.2, 194.3, 194.4, 194.5, 310 and 402 of this
                                                 Code, including where such funds were not actually used for the commission of such
                                                 crimes,
                                                        shall be punishable by imprisonment for a term of five to ten years.
                                                        2) Actions provided for in clause 1 of this article and committed:
                                                        a) repeatedly;
                                                        b) by a group of persons or by a group of persons by previous concert;
                                                        c) by a person abusing his official position ,
                                                        shall be punishable by imprisonment for a term of ten to fifteen years.
                                                        3) Actions specified in clauses 1 and 2 of this article, committed:
                                                        a) by an organized group;
                                                        b) repeatedly by a person with a record of previous convictions,
                                                        shall be punishable by imprisonment for a term of fifteen to twenty years.
                                                 Note: for the purposes of this article, “funds” shall mean assets of any kind (tangible
                                                 and intangible, movable and immovable, and regardless of how they were acquired), as
                                                 well as legal documents or deeds in any form, including electronic and digital form,
                                                                              24
                       EAG-VII                                                                            FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities undertaken
                             rating                                  evaluation report (December 2008 through June 2011)                            or planned after adopting of the
                                                                                                                                                   fifth follow-up report (June 2011
                                                                                                                                                        through November 2011)
                                                      evidencing the title to or interest in such assets, including bank loans, traveler’s
                                                      checks, bank checks, postal orders, shares, securities, bonds, promissory notes, letters
                                                      of credit, etc.
                 2. Terrorist financing offences      Article 179.2. (Financing Crimes of Terrorist Nature) of the Criminal Code of the
                 are not extended to person who       Republic of Tajikistan may also apply to such persons.
                 willfully provides or collects
                 funds with the unlawful
                 intention that they should be
                 used to carry out a terrorist act,
                 by a terrorist organizations, or
                 by an individual terrorist
                 3. Terrorist financing offences             The Criminal Code of the Republic of Tajikistan
                 do not extend to cover “any                 Article 179.2. Financing Crimes of Terrorist Nature.
                 funds” as defined in the
                 International Convention for the     Direct or indirect provision or collection of funds with the intention that they should be
                 Suppression of the Financing of      used, in full or in part, or in the knowledge that they are to be used to carry out
                 Terrorism.                           offenses provided for by articles 179, 179.1, 179.3, 181, 182, 184, 184.1, 184.2, 184.3,
                                                      184.4, 185, 193, 194, 194.1, 194.2, 194.3, 194.4, 194.5, 310 and 402 of this Code.
                 4. Terrorist financing offences
                 are not predicate offences for
                 money laundering when the
                 funds derive from legal sources.


                 5. Terrorist financing offences             The Criminal Code of the Republic of Tajikistan
                 require that the funds were                 Article 179.2. Financing Crimes of Terrorist Nature.
                 actually used to carry out or
                 attempt a terrorist act(s); or be    1) Direct or indirect provision or collection of funds with the intention that they should
                                                      be used, in full or in part, or in the knowledge that they are to be used to carry out
                                                                                  25
                                EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

  Recommendation          Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities undertaken
                                     rating                               evaluation report (December 2008 through June 2011)                            or planned after adopting of the
                                                                                                                                                        fifth follow-up report (June 2011
                                                                                                                                                             through November 2011)
                         linked to a specific terrorist    offenses provided for by articles 179, 179.1, 179.3, 181, 182, 184, 184.1, 184.2, 184.3,
                         act(s).                           184.4, 185, 193, 194, 194.1, 194.2, 194.3, 194.4, 194.5, 310 and 402 of this Code,
                                                           including where such funds were not actually used for the commission of such
                                                           crimes.
                         6. No statistics or other data    Examples: A criminal action was brought against K. Ishankulov under article 179.2
                         were provided regarding the       (Terrorism), article 335 (Illegal Crossing of the State Border of the Republic of
                         investigations/ prosecutions of   Tajikistan), article 195.2 (Illegal Acquisition, Storage, Sale, Transportation or Carriage
                         terrorist financing offences.     of Firearms, Ammunition, Explosives, and Explosive Devices) for bombing the
                                                           building of the Supreme Court of the Republic of Tajikistan on June 16, 2007.
                                                           Investigation revealed that the funding was provided from a neighboring country.
                                                           Preliminary investigation agencies seized the property and cash assets of K.
                                                           Ishankulov, which were later confiscated by a court order.
                                                           Besides, there is a number of known cases of financing extremist organizations from
                                                           foreign countries. In 2003, US national Immatudin Muhdi remitted US$5,900 and
                                                           US$6,000 from J.P.Morgan Chase Bank and Habib Bank in New-York to Alfa Bank in
                                                           Moscow and further to Bank Eskhata in Tajikistan for the members of Hiyb-ut-Tahrir.
                                                           On June 05 and 19, 2007, national of the Republic of Kyrgyzstan remitted US$5,000
                                                           and US$6,000 to Hiyb-ut-Tahrir’s settlement account in a Dushanbe branch of
                                                           Agroinvestbank. These facts are currently being investigated by the National Security
                                                           Service.
SR.IV      Suspicious    1. There is no applicable         Law of the Republic of Tajikistan “On Banking Activity” No.524, dated May 19, 2009
transaction reporting.   requirement.                      (http://www.nbt.tj)
                                                                 Article 35. Suspicious transactions.
                                                           If a credit institution finds out that carrying out any transaction, receiving or paying
                                                           any monies is or may be related to an offense or illegal action, the credit institution
                                                           must immediately inform the National Bank of Tajikistan and the law
                                                           enforcement agencies thereof.

                                                                                       26
                      EAG-VII                                                                       FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual   Overview of activities undertaken
                            rating                              evaluation report (December 2008 through June 2011)                        or planned after adopting of the
                                                                                                                                          fifth follow-up report (June 2011
                                                                                                                                               through November 2011)
                                                       Article 50. Exceptional Cases.


                                                    Provisions of articles 48 (Banking Secrecy) and 49 (Maintenance of Banking
                                                    Secrecy by Credit Institutions’ Employees and Third Parties) of the Law shall not
                                                    be applied in the following cases:
                                                 - when carrying out duties and obligations related to combating/taking measures
                                                 against money laundering and terrorist financing prescribed by the legislation and
                                                 regulations of the National Bank of Tajikistan.




                                                                            27
                              EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

  II. Measures taken to ensure compliance with key recommendations (R. 3, R. 4, R. 23, R. 26, R. 35, R. 36, R. 40, SR. I, SR. III, SR. V)


  Recommendation        Summary of factors underlying          Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                   rating                                   evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                         adopting of the fifth follow-up
                                                                                                                                                           report (June 2011 through
                                                                                                                                                               November 2011)
                        1. The legislation does not provide
3.     Freeze      and                                      The Criminal Code of the Republic of Tajikistan
                        for confiscation of property that
confiscate    terrorist
                        constitutes instrumentalities
assets
                        intended for use in the commission
                        of ML, FT or other predicate        Article 262. Legalization (Laundering) of Illegally Acquired Monetary Assets or Other
                        offences                            Property.
                                                            1) conducting property deals or other operations with cash assets or other property,
                                                            which are known to be obtained by unlawful means, as well as use of such assets or
                                                            other property for entrepreneurial or other economic activities or their use by other ways
                                                           - shall be punishable by a fine equal to a range from 500–1,000 the minimum salary or a
                                                           term of imprisonment of up to four years and a fine in the amount of up to two hundred
                                                           minimum salaries.
                                                           2) The same action committed:
                                                           a) repeatedly:
                                                           b) by a group of persons by previous concert;
                                                           c) by a person abusing his official position ,-
                                                           shall be punishable by imprisonment for a term of four to eight years, with or without
                                                           the forfeiture of property and the right to hold certain positions or be involved in a
                                                           certain activity for a period of five years.
                                                           3) Actions specified in clauses 1 and 2 of this article, committed:
                                                           a) by an organized group;

                                                                                         28
                        EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying       Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                             rating                                evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                                 adopting of the fifth follow-up
                                                                                                                                                   report (June 2011 through
                                                                                                                                                       November 2011)
                                                   b) on a large scale,
                                                   shall be punishable by imprisonment for a term of seven to ten years, with or without the
                                                   forfeiture of property and the right to hold certain positions or be involved in a certain
                                                   activity for a period of five years.
                                                   Note: 1) A person who took part in legalization of illegal incomes is released from
                                                   criminal liability if he/she assisted in exposing a crime and voluntarily handed over
                                                   illegally obtained incomes.
                                                   2) For the purposes of this article, “a large scale” shall mean the illegally obtained cash
                                                   assets or the property of a value exceeding three thousand minimum salaries.
                                                     Also, Pursuant to Executive Order of the President of the Republic of Tajikistan RP
                                                     No.985 dated May 12, 2008, a Working Group was established to prepare a draft law on
                                                     amending the Criminal Code of the Republic of Tajikistan.
                 2. The legislation does not provide Pursuant to Executive Order of the President of the Republic of Tajikistan RP No.985
                 for confiscation of property of     dated May 12, 2008, a Working Group was established to prepare a draft law on
                 corresponding value, as required amending the Criminal Code of the Republic of Tajikistan.
                 under the Palermo and Vienna
                 conventions and FATF
                 Recommendation 3. While
                 confiscations of property, other
                 than the proceeds of crime and
                 instrumentalities, is determined as
                 a supplementary sanction, it does
                 not apply for the basic ML offence
                 under paragraph one of article 262
                 and for the FT offence under
                 article 179.1 of the Criminal Code.

                                                                                29
                        EAG-VII                                                                              FR (2011) 3 rev.1/ANN.2

Recommendation     Summary of factors underlying            Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                              rating                                     evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                                     adopting of the fifth follow-up
                                                                                                                                                       report (June 2011 through
                                                                                                                                                           November 2011)


                 3. Confiscation of property that is
                                                         Pursuant to Executive Order of the President of the Republic of Tajikistan RP No.985
                 derived directly or indirectly from
                                                         dated May 12, 2008, a Working Group was established to prepare a draft law on
                 proceeds of crime is possible only
                                                         amending the Criminal Code of the Republic of Tajikistan.
                 as a supplementary sanction under
                 article 48 of the Criminal Code
                 and article 27 of the Law on
                 combating terrorism, yet it is not
                 allowed for all ML offences and
                 for the FT offences. Moreover, it
                 can’t be applied also in respect of
                 predicate offences.
                 4. There is no authority to take
                 steps to prevent or void actions,
                 whether contractual or otherwise,
                 where the persons involved knew
                 or should have known that as a
                 result of the actions the authorities
                 would be prejudiced in their ability
                 to recover property subject t
                 confiscation.
                 5. There are no statistical data or
                                                         Instruction of the Executive Office of the President of the Republic of Tajikistan
                 examples of using effectively the
                                                         No.23.4/6-25/10-1 dated February 13, 2009, suggests that the Supreme Court of the
                 confiscation and/or provisional
                                                         Republic of Tajikistan and the Council of Justice of the Republic of Tajikistan should
                 measures
                                                         ensure that “in the course of legal proceedings related to money laundering and terrorist
                                                         financing offenses legal measures are taken to confiscate illegally obtained property and
                                                         cash assets, cash assets.”

                                                                                     30
                            EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

 Recommendation        Summary of factors underlying       Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                                  rating                                evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                                      adopting of the fifth follow-up
                                                                                                                                                        report (June 2011 through
                                                                                                                                                            November 2011)


                    1. The existing law would inhibit   Law of the Republic of Tajikistan “On Banking Activity” No.524, dated May 19, 2009
4.   Secrecy laws
                    suspicious transaction reporting    (http://www.nbt.tj)
consistent with the
                    and the sharing of information
Recommendations
                    with entities other than with law
                    enforcement authorities                   Article 35. Suspicious transactions
                                                           1. If a credit institution finds out that carrying out any transaction, receiving or
                                                           paying any monies is or may be related to an offense or illegal action, the credit
                                                           institution must immediately inform the National Bank of Tajikistan and the law
                                                           enforcement agencies thereof.


                                                        2. A gratuitous disclosure of information by a credit organization in accordance with
                                                        clause 1 of this article shall not be deemed a violation of the banking secrecy provisions,
                                                        and the credit institution and the National Bank of Tajikistan shall not be held liable for
                                                        this act.
                                                              Article 50. Exceptional Cases
                                                           Provisions of articles 48 (Banking Secrecy) and 49 (Maintenance of Banking Secrecy
                                                           by Credit Institutions’ Employees and Third Parties) of the Law shall not be applied
                                                           in the following cases:
                                                        - when carrying out duties and obligations related to combating/taking measures against
                                                        money laundering and terrorist financing prescribed by the legislation and regulations of
                                                        the National Bank of Tajikistan.



                                                                                     31
                              EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

  Recommendation        Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                                   rating                                  evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                                         adopting of the fifth follow-up
                                                                                                                                                           report (June 2011 through
                                                                                                                                                               November 2011)
23.       Regulation, 1. Criminals are prevented from    Law of the Republic of Tajikistan “On Banking Activity” No.524, dated May 19, 2009
supervision      and  serving as management officials, (http://www.nbt.tj)
monitoring            but not necessarily from
                      controlling financial institutions
                      through direct share ownership or         Article 9. Documents Required for Obtaining a License.
                      beneficial ownership.
                                                         1. Prior to registering with the State and obtaining the license, credit institutions shall
                                                         submit the application, the documents and the following information executed in the
                                                         State language, and obtain the preliminary conclusion of the National Bank of
                                                         Tajikistan:
                                                              - notarized copies of constitutional documents specifying the amount of stated
                                                              authorized capital;
                                                          - a certificate specifying the name (last, first, middle), citizenship, permanent residence,
                                                          business or profession, education, and containing detailed information about the work
                                                          experience of each executive;
                                                          - a copy of the document evidencing that the credit institution’s executives have a degree
                                                          in economics;
                                                          - a copy of the document evidencing each executive’s professional aptitude;
                                                          - a certificate specifying the name (last, first, middle), citizenship, permanent
                                                          residence, occupation or profession of the owner of the controlling interest,
                                                          including the ultimate beneficial owner of the controlling interest, and evidencing
                                                          their good financial standing;
                                                          - a certificate specifying the legitimate sources of the funds contributed to the authorized
                                                          capital;
                                                          - copies of the last three financial statements of the legal person being the ultimate
                                                                                       32
                      EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual             Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                              undertaken or planned after
                                                                                                                                                 adopting of the fifth follow-up
                                                                                                                                                   report (June 2011 through
                                                                                                                                                       November 2011)
                                                 beneficial owner of the controlling interest accompanied by the audit report;
                                                 - the list of shareholders and ultimate beneficial owners of the shares specifying their
                                                 residence and the number of shares;
                                                    - a written statement made by each owner of the controlling interest and
                                                    executive that they do not have any convictions, bankruptcies, or restrictions on
                                                    professional activities;
                                                    - a business plan that specifies the business goals and the activities carried out,
                                                    organizational structure and internal control system, including measures to combat
                                                    money laundering and terrorist financing, including a forecast of the balance sheet
                                                    figures, income and expenditures, and money turnover for the next three years;
                                                 - with respect to each owner of controlling interest, including the beneficial owner of the
                                                 controlling interest, the list of legal persons in which they have an interest specifying the
                                                 interest size and their residence;
                                                 - information on the registered address of the headquarters and on any other place in or
                                                 outside the Republic of Tajikistan where banking activity is carried out;
                                                 - a document evidencing payment of the application processing fee;
                                                 - a document certifying that the banking supervisor of the country where the foreign
                                                 (principal) bank or the parent company of the credit institution was established and
                                                 operates does not object to the credit institution engaging in the banking activity in the
                                                 Republic of Tajikistan and carries out consolidated banking supervision of the applicant.
                                                 2. The National Bank of Tajikistan may request other additional information to process
                                                 the application.
                                                      According to article 22 (clause 4) of the above law, members of the Supervisory

                                                                              33
                      EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual             Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                              undertaken or planned after
                                                                                                                                                 adopting of the fifth follow-up
                                                                                                                                                   report (June 2011 through
                                                                                                                                                       November 2011)
                                                 Council of the credit institution are subject to the following requirements:
                                                 A member of the credit institution’s Board cannot be elected to the Supervisory Council.
                                                 The Chairman of the Supervisory Council cannot be appointed Chairman of the credit
                                                 institution.
                                                 According to article 22 (clauses 5 and 7) of the above law:
                                                 5. An executive removed from office at the request of the National Bank of Tajikistan
                                                 pursuant to article 48 of the Law of the Republic of Tajikistan “On the National Bank of
                                                 Tajikistan” cannot be elected and appointed as a member of the Supervisory Council or
                                                 an executive of other credit institution.
                                                 7. Five years after the removal from office and subject to the approval of the National
                                                 Bank of Tajikistan such persons may be appointed to executive positions again.


                                                 According to article 48 of the Law of the Republic of Tajikistan “On the National Bank
                                                 of Tajikistan”, violation of this law and other laws and regulations shall entitle the
                                                 National Bank of Tajikistan to:
                                                 - require from the credit institution to dismiss the chairman or other member of the
                                                 Supervisory Council.


                                                 In addition, the draft Law on NBT stipulates that “The National Bank of Tajikistan, in
                                                 accordance with the law and for the purpose of combating money laundering and
                                                 terrorist financing may take the necessary measures and therefore regulate and supervise
                                                 the activities carried out by credit institutions.” Consequently, this article authorizes the
                                                 NBT to regulate and supervise credit institutions with regard to AML/CFT matters in
                                                 accordance with R.23.


                                                                              34
                          EAG-VII                                                                       FR (2011) 3 rev.1/ANN.2

  Recommendation    Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                               rating                               evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                              adopting of the fifth follow-up
                                                                                                                                                report (June 2011 through
                                                                                                                                                    November 2011)
26. FIU            1. There is no                   According to article 35 of the Law “On Banking Activity” “if a credit institution finds In accordance with the
                   established/operational FIU.     out that carrying out any transaction, receiving or paying any monies is or may be Order of the Chairman of
                                                    related to an offense or illegal action, the credit institution must immediately inform the
                                                    National Bank of Tajikistan and the law enforcement agencies thereof.” According to
                                                                                                                                                the Board of the National
                                                    clause 3 of article 48 of the law, the National Bank is also authorized to request from Bank of Tajikistan of July 8,
                                                    credit institutions additional information on their customers and their transactions.       2011, No. 123/ff the
                                                    Decree of the President of the Republic of Tajikistan No.724 dated October 20, 2009,     Instruction “On internal
                                                    “On the Financial Monitoring Department of the National Bank of Tajikistan.”             procedures      of     the
                                                                                                                                             Department of financial
                                                                                                                                             monitoring of the National
                                                         To ensure carrying out international obligations of the Republic of Tajikistan with Bank of Tajikistan” was
                                                    respect to combating money laundering and terrorist financing and being guided by
                                                    article 69 of the Constitution of the Republic of Tajikistan, I hereby order:            adopted.
                                                         1) to establish, in the order prescribed, the Financial Monitoring Department for
                                                    the purpose of collecting and analyzing information and implementing measures on
                                                    combating money laundering and terrorist financing;
                                                        2) to oblige the National Bank of Tajikistan:
                                                        - to take measures necessary to implement this Decree;
                                                          - to address organizational issues to ensure normal operation of the Financial
                                                    Monitoring Department of the National Bank of Tajikistan, including training of the
                                                    required specialists in accordance with the international practice and recommendations
                                                    of the intergovernmental Financial Action Task Force.


                                                    A Law on amending Law “On the National Bank of Tajikistan” No.548 dated August
                                                    05, 2009 was adopted. According to the Law, the National Bank of Tajikistan is
                                                                                35
                      EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                             report (June 2011 through
                                                                                                                                                 November 2011)
                                                 authorized to perform supervisory functions and apply sanctions in the AML/CFT
                                                 sphere.


                                                   - A Decree of the Board of the National Bank of Tajikistan No. 33 dated February15,
                                                 2010, “On the establishment of the Financial Monitoring Department of the NBT”;


                                                 - A Regulation “On the Financial Monitoring Department of the National Bank of
                                                 Tajikistan” and the structure of the Financial Monitoring Department approved by the
                                                 Decree of the NBT Board No. 33 dated February15, 2010;
                                                  - Currently the staff is being formed and all the technical preconditions of work are
                                                 being created.
                                                 At present the Financial Monitoring Center of the Central Bank of Armenia sponsors the
                                                 entry of Tajikistan into the Egmont Group. The parties worked out and approved the
                                                 Plan of Technical Assistance rendered by the Financial Monitoring Center of the Central
                                                 Bank of Armenia to the Financial Monitoring Department under the National Bank of
                                                 Tajikistan.


                                                 Further to the Financial Monitoring Center of the Central Bank of the Republic of
                                                 Armenia, the Financial Monitoring Department proposed to the Financial Monitoring
                                                 Committee of the Ministry of Finance of the Republic of Kazakhstan and the Federal
                                                 Financial Monitoring Service of the Russian Federation to offer their opinion with the
                                                 view to enter the Egmont Group as an observer.
                                                       Law of the Republic of Tajikistan “On combating money laundering and

                                                                             36
                      EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                               adopting of the fifth follow-up
                                                                                                                                                 report (June 2011 through
                                                                                                                                                     November 2011)
                                                 financing of terrorism” dated March 25, 2011, No.684:
                                                       …Article 12. Authorized agency
                                                        1. Authorized agency on combating money laundering and financing of terrorism
                                                 shall be determined by the President of the Republic of Tajikistan.
                                                         2. Control and coordination of activities of respective regulatory authorities,
                                                 determined in accordance with part 1, article 8 of this Law, shall be done by the
                                                 authorized agency.


                                                         3. Employees of the authorized agency while implementing this Law provide for
                                                 integrity of information connected with activities of the authorized agency, and
                                                 qualifying as company, bank, tax, commercial secret or telecommunication secret, and
                                                 shall be liable in accordance with legislation of the Republic of Tajikistan for disclosure
                                                 of this information.
                                                        4. Damages, caused to natural persons and legal entities by illegal actions of the
                                                 authorized body or its employees, due to the body fulfilling its functions, shall be
                                                 compensated in accordance with legislation of the Republic of Tajikistan.
                                                        5. Shall there be reasonable grounds evidencing that an operation, a transaction is
                                                 connected to money laundering or financing of terrorism, the authorized agency shall
                                                 send respective information and materials to law-enforcement agencies with respect to
                                                 their competence.
                                                       6. Organizations, pursuing operations with monetary fund or other property, shall
                                                 upon request of the authorized agency provide information and documents, necessary for
                                                 executing its functions.
                                                       7. Provision of information and documents upon request of the authorized agency
                                                                              37
                      EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual            Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                             undertaken or planned after
                                                                                                                                                adopting of the fifth follow-up
                                                                                                                                                  report (June 2011 through
                                                                                                                                                      November 2011)
                                                 by organizations, pursuing operations with monetary funds or other property, shall not
                                                 constitute a breach of company, bank, tax, commercial secret and telecommunication
                                                 secret (with regard to information on wire transfers of monetary funds).


                                                       Article 13. Rights and obligations of the authorized agency
                                                       1. The authorized agency shall be entitled to:
                                                       1) request all information and documents, which should be collected and stored in
                                                 accordance with provisions of this Law at organizations, pursuing operations with
                                                 monetary funds or other property, and also al state bodies of the Republic of Tajikistan;
                                                       2) make a decision on suspension of operations with monetary funds and (or)
                                                 other property for the term, specified in article 9 of this Law, shall signs of money
                                                 laundering and financing of terrorism be discovered;
                                                        3) take part in elaboration of drafts of regulatory legal acts and international
                                                 agreements of the Republic of Tajikistan on combating money laundering and financing
                                                 of terrorism;
                                                       4) upon enquiry or upon its own initiative exchange information with foreign state
                                                 agency in the sphere of money laundering and financing of terrorism;
                                                       5) engage in work, including on contractual basis, scientific research
                                                 organizations, other organizations, as well as single specialists for conducting expertise,
                                                 elaboration of educational programs, methodological materials, software, information
                                                 systems in the sphere of financial monitoring with observance of state, company,
                                                 commercial, bank and other secret protected by law;
                                                       6) direct at respective state authorities notification on violation of the legislation
                                                 of the Republic of Tajikistan on combating money laundering and financing of
                                                                              38
                      EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                               adopting of the fifth follow-up
                                                                                                                                                 report (June 2011 through
                                                                                                                                                     November 2011)
                                                 terrorism.
                                                       2. The authorized agency shall be obliged to:
                                                       1) take measures on combating money laundering and financing of terrorism;
                                                        2) guarantee respective level of storage, protection and integrity of information,
                                                 obtained during its activities, which qualifies as company, commercial, bank or other
                                                 secret protected by law;
                                                       3) secure rights and lawful interests of person and citizen, legal entities and state
                                                 during financial monitoring.


                                                      Article 14. Cooperation of the authorized agency with state bodies of the
                                                 Republic of Tajikistan


                                                      1. 1. State authorities of the Republic of Tajikistan, pursuing within their
                                                 competence control over compliance with legislation of the Republic of Tajikistan on
                                                 combating money laundering and financing of terrorism, shall be obliged to:

                                                        1) provide information necessary to the authorized agency for financial
                                                 monitoring and combating money laundering and financing of terrorism, according to
                                                 the procedure specified by the authorized agency;
                                                       2) provide for respective regime of storage, protection and integrity of
                                                 information received during interaction with the authorized agency, and qualified as
                                                 company, commercial, bank or other secret protected by law;


                                                                              39
                      EAG-VII                                                                            FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual              Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                               undertaken or planned after
                                                                                                                                                  adopting of the fifth follow-up
                                                                                                                                                    report (June 2011 through
                                                                                                                                                        November 2011)
                                                        3) provide for observance of rights and lawful interests of a person and a citizen,
                                                 legal entities and state while exercising control functions.


                                                          2. State authorities of the Republic of Tajikistan shall be obliged to:
                                                        1) upon independent discovery, notify the authorized agency of suspicious
                                                 operations, connected with money laundering or financing of terrorism;
                                                      2) upon independent discovery, notify the authorized agency of violation of this
                                                 Law by organizations pursuing operations with monetary funds or other property;
                                                          3) grant to the authorized agency access to own information systems and data
                                                 bases.
                                                        3. Provision of information to the authorized agency with regard to suspicious
                                                 operation shall not constitute breach of company, commercial, bank or other secret
                                                 protected by law.


                                                          Also,
                                                          a.        In accordance with progress report on execution of recommendations of the
                                                 mutual evaluation amendments (with regard to names of structural divisions) and addenda were
                                                 introduced to the Statue of Financial Monitoring Department, in view of comments and
                                                 suggestions of the 13th plenary session of EAG. This statue was approved by Regulations of the
                                                 National bank of Tajikistan dated March 28, 2011 No.31;

                                                          b.         Duties of office for employees of the Financial Monitoring Department were
                                                 elaborated;
                                                                                40
                          EAG-VII                                                                             FR (2011) 3 rev.1/ANN.2

  Recommendation     Summary of factors underlying          Outline of activities aimed to correct the deficiencies after adopting of the mutual            Overview of activities
                                rating                                   evaluation report (December 2008 through June 2011)                             undertaken or planned after
                                                                                                                                                        adopting of the fifth follow-up
                                                                                                                                                          report (June 2011 through
                                                                                                                                                              November 2011)
                                                                  c.       On April 23, 2011 by Regulations of the Managing Board of the National
                                                         bank of Tajikistan were approved “Forms of data provision for credit institutions” for
                                                         supplementing and renewal of data base of the Financial Monitoring Department;
                                                                  According to the Plan for technical assistance of the Financial Monitoring Centre
                                                         (FMC) to the Financial Monitoring Department, employees of the FMC have visited the
                                                         Financial Monitoring Department of the National bank of Tajikistan in May, 2011.




35. Conventions    1. Tajikistan has ratified /acceded   Pursuant to Law of the Republic of Tajikistan No.386 dated June 18, 2008, the Legal
                   to the Vienna Convention, the         Code of the Republic of Tajikistan was complemented by a separate article 179.2
                   Palermo Convention and the SFT        “Financing Crimes of Terrorist Nature.”
                   Convention, yet it has not taken
                   measures to implement them
                   through domestic laws.                Pursuant to Executive Order of the President of the Republic of Tajikistan RP No.985
                                                         dated May 12, 2008, a Working Group was established to prepare a draft law on
                                                         amending the Criminal Code of the Republic of Tajikistan.
                                                                    On February 16, 2011 the Parliament had ratified an Agreement on Training of
                                                         Officers for Counter-Terrorism Agencies of the Shanghai Cooperation Organization (SCO)
                                                         Member States. The aims of the Agreement are to increase the level of individual special
                                                         training, exchange of experience of counter-terrorism agencies activities, improve practical
                                                         knowledge, skills and expertise in the field of counter-terrorism activities;
                                                                    Also, The Parliament had ratified on February 16, 2011 SCO Counter-Terrorism
                                                         Convention. The Convention develops existing provisions of the Shanghai Convention on
                                                         Combating Terrorism, Separatism, Extremism as of June 15, 2001, and is in accord with the
                                                         Concept of cooperation of SCO member-states on combating terrorism, separatism and
                                                         extremism, approved by the Decision of the Head of States Council of SCO;
                                                                                      41
                           EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation        Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                                 rating                                  evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                   adopting of the fifth follow-up
                                                                                                                                                     report (June 2011 through
                                                                                                                                                         November 2011)
                    2. Whilst the ML criminal offence In 2008, six criminal cases related to money laundering offenses were instituted and
                    exists in the Criminal Code for   investigated. Upon completion of the preliminary investigation, they were referred to
                    almost nine years, it has been    court.
                    applied in investigations and
                    prosecutions only once. This
                    suggests that ML activities have
                    not been yet effectively pursued.

                    3. The adoption and the             The Law is currently not in force
                    implementation of the Amnesty
                    Law will temporarily unable
                    Tajikistan authorities to carry out
                    some of their obligations under the
                    Vienna Convention and the
                    Palermo Convention.
                     1. Insufficient information was
36 . Mutual legal                                         Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal
                     provided to make a proper
assistance (MLA)                                          Matters (Kishinev, October 07, 2002)
                     evaluation.
                                                          Ratified by Resolution of Majlisi Namoyandagon Majlisi Oli of the Republic of
                                                          Tajikistan No.1189 dated October 01, 2004.
                                                                 Law of the Republic of Tajikistan “On combating money laundering and
                                                          financing of terrorism” dated March 25, 2011, No.684:


                                                                 …Article 15. Information exchange and legal assistance
                                                          The authorized agency and other state authorities of the Republic of Tajikistan,
                                                                                      42
                             EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

 Recommendation        Summary of factors underlying          Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                                  rating                                   evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                     adopting of the fifth follow-up
                                                                                                                                                       report (June 2011 through
                                                                                                                                                           November 2011)
                                                           pursuing activities connected with combating money laundering and financing of
                                                           terrorism, provide respective information to competent authorities of foreign states
                                                           upon their enquiries or upon own initiative based on the principles of data protection.


                   1. The domestic legal provisions                                                                                                            On December 9,
40. Other forms of                                         In the course of the work Financial Monitoring Department of the NBT rendered
                   and mechanisms for exchange of
cooperation
                   information with foreign
                                                           assistance to the Kyrgyz FIU by providing necessary information on its request.            2010 the President of the
                   counterparts, that are not parties of   The Draft Agreement on cooperation between the Kyrgyz FIU and the Financial Republic                     of    Tajikistan
                   the international treaties signed by    Monitoring Department is being considered.
                                                                                                                                                      signed the Decree of the
                   the Tajik authorities, are not clear.
                                                           With view of establishing two-way interaction the Financial Monitoring Department Republic of Tajikistan “On
                                                           cooperates on particular issues with the Financial Monitoring Committee of the
                                                           Kazakhstan Ministry of Finance and the State Financial Monitoring under the Ukraine the draft Agreement of
                                                           Ministry of Finance. However, there is no information on signing of any agreements Eurasian                group      for
                                                           with other FIUs.
                                                                                                                                                      countering legalization of
                                                           The CIS Treaty on Anti-Money Laundering and Countering the Terrorist Financing was
                                                           submitted for consideration of the Government of the Republic of Tajikistan. This proceeds from crime and
                                                           Treaty is expected to be brought to the Parliament of the Republic of Tajikistan (Majilici terrorist financing”.
                                                           Namoyandagon of Majlisi Oli).
                                                                                                                                                        On June 16, 2011 at
                                                                  Law of the Republic of Tajikistan “On combating money laundering and
                                                           financing of terrorism” dated March 25, 2011, No.684:                                the EAG Plenary meeting
                                                                                                                                                the Agreement on Eurasian
                                                                 …Article 16. International cooperation of authorized agencies                  group      for   countering
                                                                 1. Authorized agencies shall cooperate in order to combat money laundering and legalization   of proceeds
                                                           financing of terrorism in collection, analysis and, if falls into their competence,
                                                                                       43
                      EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                             report (June 2011 through
                                                                                                                                                 November 2011)
                                                  investigation of information on any fact, which may indicate money laundering and from crime and terrorist
                                                  financing of terrorism.
                                                         2. For the purposes specified in part 1 of this article, the authorized agencies shall financing was signed by
                                                  upon their own initiative exchange any available information, which may relate to Heads of EAG countries
                                                  processing or analysis of information or investigation held by the authorized agencies
                                                                                                                                                delegations.
                                                  with regard to financial operations connected with money laundering and financing of
                                                  terrorism, as well as natural persons and legal entities involved.
                                                                                                                                                       Presently       this
                                                         3. The authorized agency shall exchange information with foreign authorized
                                                 agencies with no regard of their status as administrative, law-enforcement, judicial or agreement is under the
                                                 other.                                                                                         procedure of internal state
                                                         4. Each enquiry should be accompanied by short description of respective facts,
                                                 known to the requesting authorized agency. In the enquiry the authorized agency should reconciliation.
                                                 indicate for which purposes the requested information will to be used.
                                                                                                                                                     During this period
                                                       5. In case of enquiry, the requesting authorized agency shall provide all respective
                                                 information, including available financial information and requested data of law- reconciliation           procedure has
                                                 enforcement agencies, specified in the enquiry, with no need of official request.          also been        started for
                                                        6. The authorized agency may refuse to disclose information which may impair Agreements on cooperation
                                                 criminal investigation, conducted by competent authorities of the Republic of Tajikistan, between the Department of
                                                 or, upon exclusive circumstances, vividly violate lawful interests of a natural person or a
                                                 legal entity of the Republic of Tajikistan, or in any way does not comply with basic legal financial monitoring of the
                                                 principles. Such refusal shall be duly substantiated by the authorized agency, requesting National Bank of Tajikistan
                                                 the information.
                                                                                                                                              and the State Committee of
                                                        7. The authorized agency may use the information and documents provided by a
                                                 foreign authorized agency exclusively for the purposes, specified in part 1 of this article. financial  monitoring of
                                                 The authorized agency must not disclose the received information or documents to a Ukraine,             Committee for
                                                 third party without prior consent of a foreign authorized agency, and use this information
                                                 or documents in the course of pretrial investigation, criminal, administrative and civil
                                                                                                                                              financial monitoring of the
                                                                             44
                       EAG-VII                                                                             FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying            Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                            rating                                     evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                 adopting of the fifth follow-up
                                                                                                                                                   report (June 2011 through
                                                                                                                                                       November 2011)
                                                       judicial proceedings.                                                                  Ministry of Finance of the
                                                           8. Upon transfer of information or documents to a foreign authorized agency, the Republic of Kazakhstan,
                                                    authorized agency may impose limits or conditions on usage of the information for the
                                                    purposes not listed in part 7 of this article.
                                                                                                                                              Federal service of financial
                                                                                                                                              monitoring of the Russian
                                                    9. Authorized agencies shall take all necessary measures, including security measures, in
                                                    order to guarantee unavailability of the information subject to transfer to other Federation, Department of
                                                    authorities, services or agencies without prior consent of a foreign authorized agency.   financial monitoring under
                 2. Based upon the limited
                                                    Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal the Ministry of Finance of
                 information provided, it could not
                 be determined whether the
                                                    Matters (Kishinev, October 07, 2002)                                                      Turkmenistan.
                 bilateral and multilateral treaties   Ratified by Resolution of Majlisi Namoyandagon Majlisi Oli of the Republic of
                 signed by Tajikistan authorities      Tajikistan No.1189 dated October 01, 2004.
                                                                                                                                                Agreement    drafts
                 allow for:                                                                                                              were also sent to FIU of
                                                       Article 6. Extent of legal assistance.
                 - exchange of information related                                                                                       Pakistan,    India    and
                 to ML and all predicate offences      The Contracting States shall mutually provide legal assistance by carrying out
                 between the Tajik competent law       procedural and other actions in compliance with the laws of the Contracting Party Afghanistan.
                 enforcement authorities and their     addressed. In particular, they shall draw up, send and serve the necessary documents on
                 foreign counterparts;                 the respective addressee, carry out inspections, searches, seizures and expert With                the purpose of
                 - spontaneous exchange of             examinations, deliver material evidence and interrogate the respective parties, third establishment of bilateral
                 information between the Tajik         persons, suspects, the accused, victims, witnesses, civil plaintiffs, civil defendants and cooperation the Department
                 competent law enforcement             their representatives, legal representatives of the accused, and experts, carry out of          financial monitoring
                 authorities and their foreign         identification (including through videoconferencing, video recording, and other technical
                 counterparts;                         means), track down the persons sought, carry out investigative work related to the during the reporting period
                 - conducting investigations on        investigated criminal matter or criminal prosecution, extradite respective persons sent requests to FIU of
                 behalf of foreign counterparts;       to a foreign State for criminal prosecution or to serve a sentence, search for and Cyprus, Great Britain and
                 - refusing the foreign request for    seize (confiscate) illegally obtained cash assets, property and incomes, search for Kyrgyzstan with regards to
                                                       property and cash assets of civil defendants to ensure enforcement of decisions on civil
                                                                                   45
                       EAG-VII                                                                                 FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying            Outline of activities aimed to correct the deficiencies after adopting of the mutual             Overview of activities
                            rating                                     evaluation report (December 2008 through June 2011)                              undertaken or planned after
                                                                                                                                                       adopting of the fifth follow-up
                                                                                                                                                         report (June 2011 through
                                                                                                                                                             November 2011)
                 cooperation on the sole ground        cases, commercial or other economic disputes, acknowledgment and enforcement of specific                cases.
                 that the request is also considered   executive endorsements, decisions on civil cases and sentences.
                 to involve fiscal matters; or
                                                       The Contracting Parties may mutually provide legal assistance of other types based on
                 - refusing the request for co-        specific circumstances, interests of justice or the society on the whole, and in accordance
                 operation on the grounds of laws
                                                       with the domestic legislation of the Contracting Parties.
                 that impose secrecy requirements
                 on financial institutions or          SECTION IV. LEGAL ASSISTANCE AND LEGAL RELATIONS IN CRIMINAL
                 DNFBP.                                MATTERS


                                                       Part I. INSTRUCTIONS TO PROVIDE LEGAL ASSISTANCE IN CRIMINAL
                                                       MATTERS
                                                       Article 60. Contents and Form of Instruction to Provide Legal Assistance on a Criminal
                                                       Matter.
                                                       1. The instruction to provide legal assistance on a criminal matter shall be drawn up in
                                                       accordance with the requirements of article 7 of this Convention.
                                                       2. The instruction shall also contain:
                                                       a) a description and determination of the nature of the offense, information on the extent
                                                       of damage, if the damage was inflicted due to a criminal action;
                                                       b) a detailed list of procedural and investigative actions that need to be carried out within
                                                       the framework of the criminal case, and other information required for carrying out the
                                                       instruction;
                                                       c) the list of issues that need to be clarified during interrogation;
                                                       d) complete text of the statutory provision based upon which the criminal matter is

                                                                                     46
                      EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                               adopting of the fifth follow-up
                                                                                                                                                 report (June 2011 through
                                                                                                                                                     November 2011)
                                                 investigated.
                                                 3. The instruction to provide legal assistance on a criminal matter shall be accompanied
                                                 by certified and duly attested and, where necessary, approved in the order prescribed by
                                                 the legislation of the addressing Contracting State resolutions of procedural and
                                                 investigative actions.
                                                 Article 61. Implementing the Instruction to Provide Legal Assistance on a Criminal
                                                 Matter.
                                                 Article 62. Timeframes for Implementing Instructions to Provide Legal Assistance on a
                                                 Criminal Matter.
                                                 Article 63.Establishment and Cooperation Between Joint Investigation and Operational
                                                 Groups.
                                                          Currently under approval are Agreements on cooperation between the Financial
                                                 Monitoring Department of the National bank of Tajikistan and Ukraine State Committee of
                                                 Financial Monitoring, Financial Monitoring Committee of Ministry of Finance of the Republic
                                                 of Kazakhstan, Federal Financial Monitoring Service of the Russian Federation.


                                                 Let us note that on May 19 was signed an Agreement on cooperation between the Financial
                                                 Monitoring Department of the National bank of Tajikistan and Financial Monitoring Center of
                                                 Central Bank of Armenia.




                                                                              47
                           EAG-VII                                                                               FR (2011) 3 rev.1/ANN.2

 Recommendation       Summary of factors underlying          Outline of activities aimed to correct the deficiencies after adopting of the mutual              Overview of activities
                                 rating                                   evaluation report (December 2008 through June 2011)                               undertaken or planned after
                                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                                             report (June 2011 through
                                                                                                                                                                 November 2011)
                    3. Based upon the limited
                                                          Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal
                    information provided, it could not
                                                          Matters (Kishinev, October 07, 2002)
                    be determined whether the
                    bilateral and multilateral treaties   Ratified by Resolution of Majlisi Namoyandagon Majlisi Oli of the Republic of
                    signed by Tajikistan authorities      Tajikistan No.1189 dated October 01, 2004.
                    provide for the safeguards
                    regarding the use of the exchanged
                    information or if other               Article 20. Confidentiality of Information When Providing Legal Assistance
                    mechanisms are in place ensuring
                    that the information received by      1. At the request of the justice authority of the addressing Contracting Party the justice
                    foreign competent authorities is      authority of the Contracting Party addressed shall take all measures necessary to keep
                    used only in an authorized manner.    confidential the fact of receipt, the contents of the instruction to provide legal assistance,
                                                          and the data received as a result of carrying out the instruction.
                                                          2. Whew necessary, the justice authorities of the addressing and the addressed
                                                          Contracting Party shall agree on the conditions and timeframes of keeping confidential
                                                          the data received as a result of carrying out the instruction.
                    4. Very limited statistical
                    information and other relevant
                    information regarding the
                    exchange of information with
                    foreign competent authorities have
                    been made available.


SR. I Implement UN 1. Tajikistan has ratified the SFT Pursuant to Law of the Republic of Tajikistan No.386 dated June 18, 2008, the Legal
instruments        Convention, yet it has not taken   Code of the Republic of Tajikistan was complemented by a separate article 179.2
                   measures to fully implement it     “Financing Crimes of Terrorist Nature.”
                   through domestic laws
                                                                                        48
                        EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual            Overview of activities
                             rating                                  evaluation report (December 2008 through June 2011)                             undertaken or planned after
                                                                                                                                                    adopting of the fifth follow-up
                                                                                                                                                      report (June 2011 through
                                                                                                                                                          November 2011)


                                                     Pursuant to Executive Order of the President of the Republic of Tajikistan RP No.985
                                                     dated May 12, 2008, a Working Group was established to prepare a draft law on
                                                     amending the Criminal Code of the Republic of Tajikistan.
                 2. Tajikistan has taken some        Pursuant to Resolution of the Government of the Republic of Tajikistan No.506 dated
                 measures to implement Security      November 09, 2001, “On Harmonizing the Laws and Regulations of the Republic of
                 Council Resolution 1373, but the    Tajikistan with UNSC Resolution 1373 dated September 28, 2001”, the National Bank
                 obligations regarding the           of Tajikistan and the banks must freeze funds and other financial assets or economic
                 criminalization of FT and           resources of persons and organizations that directly or indirectly commit or attempt to
                 freezing/seizing of assets of       commit terrorist acts and participate in the commission of terrorist acts or assist in their
                 persons linked with terrorism are   commission.
                 not fully met.

                                                     Pursuant to Decree of the National Bank of Tajikistan No.433-1 dated December 02,
                                                     2008, banks and other credit institutions must freeze funds and other financial assets or
                                                     economic resources of persons and organizations that directly or indirectly commit or
                                                     attempt to commit terrorist acts and participate in the commission of terrorist acts or
                                                     assist in their commission, and immediately inform the law enforcement agencies
                                                     thereof.




                                                                                  49
                            EAG-VII                                                                              FR (2011) 3 rev.1/ANN.2

 Recommendation        Summary of factors underlying           Outline of activities aimed to correct the deficiencies after adopting of the mutual            Overview of activities
                                  rating                                    evaluation report (December 2008 through June 2011)                             undertaken or planned after
                                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                                             report (June 2011 through
                                                                                                                                                                 November 2011)
                     3. Whilst Tajikistan has taken
                     some practical measures to
                     implement Security Council
                     Resolution 1267 and its successor
                     resolutions, it has fallen short of
                     addressing the majority of the
                     legal requirements under these
                     resolutions.




SR. III Freeze and 1. Confiscation and provisional          Pursuant to Executive Order of the President of the Republic of Tajikistan RP No.985
confiscate terrorist measures do not apply to all FT        dated May 12, 2008, a Working Group was established to prepare a draft law on
assets               cases; this limits the scope of        amending the Criminal Code of the Republic of Tajikistan.
                     confiscation measures in this
                     regard.

                     2. There are no effective laws and     Pursuant to Resolution of the Government of the Republic of Tajikistan No.506 dated
                     procedures to freeze terrorist funds   November 09, 2001, “On Harmonizing the Laws and Regulations of the Republic of
                     or other assets of persons             Tajikistan with UNSC Resolution 1373 dated September 28, 2001”, the National Bank
                     designated under the UNSC              of Tajikistan and the banks must freeze funds and other financial assets or economic
                     Resolution 1267.                       resources of persons and organizations that directly or indirectly commit or attempt to
                                                            commit terrorist acts and participate in the commission of terrorist acts or assist in their
                                                            commission.



                                                                                         50
                        EAG-VII                                                                              FR (2011) 3 rev.1/ANN.2

Recommendation     Summary of factors underlying            Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                              rating                                     evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                                     adopting of the fifth follow-up
                                                                                                                                                       report (June 2011 through
                                                                                                                                                           November 2011)
                                                         Pursuant to Decree of the National Bank of Tajikistan No.433-1 dated December 02,
                                                         2008, banks and other credit institutions must freeze funds and other financial assets or
                                                         economic resources of persons and organizations that directly or indirectly commit or
                                                         attempt to commit terrorist acts and participate in the commission of terrorist acts or
                                                         assist in their commission, and immediately inform the law enforcement agencies
                                                         thereof.
                 3. There are no effective laws and
                 procedures to freeze terrorist funds
                 or other assets of persons
                 designated under UNSC
                 Resolution 1373 that would apply
                 to non-banking and non-financial
                 sectors.

                 4. The authorities did not provide
                 enough information to be able to
                 assess the effectiveness of the laws
                 and procedures regarding the
                 implementation of the UNSC
                 Resolution 1373 that apply to
                 banks and credit institutions.

                 5. Whilst authorities can give
                 effect to the actions initiated under
                 the freezing mechanisms of other
                 jurisdictions, it remained unknown
                 on what grounds such actions may

                                                                                     51
                        EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation     Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                              rating                                  evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                adopting of the fifth follow-up
                                                                                                                                                  report (June 2011 through
                                                                                                                                                      November 2011)
                 be initiated. The adopted
                 procedures are not effective, since
                 they can not ensure taking freezing
                 actions without delay.

                 6. Freezing actions can not be
                 extended to funds or other assets
                 wholly or jointly owned or
                 controlled by designated persons,
                 terrorists, those who finance
                 terrorism or terrorist organizations,
                 nor to funds or other assts derived
                 or generated from funds or other
                 assets owned or controlled by
                 these persons or terrorist
                 organizations.
                 7. There are no systems for
                 communicating actions taken
                 under the freezing mechanisms to
                 non-banking financial institutions;
                 the existing systems applying to
                 banks and credit institutions are
                 not effective.




                                                                                  52
                        EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation     Summary of factors underlying       Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                              rating                                evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                              adopting of the fifth follow-up
                                                                                                                                                report (June 2011 through
                                                                                                                                                    November 2011)
                 8. There is no clear guidance
                 provided to all financial
                 institutions with respect to their
                 obligations in freezing terrorist-
                 related funds.

                 9. There are no clear and publicly
                 known procedures for delisting or
                 reviewing the decisions to defreeze
                 mistakenly frozen funds.

                 10. No clear procedures have been
                 set up to ensure access to the
                 frozen funds pursuant to the
                 UNSC Resolution 1267 and in
                 accordance with the UNSC
                 Resolution 1452.
                 11. There are no clear legal or
                 other safeguards for bona fide
                 third parties.

                 12. There are no monitoring
                 measures and sanctions for non-
                 compliance with legislation
                 governing the obligations under
                 the FATF SR III for non-banking
                 financial sector.
                                                                                53
                             EAG-VII                                                                            FR (2011) 3 rev.1/ANN.2

  Recommendation        Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                                   rating                                  evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                                         adopting of the fifth follow-up
                                                                                                                                                           report (June 2011 through
                                                                                                                                                               November 2011)
SR. V International 1. The domestic legal provisions            Law of the Republic of Tajikistan “On combating money laundering and
Cooperation         and mechanisms for exchange of financing of terrorism” dated March 25, 2011, No.684:
                    information        with       foreign
                    counterparts, that are not parties of
                    the international treaties signed by        …Article 15. Information exchange and legal assistance
                    the Tajik authorities, are not clear. The authorized agency and other state authorities of the Republic of Tajikistan, pursuing
                                                          activities connected with combating money laundering and financing of terrorism,
                                                          provide respective information to competent authorities of foreign states upon their
                                                          enquiries or upon own initiative based on the principles of data protection.
                      2. It is not known whether the Kishinev Convention on legal assistance and legal relations in civil, family and criminal
                      bilateral and multilateral treaties matters (Kishinev, October 7, 2002 )
                      signed by Tajikistan authorities
                                                          Approved by the Resolution of Majalisi namoiandagan Majalisi Oli of the republic of
                      allow for:
                                                          Tajikistan No. 1189 of October 1, 2004.
                      - exchange of information related Article 6. Scope of legal assistance
                      to FT between the Tajik competent
                                                          Contracting Parties shall render mutual legal assistance through the procedural or any
                      law enforcement authorities and
                                                          other actions provided for in the laws of the requested Contracting Party, in particular,
                      their foreign counterparts обмен;
                                                          through the completion, forwarding and delivery of documents to the addressee; through
                      - spontaneous exchange of           the inspection, search, seizure, delivery of material evidence, examinations, interrogation
                      information on FT between the       of parties, third parties, suspects, accused, complainants, witness, civil plaintiffs, civil
                      Tajik competent law enforcement defendant, their representatives, legal representatives of the accused, experts,
                      authorities and their foreign       submission for identification, including the use of video communication, video records
                      counterparts;                       and other technical devices, search for wanted persons, investigative measures within
                      - conducting investigations         the frames of criminal investigations, criminal prosecution, extradition of persons
                         related to the FT on behalf of   for criminal prosecution or sentence enforcement, for the search and seizure of
                         foreign counterparts,            illegal moneys and assets and proceeds of illegal activities, search of the assets and
                      - refusing the foreign request for moneys belonging to the civil defendants for the enforcement of civil judgments,
                                                                                        54
                        EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation     Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual            Overview of activities
                              rating                                 evaluation report (December 2008 through June 2011)                             undertaken or planned after
                                                                                                                                                    adopting of the fifth follow-up
                                                                                                                                                      report (June 2011 through
                                                                                                                                                          November 2011)
                   co-operation on the sole ground   resolutions on commercial and other business disputes, acknowledgement and
                   that the request is also          enforcement of executive endorsements, civil court awards and sentences.
                   considered to involve fiscal      Contacting Parties may also render other mutual legal assistance in other forms and
                   matters, and                      types based on the exact circumstances, interests of justice and the society in general and
                 - refusing the request for co-      in compliance with the national laws of the Contracting Parties.
                   operation on the grounds of       SECTION IV. LEGAL ASSISTANCE AND LEGAL RELATIONS IN CRIMINAL
                   laws that impose secrecy          PROCEEDINGS
                   requirements on credit
                   institutions or DNFBP.
                                                     Part I. REQUESTS FOR THE RENDERING OF LEGAL ASSISTANCE IN THE
                                                     CRIMINAL PROCEEDINGS
                                                     Article 60.The scope and form of the request for the rendering of legal assistance in the
                                                     criminal proceedings
                                                     1. Request for the rendering of legal assistance in the criminal proceedings shall be
                                                     completed in compliance with the requirements of Article 7 of the Convention.
                                                      2. The request shall include:
                                                     а) description and qualification of the offence committed, value of damage incurred if
                                                     caused by the criminal acts;
                                                     б) detailed list of procedural, investigative and search measures required by the criminal
                                                     proceedings, as well as any other information as may be required for the performance of
                                                     the request;
                                                     в) list of questions to be answered at the interrogation;
                                                     г) full text of the legal norm, the attributes of which are used to investigate the criminal
                                                     offence.
                                                     3. Request for the rendering of legal assistance in the criminal proceedings shall be
                                                     attached with appropriately certified and attested and sanctioned, where required by the

                                                                                  55
                      EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual              Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                               undertaken or planned after
                                                                                                                                                  adopting of the fifth follow-up
                                                                                                                                                    report (June 2011 through
                                                                                                                                                        November 2011)
                                                 national laws of the requesting Contracting Party, resolutions on the procedural,
                                                 investigative or search activities.
                                                 Article 61.Performance under the Request for the rendering of legal assistance in the
                                                 criminal proceedings
                                                 article 62. Timeframes for the Performance under the Request for the rendering of legal
                                                 assistance in the criminal proceedings
                                                 Article 63.Establishment and activities of Mutual Operational Investigative Groups

                                                        Law of the Republic of Tajikistan “On combating money laundering and
                                                 financing of terrorism” dated March 25, 2011, No.684:


                                                        …Article 16. International cooperation of authorized agencies
                                                         1. Authorized agencies shall cooperate in order to combat money laundering and
                                                  financing of terrorism in collection, analysis and, if falls into their competence,
                                                  investigation of information on any fact, which may indicate money laundering and
                                                  financing of terrorism.
                                                         2. For the purposes specified in part 1 of this article, the authorized agencies shall
                                                  upon their own initiative exchange any available information, which may relate to
                                                  processing or analysis of information or investigation held by the authorized agencies
                                                  with regard to financial operations connected with money laundering and financing of
                                                  terrorism, as well as natural persons and legal entities involved.
                                                         3. The authorized agency shall exchange information with foreign authorized
                                                 agencies with no regard of their status as administrative, law-enforcement, judicial or
                                                 other.
                                                         4. Each enquiry should be accompanied by short description of respective facts,

                                                                               56
                      EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual            Overview of activities
                            rating                               evaluation report (December 2008 through June 2011)                             undertaken or planned after
                                                                                                                                                adopting of the fifth follow-up
                                                                                                                                                  report (June 2011 through
                                                                                                                                                      November 2011)
                                                 known to the requesting authorized agency. In the enquiry the authorized agency should
                                                 indicate for which purposes the requested information will to be used.
                                                       5. In case of enquiry, the requesting authorized agency shall provide all respective
                                                 information, including available financial information and requested data of law-
                                                 enforcement agencies, specified in the enquiry, with no need of official request.
                                                        6. The authorized agency may refuse to disclose information which may impair
                                                 criminal investigation, conducted by competent authorities of the Republic of Tajikistan,
                                                 or, upon exclusive circumstances, vividly violate lawful interests of a natural person or a
                                                 legal entity of the Republic of Tajikistan, or in any way does not comply with basic legal
                                                 principles. Such refusal shall be duly substantiated by the authorized agency, requesting
                                                 the information.
                                                        7. The authorized agency may use the information and documents provided by a
                                                 foreign authorized agency exclusively for the purposes, specified in part 1 of this article.
                                                 The authorized agency must not disclose the received information or documents to a
                                                 third party without prior consent of a foreign authorized agency, and use this information
                                                 or documents in the course of pretrial investigation, criminal, administrative and civil
                                                 judicial proceedings.
                                                        8. Upon transfer of information or documents to a foreign authorized agency, the
                                                 authorized agency may impose limits or conditions on usage of the information for the
                                                 purposes not listed in part 7 of this article.
                                                 9. Authorized agencies shall take all necessary measures, including security measures, in
                                                 order to guarantee unavailability of the information subject to transfer to other
                                                 authorities, services or agencies without prior consent of a foreign authorized agency.



                                                                              57
                        EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities
                             rating                                  evaluation report (December 2008 through June 2011)                         undertaken or planned after
                                                                                                                                                adopting of the fifth follow-up
                                                                                                                                                  report (June 2011 through
                                                                                                                                                      November 2011)
                 3. Based on the limited Kishinev Convention on legal assistance and legal relations in civil, family and criminal
                 information provided, it is not matters (Kishinev, October 7, 2002 )
                 known whether the bilateral and Approved by the Resolution of Majalisi namoiandagan Majalisi Oli of the republic of
                 multilateral treaties signed by Tajikistan No. 1189 of October 1, 2004.
                 Tajikistan authorities provide for
                                                     Article 20.Confidentiality of information related to the mutual legal assistance
                 the safeguards regarding the use of
                 the exchanged information or if 1. An institution of justice of the requested Contracting Party following the request of
                 other mechanisms are in place the requesting Contracting Party takes all appropriate measures to ensure confidentiality
                 ensuring that the information of the receipt of and contents of the Request for the rendering of legal assistance, as well
                 received by foreign competent as the data obtained as a result of performance thereof.
                 authorities is used only in an 2. Institutions of justice of the requested and requesting Contracting Parties, if necessary,
                 authorized manner.                  agree the terms and timeframes for keeping confidential the data obtained through the
                                                     performance of the Request

                 4. No statistical information or
                 other    relevant    information
                 regarding the exchange of
                 information related to FT with
                 foreign competent authorities
                 has been made available.




                                                                                 58
                               EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

 III. Measures taken based on other recommendations (R. 2, R. 6, R. 7, R. 8, R. 11, R. 12, R. 14, R. 15, R. 16, R. 17, R. 18, R. 19, R. 20, R. 21, R. 24, R. 25, R. 29, R. 30,
 R. 31, R. 32, R. 33, R. 34, R. 37, R. 38, R. 39, SR. VI, SR. VII, SR. VIII, SR. IX)


 Recommendation           Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                     rating                                 evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                         adopting of the fifth follow-up
                                                                                                                                                           report (June 2011 through
                                                                                                                                                               November 2011)

2. ML offense—           1. The law does not permit the
mental element and       intentional element of the
corporate liability      offence of money laundering to
                         be inferred from objective
                         factual circumstances.


                         1. While civil and administrative
                         liabilities apply for ML
                         committed by legal persons, no
                         information or examples were
                         provided as to whether these
                         provisions have ever been used.

                         1. No requirements are in place            Law of the Republic of Tajikistan “On combating money laundering and
6. Politically exposed
                                                             financing of terrorism” dated March 25, 2011, No.684:
persons
                                                                    …Article 10. Rights and obligations of institutions carrying out transactions
                                                             with funds or other property upon servicing and servicing of foreign PEPs
                                                                   1. Institutions carrying out monetary transactions or transactions with other
                                                             property, in addition to due diligence of clients provided for by Clause 5 hereof, shall:
                                                                    1) take reasonable and available steps in order to detect foreign PEPs among
                                                             individuals who provided services;

                                                                                         59
                            EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

 Recommendation        Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                  rating                               evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                    adopting of the fifth follow-up
                                                                                                                                                      report (June 2011 through
                                                                                                                                                          November 2011)
                                                                2) to provide services to foreign PEPs only subject to written permit of the CEO
                                                        of the institution carrying out monetary transactions or transactions with other
                                                        property, or his or her deputy, and the director of the standalone branch of the
                                                        institution carrying out monetary transactions or transactions with other property duly
                                                        authorized by the CEO of the institution involved or by his or her deputy;
                                                               3) take reasonable and available steps in cases of detection of sources of funds
                                                        or other property of foreign PEPs;
                                                               4) regularly update the available information on foreign PEPs provided services
                                                        by institution carrying out monetary transactions or transactions with other property;
                                                        5) pay increased attention to monetary transactions or transactions with other property
                                                        carried out by foreign PEPs (their family (wife (husband)), children, father, mother,
                                                        brothers, sisters, and father, mother, brothers, sisters and children of wife (husband),
                                                        parents in law and other persons residing with and having common household with the
                                                        governmental officials or similar persons, stepparents and stepchildren) serviced by
                                                        the institution carrying out monetary transactions or transactions with other property or
                                                        on behalf of such persons if they are serviced by the credit institutions.
                      1. No requirements are in place   The Financial Monitoring Department sent the Questionnaire Form of the
7.    Correspondent
banking                                                 Correspondent Bank to all lending institutions. Information on activities undertaken by
                                                        banks to combat money laundering and terrorist financing is timely submitted to the
                                                        Financial Monitoring Department along with the data on the bank policy.
                                                               Law of the Republic of Tajikistan “On combating money laundering and
                                                        financing of terrorism” dated March 25, 2011, No.684:
                                                              …Clause 11. Transborder Correspondent Relations Measures
                                                              Credit institutions take measures against transborder correspondent relations use

                                                                                    60
                             EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

  Recommendation        Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                                   rating                               evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                                      adopting of the fifth follow-up
                                                                                                                                                        report (June 2011 through
                                                                                                                                                            November 2011)
                                                         related to AML/CFT according to procedure specified by the National Bank of
                                                         Tadjikistan.


                                                         And,
                                                         On May 20, 2011 the Resolution of the Board of the National Bank of Tadjikistan
                                                         No.93 approved the rules on transactions and operations of offshore subjects.
                       1. No requirements are in place
8. New technologies
and non-face-to-face
business



                       No requirements are in place      Article 35 The Law of the Republic of Tajikistan “On Banking”
11.          Unusual                                                                                                                                  The Ministry of Justice of
transactions                                             Suspicious Transactions                                                                      the      Republic       of
                                                         1. If a credit institutions becomes aware that the completion of a transaction, receipt or   Tajikistan registered on
                                                         payment of any amount are related or may be related to an offence or illegal activity,       September 26, 2011 with
                                                         said credit institution shall immediately report to the National Bank of Tajikistan and      No.624       “Rules     of
                                                         law enforcement agencies appropriately.
                                                                                                                                                      transactions          and
                                                         According to the Directive of the President of the Republic of Tajikistan №23.4/6-           operation with off-shore
                                                         25/10-1 of 13.02.2009, the National Bank of Tajikistan shall, “pursuant to the Law of
                                                         the Republic of Tajikistan “On Banking”, Article 44, develop criteria to define
                                                                                                                                                      zones subjects”.
                                                         suspicious transactions related money laundering in the appropriate legal acts.”
                                                                Law of the Republic of Tajikistan “On combating money laundering and
                                                         financing of terrorism” dated March 25, 2011, No.684:

                                                                                     61
                           EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

 Recommendation        Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                                  rating                              evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                adopting of the fifth follow-up
                                                                                                                                                  report (June 2011 through
                                                                                                                                                      November 2011)
                                                            …Article 6. Operations with monetary funds and other property, subject to
                                                       mandatory control
                                                             ...5. Criteria for suspicious transaction shall be:
                                                             1) transaction without evident economic sense;
                                                              2) actions aimed at avoidance of financial monitoring procedures, provided by
                                                       this Law;
                                                              3) organization pursuing operations with monetary funds or other property
                                                       having reasonable basis or suspicions of transactions being aimed at money laundering
                                                       or terrorism financing.


                                                       Financial Monitoring Department has elaborated a Register of characteristics of
                                                       suspicious transactions and operations, which has been approved by Management
                                                       Board of the National bank of Tajikistan on April 28, 2011.
                      1. There is no AML/CFT           According to the Directive of the President of the Republic of Tajikistan №23.4/6-
12. DNFBP – R.5, 6,
                      preventive    law    or  other   25/10-1 of 13.02.2009, the Ministry of Finance shall “streamline its operations to
8-11
                      law/regulation requiring that    comply with FATF requirements related to the securities markets and record keeping
                      CDD and other measures           in the precious metals and stones.”
                      foreseen       under    FAFT            Law of the Republic of Tajikistan “On combating money laundering and
                      Recommendations 5, 6 and 8-11    financing of terrorism” dated March 25, 2011, No.684:
                      shall be implemented by
                                                              …Clause 7. Rights and obligations of institutionscarrying out monetary
                      DNFBPs                           transactions or transactions with other property
                                                             …5. Client due diligence requirements shall be applied in respect of the
                                                       following persons carrying out monetary transactions and transactions with other
                                                                                   62
                     EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 property:
                                                        1) real estate agents – when involved in real estate purchase and sale
                                                 transactions for their clients;
                                                         2) precious metals dealers and precious stones dealers - when involved in any
                                                 client's cash transactions equal to the threshold amount or more;
                                                       3) attorneys, notary, other independent lawyers and accountants when they are
                                                 preparing or carrying out transactions on behalf of their client in respect of the
                                                 following types of activities:
                                                       a) real estate purchase and sale;
                                                       b) money, securities administration or transactions with other property клиента;
                                                       c) maintenance of bank, savings or securities accounts;
                                                      d) organizing of contributions for establishment, activities or management of
                                                 companies;
                                                        e) establishment, activities or management of legal entities or institutions, and
                                                 enterprise purchase and sale;
                                                        f) institutions rendering services of trusts or of establishment of companies
                                                 upon preparation or carrying out of financial transactions on behalf of the client in
                                                 respect of the activities enumerated below:
                                                       a) acting as agent for establishing of legal entities;
                                                        b) acting as (or providing other persons with opportunity to acts as) director or
                                                 secretary of a company, partner in a partnership, or have the similar position in respect
                                                 of other legal entities;

                                                                             63
                             EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

  Recommendation        Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                                   rating                               evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                                      adopting of the fifth follow-up
                                                                                                                                                        report (June 2011 through
                                                                                                                                                            November 2011)
                                                                 c) provide the registered office; legal address or premises, correspondent or
                                                         administrative address for a company, partnership or any other legal entity or
                                                         institution;
                                                               d) acting as (or providing other persons, opportunity to acts as) trust manager;
                                                         e) acting as (or providing other persons, opportunity to acts as) nominee shareholder
                                                         for other persons.




                       1. No requirements are in place   Law №524 of May 2009, of the Republic of Tajikistan “On Banking”
14. Protection   and
tipping-off                                              Suspicious Transactions (http://www.nbt.tj)
                                                         Article 35. Suspicious Transactions
                                                         1. If a credit institutions becomes aware that the completion of a transaction, receipt or
                                                         payment of any amount are related or may be related to an offence or illegal activity,
                                                         said credit institution shall immediately report to the National Bank of Tajikistan and
                                                         law enforcement agencies appropriately.
                                                         2. Voluntary disclosure of the information by a credit institution, pursuant to part 1 of
                                                         the Article, shall not be considered as a breach of a banking secret, and said credit
                                                         institution and the National Bank of Tajikistan shall not be hold liable for said
                                                         disclosure.
                                                         Article 50. Exceptions
                                                         Requirements of article 48 (Banking Secret) and 49 (Protection of banking secret by

                                                                                     64
                               EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

  Recommendation          Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                     rating                               evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                       adopting of the fifth follow-up
                                                                                                                                                         report (June 2011 through
                                                                                                                                                             November 2011)
                                                           the employees of credit institution and third parties) of the Law is not applied in the
                                                           following cases:
                                                           - pursuant to the AML/CFT measures and obligations or action plans, as defined in the
                                                           laws and legal acts of the National Bank of Tajikistan.
                                                                  Law of the Republic of Tajikistan “On combating money laundering and
                                                           financing of terrorism” dated March 25, 2011, No.684:
                                                                …Article 7. Rights and obligations of institutions carrying out transactions with
                                                           monetary funds and other property
                                                                    …8. Institutions carrying out transactions with monetary funds and other
                                                           property, their managers and employees (permanent and temporary), when submitting
                                                           information to the competent body, shall not be entitled to inform thereof its clients or
                                                           other persons.
                                                                    9. Submitting to the competent body by institutions carrying out transactions
                                                           with monetary funds and other property by their managers and employees of data and
                                                           documents regarding transactions provided by this Law, shall not constitute breach of
                                                           operation, banking, tax, commercial or communication secret (in particular,
                                                           information on postal money transfer), shall not lead to civil, disciplinary,
                                                           administrative and criminal liability.


                         1. No requirements are in place   Article 24. Law of the Republic of Tajikistan “On Banking”
15. Internal controls,
compliance and audit                                       Auditor Committee and Chief Internal Auditor of a credit organization
                                                           1. A credit institution must establish an Auditor Committee.
                                                           2. Members and Chairman thereof are elected by the Supervisory Board for a term of 4
                                                                                       65
                     EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 years.
                                                 3. Chairman of the Supervisory Board, Chairman of the credit organization and
                                                 members of the Management Board of the credit organization may not be elected
                                                 members of the Auditor Committee.
                                                 4. Auditor Committee operates for the purposes of the Supervisory Board of the credit
                                                 organization with the following rights and responsibilities:
                                                 - consider and recommend the annual auditor plan, accounting control regulations and
                                                 risk management rules of the credit organization;
                                                 - recommend candidates for external auditors of the credit organization pursuant to
                                                 article 45 of the Law;
                                                 - review external auditor reports on the credit statements of the credit organization and
                                                 report the findings to the Supervisory Board before the credit statements are approved
                                                 by the Supervisory Board;
                                                 - request reports from the chief internal auditor of the credit organization;
                                                 -monitor credit operations of the credit organization for the compliance with the laws
                                                 and legal acts, and report appropriately to the Supervisory;
                                                 -examine report of the credit organization submitted to the National Bank of
                                                 Tajikistan;
                                                 -develop reports on any issues initiated by the Supervisory Board for consideration by
                                                 the Auditor Committee;
                                                 -evaluate transactions and deals of the credit organization based on the plans adopted
                                                 by the Auditor Committee following request of the Supervisory Board and
                                                 shareholders of the credit organization possessing more that 10 percent of voting
                                                                             66
                     EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                         undertaken or planned after
                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                             report (June 2011 through
                                                                                                                                                 November 2011)
                                                 shares or as defined in the Articles of Association of the credit organization;
                                                 -at least once a year deliver a progress status report to the General Shareholders
                                                 Meeting.
                                                 5. Resolutions of the Auditor Committee shall be adopted by the majority of votes
                                                 present at the meeting. Where votes are divided equally, the vote of the Chairman of
                                                 the Auditor Committee shall be decisive.
                                                 6. The credit organization shall have an internal audit service managed by the Chief
                                                 Internal Auditor.
                                                 7. Chief Internal Auditor of a credit organization shall meet requirements of art 5,
                                                 Article 22 of the Law.
                                                 Article 46. Additional Responsibilities
                                                 1. In addition to the provisions set out in Article 45 of the Law, the National Bank of
                                                 Tajikistan may require that the audit organization of a credit organization perform the
                                                 following responsibilities:
                                                 - issue opinion on the compliance of AML/CFT measures of the credit
                                                 organization with the laws and legal acts of the National Bank of Tajikistan.


                                                 Article 48. Law of the Republic of Tajikistan “On the National Bank of Tajikistan”
                                                 Urgent Corrective Measures and Compensatory Remedies
                                                 The National Bank of Tajikistan may enforce any corrective measures and
                                                 compensatory remedies, as defined in part two of the given article, whenever the bank
                                                 becomes aware that the credit organization, its management and other employees:

                                                                             67
                     EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 -breach the given Law and other regulatory acts;
                                                 -fail providing the National Bank of Tajikistan with the required information in a
                                                 timely manner, exhaustive or correct;
                                                 -execute high risk or incorrect transactions.
                                                 Pursuant to para.1, article 9 of the Law of Tajikistan “On Banking”, “before the state
                                                 registration and receipt of a license, a credit organization shall submit to the National
                                                 Bank of Tajikistan an application, appropriate documents and the following
                                                 information: description of organizational structure and internal control system,
                                                 including corresponding AML/CFT measures …”                Also, the Law requires that
                                                 AML/CFT internal control system of a credit organization be subject to an
                                                 independent audit.
                                                        Law of the Republic of Tajikistan “On combating money laundering and
                                                 financing of terrorism” dated March 25, 2011, No.684:
                                                        …Clause 7. Rights and obligations of institutions carrying out monetary
                                                 transactions or transactions with other property
                                                        2. Institutions carrying out monetary transactions or transactions with other
                                                 property shall develop internal monitoring rules for the purpose of AML/CFT, and
                                                 action plan for implementation thereof. These rules shall include:
                                                       1) internal procedures for due diligence and maintaining data obtained during
                                                 such due diligence;
                                                        2) procedure and management of monetary transactions or transactions with
                                                 other property subject to obligatory control;
                                                        3) employees recruitment procedures;

                                                                             68
                     EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual            Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                             undertaken or planned after
                                                                                                                                               adopting of the fifth follow-up
                                                                                                                                                 report (June 2011 through
                                                                                                                                                     November 2011)
                                                        4) qualification standards for training of staff, training programs for employees;
                                                         5) internal audit procedures in order to examine the AML/CFT measures of
                                                 institutions. Institutions carrying out monetary transactions or transactions with other
                                                 property shall develop internal supervision rules considering recommendations
                                                 approved by a body for coordination with supervisory authorities according to their
                                                 competence.
                                                         3. Institutions carrying out monetary transactions or transactions with other
                                                 property shall appoint officials responsible for compliance with internal monitoring
                                                 rules. Such persons shall be appointed by the resolution of the management of the
                                                 institution carrying out monetary transactions or transactions with other property.


                                                 And,
                                                 In respect of compliance with the recommendations for approval of legal acts on
                                                 implementation of internal supervision programs and due diligence measures in credit
                                                 institutions the Board of the National Bank of Tadjikistan by the Resolution No.55 of March
                                                 31, 2011 approved the Instructions No.181 on requirements to risk management and internal
                                                 supervision system in credit institutions which ensure the compliance with Recommendation
                                                 5 specified in Clause 3 Part 15, 27, 28 and in Requirements to credit institution risk
                                                 management system Schedule.
                                                 The purpose of these Instructions is specifying the requirements to formation by the credit
                                                 institutions of adequate risk management and internal supervision system ensuring effective
                                                 detection, assessment and limitation of risks considering their operations, including
                                                 AML/CFT.



                                                                             69
                       EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

 Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                             rating                              evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                               adopting of the fifth follow-up
                                                                                                                                                 report (June 2011 through
                                                                                                                                                     November 2011)
16. DNFBP –        1. There is no FIU and no             Law of the Republic of Tajikistan “On combating money laundering and
                  AML/CFT law or any other        financing of terrorism” dated March 25, 2011, No.684:
Р.13-15 и 21
                  law/regulation     requiring           …Clause 4. Institutions carrying out monetary transactions and transactions
                  DNFBPs to make STRs to the      with other property
                  FIU.
                                                          Institutions carrying out monetary transactions or transactions with other
                                                  property include:
                                                           1) credit institutions;
                                                           2) professional members of securities market;
                                                           3) insurance and leasing (financial leasing) institutions;
                                                           4) postal service institutions;
                                                           5) dolly-shops;
                                                         6) institutions purchasing and selling the real estate, precious metals and stones,
                                                  related jewelry, and breakages;
                                                         7) institutions maintaining betting offices, and carrying out lotteries and other
                                                  games where the organizer provides the prizing fund for the participants, including
                                                  electronic forms;
                                                           8) institutions administering investment funds or nongovernmental pension
                                                  funds;
                                                         9) attorneys, notaries, other independent lawyers and accountants, individual
                                                  entrepreneurs providing legal services upon preparing or carrying out transactions
                                                  involving purchase and sale of real estate, funds, securities management or
                                                  transactions with other property of a client, administration of bank, saving or securities

                                                                                     70
                        EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

 Recommendation    Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities
                              rating                              evaluation report (December 2008 through June 2011)                         undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                   accounts, and accumulation of funds in order to establish, ensure operation or
                                                   management thereof and creation, ensure operation or management of legal entity or
                                                   creation and purchase and sale of enterprises on behalf of their client;
                                                         10) auditor's companies, individual auditors;
                                                         11) institutions rendering trust or company registration services;
                                                         12) private exchange offices of individuals;
                                                        13) customs services supervising transition of cash and liquidity documents on
                                                   demand across the border of the Republic of Tadjikistan by residents and nonresidents.


                  1. Consequently, the
                  requirements under FAFT
                  Recommendations 13, 14, 15
                  and 21 are not met.

                  1. There is no sanctioning       Article 18. Law of the Republic of Tajikistan “On Banking”
17. Sanctions
                  mechanism applicable to
                                                   Revocation of License
                  AML/CFT.
                                                   1. A license may not be revoked otherwise but by a resolution of the National Bank of
                                                   Tajikistan based on one or a few of the reasons given below:
                                                   -the transactions performed by a credit organization are risky or unjustified;
                                                   -a credit organization breaches the laws and regulatory acts of the National Bank of
                                                   Tajikistan and conditions and requirements of the license affecting financial stability
                                                   of the credit institution;

                                                                               71
                     EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                            adopting of the fifth follow-up
                                                                                                                                              report (June 2011 through
                                                                                                                                                  November 2011)
                                                 -a credit organization, a foreign bank, a holding company of the credit organization,
                                                 whose subsidiaries are banks and non-banking credit organizations, participated in an
                                                 offence, in particular, in laundering illegal proceeds and in the financing of terrorism
                                                 and hence their licenses have been cancelled;
                                                 -banking monitoring is impeded by the fact that the credit organization is a part of a
                                                 group of companies or a subsidiary of a foreign bank or a holding of a credit
                                                 organization, which is not controlled appropriately;


                                                 Article 53. Urgent Corrective Measures and Compensatory Remedies
                                                 Pursuant to the Law of the Republic of Tajikistan “On the National Bank of
                                                 Tajikistan”, the National Bank of Tajikistan applies all required urgent corrective
                                                 measures and compensatory remedies.
                                                 Article 48. Urgent Corrective Measures and Compensatory Remedies (the Law “On
                                                 the National Bank of Tajikistan”)
                                                 The National Bank of Tajikistan may The National Bank of Tajikistan may enforce
                                                 any urgent corrective measures and compensatory remedies, as defined in part two of
                                                 the given article, whenever the bank becomes aware that the credit organization, its
                                                 management and other employees:
                                                 -breach the given Law and other regulatory acts;
                                                 -fail providing the National Bank of Tajikistan with the required information in a
                                                 timely manner, exhaustive or correct;
                                                 -execute high risk or incorrect transactions.
                                                 Having identified any cases mentioned in part one of the Article, the National Bank of
                                                                             72
                     EAG-VII                                                                             FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 Tajikistan may enact towards the credit organization one or a few of the corrective
                                                 measures or compensatory remedies, as defined below:
                                                       - issue an ordinance to the credit organization;
                                                       - issue a directive to the credit organization;
                                                        - require that a credit organization develop and submit a Corrective Actions
                                                 Plan to remove the faults and remedy the situation or appropriate information on the
                                                 measures taken;
                                                        - require that the credit organization cancel the execution of certain operations;
                                                       - prohibit the credit organization from the distribution of any proceeds or
                                                 dividends accrued on the shares;
                                                       - enact any limitations on the provision of credits;
                                                        - require that the credit organization increase compulsory reserves deposited
                                                 with the National Bank of Tajikistan up to a certain amount and within certain dates;
                                                        - require that the Chairman of the Supervisory Board convene an extraordinary
                                                 meeting of the Supervisory Board with the representative of the National Bank of
                                                 Tajikistan participating, for the consideration of offences and enactment of the action
                                                 plan to remedy said;
                                                        - require that the chairman or Management Board of the credit organization
                                                 apply financial recovery measures, including assets restructuring methods;
                                                        - require that the credit organization dismiss temporary or permanently one or a
                                                 few managers from the management position;
                                                        - require that the credit organization dismiss the chairman or another member of
                                                 the Supervisory Board;
                                                        - require that the credit organization be restructures (merged, acquired, split or
                                                 restructures);
                                                                             73
                     EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                        - apply different prudential standards towards the credit organization for a term
                                                 of up to six months;
                                                        - prohibit the credit organization from certain transactions, permitted by the
                                                 license, for a term of up to twelve months;
                                                        -prohibit the credit organization from opening a branch or any other structural
                                                 unit;
                                                       -impose limitations on the assets acceptance and transfer by the credit
                                                 organization, as well as on the payment of dividends;
                                                        - impose penalties towards managers of the credit organization according to the
                                                 existing laws;
                                                        - suspend authorities of the Supervisory Board of the credit organization and,
                                                 pursuant to the laws, appoint a provisional administration for the financial recovery of
                                                 the credit organization;
                                                         - impose a penalty towards the credit organization up to one percent of the
                                                 minimum authorized capital value;
                                                         - revoke the license of the credit organization, according to the Law of the
                                                 Republic of Tajikistan “On Banking”.
                                                         National Bank of Tajikistan impose a penalty towards the credit organization up
                                                 to one percent of the minimum authorized capital value and require removal of all
                                                 faults and breaches within certain timeframes, in the following cases:
                                                        - if credit organization submits to the National Bank of Tajikistan incomplete
                                                 and invalid reports, statistical data and other information;
                                                        - if the credit organization fails or delays providing information about a client,
                                                 certain risks related to special clients and also any information requested by the
                                                 National Bank of Tajikistan;
                                                        - if any faults or breaches are found by the credit organization audit.
                                                                             74
                         EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

  Recommendation    Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                               rating                                  evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                                   adopting of the fifth follow-up
                                                                                                                                                     report (June 2011 through
                                                                                                                                                         November 2011)
                                                                Should a credit organization fail meeting requirements of the National Bank of
                                                        Tajikistan, imposition of the penalty continues till the credit organization removes all
                                                        faults, as defined in part 3 of the Article.
                                                               The penalty is debited from the correspondent account of the credit
                                                        organization, opened with the National Bank of Tajikistan, without instruction of the
                                                        credit organization. If a credit organization does not have a correspondent account
                                                        opened with the National Bank of Tajikistan, the penalty is withhold according to the
                                                        laws.
                                                               Procedures for the corrective measures and compensatory remedies are defined
                                                        by the Management Board of the credit organization.
                                                              Urgent corrective measures and compensatory remedies defined in this Article,
                                                        are imposed by the National Bank of Tajikistan within one year after the breach
                                                        occurred, however no later than in three months of finding the breaches.
                                                        Imposition of the urgent corrective measures and compensatory remedies defined in
                                                        this Article, shall not be considered by the credit organization as a relief from the
                                                        liability of the credit organization under other laws. (Law №548 dated 5.08.09.)
                   1. There are no shell banks
18. Shell Banks                                         To be engaged in banking operations in the Republic of Tajikistan, a legal person
                                                                                                                                    Ministry of Juctice has
                   currently operating in Tajikistan,
                                                        shall, according to the Law of the Republic of Tajikistan “On banking”, obtain a
                                                                                                                                    registered    «Rules     on
                   but no provisions that address
                                                        license of the National Bank of Tajikistan. License is issued against an application,
                                                                                                                                    transactions and operations
                   any of the other criteria.
                                                        documents and the following information submitted to the National Bank of Tajikistan
                                                                                                                                    with offshore subjects»
                                                        (article 9):
                                                                                                                                    (September 26, 2011, №
                                                        - notarized copy of constituent documents, including the amount of declared 624).
                                                        authorized capital;
                                                        - a statement enumerating names, citizenship, permanent residence and profession,
                                                                                   75
                     EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 education and detailed work record of each manager;
                                                 -copy of a documents witnessing an economic university degree of each manager;
                                                 - copy of a document certifying professional competence of each manager;
                                                 - a statement indicating the name, citizenship, permanent residence, occupation or
                                                 profession of owner of controlling interest, including the ultimate beneficiary of the
                                                 controlling interest, confirming their financial position;
                                                 - a statement witnessing legal origin of the funds invested in the authorized capital;
                                                 -copy of the last three financial statements of a legal person owning the controlling
                                                 interest, including auditor conclusion thereon;
                                                 -list of shareholders and ultimate beneficial owners of the shares, including addresses
                                                 and number of shares;
                                                 - a written declaration completed by each owner of the controlling interest and
                                                 managers, confirming the absence of prior criminal records, bankruptcy and
                                                 restrictions imposed on professional activities;
                                                 -business plan, including business missions and types of operations, description of the
                                                 organizational structure and internal control system, including appropriate AML/CFT
                                                 measures, and forecast of the balance report, profits and losses and the turnover for the
                                                 next three years;
                                                 - list of legal entities, where the owners of controlling interest, including ultimate
                                                 beneficiary owner of each controlling interest, have an interest; list of said legal
                                                 entities, amount and location of the interests thereof;
                                                 -location of the head office inside and outside the Republic of Tajikistan, where


                                                                             76
                     EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                         undertaken or planned after
                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                             report (June 2011 through
                                                                                                                                                 November 2011)
                                                 baking operations are performed;
                                                 - confirmation of application fee paid;
                                                 - a confirmation from the banking supervisory board of the country, where a foreign
                                                 (principal) bank or a holding company is incorporated and operates approving banking
                                                 operation of the credit organization in the Republic of Tajikistan and will ensure
                                                 consolidated banking oversight over the applicant.
                                                 2. National Bank of Tajikistan may require provision of other additional information
                                                 related to the application.


                                                 Article 10. Licensing Procedures
                                                 1. National Bank of Tajikistan within three months of receiving an application issues a
                                                 conclusion regarding either compliance or non-compliance of the documents
                                                 submitted with the requirements of the given Law.
                                                 2. To issue said conclusion, the National Bank of Tajikistan, having checked all
                                                 submitted documents, may require submitting appropriate additional information from
                                                 the credit organization, governmental agencies and appropriate foreign supervisory
                                                 agency.
                                                 7. The National Bank of Tajikistan makes a decision regarding credit organization
                                                 license, based on the following grounds:
                                                 - legal validity and accuracy of the information and documents submitted;
                                                 - appropriate financial position and operations of the founding parties;
                                                 - compliance of the owners, parties with a controlling interest and managers of the

                                                                             77
                     EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 company with the professional and reliability criteria;
                                                 -compliance of the structure and list of employees, current, financial funds and
                                                 methods of corporate wealth generation, enabling the company to meet its obligations
                                                 with the license requirements;
                                                 -acceptability of operations defined in the Articles of Association;
                                                 -feasibility of the business plan;
                                                 -resolution of a credit organization to operate at a certain permanent address in the
                                                 Republic of Tajikistan;
                                                 -permissible level of supervision and oversight by a foreign supervisory agency on the
                                                 consolidated basis.
                                                 8. Within a month of the decision to issue a license, a credit organization shall deposit
                                                 remaining amount of the minimum authorized capital and transfers an appropriate
                                                 license fee to the accounts in the National Bank of Tajikistan. A credit organization,
                                                 which meets these requirements, is issued a license of the National Bank of Tajikistan
                                                 within three working days.


                                                    Illegal entrepreneurship, pseudo-entrepreneurship and illegal banking
                                                 operations give rise to the following legal responsibility:
                                                 Criminal Code of the Republic of Tajikistan


                                                 Article 259. Illegal Entrepreneurship
                                                 1) Entrepreneurship without registration or a special permit (license) in cases where
                                                                              78
                     EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                         undertaken or planned after
                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                             report (June 2011 through
                                                                                                                                                 November 2011)
                                                 said permit (license) is mandatory, or entrepreneurship in violation of the license
                                                 conditions, as well as any types of prohibited entrepreneurship, involving large
                                                 proceeds or serious damage to the interests of individuals, commercial or non-profit
                                                 organizations or to the state.
                                                 is punishable with a fine from five hundred to one thousand calculation factors or with
                                                 the imprisonment of up to three years.
                                                 2) The same actions:
                                                 а) committed by an organized criminal group;
                                                 b) involving especially large scale proceeds;
                                                 c) committed by a person previously convicted of illegal entrepreneurship or illegal
                                                 banking operations, -
                                                 are punishable with a fine from one to two thousand calculation factors or with the
                                                 imprisonment from three to five years and a fine of up to five hundred calculation
                                                 factors.


                                                 Article 260. Pseudo-entrepreneurship
                                                 Pseudo-entrepreneurship, which means an institution of a commercial organization not
                                                 meant for entrepreneur or banking operation, aiming at obtaining credits, tax
                                                 exemptions or other material benefits or sheltering illegal operations, causing large
                                                 scale damage to individuals, commercial or non-profit organizations or the state, -
                                                 is punishable with a fine from five hundred to one thousand calculation factors or with
                                                 the restraint of up to two years or with an imprisonment for the same term.


                                                                            79
                     EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                            adopting of the fifth follow-up
                                                                                                                                              report (June 2011 through
                                                                                                                                                  November 2011)
                                                 Notes. 1) Articles 258, 259, 259.1 and 260 of the Code consider proceeds or damage to
                                                 be large scale, if amount of the said exceeds one thousand of calculation factors, and
                                                 proceeds are considered as especially large scale where the amount of said exceeds
                                                 two of thousand calculation factors.
                                                 2) The proceeds which are the subject of this article shall be the profit obtained as a
                                                 difference between the money spent and received.
                                                 3) According to the articles of this Chapter, large scale damage to the interests of the
                                                 individuals shall mean any damage exceeding five hundred calculation factors.


                                                 Article 263. Illegal Banking Operations
                                                 1) Banking operations without registration or a special permit (license) in cases where
                                                 said permit (license) is mandatory, or said operations in violation of the license
                                                 conditions involving large proceeds or serious damage to the interests of individuals,
                                                 commercial or non-profit organizations or to the state.
                                                 is punishable with a fine from one to two thousand calculation factors or with the
                                                 imprisonment of up to three years, including deprivation of the right to hold certain
                                                 positions or be engaged in certain operations for a term of five years or without said.
                                                 2) The same action:
                                                 а) committed by an organized criminal group;
                                                 b) involving especially large scale proceeds;
                                                 c) committed by a person previously convicted of illegal banking operations or illegal
                                                 entrepreneurship, -


                                                                            80
                           EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

 Recommendation       Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities
                                 rating                                  evaluation report (December 2008 through June 2011)                         undertaken or planned after
                                                                                                                                                    adopting of the fifth follow-up
                                                                                                                                                      report (June 2011 through
                                                                                                                                                          November 2011)
                                                       is punishable with imprisonment for a term from three to five years and a fine from
                                                       five to one thousand calculation factors.
                                                       Notes. 1) According to the article, proceeds or damage are considered large scale, if
                                                       amount of the said exceeds one thousand of calculation factors, and proceeds are
                                                       considered as especially large scale where the amount of said exceeds two thousand of
                                                       calculation factors.
                                                              Law of the Republic of Tajikistan “On combating money laundering and
                                                       financing of terrorism” dated March 25, 2011, No.684…Clause 5. AML/CFT
                                                       measures
                                                                …7. The establishing of shell banks in the Republic of Tadjikistan is prohibited.
                                                       8.    Credit institutions authorized to open and maintain bank accounts shall not be
                                                             entitled to establish or maintain correspondent relations with shell banks, and
                                                             should take precaution steps against transactions and operations with foreign
                                                             financial correspondents allowing shell banks to use their accounts.



                                                       And,
                                                       On May 20, 2011 the Board of the National Bank of Tadjikistan by the Resolution No.93
                                                       the rules on transactions and operations with offshore subjects we approved.
                     1. No requirements are in place          Law of the Republic of Tajikistan “On combating money laundering and
19. Other forms of
                                                       financing of terrorism” dated March 25, 2011, No.684:
reporting
                                                                …Clause 6. Monetary transactions and transactions with other property
                                                       subject to obligatory supervision

                                                                                     81
                     EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual            Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                             undertaken or planned after
                                                                                                                                               adopting of the fifth follow-up
                                                                                                                                                 report (June 2011 through
                                                                                                                                                     November 2011)
                                                          1. Monetary transactions and (or) transactions with other property shall be
                                                 subject to obligatory supervision if their nature relates to one type of the operations
                                                 provide for by Part 2 hereof, and is carried out in cash, and cashless transactions
                                                 provided for by paragraphs 6, 7, 9, 11 and 18 Part 2 hereof, as follows:
                                                         1) for transactions specified in paragraphs 1 and 2 Part 2 hereof, to the
                                                 amount equivalent or exceeding 14 000 somoni or foreign currency equivalent equal to
                                                 14 000 somoni or exceeding it;
                                                         2) for transactions specified in paragraphs 6, 7 and 9 Part 2 hereof, to the
                                                 amount equivalent or exceeding 70 000 somoni or foreign currency equivalent equal to
                                                 70 000 somoni or exceeding it;
                                                          3) for transactions specified in paragraphs 3-5, 8 and 10-17 Part 2 hereof, to
                                                 the amount equivalent or exceeding 70 000 somoni or foreign currency equivalent
                                                 equal to 70 000 somoni or exceeding it;
                                                          4) for transactions specified in paragraphs 18 and 19 Part 2 hereof, to the
                                                 amount equivalent or exceeding 500 000 somoni or foreign currency equivalent equal
                                                 to 500 000 somoni or exceeding it.
                                                          2. Monetary transactions and (or) transactions with other property subject to
                                                 obligatory supervision include:
                                                            1) obtaining of prize within the bet, gambling and lottery; including electronic
                                                 forms;
                                                            2) purchase, sale and exchange of foreign currency in cash through exchange
                                                 offices;
                                                            3) obtaining money by check or promissory note, both single operation and


                                                                               82
                     EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 operation carried out within seven successive calendar years;
                                                          4) exchange of notes of one value into notes of another value, both single
                                                 operation and operation carried out within seven successive calendar years;
                                                          5) withdrawal from or entering into a client's bank account of money, both
                                                 single operation and operation carried out within seven successive calendar years;
                                                          6) entering into or transfer from a client's bank account of money by an
                                                 individual or legal entity registered, having place of residence or location in offshore,
                                                 and maintaining an account in an offshore bank, or in a bank registered in offshore, or
                                                 transfer funds for the benefit of such persons, both single operation and operation
                                                 carried out within seven successive calendar years;
                                                          7) transfer of funds abroad to accounts (deposits) opened for anonymous
                                                 beneficiary, entering of funds from abroad from accounts (deposits) opened for
                                                 anonymous beneficiary, both single operation and operation carried out within seven
                                                 successive calendar years;
                                                          8) opening of saving account (deposit) for the benefit of a third persons and
                                                 (or) entering of money to such account, both single operation and operation carried out
                                                 within seven successive calendar years;
                                                          9) payments and transfer of money by a client in favor of other persons
                                                 gratuitous;
                                                          10) purchase (sale), or exporting of the cultural values from the Republic of
                                                 Tadjikistan;
                                                          11) transactions of legal entities registered by the state three month prior to
                                                 such date;


                                                                             83
                             EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

  Recommendation        Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                   rating                               evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                     adopting of the fifth follow-up
                                                                                                                                                       report (June 2011 through
                                                                                                                                                           November 2011)
                                                                  12) importing to the Republic of Tadjikistan or exporting from the Republic
                                                         of Tadjikistan of cash currency, except for import or export by the National Bank of
                                                         Tadjikistan, commercial banks and institutions providing postal services;
                                                                  13) payment of insurance money or obtaining of insurance premium;
                                                                 14) entering, transfer of voluntary pension contributions to the accumulated
                                                         pension funds, and pension payments out of the accumulated pension funds at the
                                                         expense of voluntary pension contributions;
                                                                  15) obtaining or provision of property under financial lease;
                                                                16) provision of services, including contract, transportation, logistic, storage,
                                                         commission, trust management of property;
                                                                 17) purchase and sale and other transactions with precious metal, stones and
                                                         goods of the same;
                                                                   18) transaction with real estate and other property subject to obligatory state
                                                         registration;
                                                                  19) securities transactions.
                                                         3. Suspicious operations and transactions shall be subject to obligatory supervision
                                                         irrespective of the amount of such operation or transaction.
20 . Other non-        1. No requirements are in place
financial businesses
and professions &
Modern-secure
transaction
techniques

                                                                                     84
                              EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

 Recommendation          Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual           Overview of activities
                                    rating                               evaluation report (December 2008 through June 2011)                            undertaken or planned after
                                                                                                                                                       adopting of the fifth follow-up
                                                                                                                                                         report (June 2011 through
                                                                                                                                                             November 2011)




                        1. No requirements are in place          Law of the Republic of Tajikistan “On combating money laundering and
21. Special attention
                                                          financing of terrorism” dated March 25, 2011, No.684:
for    higher    risk
countries                                                      …Article 6. Transactions with monetary assets and other property subject to
                                                          mandatory control.
                                                                 ...6. Organizations carrying out transactions with monetary assets or other
                                                          property shall pay special attention to business relations and transactions with persons,
                                                          including companies and credit institutions, coming from the countries which fail to
                                                          apply or apply insufficiently international standards in the sphere of combating
                                                          legalization (laundering) of proceeds gained illegally or financing of terrorism. In all
                                                          cases when these transactions have no obvious economic or tangible legal purpose
                                                          reasonable measures available under the existing circumstances to study the grounds
                                                          for and the purpose of such transactions shall be taken. To record the obtained data in
                                                          writing, to keep them for the period of not less than five years as of the moment of
                                                          terminating relations with the client as well as to forward these data provided there is a
                                                          relevant inquiry by law enforcement agencies.


                                                          On May 20, 2011 “The Rules for carrying out deals and transactions with off-shore
                                                          entities” was approved by Decree of the Board of the National Bank of Tajikistan
                                                          No.93.

                                                                                      85
                            EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

 Recommendation        Summary of factors underlying       Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                                  rating                                evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                  adopting of the fifth follow-up
                                                                                                                                                    report (June 2011 through
                                                                                                                                                        November 2011)
                      1. There are no AML/CFT
24.         DNFBP—
                      requirements for DNFBPs and
regulation,
                      they are not subject to any
supervision     and
                      effective systems for monitoring
monitoring
                      and ensuring compliance with
                      such requirements.




                      1. No requirements are in place
25. Guidelines    &                                      To enhance anti-corruption activities, prevention of abuse of office and other
Feedback                                                 malpractices in the country’s banking system, the National Bank enhanced the direct
                                                         exchange line by placing the contact addresses of the responsible department on its
                                                         web-site (www.nbt.tj) to the attention of individuals and legal entities.
                                                                Law of the Republic of Tajikistan “On combating money laundering and
                                                         financing of terrorism” dated March 25, 2011, No.684:
                                                                …Article 8. Government regulatory and supervisory authorities in the sphere of
                                                         preventing and combating legalization (laundering) of proceeds gain illegally and
                                                         financing of terrorism.
                                                         …3. Competent regulatory and supervisory authorities should develop instructions, the
                                                         authorized body should ensure feedback to assist organizations carrying out
                                                         transactions with monetary assets or other property in appliance of the national
                                                         legislation standards in the sphere of combating legalization (laundering) of proceeds
                                                         gained illegally or financing of terrorism, in particular, in exposing suspicious
                                                         transactions and forwarding reports in this regard.

                                                                                    86
                        EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

 Recommendation    Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                              rating                               evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                  1. No requirements are in place         Law of the Republic of Tajikistan “On the National Bank of Tajikistan”
29. Supervisors
                                                          Article 47.
                                                           Pursuant to the Law on Anti-Money Laundering and Combating the Financing
                                                    of Terrorism, the National Bank of Tajikistan may have implemented all measures as
                                                    required and implementing related regulation and oversight of the credit organizations
                                                    operations.
                                                          Article 47. Inspection of operations of the credit organizations
                                                          The National Bank of Tajikistan maintains consolidated oversight of the credit
                                                    organizations based on the following procedures:
                                                    - reviews reports, documents, notes, explanations, evidences and information provided
                                                    by a credit organization according to the given Law;
                                                    - requires that the credit organizations and any subsidiary banks and affiliated
                                                    companies thereof provide and confirm any additional information, reports,
                                                    documents, notes, explanations and/or evidences in writing;
                                                    - requires that a credit organization provide information about financial position,
                                                    origin of funds, reputation about direct and indirect shareholders of a credit
                                                    organization and any person willing to acquire 10 or more percent of the credit
                                                    organization stock;
                                                    - inspects credit organizations, affiliated companies and subsidiary banks thereof,
                                                    appointing its employee (s) or persons.
                                                       The inspection covers review of a credit organization operations to identify its
                                                    financial position and compliance of the credit organization operations with the
                                                    requirements of the given Law, the Law of the Republic of Tajikistan “On Banking”
                                                    legal regulations of the National Bank of Tajikistan and internal policy of the credit
                                                    organization.
                                                                               87
                     EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                            adopting of the fifth follow-up
                                                                                                                                              report (June 2011 through
                                                                                                                                                  November 2011)
                                                   At once a year the National Bank of Tajikistan inspects all credit organizations,
                                                 except representative offices, subject to inspection at least once in two years.
                                                    The persons, appointed pursuant to the given article shall be hold liable for keeping
                                                 the information confidential. Managers, employees, representatives of a credit
                                                 organization or subsidiary bank or affiliated company thereof shall ensure the access
                                                 of the appointed persons to all offices, including storages, stockrooms, journals,
                                                 accounts, documents, records, including electronic files.
                                                   Any information, including that of banking secret, requested by the inspection group
                                                 shall be provided by the credit organization in a timely manner.
                                                   Managers of the credit organization shall assist as much as possible to the inspection
                                                 group.
                                                   National Bank of Tajikistan reports results of the inspection to the Supervisory
                                                 Board of the credit organization.
                                                   Procedures for the inspection, consolidation and presentation of results shall
                                                 comply with the legal regulations of the National Bank of Tajikistan.
                                                    Members of the Management Board, employees, representatives of the National
                                                 Bank of Tajikistan and any person appointed pursuant to the given Law for inspecting
                                                 a credit organization or engaged as a receiver, shall not be hold liable for the damage
                                                 caused by the performance of the obligations specified hereunder, if said performance
                                                 is in good will.
                                                   The National Bank of Tajikistan shall indemnify the above persons any costs as
                                                 were required to hold them harmless from any court suits, if said persons performed
                                                 hereunder in good will, unless the persons are convicted of an offence (The Law on
                                                 amendments and modifications of the Law of the Republic of Tajikistan “On the

                                                                            88
                     EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                            rating                                 evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 National Bank of Tajikistan” №548 of 5.08.09.)
                                                     It should be pointed out that the Resolution of the Board of the National Bank of
                                                 Tajikistan No.105 of April 19, 2010 approved the Rules of Fines Imposition on
                                                 Lending and Micro-financing Institutions by the National Bank of Tajikistan. These
                                                 Rules act on the basis of Article 48 Law of the Republic of Tajikistan on National
                                                 Bank of Tajikistan and stipulate the procedures of fines imposition. Appendix 4 to the
                                                 Rules is given below:


                                                  Penalty Amount for Violation of Laws and Other Regulatory Legal Acts of the
                                                                          National Bank of Tajikistan


                                                  #     Penalty           Ground
                                                        Amount
                                                  1     0.05 % penalty    Once in the last 12
                                                        of         the    months           for
                                                        minimum           violation of the
                                                        stipulated        regulatory    legal
                                                        capital           acts
                                                  2     1 % penalty of    Twice and more in
                                                        the minimum       the last 12 months
                                                        stipulated        for violation of the
                                                        capital           regulatory     legal
                                                                          acts


                                                                               89
                     EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)


                                                        Law of the Republic of Tajikistan “On combating money laundering and
                                                 financing of terrorism” dated March 25, 2011, No.684:
                                                        … Article 8. Government regulatory and supervisory authorities in the sphere of
                                                 preventing and combating legalization (laundering) of proceeds gain illegally and
                                                 financing of terrorism.
                                                         Government regulation and supervision in the sphere of preventing and
                                                 combating legalization (laundering) of proceeds gain illegally and financing of
                                                 terrorism shall be performed regarding the following:
                                                       1) credit institutions – by the National Bank of Tajikistan;
                                                         2) professional securities market participants, insurance agencies, organizations
                                                 involved in purchase and sell of precious metals, jewelry made of them and such
                                                 jewelry scrap, auditing companies and individual auditors, individual accountants,
                                                 pawnshops, organizations operating totalizer, bookmaker’s offices as well as holding
                                                 lotteries and other games where the organizer holds a raffle among the participants,
                                                 including in electronic form – by the Ministry of Finance of the Republic of
                                                 Tajikistan;
                                                        3) notaries public, attorneys, independent lawyers and other persons rendering
                                                 legal services – by the Ministry of Justice of the Republic of Tajikistan;
                                                        4) organizations rendering postal services (in terms of money transfer carried
                                                 out by them), - by the Ministry of Transport and Communications of the Republic of
                                                 Tajikistan;
                                                        5) commodities exchanges and other exchanges conducting financial
                                                 transactions with commodities – by the Ministry of Economic Development and
                                                                             90
                              EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

 Recommendation          Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                    rating                               evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                      adopting of the fifth follow-up
                                                                                                                                                        report (June 2011 through
                                                                                                                                                            November 2011)
                                                          Commerce of the Republic of Tajikistan;
                                                                 6) customs committee agencies controlling transfer of cash monetary assets and
                                                          negotiable instruments across the border of the Republic of Tajikistan, - the Customs
                                                          services under the Government of the Republic of Tajikistan;
                                                                  7) other entities of financial monitoring in respect of which there are no
                                                          government authorities determined to regulate their activities and supervise their
                                                          activities – by the authorized agency.
                                                                2. The procedure of forwarding information to the authorized agency by
                                                          organizations carrying out transactions with monetary assets or other property shall be
                                                          determined by the authorized agency.
                                                          On April 25, 2011, in accordance with order No.43 by the Ministry of Justice of the
                                                          Republic of Tajikistan with view to comply with the requirements of the Law of the
                                                          Republic of Tajikistan “On combating legalization (laundering) of Illegally Acquired
                                                          Monetary Assets and Financing of Terrorism” and to meet the requirements of the
                                                          article of the Law of the Republic of Tajikistan “On state notariat” to ensure a decisive
                                                          compliance with the requirements of the Law of the Republic of Tajikistan “On
                                                          AML/CFT” and to oblige notary public officers to immediately report information
                                                          concerning suspicious transactions defined be the law to the Ministry of Justice and
                                                          regional Departments of Justice.
                        1. The staff of law enforcement   At present the staff of law enforcement authorities and PGO are familiarized with
30.        Resources,
                        authorities and PGO is not        AML/CFT laws and investigate criminal offences involving ML and FT. In addition,
integrity,       and
                        specialized       in      ML/FT   the staff is trained in the International Financial Monitoring Training Center (IFMTC).
training
                        investigations/prosecutions.



                                                                                      91
                             EAG-VII                                                                            FR (2011) 3 rev.1/ANN.2

 Recommendation         Summary of factors underlying          Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                                   rating                                   evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                      adopting of the fifth follow-up
                                                                                                                                                        report (June 2011 through
                                                                                                                                                            November 2011)
                       1. Technical and financial
                       resources provided to some law
                       enforcement authorities and
                       PGO are not sufficient to fully
                       and effectively perform their
                       function.
                       3. It is questionable whether the
                       law enforcement and judicial
                       authorities      maintain      high
                       professional standards and their
                       staff is of a high integrity due to
                       a high level of corruption in
                       these sectors.
                       4. The staff of ASFCCC, MS,           ASFCCC staff is trained in IFMTC.
                       CSuG has not received adequate
                       and relevant training.


                       5. The assessment team was
                       unable to fully assess the
                       compliance with the essential
                       criteria 30.1, 30.2 and 30.3 with
                       respect to DSAOC and SNSC
                       due to the lack of provided data.


                       1.   There    are   no   statutory                                                                                             The      draft      of     the
31.   National   co-                                         Directive №23.4/6-25/10-1 of 13.02.2009 of the President of the republic of Tajikistan
                                                                                        92
                        EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

 Recommendation    Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                              rating                               evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
operation         prohibitions      to    sharing   has tasked all competent authorities “to focus on AML/CFT cooperation with other         Regulation            and
                  information by and between        relevant agencies.”                                                                      composition             of
                  agencies yet there is no
                  indication that the agencies
                                                    The Financial Monitoring Department and ministries and departments of the Republic       interdepartmental
                                                    of Tajikistan signed Cooperation Agreements in the field of anti-money laundering        commission           with
                  engage in any sharing of
                                                    and combating of the terrorist financing (the Ministry of Finance, the Customs and
                  information or coordination on                                                                                             engagement              of
                                                    Tax Committees).
                  operational issues.                                                                                                        representatives         of
                                                           Law of the Republic of Tajikistan “On combating money laundering and              responsible     ministries
                                                    financing of terrorism” dated March 25, 2011, No.684:
                                                                                                                                             and departments was
                                                         Article 14. Cooperation of the authorized agency with state bodies of the           prepared. The Chairman
                                                    Republic of Tajikistan                                                                   of the Board of the
                                                         2. State authorities of the Republic of Tajikistan, pursuing within their           National      Bank      of
                                                    competence control over compliance with legislation of the Republic of Tajikistan on     Tajikistan was proposed
                                                    combating money laundering and financing of terrorism, shall be obliged to:
                                                                                                                                             as     the    Head      of
                                                                                                                                             interdepartmental
                                                           1) provide information necessary to the authorized agency for financial           commission.
                                                    monitoring and combating money laundering and financing of terrorism, according to
                                                    the procedure specified by the authorized agency;
                                                          2) provide for respective regime of storage, protection and integrity of
                                                    information received during interaction with the authorized agency, and qualified as
                                                    company, commercial, bank or other secret protected by law;
                                                           3) provide for observance of rights and lawful interests of a person and a
                                                    citizen, legal entities and state while exercising control functions.



                                                                               93
                         EAG-VII                                                                                FR (2011) 3 rev.1/ANN.2

  Recommendation    Summary of factors underlying          Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                               rating                                   evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                  adopting of the fifth follow-up
                                                                                                                                                    report (June 2011 through
                                                                                                                                                        November 2011)
                                                                  2. State authorities of the Republic of Tajikistan shall be obliged to:
                                                                1) upon independent discovery, notify the authorized agency of suspicious
                                                         operations, connected with money laundering or financing of terrorism;
                                                              2) upon independent discovery, notify the authorized agency of violation of this
                                                         Law by organizations pursuing operations with monetary funds or other property;
                                                                  3) grant to the authorized agency access to own information systems and data
                                                         bases.
                                                         3. Provision of information to the authorized agency with regard to suspicious
                                                         operation shall not constitute breach of company, commercial, bank or other secret
                                                         protected by law.
                    2. Government officials did not
                   provide      any      information
                   concerning the existence of
                   mechanisms that are in place for
                   consultation between competent
                   authorities, the financial sector
                   or other sections (including
                   DNFBP        regarding     money
                   laundering       or       terrorist
                   financing).


                   1. Tajik authorities do not                  Law of the Republic of Tajikistan “On combating money laundering and
32. Statistics
                   review the effectiveness of their     financing of terrorism” dated March 25, 2011, No.684:
                   systems for combating ML and

                                                                                       94
                       EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                             rating                                  evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                               adopting of the fifth follow-up
                                                                                                                                                 report (June 2011 through
                                                                                                                                                     November 2011)
                 FT on a regular basis.                     …Article 13. Rights and responsibilities of the authorized agency
                                                            …2. The authorized agency shall:
                                                              1) take measures combating legalization (laundering) of proceeds gained
                                                      illegally and financing of terrorism;
                                                      2) provide relevant conditions for storage, protection and safety of information
                                                      obtained in the process of its activity, represented by operation, commercial, banking
                                                      or other secret protected by law;
                 2. DSAOC, SNCC and PGO
                 don’t maintain or failed to
                 provide to the assessment team
                 annual statistics on criminal
                 proceeds.
                 3. Whilst CSuG and CB dispose
                 of some statistics on cross border
                 transportation of currency, this
                 statistics is not comprehensive
                 and doesn’t contain all data
                 relevant for combating ML and
                 FT.




                                                                                 95
                           EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

 Recommendation       Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities
                                 rating                               evaluation report (December 2008 through June 2011)                         undertaken or planned after
                                                                                                                                                 adopting of the fifth follow-up
                                                                                                                                                   report (June 2011 through
                                                                                                                                                       November 2011)
                     1. Insufficient information was   Law of the Republic of Tajikistan “On Banking”
33. Legal persons–
                     provided to make a proper
beneficial owners                                      Article 9. Documents required for licensing
                     evaluation.
                                                       1. Before the state registration and receipt of a license, a credit organization shall
                                                       submit to the National Bank of Tajikistan an application, appropriate documents and
                                                       the following information in the state language to obtain a preliminary conclusion of
                                                       the National Bank of Tajikistan:
                                                       - a statement indicating the name, citizenship, permanent residence, occupation or
                                                       profession of the owner of controlling interest, including the ultimate beneficiary of
                                                       the controlling interest, confirming their financial position;
                                                       -list of shareholders and ultimate beneficial owners of the shares, including addresses
                                                       and number of shares.
                                                       - list of legal entities, where the owners of controlling interest, including ultimate
                                                       beneficiary owner of each controlling interest, have an interest.
                                                       Article 12. Establishment of a Branch of a foreign Bank
                                                       1. National Bank of Tajikistan may permit opening of a branch by a foreign bank for
                                                       banking operations.
                                                       2. An application for opening a branch of a bank shall be submitted to the National
                                                       Bank of Tajikistan in writing on the state languages attached with the following
                                                       documents:
                                                       -list of shareholders and ultimate beneficial owners of the shares of a foreign bank,
                                                       including addresses and number of shares, and a copy of a registration certificate of
                                                       the shareholders.


                                                                                  96
                             EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

 Recommendation         Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                   rating                               evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                     adopting of the fifth follow-up
                                                                                                                                                       report (June 2011 through
                                                                                                                                                           November 2011)
                                                         Article 26. Procedures for the acquisition of a controlling interest
                                                         1. Acquisition of a controlling interest in a credit organization required prior approval
                                                         of the National Bank of Tajikistan.
                                                         2. Any person acting directly or indirectly, via third persons or in cooperation
                                                         therewith, willing to acquire a controlling interest in a credit organization shall apply
                                                         in writing to the National Bank of Tajikistan.
                                                         3. An application for the acquisition of a controlling interest shall include:
                                                         - full names, citizenships, permanent addresses, work and professional records of each
                                                         individual willing to acquire a controlling interest, including the ultimate beneficiary
                                                         of said controlling interest;
                                                         - a statement confirming the ownership of each appropriate individual in said
                                                         controlling interest, including the ultimate beneficiary of the controlling interest.
                                                         4. National Bank of Tajikistan forecasts anticipated impacts on the stability of the
                                                         credit organization, which may arise with the change of the owner of the credit
                                                         organization, and compliance of candidates willing to acquire a controlling interest in
                                                         the credit organization, including the ultimate beneficiary of said controlling interest,
                                                         with the established requirements; within 60 days of receiving the application the
                                                         National Bank of Tajikistan issues a written conclusion to either accept or decline the
                                                         application. Each case of decline shall be appropriately substantiated.
                       1. Insufficient information was
37. Dual criminality
                       provided to make a proper
                       evaluation.



                                                                                      97
                          EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

 Recommendation      Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                 adopting of the fifth follow-up
                                                                                                                                                   report (June 2011 through
                                                                                                                                                       November 2011)
                   1. Insufficient information was
38.    MLA      on provided to make a proper Kishinev Convention on legal assistance and legal relations in civil, family and
                                                   criminal matters (Kishinev, October 7, 2002 )
confiscation   and evaluation.
freezing                                             Approved by the Resolution of Majalisi namoiandagan Majalisi Oli of the republic of
                                                     Tajikistan No. 1189 of October 1, 2004.
                                                     Article 6. Scope of legal assistance
                                                     Contracting Parties shall render mutual legal assistance through the procedural or any
                                                     other actions provided for in the laws of the requested Contracting Party, in particular,
                                                     through the completion, forwarding and delivery of documents to the addressee;
                                                     through the inspection, search, seizure, delivery of material evidence, examinations,
                                                     interrogation of parties, third parties, suspects, accused, complainants, witness, civil
                                                     plaintiffs, civil defendant, their representatives, legal representatives of the accused,
                                                     experts, submission for identification, including the use of video communication,
                                                     video records and other technical devices, search for wanted persons, investigative
                                                     measures within the frames of criminal investigations, criminal prosecution,
                                                     extradition of persons for criminal prosecution or sentence enforcement, for the
                                                     search and seizure of illegal moneys and assets and proceeds of illegal activities,
                                                     search of the assets and moneys belonging to the civil defendants for the enforcement
                                                     of civil judgments, resolutions on commercial and other business disputes,
                                                     acknowledgement and enforcement of executive endorsements, civil court awards and
                                                     sentences.
                                                     Contacting Parties may also render other mutual legal assistance in other forms and
                                                     types based on the exact circumstances, interests of justice and the society in general
                                                     and in compliance with the national laws of the Contracting Parties.
                                                     Article 104.Legal Assistance related to the Search, Seizure and Confiscation of
                                                     Property
                                                     1. Based on the national laws and provisions of the given Convention, Contracting
                                                                                 98
                     EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                             adopting of the fifth follow-up
                                                                                                                                               report (June 2011 through
                                                                                                                                                   November 2011)
                                                 Parties shall render mutual legal assistance related to the search, seizure and
                                                 confiscation of illegal property and values, as well as proceeds of illegal activities
                                                 belonging to the accused (defendants, convicted), indemnification of damage to the
                                                 parties affected by the offences (civil claimants), enforcement of the court sentences
                                                 on the recovery of fines and confiscation.
                                                  2. For this purpose, the agencies of justice of the Contracting Parties, based on the
                                                 requests for mutual legal assistance in criminal cases, according to the internal laws
                                                 perform all investigations and searches as required to find the illegal property, money,
                                                 values and proceeds, belonging to the accused (defendants, convicted).
                                                 Having identified said property, money, values and proceeds, the competent agencies
                                                 of justice of the Contracting Parties have appropriate measures implemented so as to
                                                 ensure integrity of said through the seizing for the prevention of any possible
                                                 operations with and confiscation thereof.
                                                 3. The competent institutions of justice of the Contracting Parties, having identified
                                                 illegal property, money and values in each respective jurisdiction, deliver them to the
                                                 competent institution of justice of the requesting Contracting Party for their attachment
                                                 to the dossier of the criminal case as material evidence and subsequent return to the
                                                 legal proprietors or for the indemnification of damage caused.
                                                 4. The competent institutions of justice of the requested Contracting Party, having
                                                 seized the money, values and property of the accused (defendant, convicted) and
                                                 illegal proceeds, ensure integrity thereof for further indemnification of the damage
                                                 caused by the offence and confiscation on the basis of the enacted sentence adopted by
                                                 the court of the requesting Contracting Party, in compliance with the regulations set
                                                 out in article 58 of the Convention.
                                                 5. The competent institutions of justice of the requested Contracting Party may
                                                 postpone delivery of illegal money, values, property and illegal proceeds belonging to
                                                                             99
                        EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

  Recommendation    Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                               rating                              evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                adopting of the fifth follow-up
                                                                                                                                                  report (June 2011 through
                                                                                                                                                      November 2011)
                                                    the accused (defendant, convicted) to the institutions of justice of the requesting
                                                    Contracting Party, if said is required for the purposes of criminal prosecution or
                                                    consideration of disputable rights of other (third) persons thereto.



                   1.Insufficient information was   Kishinev Convention on legal assistance and legal relations in civil, family and
39. Extradition
                   provided to make a proper        criminal matters (Kishinev, October 7, 2002 )
                   evaluation.
                                                    Approved by the Resolution of Majalisi namoiandagan Majalisi Oli of the republic of
                                                    Tajikistan No. 1189 of October 1, 2004.
                                                    Article 6. Scope of legal assistance
                                                    Contracting Parties shall render mutual legal assistance through the procedural or any
                                                    other actions provided for in the laws of the requested Contracting Party, in particular,
                                                    through the completion, forwarding and delivery of documents to the addressee;
                                                    through the inspection, search, seizure, delivery of material evidence, examinations,
                                                    interrogation of parties, third parties, suspects, accused, complainants, witness, civil
                                                    plaintiffs, civil defendant, their representatives, legal representatives of the accused,
                                                    experts, submission for identification, including the use of video communication,
                                                    video records and other technical devices, search for wanted persons, investigative
                                                    measures within the frames of criminal investigations, criminal prosecution,
                                                    extradition of persons for criminal prosecution or sentence enforcement, for the
                                                    search and seizure of illegal moneys and assets and proceeds of illegal activities,
                                                    search of the assets and moneys belonging to the civil defendants for the enforcement
                                                    of civil judgments, resolutions on commercial and other business disputes,
                                                    acknowledgement and enforcement of executive endorsements, civil court awards and
                                                    sentences.
                                                    Contacting Parties may also render other mutual legal assistance in other forms and
                                                                               100
                     EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                            adopting of the fifth follow-up
                                                                                                                                              report (June 2011 through
                                                                                                                                                  November 2011)
                                                 types based on the exact circumstances, interests of justice and the society in general
                                                 and in compliance with the national laws of the Contracting Parties.
                                                 Part II. EXTRADITION


                                                 article 66. Extrdition Obligations
                                                 1. Contracting Parties shall, based on the terms and conditions, set out in the
                                                 Convention, upon request extradite to each other the individuals occurring in their
                                                 territories for the criminal prosecution or enforcement of the sentence.
                                                 2. Extradition for the criminal prosecution shall be based on the acts which, according
                                                 to the national laws of the requested and requesting Contracting Parties is subject to a
                                                 criminal punishment and imprisonment for at least one year or more sever.
                                                 3. Extradition for the criminal prosecution shall be based on the acts which, according
                                                 to the national laws of the requested and requesting Contracting Parties is subject to a
                                                 criminal punishment and an offender, requested for the extradition, has been sentenced
                                                 for an imprisonment for at least six months or for a more sever punishment.
                                                 4. Requested and requesting Contracting Parties should not focus on the terminology
                                                 used to describe certain elements of crime, while making a decision if the act, towards
                                                 which extradition is being sought, subject to criminal punishment under the national
                                                 laws of the requested and requesting Contracting Parties.
                                                 Article 67. Request for Extradition
                                                 Article 68. Identification of location of an individual and his detention following
                                                 request for extradition


                                                                            101
                         EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

 Recommendation      Summary of factors underlying       Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                                rating                                evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                                adopting of the fifth follow-up
                                                                                                                                                  report (June 2011 through
                                                                                                                                                      November 2011)
                                                     Article 71. Timeframes for the consideration of the request for extradition
                                                     Article 82. Delivery of the extradited individual
                                                     …


                    1. There is no applicable        According to para. 3 and 4 of Instruction 147, foreign currencies may be transferred
SR.VI AML/CFT
                    requirement.                     and received without opening a bank account by individuals (their representatives)
requirements
                                                     against a personal identification document presented in the bank, payment transfer
for money/value
                                                     order or an application for the receipt of funds transferred. Orders for the transfer of
transfer services
                                                     foreign currency from the republic of Tajikistan and applications to receive foreign
                                                     currency transferred to the republic of Tajikistan shall include the following
                                                     information:
                                                     - full name, personal identification documents of a payment originator (type of
                                                     document, number, series, issuing body and issuing date), for the transfer of funds
                                                     from the republic of Tajikistan;
                                                     - full name, full residential address, personal identification document of the payment
                                                     recipient (type of document, number, series, issuing body and issuing date), for the
                                                     transfer of funds to the republic of Tajikistan;
                                                     - date and signature of the foreign currency payment originator or recipient.
                                                            Requirements for the identification of a client are specified in the Tax Code of
                                                     the republic of Tajikistan.
                                                           Governmental agencies and other persons, authorized to execute the operations
                                                     enumerated below (transactions, deals) with the physical and legal persons (with them
                                                     and for their interests) shall require that said persons submit confirmation of their

                                                                                 102
                         EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

  Recommendation    Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                               rating                                 evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                   adopting of the fifth follow-up
                                                                                                                                                     report (June 2011 through
                                                                                                                                                         November 2011)
                                                       taxpayer identification numbers and passports of citizens of the republic of Tajikistan
                                                       bearing appropriate stamp with the taxpayer identification number:
                                                               4) foreign trade operations, transfer of funds outside and within the republic of
                                                       Tajikistan, provision of credits and other funds by the banks and other financial
                                                       institutions, except credit and debit operations with the savings (deposit) accounts of
                                                       individuals, in compliance with article 76 of the Code, credit sales of goods (paid by
                                                       installments).
                                                       Currently electronic funds transfer is subject to the following regulations of the
                                                       National Bank of the republic of Tajikistan:
                                                       - Provision of September 29, 1999, Procedures for the Inter-Regional Electronic
                                                       Payments between the National Bank of Tajikistan and Branches thereof; ;
                                                       - Instruction № 112, Wire Funds Transfers in the Republic of Tajikistan;
                                                       - Instruction № 162, Procedures for the Transfer of Funds by Individuals without
                                                       Opening Foreign Currency Accounts


                   1. There is a requirement that
SR.VII Wire                                            Legal Regulations of the National Bank of Tajikistan:
                   complete originator information
transfer rules
                   must be obtained for all outgoing
                   wire transfers, but none of the
                   other criteria are satisfied        Instruction № 112, Wire Funds Transfers in the Republic of Tajikistan
                                                       8. Payment transfer documents shall comply with the standard requirements and shall
                                                       contain:
                                                       а) type of the payment transfer document;

                                                                                  103
                     EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual        Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                         undertaken or planned after
                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                             report (June 2011 through
                                                                                                                                                 November 2011)
                                                 b) number of the payment transfer document, date, month, year of issue. The date shall
                                                 be indicated in digits, month – in words and year – in digits. Month in the payment
                                                 transfer documents, generated by computes, may be indicated in digits;
                                                 c) name of the payer and the number of his bank account;
                                                 d) name of the bank (head office) of the payer and its account number;
                                                 e) name of the beneficiary and the number of his bank account;
                                                 f) name of the beneficiary bank, number of the bank receiving the payment;
                                                 g) purpose of the payment. Reference code may be included in addition to the purpose
                                                 indicated in words;
                                                 h) amount of payment in figures and words;
                                                 i) the first copy, which remains with the bank of the payer and the third copy (except
                                                 the checks), forwarded to the beneficiary bank shall bear the signatures of authorized
                                                 officials of the company and its stamp (complaint with the specimen hold be the
                                                 bank); this requirements is applicable to all documents, whether paper-based or
                                                 electronic.


                                                 Instruction № 162, Procedures for the Transfer of Funds by Individuals without
                                                 Opening Foreign Currency Accounts
                                                 5. Foreign currency may be transferred by individuals (or their representatives) from
                                                 the republic of Tajikistan against personal identification document, transfer order and
                                                 a taxpayer identification number submitted to the bank.
                                                 6. Foreign currency may be received by individuals (or their representatives) in the

                                                                           104
                     EAG-VII                                                                         FR (2011) 3 rev.1/ANN.2

Recommendation   Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                            rating                              evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                            adopting of the fifth follow-up
                                                                                                                                              report (June 2011 through
                                                                                                                                                  November 2011)
                                                 republic of Tajikistan against personal identification document and an application for
                                                 the receipt of funds.
                                                 7. Payment transfer requesting that the funds be transferred from the republic of
                                                 Tajikistan and an application for the receipt of foreign currency transferred to the
                                                 republic of Tajikistan shall contain the following data:
                                                 - full name, personal identification document of the payment originator (type of
                                                 document, number, series, issuing body and issuing date), for the transfer of funds
                                                 from the republic of Tajikistan;
                                                 - full name and full address, personal identification document of the payment recipient
                                                 (type of document, number, series, issuing body and issuing date), for the transfer of
                                                 funds to the republic of Tajikistan;
                                                 - amount and purpose of transferred (received) funds; in this case purpose of payment
                                                 shall be indicated by the individual in the payment transfer order. Bank shall leave the
                                                 graph for indicating the purpose of payment blank and require that clients fill them out
                                                 themselves;
                                                 - date and signature of the individual transferring or receiving foreign currency.
                                                 8. Where any documents are submitted failing to comply with the requirements of
                                                 para. 7, and also whenever the documents required hereunder are not provided, the
                                                 bank may not transfer (issue) foreign currency.
                                                 21. Where payments are transferred regularly from the republic of Tajikistan (at least
                                                 once a month, in the same bank or branch thereof) and the amount of transfer exceeds
                                                 USD 10 000 (ten thousand US dollars), the bank shall fill out a Dossier for Foreign
                                                 Currency Transfers without Opening a Foreign Currency Account (further referred to
                                                 as the “Dossier”).

                                                                            105
                           EAG-VII                                                                            FR (2011) 3 rev.1/ANN.2

 Recommendation        Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual          Overview of activities
                                  rating                                 evaluation report (December 2008 through June 2011)                           undertaken or planned after
                                                                                                                                                      adopting of the fifth follow-up
                                                                                                                                                        report (June 2011 through
                                                                                                                                                            November 2011)
                                                          The Dossier is opened to check validity of the purpose of the transactions completed
                                                          and to collect full information about the payment originator; the Dossier shall include
                                                          the number and date of opening.
                                                          The Dossier contains all documents submitted by the individuals.
                                                          The bank shall keep the documents submitted to the bank and the Dossier for at least
                                                          five years of the last date of foreign currency transfer.



                      1.        The authorities did not       According to the Law of the Republic of Tajikistan on State Registration of Legal
SR.VIII .Non-profit
                      review the adequacy of              Entities and Individual Entrepreneurs of May 19, 2009, state registration is based on
organizations
                      legislation related to the non-     the “single point of contact” principle, implementation of which is charged with the
                      profit organizations and can not    Tax Committee under the Government of the Republic of Tajikistan. Supervision of
                      obtain timely information on        noncommercial organizations is based on types of activities and is carried out by
                      the activities, size and other      various ministries and departments of the Republic of Tajikistan.
                      relevant features of their non-         The Republic of Tajikistan reviewed the legislation on noncommercial
                      profit sectors for the purpose of   organizations which entailed adoption of innovative legislation on noncommercial
                      identifying the NPOs that are at    organizations.
                      risk of being misused for TF.
                                                               Article 21 Law of the RT on Public Associations of July 27, 2010 binds
                                                          noncommercial organizations (NCO) with provision of the founders’ details upon
                                                          registration. According to Art. 17 of this Law, persons proved to be related to terrorist
                                                          organizations can not act as NCOs founding members.
                                                          Accounting legislation stipulates that all legal entities store the records for 5 years,
                                                          including NCOs.


                                                                                     106
                       EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                             rating                               evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                            adopting of the fifth follow-up
                                                                                                                                              report (June 2011 through
                                                                                                                                                  November 2011)
                  2. No periodic reassessment of
                 the new information on the
                 NPOs potential vulnerabilities to
                 terrorist activities has been
                 conducted.

                  3. The authorities did not adopt
                 any preventive measure nor
                 undertake outreach to the NPO
                 sector with a view to protecting
                 it from TF abuse.


                  4. No steps necessary to
                 promote                effective
                 supervision/monitoring of the
                 risky NPOs have been taken yet.


                  5. The authorities did not
                 provide     any      information
                 regarding    the    type    and
                 application of sanctions under
                 the Law on Charities.




                                                                             107
                       EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                             rating                                 evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                              adopting of the fifth follow-up
                                                                                                                                                report (June 2011 through
                                                                                                                                                    November 2011)
                  6. The legislation does not
                 require maintaining information
                 on the person who own, control
                 or directing activities of the
                 charitable organizations.


                  7. The legislation does not        The Law of the Republic of Tajikistan “Accounting Records”
                 require NPOs to maintain
                 financial records for a period of
                 at least five years.                      Article 18. Storage of Accounting Records
                                                           Companies shall keep initial accounting records, accounting registers and
                                                     accounting reports as required by the Law.
                                                            Working chart of accounts, other documents related to the accounting policy,
                                                     coding procedures, computerized data processing programs (including the dates for the
                                                     use thereof) shall be stored by a company for at least five years after they were used
                                                     for the last time to generate accounting reports.
                                                     Director and Chief Accountant of the company are responsible for arranging the
                                                     storage of accounting documents, accounting registers and accounting reports.

                 8. Lack of domestic co-
                 operation, co-ordination and
                 information sharing among
                 appropriate authorities that hold
                 relevant information on NPOs of
                 potential TF concern.

                                                                               108
                       EAG-VII                                                                        FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying      Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                             rating                               evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                            adopting of the fifth follow-up
                                                                                                                                              report (June 2011 through
                                                                                                                                                  November 2011)




                 9. No mechanisms have been
                 developed for the prompt
                 sharing of information among all
                 relevant competent authorities in
                 order to take appropriate action
                 when there is a suspicion that a
                 particular NPO is being used for
                 TF purposes.


                 10. The authorities did not
                 provide information as to
                 whether specific points of
                 contacts and procedures have
                 been identified to respond to
                 international    requests    for
                 information regarding particular
                 NPOs that are suspected of TF.




                                                                             109
                          EAG-VII                                                                          FR (2011) 3 rev.1/ANN.2

 Recommendation      Summary of factors underlying        Outline of activities aimed to correct the deficiencies after adopting of the mutual         Overview of activities
                                rating                                 evaluation report (December 2008 through June 2011)                          undertaken or planned after
                                                                                                                                                   adopting of the fifth follow-up
                                                                                                                                                     report (June 2011 through
                                                                                                                                                         November 2011)
                    1.    There     are   provisions
SR.IX Cash Border                                       According to the amendments and modification to NBRT Instruction №142,
                    concerning the monitoring of
Declaration    &                                        Procedures for Importing to and Exporting from the Republic of Tajikistan of the
                    physical            cross-border
Disclosure                                              National and Foreign Currency in Cash and Securities in the National and Foreign
                    transportation of foreign cash
                                                        Currency”, Tajikistan has enacted a declaration system applicable towards export and
                    currency, yet they don’t cover
                                                        import of the national currency in cash and securities with the threshold value of USD
                    domestic cash currency and
                                                        3.000 (equivalent). National currency in cash and securities in the national currency
                    domestic and foreign bearer
                                                        equivalent to USD 10,000 may be exported from the republic of Tajikistan against
                    negotiable instruments.
                                                        permission of the National Bank of Tajikistan. In addition, the customs service keeps
                                                        records of the imported and exported foreign currency in cash and securities, subject to
                                                        declaration, reporting consolidated data to the National Bank of Tajikistan every
                                                        month.
                     2. Collected information on the
                    amount of currency declared or
                    otherwise detected and the
                    identification data of the bearer
                    are not stored in electronic
                    format nor centralized, which in
                    practice unable the effective use
                    of     such    information     by
                    competent LEA, and in future
                    also by the FIU, as well as for
                    the purpose of international
                    cooperation.




                                                                                   110
                       EAG-VII                                                                           FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying         Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                             rating                                  evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                               adopting of the fifth follow-up
                                                                                                                                                 report (June 2011 through
                                                                                                                                                     November 2011)
                 3.        The          cross-border
                 transportation      of     illegally
                 obtained funds does not fall
                 within the definitions of ML and
                 FT under the relevant articles of
                 the Criminal Code.              The
                 legislation is not implemented in
                 practice since there were no ML
                 or FT investigations initiated by
                 CSuG, nor were the collected
                 data used by other LEA for the
                 above mentioned purpose.
                 4. Due to several legal and
                 practical impediments the CSuG
                 or other competent authorities
                 can not seize/confiscate currency
                 or bearer negotiable instruments
                 that are related to ML or FT. The
                 legislation is not implemented in
                 practice since there were no such
                 seizures/ confiscations.
                 5. Due to several legal and
                 practical impediments the CSuG
                 can not seize/freeze terrorist
                 funds or other assets of persons
                 designated by the UN in
                 accordance      with      UNSC
                                                                                111
                       EAG-VII                                                                       FR (2011) 3 rev.1/ANN.2

Recommendation    Summary of factors underlying     Outline of activities aimed to correct the deficiencies after adopting of the mutual       Overview of activities
                             rating                              evaluation report (December 2008 through June 2011)                        undertaken or planned after
                                                                                                                                           adopting of the fifth follow-up
                                                                                                                                             report (June 2011 through
                                                                                                                                                 November 2011)
                 Resolution    1267     and   its
                 successor resolutions.




                                                                            112
           EAG-VII                                                            FR (2011) 3 rev.1/ANN.2

                                                        2011
                                              Statistics (reports to FIU)

        Reporting bodies                                                                      Reports about
                                                                   Threshold transactions     international
                                               STR                                             remmitance
                                                                          report
                                                                                              (Banks/Post)
                                       ML              FT            ML             FT      ML           FT
Banks                                   2               1                    1728           -//-         -//-
Insurance companies                    -//-            -//-           -//-          -//-
Currency exchange                       3               1                     27
Professional    participants     of
                                       -//-            -//-                  353
securities market
Notaries                               -//-            -//-           -//-          -//-    -//-         -//-
Lawyers                                -//-            -//-           -//-          -//-
Accountants/auditors                   -//-            -//-           -//-          -//-
Companies       providing      trust
                                       -//-            -//-           -//-          -//-
services
Post                                   -//-            -//-           -//-          -//-    -//-         -//-
Others (to be filled)                  -//-            -//-           -//-          -//-    -//-         -//-




                                                         113
                          EAG-VII                                                     FR (2011) 3 rev.1/ANN.2



                                                                     2011
                                                            Answers from                             Other means of
                                       Requests from FIU
   Financial                                                   financial     Information from       revealing ML/FT
                                           to financial                                                                   Information sent to
 investigations    Request from law                         organizations        financial      offences (Investigation
                                        organizations for                                                                  law enforcement
checked out by    enforcement bodies                          related to       organizations       carried out by FIU,
                                            additional                                                                          bodies
      FIU                                                     additional    linked with ML/FT    information from law
                                          information
                                                             information                          enforcement bodies)


ML       FT        ML          FT        ML        FT       ML         FT    ML         FT         ML           FT         ML           FT




-//-     -//-      -//-        -//-            4                 3            -//-      -//-       -//-         -//-        -//-        -//-




                                                                     114
                         EAG-VII                                                                                            FR (2011) 3 rev.1/ANN.2



                                                                                             2011

Investigations carried out by law enforcement bodies                                         Proceedings                                                       Seizure and arrest of property


and based on their own    and based on information       Cases considered in
                                                                                                        Number of sentences
     information                   of FIU                       court                                                                                           ML                          FT
                                                               ML                 FT                    ML                         FT




                                                                                                                                                                   money (in




                                                                                                                                                                                             money (in
ML            FT




                                                                persons



                                                                                   persons




                                                                                                             persons




                                                                                                                                            persons




                                                                                                                                                                    Sum of




                                                                                                                                                                                              Sum of
                                                                                                                                                                     USD)




                                                                                                                                                                                               USD)
                                                       cases




                                                                          cases



                                                                                                cases




                                                                                                                           cases




                                                                                                                                                       cases




                                                                                                                                                                                    cases
                             ML             FT




131            1              -//-          -//-       134 134            1        1           100        114          1                1             100       3.785.729        -//-        -//-




                                                                                         115
                    EAG-VII                                                        FR (2011) 3 rev.1/ANN.2



                                                           2011

                                                                                                                 Official requests for
                    Requests for legal   Requests for     Other requests for any    FIU reports to foreign
                                                                                                             assistance sent or received
                       assistance         extradition           assistance               authorities
                                                                                                               by supervisory bodies
Information about
     requests
                     ML          FT      ML          FT                                                          ML             FT




      Sent                  5                 -//-                    1                      -//-                         2




    Received               10                 -//-                   -//-                     2                           3




                                                               116
EAG-VII                                       FR (2011) 3 rev.1/ANN.2

            2011                 Table 5

          Reports on cross-border movements
               of cash assets (Customs)


               ML                 TF


                -//-              -//-


                -//-              -//-


                -//-              -//-


                -//-              -//-


                -//-              -//-




                        117
EAG-VII                                     FR (2011) 3 rev.1/ANN.2



          2011                    Table 6

            Freezing of TF-related assets

           Number of
           persons and            Sums
             entities

                  6                -//-


                 -//-              -//-


                 -//-              -//-


                 -//-              -//-


                 -//-              -//-




                         118
                                        EAG-VII                                                                     FR (2011) 3 rev.1/ANN.2
                                                                                       2011
                                                                                                           Sanctions

          Supervisory bodies                        Inspections                              Fines (USD)                                         Ban on
                                                                                                                        Discharge of steering                Suspension of   Recall of
                                                                        Warnings                                                                  some
                                             On-site        At office              Individuals     Legal entities      persons (management)                     license       license
                                                                                                                                                activities
For banks       (National    bank       of
Tajikistan)
                                               38                         16                          94917$                    -//-               -//-           2             -//-

For insurance companies (Ministry of
Finance)
                                               14                 34      13          -//-              -//-                    -//-               -//-           5             -//-

For currency exchange ( National bank
of Tajikistan )
                                              398             -//-        88          680              2240                      5                 12             21             4

For professional participants of
securities market ( Ministry of Finance                       -//-        -//-        -//-              -//-                    -//-               -//-          -//-           -//-
)                                             -//-
For notaries (Ministry of Justice)             42             -//-        -//-        -//-              -//-                    -//-               -//-          -//-           -//-
For lawyers ( Ministry of Justice )           -//-            -//-        -//-        -//-              -//-                    -//-               -//-           2              2
For accountants/auditors ( Ministry of
Finance )
                                               11                 18      -//-        -//-              -//-                    -//-               -//-          -//-           -//-

For companies providing trust services
( National bank of Tajikistan )
                                              -//-            -//-        -//-        -//-              -//-                    -//-               -//-          -//-           -//-

For Post (Post Committee under the
Tajik Government)
                                              -//-            -//-        -//-        -//-              -//-                    -//-               -//-          -//-           -//-

For others (indicate an organisation)         -//-            -//-        -//-        -//-              -//-                    -//-               -//-          -//-           -//-




                                                                                        119

								
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