The country’s banking system remains stable and sustainable. Commercial banks continue to operate as usual. The National Bank of Kyrgyzstan commented on the situation in connection with reports of termination of SWIFT transfers in dollars from September 2024 by Korean Kookmin Bank.
Commercial banks are currently working on risk diversification and are looking for opportunities to expand and establish new correspondent relations with banks in foreign countries.
«When considering applications for the establishment of correspondent relations, foreign banks conduct risk analysis and assessment, including compliance activities, accompanied by a study of reports and assessments of the financial measures development group to combat money laundering in the country. It should be noted that at the last plenary meeting of the Eurasian Group on Combating Money Laundering and Financing of Terrorism, held in December 2023, the Kyrgyz Republic demonstrated significant progress in eliminating technical compliance deficiencies, as a result of which its rating was raised from «partial compliance» to «significant compliance», the report was published on the website of the Eurasian Group,» the statement says.
The National Bank emphasizes: with the strengthening and expansion of economic sanctions by the United States and Western countries since the beginning of this year, there has been an enhanced verification regime for cross-border payments (as part of compliance control), which is accompanied by an increase in the time for reviewing and making payments.
Commercial banks have established enhanced control over all cross-border transactions of clients (via the SWIFT system).
Not only transaction participants (commercial banks, as well as senders and recipients of payments) are subject to control, but also goods / services, routes for the movement of goods / cargo, commodity nomenclature of foreign economic activity, which are determined in the process of studying and analyzing supporting documents.
Currently, according to commercial banks, correspondent relations have been established and maintained with more than 20 foreign banks.
National Bank of the Kyrgyz Republic
Recall, in October last year, a Korean bank — a correspondent of Kyrgyz banks — set restrictions on SWIFT transfers in U.S. dollars. In the summer of 2024, Kookmin Bank sent a notice to Kyrgyz banks on termination of SWIFT transfers in dollars from September.
Kookmin Bank is one of the four largest banks in South Korea by asset value as of the end of March 2014. It is also the largest among the world’s banks —it was in 60th place as of 2017.
- SWIFT is an international money transfer system that allows to transfer money between banks in different countries. The presence of a SWIFT code indicates the reliability of the bank and the security of transfers abroad for individuals and organizations.
