The draft law concerning this initiative is already open for public discussion.
The ministry emphasizes that the establishment of the joint-stock company will:
- prevent the legalization of criminal proceeds (money laundering) and the financing of terrorism (AML/CFT);
- regulate the operations of leasing companies, ensuring their financial stability, transparency, and compliance with prudential standards, as well as a high level of corporate governance.
“The joint-stock company will be required to adhere to corporate governance standards, disclose financial statements, and undergo independent audits,” the document states.
According to the Ministry of Economy, Kyrgyzstan, as a member of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) and fulfilling international obligations in accordance with FATF recommendations and UN Security Council resolutions, must comply with international regulatory standards.
“As a result of the mutual evaluation by the EAG, gaps were identified in preventing criminals from controlling financial institutions, as well as insufficient oversight of the activities of leasing companies,” the agency reported.
In light of the identified issues, the draft resolution includes the development of a methodology for calculating prudential norms for leasing companies, aimed at increasing their financial stability and protecting the interests of investors, creditors, and clients, as well as aligning regulation with current legislation.
It is also proposed to eliminate the requirement for an internal auditor. The ministry explains that transparency is ensured through mandatory external audits, and additional oversight is considered unnecessary.
It should be noted that leasing companies, unlike banks, cannot attract deposits from individuals and operate based on their own capital or funds from investors.
The Ministry of Economy is confident that the adoption of this document will create a stable regulatory framework for the development of the leasing market, help achieve a balance of interests between the state and business, and contribute to the development of the financial sector and the economy of Kyrgyzstan as a whole.
