Kyrgyzstan is frequently included on lists of ‘restricted’ jurisdictions for banks — Klearium CEO

Kyrgyzstan is often included on lists of ‘restricted’ jurisdictions for international banks, which makes it easier for financial institutions to stop doing business with the country than to undergo rigorous checks. This was stated by Klearium CEO David Kleiman at the Bishkek International Financial Forum (BIF).

According to him, the problem stems not so much from sanctions as from the risk-based approach of correspondent banks. Kleiman noted that many international banks assess risks at the country or bank level, without delving into the analysis of individual clients and transactions.

“The Kyrgyz Republic often appears on such lists — not as a prohibited jurisdiction, but as a restricted one,” he said.

Kleiman emphasised that heightened compliance requirements make working with certain markets too costly for banks. In his view, the situation can be changed through a transparent digital infrastructure and built-in compliance, which would allow the origin and nature of transactions to be verified.

He also stated that central bank digital currencies and modern payment systems will not be able to fully integrate into the global financial system without the trust of international partners.

The issue of correspondent accounts and restrictions on banks in developing countries is being discussed against the backdrop of tightening global requirements for financial monitoring and the fight against money laundering.