Another 19 companies in Kyrgyzstan are being forcibly liquidated due to sanctions risks

In Kyrgyzstan, proceedings are being initiated for the compulsory liquidation of 19 more legal entities whose activities may pose heightened sanctions risks to the country. This decision was made by an interagency group at a meeting chaired by Bakyt Sydykov, the President’s Special Representative for Special Assignments.

In late June, the relevant government agencies compiled a list of approximately 40 companies whose activities could be linked to the risk of circumventing international sanctions. Following inspections, a decision was made to shut down 19 of them.

A corresponding request will be sent to the judicial authorities to initiate compulsory liquidation proceedings in accordance with the law. Inspections of the remaining companies are ongoing, and further measures will be determined based on their results.

At the same time, state-owned banks have stepped up their scrutiny of clients and their transactions. For example, “ABank” has terminated its cooperation with 35 companies, and approximately 40 more clients are currently under review. Thus, the two state-owned banks have severed business ties with a total of 144 companies.

The banks are paying particular attention to verifying the documents on which payments are based, identifying the ultimate recipients of goods and services, and determining the destination countries for shipments.

The National Bank is also continuing to improve its oversight of payment services. These measures are intended to increase the transparency of financial transactions and reduce the risk of restrictions being imposed on Kyrgyzstan’s financial system.