This draft law has already been presented for public discussion.
The ministry emphasizes that the establishment of the joint-stock company will provide the opportunity to:
- prevent the legalization of criminal proceeds and the financing of terrorism (AML/CFT);
- establish regulation for leasing companies, ensuring their financial stability, transparency, and compliance with prudential corporate governance standards.
“The joint-stock company will be required to adhere to corporate governance standards, publish financial reports, and undergo independent audits,” the document states.
According to the Ministry of Economy, Kyrgyzstan, as a member of the Eurasian Group on Combating the Legalization of Criminal Proceeds and Financing of Terrorism (EAG), as well as a participant in international agreements on FATF recommendations and UN Security Council resolutions, must strive to align its legislation with international standards.
“During the mutual evaluation, the EAG identified shortcomings in preventing criminals from controlling financial institutions, as well as insufficient oversight of leasing companies,” the ministry reports.
In this regard, the draft resolution provides for the development of a methodology for calculating prudential standards for leasing companies, which will enhance their financial stability, protect the rights of investors, creditors, and clients, as well as ensure compliance with current legislation.
It is also proposed to abolish the requirement for an internal auditor. The Ministry of Economy explains that the transparency of companies' activities will be ensured through mandatory external audits, making additional control redundant.
Furthermore, it is noted that leasing companies, unlike banks, are not allowed to accept deposits from individuals and operate based on their own capital or funds from investors.
The ministry is confident that the adoption of this document will create a solid regulatory framework for the development of the leasing market, ensure 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.
