Participation of representatives of the NBT and domestic banks in the IMF Workshop

On April 18, 2018, representatives of the NBT and domestic credit institutions led by the First Deputy Chairman of the NBT, Jamoliddin Nuraliev, took part in the high-level seminar on "Gaps of correspondent banking relations (CBR) in Caucasus and Central Asia", initiated by the IMF, the World Bank in Washington (USA). Representatives of the banking system of such countries as Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan and representatives of world banks-correspondents, international financial institutions and regulatory bodies took part in the seminar.

The seminar was opened with a welcoming speech by Mr. Tao Zhang, Deputy Managing Director of the IMF, who called on the participants for an active dialogue.

The first session of the seminar spoke about the role of the international financial institutions (IFIs) in solving problems of the gap between the countries' correspondent relations. Mr.Rupert Thorne, Deputy Secretary General, Financial Stability Board, Mr.Ananthakrishnan Prasad, Deputy Head of Monetary and Capital Markets Department, IMF, Mr. Emile Van Der Does De Willebois, Leading Specialist of Financial Sector, the World Bank spoke on this issue and on the work done in this direction.

The work of the IFIs to promote international dialogue and support of official bodies of the countries was assessed in order to strengthen the framework of state policy to limit the risk of breaking correspondent banking relations (CBR) and eliminate adverse consequences. During the discussions, special attention was paid to the issues of strict compliance with AML/CFT legislation, including improving the skills of bank compliance controllers, compliance with international regulatory standards and recommendations of the FATF, strengthening of banking cooperation with foreign correspondent banks in order to establish correspondent relations as well as expanding the supervisory functions of regulators, ensuring transparency of banks and protecting information security.

Representatives of banking system of a number of countries took part in the discussion of this topic. In particular, the First Deputy Chairman of the National Bank of Tajikistan Jamoliddin Nuraliev has expressed his views on the IMF's capacity to strengthen dialogue in order to eliminate the problems in sphere of correspondent banking relations for the countries of the region, as well as the role of consulting companies in strengthening correspondent relations the IMF's ability to conduct in establishing a constructive regional dialogue for the development of economy and financial stability.

On their questions about the role of international financial institutions in resolving the problems of correspondent banking relations have received responds the First Deputy Chairman of OJSC Orienbank Shuhrat Ismatulloyev, Chairman of the First Microfinance Bank Yenten Giyamcho Lama. Representatives of the banking system of the Republic of Azerbaijan also took an active part in the discussion, who presented a number of valuable proposals. Director of Financial Monitoring Department Faizullo Fayzullozoda has made the detailed presentation on strengthening measures to counteract money laundering and combating terrorism financing.

The participants were also provided by presentation of Ms. Padamja Khandelwal, representative of the IMF Office in the Republic of Tajikistan on the topic "Gap of correspondent banking relations (CBR) in Caucasus and Central Asia".

The participants have discussed issues related to changes in the nature of correspondent banking relations, key factors, as well as the results of surveys on severance of correspondent banking relations, including the exchange of experience in relation to trends and problems of the CBR in the region.

In the second session of the meeting, the issue of decisions for the private sector was touched upon and a discussion took place between banks-respondents and correspondent banks on specific sectoral decisions that are necessary to improve customer identification, verification and exchange of information on clients and their beneficial owners. Potential consequences, implementation timeframes and obstacles to decision-making focused on the industry were discussed.

In the final part of the seminar, Dr. Jihad Al-Wazir, Director of Middle East and Central Asia Department of the IMF has addressed the meeting with key conclusions and concluding remarks. He thanked the participants for their active participation in the discussion of issues and noted that "work in sphere of correspondent banking relations will be continued and the issues discussed should be implemented in practice. It is necessary that each participant makes his contribution in this direction by fulfilling all the necessary conditions to achieve correspondent banking relations. For more detailed information on the issues discussed, a separate study will be conducted and main directions for the implementation of correspondent banking relations will be determined. "

It should be reminded that representatives of the NBT led by the First Deputy Chairman of the NBT Jamoliddin Nuraliev and representatives of a number of banks of the republic such as SSB RT Amonatbonk, OJSC Orienbonk, CJSC Spitamenbonk, OJSC Bank Eshata, CJSC First Microfinance Bank, OJSC Sohibkorbonk, OJSC Tojiksodirotbonk and LLC MDO Arvand.

Press Division of NBT