compliance expert, AML/CFT
MBA, ICA
Head of chapter in Uzbekistan of the Compliance and Business Ethics Association
Member of Qazaq independent directors
In a strategic push to enhance its position in the global economy, Uzbekistan is implementing a comprehensive overhaul of its financial architecture, with artificial intelligence at its core. The government’s initiative is designed to align the nation’s banking and regulatory frameworks with international standards, a critical step aimed at securing significant foreign direct investment and cementing its role as a stable economic hub in Central Asia. This technology-driven approach is a calculated response to the complexities of global finance and a clear signal of the country's commitment to transparency and long-term growth.
A Period of Structural Economic Reform
Since 2016, under the leadership of President Shavkat Mirziyoyev, Uzbekistan has been engaged in a period of ambitious economic liberalization. This has resulted in substantial growth within a financial sector comprising 35 commercial banks, with their total assets expanding to exceed $52.9 billion as of early 2024. The reforms have catalyzed a significant digital transformation across its population of 37.6 million. The e-commerce market surpassed $1 billion last year, and digital financial services are now utilized by a substantial portion of the country's 32.7 million internet users, the vast majority of whom access these services via smartphones. This rapid modernization is positioning Tashkent as an emerging center for financial technology in the region.
The country's deepening integration with the global economy, marked by a foreign trade turnover approaching $66 billion in 2024, necessitates a robust and transparent financial system. Tashkent has identified the diligent oversight of its growing digital transaction volume as a key priority to foster investor confidence and ensure sustainable economic development.
Navigating the Global Regulatory Landscape
For an economy of Uzbekistan's scale, with a GDP of $90.9 billion in 2023, effective navigation of the international regulatory environment is a strategic imperative. A primary focus is mitigating risks associated with illicit capital flows, a challenge inherent in a globally connected financial system. By enhancing its compliance infrastructure, Uzbekistan aims to ensure its economic channels are utilized exclusively for legitimate commerce.
This commitment extends to securing the integrity of its domestic financial systems, including the formalization and protection of traditional charitable contributions. Furthermore, as trade volumes expand, adherence to international compliance standards has become fundamental to maintaining and strengthening partnerships with key economic allies.
Recognizing the dual-use nature of digital assets, Uzbek authorities implemented a new regulatory framework in 2023. This framework mandates that all domestic digital asset platforms be licensed and adhere to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, including the reporting of large-value transactions. This balanced approach allows for innovation while ensuring robust regulatory oversight.
AI as a Cornerstone of Compliance
At the heart of Uzbekistan's strategy is the deployment of artificial intelligence within its financial compliance architecture. A majority of the country's leading banks are on track to integrate AI-powered systems by 2025 to enhance the monitoring of transactions and the detection of anomalous activity. These systems offer a significant increase in efficiency and accuracy over traditional methods.
AI algorithms are being utilized to identify sophisticated illicit financing patterns, such as layering and structuring, with a speed that allows for timely intervention. By automating routine monitoring tasks, these technologies enable compliance professionals to focus on higher-level strategic analysis and risk management. This synergy between human expertise and machine intelligence is strengthening the country’s overall financial defense mechanism.
Uzbekistan is drawing upon established international models for AI in finance, adapting best practices from global financial centers to its specific needs. The successful implementation of AI-driven compliance at major institutions like JSCB "Uzpromstroybank" (SQB) demonstrates a tangible commitment to adopting world-class standards, a development noted positively by its international correspondent banks.
Strengthening a Foundation for Growth
The results of these reforms are increasingly visible. A 2023 Financial Action Task Force (FATF) follow-up report affirmed that Uzbekistan has achieved a high degree of alignment with global standards, being rated as Compliant or Largely Compliant on 34 of the 40 FATF Recommendations. This measurable progress is critical for reducing the country's risk profile and enhancing its appeal to foreign investors.
To sustain this momentum, addressing the human capital requirements of a digitized economy remains a key priority. New university curricula and specialized professional training programs are being scaled up to develop domestic talent in data science and financial analytics. This is complemented by significant investments in technological infrastructure, as financial institutions migrate to more advanced, AI-capable platforms.
This focus on structural reform and transparency has been a cornerstone of the country's ability to attract $2.16 billion in foreign direct investment in 2025, providing a solid foundation for continued economic expansion.
A Forward-Looking Economic Vision
Uzbekistan’s adoption of AI is more than a technological upgrade; it is a central element of a forward-looking economic strategy. By reinforcing the stability and integrity of its banking sector, which manages assets exceeding $52.9 billion, the nation is building a durable and trusted economy. The clear objective is to position Uzbekistan as a premier destination for investment in Central Asia, distinguished by its commitment to international standards, technological innovation, and a stable regulatory environment.