Anti-Corruption - The Times Of Central Asia

Viewing results 1 - 6 of 31

Asset Recovery

Kazakhstan Ratifies European Legal Assistance Convention as Asset Recovery Push Expands

Kazakhstan has ratified the European Convention on Mutual Assistance in Criminal Matters, in a step that could strengthen a long-running effort to obtain evidence and pursue assets held across foreign jurisdictions. President Kassym-Jomart Tokayev signed the ratification law on October 6. The 1959 Council of Europe convention requires participating states to assist in criminal cases, including gathering evidence, transmitting records, serving judicial documents, and executing certain search and seizure requests. The Council of Europe’s Committee of Ministers invited Kazakhstan to join on June 18, 2025. Kazakh prosecutors have said accession would provide a common legal channel with European states where no bilateral agreement exists. Deputy Prosecutor General Galymzhan Koigeldiyev told lawmakers that Kazakhstan had been pursuing accession since 2001. Kazakhstan’s Kurultai approved the ratification law on September 23. Search and seizure requests can be carried out only when the conduct is an offense in both countries and is punishable under Kazakh law. The Supreme Court will handle requests concerning cases already before the courts, while the Prosecutor General’s Office will handle other requests. Under Council of Europe rules for non-member states, Kazakhstan must deposit its instrument of accession with the Council of Europe Secretary General. Accession then takes effect 90 days later. The effort to recover wealth from abroad predates Tokayev’s current campaign by many years. The clearest example is former BTA Bank chairman Mukhtar Ablyazov. After BTA was nationalized in 2009, the bank pursued him through the English courts in a sprawling series of asset recovery cases. The UK Supreme Court later recorded default judgments totaling about $4.6 billion amid allegations that Ablyazov concealed assets through a network of companies. In one of the English proceedings, Lord Justice Maurice Kay said: “It is difficult to imagine a party to commercial litigation who has acted with more cynicism, opportunism and deviousness towards court orders than Mr Ablyazov.” Ablyazov has denied the allegations and has long maintained that the cases against him are politically motivated. The litigation has spread across jurisdictions and family networks. BTA later pursued Ablyazov’s son-in-law, Ilyas Khrapunov, alleging he helped dissipate and conceal assets despite worldwide freezing orders. Khrapunov is the son of former Almaty mayor Viktor Khrapunov, who has also faced claims over allegedly misappropriated city property. The Times of Central Asia previously detailed how funds linked to the cases moved through shell companies and foreign property deals. Viktor Khrapunov has also rejected the accusations as politically motivated. Those disputes continued in the United States. In 2024, a New York jury awarded BTA Bank and the city of Almaty more than $32 million in litigation over money and property linked to the wider case. The need to pursue separate cases in Britain, Switzerland, the U.S., and elsewhere highlights a recurring problem: a Kazakh investigation or judgment does not automatically provide access to evidence or assets held overseas. Following the unrest of January 2022, Tokayev made asset recovery a more formal part of state policy. Kazakhstan adopted its asset recovery law in 2023, giving the Prosecutor General’s...

Anti-Corruption

Uzbekistan Creates Corruption Convicts Registry in Anti-Graft Overhaul

Uzbekistan has adopted sweeping amendments to its anti-corruption legislation, creating an electronic registry of people convicted of corruption offenses, expanding criminal liability, and imposing new restrictions on those found guilty. President Shavkat Mirziyoyev signed the law on June 22 as part of the government’s broader campaign to strengthen accountability and reduce corruption across the public sector. Officials say the reforms are intended to reinforce what the law describes as an “intolerant attitude toward corruption” throughout society. One of the most significant changes is the creation of an electronic register of individuals convicted of corruption-related crimes. The Ministry of Internal Affairs must enter a person’s details into the registry within three working days after a guilty verdict becomes legally binding. Their information will remain there for the duration of their criminal record. Those listed in the registry will face a series of restrictions. They will be barred from entering the civil service, receiving state awards, standing for elected office or certain appointed positions, serving on public advisory councils, and holding senior posts in state-owned enterprises or public educational institutions. Companies in which a convicted individual owns more than 50% of the shares will also be prohibited from participating in public procurement and public-private partnership projects. The amendments also expand criminal liability for corruption-related offenses. Harsher penalties now apply to crimes committed through abuse of official position, by organized groups, or using information technologies and computer systems. The law introduces tougher punishment for officials who deliberately fail to act for personal gain and strengthens penalties for procurement-related violations. Beyond criminal sanctions, the legislation requires state bodies and organizations to identify positions with a high risk of corruption, regularly assess corruption risks, and develop measures to reduce them. The Anti-Corruption Agency, working together with the Ministry of Justice, will oversee the methodology used for these assessments and maintain a nationwide corruption risk map based on crime statistics, enforcement practices, public opinion surveys, and other official data. The reforms also seek to encourage whistleblowing. Employees who report corruption within their own government institution cannot face disciplinary action for two years without prior notification to the Anti-Corruption Agency. The law also guarantees state incentives for whistleblowers, including one-time financial rewards, certificates of appreciation, commemorative gifts, or other forms of recognition permitted by law. In addition, employees responsible for compliance and internal anti-corruption controls in state institutions will receive enhanced legal protections, including special procedures governing searches, questioning, detention, and criminal investigations involving them. In May 2026, The Times of Central Asia reported that the government had introduced mandatory anti-corruption reviews for major investment projects worth at least $50 million. Under those rules, large public investments must undergo corruption risk assessments before moving forward, as authorities seek to strengthen oversight of public spending and major development initiatives.

Anti-Corruption

Uzbekistan Introduces Anti-Corruption Reviews for $50 Million Investment Projects

Uzbekistan has introduced mandatory anti-corruption reviews for major investment projects worth at least $50 million, as the government intensifies efforts to strengthen oversight of public spending and large-scale development initiatives. The new procedure was approved through an official instruction registered by the Ministry of Justice on May 8, according to the ministry’s Legal Information channel. Under the new rules, large investment projects involving at least $50 million in financing will be subject to anti-corruption examinations and assessments of their impact on market competition before they can move forward. The regulation applies to projects aimed at creating, expanding, or modernizing socially and economically significant infrastructure, services, and facilities. The reviews will be conducted by internal anti-corruption control units within state bodies and organizations. Officials said projects identified as carrying a high risk of corruption could receive a negative assessment regarding their feasibility and implementation. Authorities also stressed that projects will not be approved until all shortcomings identified during the examination process are fully addressed. The Times of Central Asia previously reported that Uzbekistan had opened criminal proceedings against senior officials in the Ministry of Internal Affairs following investigations into large-scale financial violations. At a government meeting on January 27, President Shavkat Mirziyoyev said investigators had uncovered 53 trillion Uzbekistani som (UZS), approximately $4.38 billion, in financial irregularities and misused funds nationwide. According to the president’s press secretary, 4.2 trillion som ($347.3 million) of the total was directly linked to corruption schemes. Authorities reported that 1.3 trillion som ($107.5 million) had already been recovered, while 55 individuals were arrested across the country in connection with corruption-related cases.

Pharmaceutical Business

Uzbek Agency Finds Systemic Failures in Dok-1 Max Case

Uzbekistan’s Anti-Corruption Agency has identified serious systemic shortcomings in the pharmaceutical sector following an analysis of court materials related to the Dok-1 Max case, according to a report reviewed by Gazeta.uz. The agency’s findings point to weaknesses in the processes for registering, certifying, and licensing medicines, where insufficient transparency and limited digitalization allowed a high degree of human discretion. This, in turn, created conditions for corruption risks to emerge. The case has already led to criminal convictions. On February 26, 2024, a Tashkent court sentenced several individuals to prison terms ranging from three to 20 years. Court documents indicate that during the registration of Dok-1 Max, a number of procedural violations occurred, including decisions that failed to meet established requirements. According to the agency, one of the key institutional problems lies in the structure and operation of the expert council under the Center for the Safety of Pharmaceutical Products, which operates within the Ministry of Health. The procedure for selecting council members and forming its composition was not defined in any legal document. Although the council consists of 17 members with independent voting rights, some simultaneously held senior positions within the same institution, creating a conflict of interest. The report cites the example of a department head who participated in the registration process for Dok-1 Max while also voting as a council member. Such overlap, the agency noted, undermined the independence of decision-making. Transparency issues were also highlighted. The council did not publish quarterly or annual reports, lists of members, or the outcomes of drug registration decisions on its official website. In addition, procedures for conducting inspections of pharmaceutical enterprises and disclosing their results were not clearly regulated, further contributing to corruption risks. The agency also found that inspection mechanisms were not aligned with international standards. A 2021 government resolution designated a single state enterprise as the sole body responsible for inspections, a structure the agency said contradicts recommendations by the World Health Organization and European regulatory bodies. Under international practice, such oversight is generally carried out directly by the Ministry of Health. In response to these findings, authorities have taken steps to reform the system. All processes related to the registration, certification, and licensing of pharmaceutical products have now been fully digitalized. In addition, registration certificates for at least 92 types of medicines have been revoked, and their production, import, and sale have been banned following re-evaluation. The agency recommended further measures, including transitioning all drug registration procedures to a fully online system, ensuring open access to information, increasing transparency in the expert council’s activities, and aligning inspection practices with international standards. The Dok-1 Max case has drawn international attention since late 2022, when reports emerged that children in Uzbekistan had died after consuming the cough syrup produced by India-based Marion Biotech. Initial reports cited 18 deaths in December 2022, followed by dozens more cases revealed in 2023. During the trial, prosecutors alleged that officials had accepted a $33,000 bribe to bypass proper testing procedures. The fallout has extended...

Warsaw Convention

Kazakhstan Looks Abroad in Push to Recover Illegal Assets

Kazakhstan has taken a first step toward joining the Warsaw Convention, a Council of Europe treaty that would make it easier for prosecutors to follow suspected criminal assets across borders. The move remains tentative, however. The draft ratification law appeared on the Open NPA portal on April 23 with public discussion scheduled until May 20, but was removed to an archive two days later after the developer withdrew it for a “press release correction.” For now, the measure remains procedural. Its purpose is more concrete: to give prosecutors a stronger route into foreign jurisdictions where disputed wealth may sit behind companies, property, bank accounts, trusts, or nominees. The Warsaw Convention - formally called the Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime and on the Financing of Terrorism - was opened for signature in Warsaw on May 16, 2005, and entered into force on May 1, 2008. Its purpose is practical. States that join it must maintain tools to identify criminal proceeds, freeze them, confiscate them, and cooperate with foreign authorities. For Kazakhstan, that framework would fit a campaign that has grown steadily since the unrest of January 2022. President Kassym-Jomart Tokayev has made the return of illegally acquired assets part of his wider domestic agenda, linking it to social justice, public finances, and the channeling of seized assets into public projects. A Campaign Moving Abroad Kazakhstan built the domestic legal base in 2023, when Tokayev signed the law on the return of illegally acquired assets to the state. This created procedures for identifying assets, negotiating voluntary returns, filing court claims, and managing property transferred to the state. It also applies to property located abroad when it was allegedly acquired with income illegally received in Kazakhstan. The system gained a sharper foreign component in January 2026, when a new Asset Recovery Service began work under the General Prosecutor’s Office. Its mandate includes representation in foreign courts, requests to freeze property, checks on asset origin, and direct cooperation with overseas authorities. Those tasks are exactly where domestic law alone often runs out of road. Assets rarely sit in one obvious place. They can be routed through companies, trusts, bank accounts, nominees, family members, or real estate in several countries. A Kazakh court order may be the start of a case, but it is far from the end of it. Foreign authorities usually need treaty channels, legal-assistance requests, and evidence that meets their own standards before they freeze or return property. Ratifying the Warsaw Convention would not solve those problems by itself, but it would give Kazakhstan another legal route for cooperation when cases cross borders. That could be important in corruption, money laundering, tax, organized crime, and terrorism-financing cases where property has moved through several jurisdictions. What the Convention Would Change The convention would add practical tools rather than automatic powers. It covers the tracing, freezing, seizure, and confiscation of criminal proceeds, and also applies to property used for financing terrorism, even when the...

Corruption

Uzbekistan Uncovers Large-Scale Corruption, Files Charges Against Senior Interior Officials

Uzbekistan has launched criminal proceedings against senior officials in the Ministry of Internal Affairs as part of a sweeping anti-corruption campaign that has exposed extensive financial violations across the country. At a government meeting on January 27, President Shavkat Mirziyoyev announced that investigations had uncovered 53 trillion Uzbekistani som ($4.38 billion) in financial irregularities and misappropriated funds. Of that, damage linked directly to corruption schemes totaled 4.2 trillion som ($347.3 million), according to a statement from the president’s press secretary. Authorities reported that 1.3 trillion som ($107.5 million) in damages has already been recovered, and 55 individuals have been arrested nationwide in connection with corruption-related activities. Among the highest-profile cases is one involving the Ministry of Internal Affairs. Criminal proceedings have been initiated against Deputy Interior Minister Bekmurod Abdullayev and Rustam Tursunov, head of the ministry’s Penitentiary Department. Investigators allege that 186 billion som ($15.38 million) in budget funds were embezzled through fraudulent state procurement schemes within the ministry. “Every single som of state money will be placed under strict and effective control. Responsibility is inevitable, and punishment will be severe,” Mirziyoyev said during the meeting. In addition to budget-related losses, audits also identified more than $8 billion in debt associated with foreign trade operations. Mirziyoyev described the findings as alarming and announced the introduction of internal compliance and anti-corruption systems across government bodies and state enterprises. He also addressed personnel management within law enforcement. Despite mandatory retirement ages, 55 for colonels and 60 for generals, over 300 officers exceeding these limits are reportedly still in leadership roles. By contrast, all top officials in the Ministry of Emergency Situations are currently under 50 years old. Mirziyoyev underscored the need to promote a new generation of professional and accountable young leaders while also harnessing the expertise of retired or soon-to-retire officers through mentorship and youth engagement programs. The meeting concluded with directives to conduct a critical review of officials responsible for oversight and security in state institutions. The initiative is part of a broader effort to strengthen financial discipline and governance throughout the public sector.