Anonymous Cash Top-Ups Could Be Banned as Kyrgyzstan’s National Bank Tightens Rules

Anonymous cash top-ups may soon become impossible in Kyrgyzstan. The National Bank has submitted draft changes for public discussion that would tighten rules for adding cash to bank accounts, cards and electronic wallets through payment terminals.

The proposal would remove these top-ups from the list of low-risk transactions that can currently be completed without identifying the customer. Before accepting cash, a payment organization would have to establish and verify the payer’s identity.

Possible methods include entering personal information, scanning an identity document, taking photographs or video, using NFC or biometric technology, presenting an identified payment instrument, or relying on Kyrgyzstan’s Unified Identification System. The submitted data would then be checked against state digital services.

The payer would also have to be screened against sanctions lists covering people and organizations linked to terrorism, extremism, the proliferation of weapons of mass destruction and money laundering. A match would require the organization to refuse the transaction.

Identification would not apply to every payment made through a terminal. The proposed low-risk list would continue to include utility bills, taxes, state fees and fines, internet and television services, loan repayments, government and municipal services, certain tickets and everyday household services. The National Bank says the changes would reduce the risk of electronic payment tools being used to finance crime or launder proceeds, while helping meet FATF standards on tracing money transfers. If adopted, the rules would take effect three months after official publication.