The Kyrgyz financial regulator, Finndazor, together with the State Committee for National Security (GKNB), has launched an investigation into local banks, payment organisations, and their employees over possible involvement in processing deposits for foreign iGaming operators. The probe was announced by Finndazor chairman Kairat Mamatov during a broadcast on Birinchi radio.
Authorities Target Payment Channels
Mamatov explained that despite legal prohibitions, citizens in Kyrgyzstan continue to access and fund accounts on foreign online gaming platforms. He highlighted that players are able to make deposits through domestic banks and payment systems, often without needing VPNs. This has raised concerns about the effectiveness of internal controls within financial institutions, with particular scrutiny on IT departments that are supposed to monitor such transactions.
Focus on Bank and Payment Organisation Staff
The investigation aims to determine which companies, banks, or staff may be facilitating payments to overseas gaming sites. Mamatov noted the potential involvement of local intermediaries who could be providing technical or financial support for these transfers. Special attention is being given to payment terminals and organisations that might be handling funds for online casino users.
Implications for Industry Stakeholders
The development signals increased regulatory pressure on financial institutions and payment service providers operating in Kyrgyzstan. For operators and affiliates targeting Kyrgyz players, the crackdown could disrupt established payment channels and restrict access to the market. Regulators are also considering tighter controls on internet traffic, inspired by measures in other countries, to combat illegal gambling. However, authorities clarified that these efforts are focused solely on blocking illegal gambling sites and payment routes, not on limiting general internet access for citizens.
Key takeaways
- Kyrgyzstan is investigating banks and payment organisations over links to foreign iGaming operators.
- Authorities are concerned about weak internal controls and possible staff involvement.
- The crackdown could impact payment channels used by operators and affiliates.
- Regulators are considering stronger controls on both payments and internet traffic.