In the first phase of the program (2019-2020), FSVC achieved the following results:

• Development of Operational Manual for Financial Intelligence Unit (FIU) – The development of the operational manual and supporting templates has led to improvements in the FIU’s operational process.  The FIU is now able to obtain more feedback and statistics from reporting entities and use financial intelligence in a more effective and documented manner.
• Development of Suspicious Transactions Reporting (STR) Guidance – FSVC’s trainings on STR guidance resulted in the development of a framework for the FIU to fine tune the set of rules utilized by most banks in order to reduce the filing of STRs that have little or no value to law enforcement.  Additionally, FSVC updated the STR form used by the FIU to include a field-by-field description of what and how reporting entities should report suspicious transactions.  This updated form will help ensure that consistent and uniform information is provided by reporting entities.  As a result, it will increase the quality of information received in STRs thereby streamlining the analysis process conducted by the FIU.
• Increased Capacity in Audit and International Reserves Management Departments – As a result of FSVC’s trainings and consultations, the NBT’s Audit Department has gained the tools necessary to restructure their internal audit processes to mirror those practiced at other central banks.  Similarly, the International Reserves Management Department is better positioned to incorporate their newly created Middle Office and ensure that the department can maximize their foreign exchange operations.  This is especially important to Tajikistan’s financial stability, as the country’s economy is overwhelmingly reliant on remittances from Russia and the exchange of Russian Rubles to Tajik Somoni.

In the second phase of the program (2020-2022), FSVC’s program resulted in the following impact:

• IFRS 9 Methodology and Implementation – FSVC assisted the NBT in applying IFRS 9 accounting instruments and developing an IFRS 9 methodology for the bank, something which was mandated by the NBT Board of Directors in 2018.  The correct application of IFRS 9 is critical as it directly impacts the financial position of the NBT, which is assessed monthly by the International Monetary Fund (IMF) and the World Bank.  With a tailored methodology in place, the NBT is better positioned to receive fiscal financing needs.
• Internal Audit Capabilities – FSVC conducted the NBT’s first ever External Quality Assessment.  This created a benchmark against which to track future successes and laid the groundwork for ensuring that future operations meet international standards.
• Public Awareness – FSVC’s four public events for university-aged students raised financial awareness about the benefits of financial products and the institutions that make up the financial sector in Tajikistan, with the hope of sparking greater participation in the future.
• Reserve Requirements Averaging (RRA) Methodology – FSVC’s consultations with both the NBT and commercial banks on the introduction of an interbank liquidity mechanism have laid the foundation for the calculations for a new monetary policy tool that can increase the flexibility and responsiveness of the money supply in the economy to influence (lower) interest rates.
• Risk Frameworks – FSVC prepared investment guidelines and a trader mandate framework for the NBT.  FSVC also provided recommendations for credit analysis and counterparty risk management, and developed a strategic asset allocation for the NBT.  As a result of these actions, FSVC helped the NBT define its risk appetite more effectively and apply internal controls and authority limits for its security trading, in line with international standards.
• Stronger Skillset for Commercial Bankers and Microfinance Institution (MFIs) Staff – FSVC built the capacity of commercial bank and MFI staff along the whole chain of financial product conception, launch and management.  Specifically, FSVC strengthened commercial bankers’ and MFI staff’s capacity to research target markets effectively and understand the needs of potential customer segments.  Based on more informed findings, FSVC trained financial institution staff in developing innovative, accessible products that can increase access to credit in Tajikistan.  Following product launch, FSVC trained financial institutions in identifying risks and tracking their evolution over time.  Finally, FSVC taught financial institution staff how to manage risks by developing appropriate risk models.  In addition, by enhancing financial institutions KYC/CDD procedures and understanding of when and how to file effective STRs, FSVC has strengthened AML/CFT procedures.
• Stronger Inter-Agency Collaboration – FSVC conducted a workshop for law enforcement and the FIU on the roles and responsibilities of each stakeholder and their coordination during financial investigations.  This workshop resulted in a deeper understanding of the importance of both domestic and international cooperation in AML/CFT and anti-corruption.
• Updated STR Guidance – FSVC’s assistance in both refining STR guidance and helping the NBT to explain updated guidance to commercial banks has already resulted in the improvement of the quality of STRs received by the NBT, according to staff at the FIU. This will allow the FIU to be more effective in identifying serious cases of ML/TF.

In the third and final phase of the program (2022-2024), FSVC’s program resulted in the following impact:

• Increased Effectiveness of the Monetary Policy System – FSVC conducted follow-up consultations with high-level staff from various departments of the NBT on how to formulate and execute a more resilient monetary policy system in line with international standards. NBT leadership committed to implementing the new, FSVC-proposed RRA and liquidity forecasting mechanisms by 2025. FSVC also provided a draft methodology for financial risks management which will be used as a template to further develop NBT’s Financial Risk Methodology
• Strengthened Financial Risk Management – FSVC’s recommendations for improvement in NBT’s current approach to managing credit, liquidity, interest rates, foreign exchange, and commodity risks provide a roadmap to help them better stress test and manage risks in the Tajik economy, improving financial stability. FSVC developed an Excel tool for quantifying the NBT’s financial risks using real data from past financial statements, which will be used for future reporting to NBT management.
• Implementation of Macroprudential Tools – FSVC’s volunteer expert reviewed the NBT’s draft road map for implementing macroprudential tools for 2024-2027, aligning it with international best practices. Recommendations included early data collection from financial institutions, creating a credit registry, and developing joint regulations for Loan-to-Value and Debt-Service-to-Income issues.