In Kyrgyzstan, financial institutions moved quickly to suspend services for the Mir card network, a step taken to align with evolving international sanctions risk controls. Banks across the country reported that they would cease processing Mir cards in an effort to avoid exposure to secondary sanctions and to protect their customers and operations. This action was publicly communicated by the Interbank Processing Center, a central operator within Kyrgyzstan’s payment ecosystem, indicating a change in how card transactions would be handled in the near term. The shift reflects a broader tightening of payment networks that followed external policy developments affecting the Mir payments system.
On February 23, 2024, authorities at the United States Treasury, through the Office of Foreign Assets Control, announced sanctions targeting the operator of the Mir card system. The designation placed the card operator, JSC National Payment Card System, under enhanced scrutiny, prompting financial service providers in several regions to re-evaluate their relationships with Mir and associated entities. Market participants subsequently reviewed risk exposure and the operational implications of the sanction, aiming to minimize the possibility of disrupting broader payment services while staying compliant with applicable regulations and guidance from national authorities.
In response, the Interbank Transaction Center, referred to in Kyrgyzstan as CJSC MPC, which plays a guarantor role for the uninterrupted operation of the national payment system Elkart, issued a formal notice. The message stated that relations with JSC NSPK would terminate effective April 5, 2024. This decision underscored a deliberate move to restructure the payment network and reduce potential sanctions-related risk for domestic financial infrastructure. Institutions serving as gateways for card acceptance, cash withdrawal, and online payments began adjusting their workflows accordingly, communicating to merchants and customers the temporary limitations that would accompany the transition period. The net effect was a gradual shift away from reliance on the Mir platform within the Kyrgyz payments landscape.
From April 3, 2024, at 12:00 Bishkek time, the range of card services available on acquiring devices began to contract. Non-cash payments at point-of-sale terminals, cash withdrawals from ATMs using Mir cards, card-to-card transfers, and certain internet payment channels started to experience interruptions. Financial service providers and point-of-sale operators worked to implement alternative payment methods and routing options to preserve consumer access while compliance changes took effect. The sector emphasized clear communication with merchants and customers to minimize confusion and ensure continued service during the transition window. The operational reality shifted toward leveraging non-Mir card networks and domestic payment rails where feasible, aligning with the new risk posture and regulatory expectations.
In the broader regional context, neighboring financial institutions had taken parallel steps. For instance, a major Kazakh bank announced a halt to Mir card processing services as part of a coordinated regional precautionary measure. These developments illustrated the interconnected nature of cross-border card networks and the importance of maintaining robust risk governance when sanctions regimes expand or tighten. Observers noted that central banks and payment regulators in the region were actively monitoring liquidity, settlement finality, and consumer protection during these transitions. Government bodies continued to emphasize the need for transparent disclosure by financial entities about sanctions-related restrictions, while stakeholders balanced the imperative of compliance with the desire to maintain accessible, reliable payment services for the public.