Banking and Finance
Banking legislation in Uzbekistan is still in the development stage, it is therefore not rare when mandatory regulations or resolutions of the Central Bank of Uzbekistan are often applied even if not published or issued just as verbal instructions. In addition, some of the applied rules are developed and approved by the local banks in the process of their daily practice and which are applied as long as the Central Bank of Uzbekistan finds them acceptable. Banking sector in Uzbekistan is governed by a substantial number of statutory laws and legislative acts. Most of the regulations in the banking sector including those governing activities of commercial banks are issued by the Central Bank of Uzbekistan. There are following basic laws in Uzbekistan, which govern the banking and finance sector: the Law “On Central Bank of Uzbekistan”; the Law “On banks and banking activity”; the Law “On exchange regulation”; the Law “On Private Banking and Financial Institutions and Guaranties of Their Activity” and the Law “On electronic payments”.
The Uzbekistan legislation makes deference between regulation of the foreign currency and local currency (Uzbek Soums) circulation in Uzbekistan.
According to Uzbekistan Law “On Banks and Banking Activity”, accepting of deposits for further lending and investing thereof as well as transferring of monies is referred to the banking activity, which requires obtaining of the license for banking activity from the Central Bank of Uzbekistan.
Bank cards in Uzbekistan shall be issued only by the Uzbekistan Resident banks. It is provided that the Uzbekistan banks are entitled to enter into the foreign and international settlement organizations and payment systems.
According to Uzbekistan Law “On Foreign Currency”, all foreign currency transactions are divided into (i) current (everyday) international transactions, which shall be performed without limitations, and (ii) currency transactions involving movement of capital, most of which are subject to restrictions, approvals and permissions of the Central Bank of Uzbekistan.
Uzbekistan has jointed the two New York international treatments on prevention of money laundering. There is Uzbekistan Law “On the resistance to legalization of incomes received from criminal activity and financing of terrorism”.
Our law firm offers the following services in the sphere of Banking and Finance:
- advising private sector clients on a wide range of matters arising from the foreign lending and borrowing, project financing and introduction of new banking instruments;
- handling regulatory matters in the Central Bank of Uzbekistan, including registration and licensing of resident banks and obtaining of preliminary consents of above authority for merger and acquisition;
- representation corporate clients in front of banks in course of lending and project financing to help with anything from negotiations to assistance with confirmation of Condition and Subsequent Precedents;
- verifying of external borrowing contracts in respect to their correspondence to the mandatory regulations of the Uzbekistan legislation, including as regard to requirements of the Central Bank of Uzbekistan;
- registration of the currency transactions involving movement of capital with the Central Bank of Uzbekistan;
- consulting on various legal issues related to project financing and foreign currency international transactions.