The Central Bank of the Republic of Uzbekistan took measures to prohibit payment organizations to carry out cross-border international transit operations

The Central Bank of the Republic of Uzbekistan took measures to prohibit payment organizations to carry out cross-border international transit operations

Starting from September 5, 2023 the Central Bank of the Republic of Uzbekistan takes measures to prohibit payment organizations to carry out cross-border international transit operations. This decision is aimed at protecting the financial system of Uzbekistan, in particular the fintech market, from risks in the international trade and financial system, and has a number of reasons:

- Uzbek payment organizations must have a license issued by the financial regulator of that country or economic region to provide financial services in international fintech markets (Russia, Kazakhstan, other CIS countries, Europe, etc.). This situation is also taken into account in the Law of the Republic of Uzbekistan "On Payments and Payment Systems", according to which payment organizations provide payment services in the territory of the Republic of Uzbekistan on the basis of the relevant license of the Central Bank. Payment organizations must obtain a license from the relevant authorities of the country where the beneficiary is registered to carry out payment services activities for services or goods performed by beneficiaries of a foreign country.

- Banks in Uzbekistan are required to comply with the requirements set by the Central Bank when obtaining a license to engage in foreign economic activities. These requirements are mainly related to personnel, infrastructure, internal regulations and capital adequacy. In turn, payment organizations are usually unable to meet such requirements. In particular, the inability to fully identify beneficiaries of foreign countries in accordance with the requirements of the legislation on combating money laundering, financing of terrorism and financing of proliferation of weapons of mass destruction creates risks for payment organizations and the banking and financial system of the country as a whole.

- Constant monitoring of sanctions lists formed by major international financial organizations and their changes, fulfillment of requirements to restrict financial transactions of sanctioned legal entities and individuals requires large-scale financial, technological and human resources, and inability of payment organizations to meet these requirements generates distrust in the banking and financial system of Uzbekistan as a whole.

Based on the above-mentioned, JSC "ANOR BANK" supports the measures taken by the Central Bank to protect the banking and financial system of Uzbekistan, its participants and population from risks that may arise as a result of foreign economic activities that have no legal basis.

At the same time, in order to protect non-cash settlement systems and their participants, the population of our republic and the banking and financial system from financial risks, commercial banks must strictly comply with the current legislation and regulatory requirements of the Central Bank, together with foreign partner banks in carrying out cross-border transactions must regularly implement measures to combat money laundering, financing of terrorism and financing of proliferation of weapons of mass destruction.

Shuningdek o`qing