Central Bank: there are no restrictions on international payment services in Uzbekistan
Tashkent, Uzbekistan (UzDaily.com) -- With regard to messages circulating on social networks regarding restrictions on cross-border money transfers for payment organizations, the Central Bank states the following:
The Central Bank declares that the payment organization BRIO GROUP LLC did not reflect the required information about the recipient and (or) the sender, and also did not take reasonable and possible measures to identify international money transfers of this type, in accordance with the requirements of paragraph 31¹ of the Internal Control Rules (No. 3266 of June 30, 2020).
In accordance with the Law “On Currency Regulation”, the opening of accounts abroad by resident legal entities and the disposal of foreign exchange funds on these accounts can be carried out within the framework of decisions of the President of the Republic of Uzbekistan or the Government.
However, in practice, the payment organization BRIO GROUP LLC (OSON) opened an account in a foreign bank and carried out transactions through this bank account contrary to the requirements of the above Law.
In accordance with Article 4 of the Law of the Republic of Uzbekistan "On Payments and Payment Systems", a payment organization is a legal entity engaged in the provision of payment services, which is not a bank. Also, payment organizations have the right to carry out payment services on the territory of the republic on the basis of a license from the Central Bank.
At the same time, payment services are a service provided by a payment provider (payment organization) to a user (client) of payment services, in which payment organizations are not directly involved as buyers or sellers of goods (services), and the service of delivering and receiving payments from them to foreign beneficiaries is not is a foreign trade operation for them.
In this regard, the practice classified by payment organizations as a foreign trade operation, which provides for the delivery of payments of their clients to the recipient abroad, the exchange of funds received for other currencies, as well as participation in operations as a cross-border and interstate transit organization, do not comply with the law.
In the Republic of Uzbekistan, there are no restrictions on international payment services, cross-border money transfers and payments to international online services, they can be made through the platforms of commercial banks.
The Central Bank of the Republic of Uzbekistan will continue to systematically monitor violations of the law in the activities of payment organizations and take the necessary measures to ensure the activities of payment organizations within the framework of the law.