Central Bank of Uzbekistan adopted “On approval of regulation on measures and sanctions, applied by the Central Bank of Uzbekistan to commercial banks, credit unions, microcredit organizations and pawnshops for violation of legislation requirements on combating legalization of income, received from crime activity, and financing terrorism” on 29 December 2009.

The resolution was registered by the Ministry of Justice of Uzbekistan on 13 January 2010. The resolution will come into force on 23 January 2010.

In line with the regulation, Central Bank of Uzbekistan has right to direct instructions on eliminating violations and to fine the commercial banks in case of violation of legislation. The size of fine can be up to 1% of minimal size of commercial bank’s charter capital.

Central Bank has right to request change of head of commercial bank or its branch and employees responsible for internal control in case of rough or systematic (2 and more violations within a year) violations.

The document said Central Bank can also ban commercial banks to carry out some operations, envisaged in license of banking operations and license for carrying out hard currency operations, for up to a year. It also can withdraw licenses of commercial banks, which violated the legislation.

Credit unions, micro credit organizations and pawnshops will be also instructed to eliminate violations. Central Bank will fine credit unions and micro credit organizations up to 1% of minimal charter capital and pawnshops up to 50 size of minimal salary.

Central Bank has right to request change of head of the organization and employees responsible for internal control in case of rough or systematic (2 and more violations within a year) violations.

The regulation said Central Bank prohibit these organizations to carry out some operations, envisaged in their licenses for up to a year or withdraw their licenses.