Document as of November 25, 2013

No. 47 (599) — 47 — Article 623

DECISION OF THE BOARD OF THE CENTRAL BANK OF THE REPUBLIC OF UZBEKISTON AND THE DEPARTMENT FOR COMBATING TAX, CURRENCY CRIMES AND MONEY LAUNDERING UNDER THE ATTORNEY GENERAL OF THE REPUBLIC OF UZBEKISTON

623 On Approval of Internal Control Rules for Combating Money Laundering of Income from Criminal Activities and Financing of Terrorism in Commercial Banks

Registered by the Ministry of Justice of the Republic of Uzbekistan on November 21, 2013, Registration No. 2528

In accordance with the Laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1995, No. 12, Article 247), "On Banks and Banking Activity" (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1996, No. 5-6, Article 54), and "On Combating Money Laundering of Income from Criminal Activities and Financing of Terrorism" (Collection of Legislation of the Republic of Uzbekistan, 2004, No. 43, Article 451), the Board of the Central Bank of the Republic of Uzbekistan and the Department for Combating Tax, Currency Crimes and Money Laundering under the Attorney General of the Republic of Uzbekistan decide:

1. Approve the Internal Control Rules for Combating Money Laundering of Income from Criminal Activities and Financing of Terrorism in Commercial Banks in accordance with the Appendix.

2. Consider the following to have lost their force:

   The Decision No. 23/6 and No. 32 of October 13, 2009 of the Board of the Central Bank of the Republic of Uzbekistan and the Department for Combating Tax, Currency Crimes and Money Laundering under the Attorney General of the Republic of Uzbekistan "On Approval of Internal Control Rules for Combating Money Laundering of Income from Criminal Activities and Financing of Terrorism in Commercial Banks" (Registration No. 2023, October 23, 2009) (Collection of Legislation of the Republic of Uzbekistan, 2009, No. 44, Article 472);

   The Decision No. 39/3 and No. 3 of December 29, 2009 of the Board of the Central Bank of the Republic of Uzbekistan and the Department for Combating Tax, Currency Crimes and Money Laundering under the Attorney General of the Republic of Uzbekistan "On Amendments and Additions to the Internal Control Rules for Combating Money Laundering of Income from Criminal Activities and Financing of Terrorism in Commercial Banks" (Registration No. 2023-1, February 2, 2010) (Collection of Legislation of the Republic of Uzbekistan, 2010, No. 5, Article 42);

   The Decision No. 34/17 of October 23, 2010 and No. 29 of November 2, 2010 of the Board of the Central Bank of the Republic of Uzbekistan and the Department for Combating Tax, Currency Crimes and Money Laundering under the Attorney General of the Republic of Uzbekistan "On Amendments and Additions to the Internal Control Rules for Combating Money Laundering of Income from Criminal Activities and Financing of Terrorism in Commercial Banks" (Registration No. 2023-2, November 19, 2010) (Collection of Legislation of the Republic of Uzbekistan, 2010, No. 47, Article 433).

3. This decision enters into force from the date of its official publication.

Chairman of the Central Bank

F. MULLAJONOV

Tashkent city,
October 2, 2013,
No. 328-B

Acting Head of the Department for Combating Tax, Currency Crimes and Money Laundering under the Attorney General

B. ZILYAEV

Tashkent city,
October 2, 2013,
No. 20

Collection of Legislation of the Republic of Uzbekistan, 2013.
WWW.LEX.UZ

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Document as of November 25, 2013

No. 47 (599) — 49 — Article 623

APPENDIX
to the Decision of the Board of the Central Bank of the Republic of Uzbekistan and the Department for Combating Tax, Currency Crimes and Money Laundering under the Attorney General dated October 2, 2013, No. 328-B, No. 20

INTERNAL CONTROL RULES FOR COMBATING MONEY LAUNDERING OF INCOME FROM CRIMINAL ACTIVITIES AND FINANCING OF TERRORISM IN COMMERCIAL BANKS

These Rules establish the procedure for organizing and implementing internal control in commercial banks for the purpose of combating money laundering of income from criminal activities and financing of terrorism, in accordance with the Laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1995, No. 12, Article 247), "On Banks and Banking Activity" (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1996, No. 5-6, Article 54), "On Bank Secrecy" (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 2003, No. 9-10, Article 144), and "On Combating Money Laundering of Income from Criminal Activities and Financing of Terrorism" (Collection of Legislation of the Republic of Uzbekistan, 2004, No. 43, Article 451).

Chapter I. General Provisions

1. The following basic concepts are used in these Rules:

   • commercial bank — a bank that is a resident of the Republic of Uzbekistan and has a license for the relevant type of activity;

   • internal control — activity related to the detection of operations that a commercial bank is required to report to the special authorized state body;

   • Internal Control Service — a special subdivision of a commercial bank responsible for implementing internal control;

   • responsible employee — a person responsible for the implementation of internal control in a branch of a commercial bank;

   • employees of the Internal Control Service — employees of the Internal Control Service at the head office of a commercial bank responsible for implementing internal control, the responsible employee at a branch of a commercial bank, or the head and employees of the Internal Control Service;

   • internal control system of a commercial bank — a characteristic direction of activity of the Internal Control Service aimed at achieving goals and performing tasks established by these Rules and internal documents, implemented in cooperation with other subdivisions of the commercial bank;

   • internal documents — documents regulating the activity of a commercial bank and approved by its management in accordance with legislation;

   • internal rules — an internal document establishing the procedure for organizing and implementing internal control in a commercial bank and its branches;

   • special authorized state body — the Directorate for Combating Money Laundering and Financing of Terrorism under the Department for Combating Tax, Currency Crimes and Money Laundering under the Attorney General of the Republic of Uzbekistan (hereinafter referred to in the text as the Department);

   • customer — a physical or legal person who has applied to a commercial bank with an order (application, request) regarding the execution of an operation involving monetary funds or other property (hereinafter referred to in the text as an operation);

   • beneficial owner of a customer — in the case of a legal person, the owner of the customer or the person controlling the customer, i.e., one or several persons who have property or control rights over the customer and (or) other legal persons benefiting from the operation being executed;

   • participants of an operation — customers, their representatives, and partners of the customer participating in the operation;

   • suspicious operation — an operation during the implementation of these Rules that raises suspicion in a commercial bank regarding its execution for the purpose of money laundering of income from criminal activities and (or) financing of terrorism, until a decision is made to include (or not include) it in the category of suspicious operations;

   • suspicious operation — an operation that is being prepared, committed, or has been committed, during the implementation of which a suspicion arises in a commercial bank that it is being executed for the purpose of money laundering of income from criminal activities and (or) financing of terrorism;

   • operations to be reported — operations identified on the basis of a complex analysis using the criteria and signs of suspiciousness established by these Rules, which must be reported to the Department;

   • one-time operations — operations executed on a one-time basis by customers without opening a bank account, not repeated for at least one month;

   • regularly executed operations — operations executed regularly by customers during the period under analysis;

   • period under analysis — the period during which a commercial bank analyzes a customer's operations in the next inspection stage, which may last from several days to several months depending on the type of operation performed by the customer;

   • adequate verification of a customer — conducting regular studies for the purpose of identifying the beneficial owner of a customer by checking the identity and powers of the customer and the persons on whose behalf the business is conducted, studying the property and management structure based on constituent documents, as well as checking the practical business relations and operations carried out by the customer for their consistency with information about such a customer and their activity;

   • customer identification — clarification of information about customers by a commercial bank on the basis of documents provided by them for the purpose of adequate verification of the customer;

   • identification of the beneficial owner of a customer — identification of the owner or the person controlling a legal person customer by a commercial bank through studying the property and management structure based on constituent documents (charter and (or) founding agreement, statute) established by legislation;

   • countries not participating in international cooperation in the field of combating money laundering of income from criminal activities and financing of terrorism — countries and territories designated in official statements of the Financial Action Task Force as having strategic deficiencies in their systems for combating money laundering of income from criminal activities and financing of terrorism and posing a threat to the international financial system;

   • offshore zone — countries and territories that provide a preferential tax regime and (or) provide for non-disclosure and non-provision of information about financial operations;

   • bodies participating in combating money laundering of income from criminal activities and financing of terrorism — law enforcement, supervisory, licensing, registration, and other state bodies that have functions of monitoring and controlling the activities of organizations executing operations;

   • risk — the risk of customers executing operations for the purpose of money laundering of income from criminal activities and financing of terrorism;

   • remote services — banking services for conducting operations using programs that allow a customer to execute an operation without visiting a commercial bank.

2. The purpose of the internal control system of commercial banks is:

   • effective detection and prevention of operations aimed at money laundering of income from criminal activities and financing of terrorism;

   • preventing the involvement of a commercial bank in criminal activities, whether intentional or unintentional, the entry of capital obtained as a result of criminal activities into its charter capital (capital), and the entry of criminal persons into the management of a commercial bank;

   • ensuring strict compliance with the requirements of legislative acts on combating money laundering of income from criminal activities and financing of terrorism.

3. The main tasks of the internal control system of commercial banks:

   • taking appropriate measures to identify, assess, monitor, manage, reduce, and document risks;

   • implementing measures for adequate verification of customers in accordance with legislative acts, these Rules, and internal documents;

   • identifying and studying beneficial owners of customers, as well as implementing reasonable and actionable measures to identify the source of monetary funds or other property used in executing an operation;

   • identifying suspicious and dubious operations based on criteria established by these Rules and internal documents;

   • timely submission of information (documents) about suspicious operations identified during the implementation of internal control to the Department;

   • suspending operations that must be reported, except for operations involving crediting monetary funds to the account of a legal or physical person, for three working days from the date on which such an operation must be executed, and notifying the Department of such an operation on the day the operation is suspended;

   • ensuring the confidentiality of information related to combating money laundering of income from criminal activities and financing of terrorism;

   • ensuring the storage of information about operations, as well as identification information and materials on adequate verification of customers, for the periods established by legislative acts;

   • providing the management of a commercial bank with accurate information and materials necessary for making relevant decisions on an operational and regular basis;

   • forming a database of information about suspicious operations executed or attempted, and persons related to customers who executed suspicious operations (managers, founders, shareholders holding ten percent or more of the company's shares, participants), as well as exchanging such information with other commercial banks and state bodies in accordance with legislative acts;

   • studying the internal control systems of other banks in the republic and abroad when establishing correspondent relationships;

   • taking necessary measures to prevent illegal acts, in particular the threat of using commercial bank services for money laundering of income from criminal activities and (or) financing of terrorism, by focusing on new technologies that increase the anonymity of operations;

   • identifying persons related to terrorist financing activities from the customer database upon request.

4. To achieve the goals and tasks of the internal control system, the Internal Control Service performs the following functions:

   • taking measures provided for in legislative acts, these Rules, and internal documents to prevent the risk of committing offenses, including the use of commercial bank services for money laundering of income from criminal activities and (or) financing of terrorism;

   • preparing and submitting proposals to management for eliminating deficiencies and violations identified regarding non-compliance with the requirements of legislative acts and internal documents on combating money laundering of income from criminal activities and financing of terrorism;

   • monitoring the elimination of errors and deficiencies in organizing the internal control system and its activity identified during inspections conducted by authorized representatives of the Central Bank of the Republic of Uzbekistan (hereinafter referred to in the text as the Central Bank), employees of the internal audit service of a commercial bank, external auditors, and employees of the Department;

   • cooperating with the Central Bank and the Department on issues of organizing internal control, preventing and eliminating violations of legislative acts, these Rules, and internal documents by employees.

5. Each commercial bank must develop, approve at the bank's board, and implement a regulation defining the duties, rights, and responsibilities of the Internal Control Service based on legislative acts and these Rules.

This regulation must reflect the following information about the Internal Control Service:

• its goals and tasks;

• methods ensuring its independence from other subdivisions of the commercial bank;

• its relationship with other subdivisions of the commercial bank, the internal audit service, as well as foreign subsidiary banks, branches, and representative offices;

• its right to receive information necessary for performing its functions, as well as the obligation of employees of other subdivisions of the commercial bank and foreign subsidiary banks, branches, and representative offices to cooperate on issues of providing such information;

• the right to conduct studies of violations of legislative acts and internal documents;

• its right to freely express and disclose obtained information to the Chairman of the Board of the commercial bank and, if necessary, to the board of the commercial bank;

• the obligation to submit relevant reports to the Chairman of the Board of the commercial bank;

• the obligation to provide advice to the Board of the commercial bank on issues of compliance with legislative acts and international standards, including notifying about changes in this field;

• requirements and procedures for selecting employees;

• the obligation to regularly attend special courses for advanced training.

6. Commercial banks must develop internal rules reflecting the following, based on the requirements of these Rules:

   • the procedure for taking appropriate measures to identify, assess, monitor, manage, reduce, and document risks;

   • rules for adequate verification of customers, including identification of customers and their beneficial owners, as well as conducting constant monitoring of customer operations;

   • the procedure for formalizing necessary information and ensuring its confidentiality;

   • the procedure for submitting information about evidence of violations of legislative acts by employees of the Internal Control Service to the Head of the Internal Control Service at the head office of the commercial bank (hereinafter referred to in the text as the Head of the Internal Control Service);

   • qualification requirements for personnel training and education;

   • criteria for identifying suspicious operations and their signs;

   • the procedure for accounting for and monitoring customers included in the category of high risk, as well as monitoring operations of such customers;

   • measures aimed at preventing the use of technological achievements for money laundering of income from criminal activities and (or) financing of terrorism;

   • measures taken in cases where monetary transfers in foreign currency are identified without the required information about the recipient and (or) sender;

   • the relationship between the Internal Control Service and other subdivisions of the commercial bank, the internal audit service, as well as foreign subsidiary banks, branches, and representative offices, and cooperation on issues of providing information to the Internal Control Service and the obligations of employees of other subdivisions of the commercial bank and foreign subsidiary banks, branches, and representative offices;

   • other rules not contradicting legislative acts.

Internal rules must comply with the requirements of these Rules and be drawn up based on identified risks and their assessment. Internal rules, amendments, and additions to them are approved by the board of the commercial bank.

Internal rules are mandatory for execution by all subdivisions of the commercial bank and foreign subsidiary banks, branches, and representative offices.

Chapter II. Organization of the Internal Control System

7. The internal control system of a commercial bank is organized taking into account the aspects of banking activity, main directions of activity, the customer base, and the level of risk associated with customers and their operations.

8. The structural composition of the internal control system of a commercial bank, including its branches, is determined by the decision of the Board of the commercial bank. The structural composition of the internal control system of a commercial bank must be reviewed taking into account identified risks and their assessment and in accordance with the requirements of the Central Bank.

9. The structural composition of the internal control system of a commercial bank includes the Internal Control Service of the head office of the commercial bank, as well as the Internal Control Service or a responsible employee in each branch of the commercial bank.

In the case where a commercial bank has a foreign subsidiary bank, branch, and representative office, the subdivision responsible for implementing internal control in the foreign subsidiary bank, branch, and representative office is accountable to the Internal Control Service of the head office of the commercial bank.

10. The Internal Control Service is formed with a sufficient number of employees to effectively achieve internal control goals and efficiently perform tasks.

The number of employees of the Internal Control Service must be formed taking into account risks.

The staff unit of the Internal Control Service at the head office of commercial banks with 50 or more branches must not be less than 10.

11. The head and employees of the Internal Control Service are appointed and dismissed from their positions by the order of the Chairman of the Board of the commercial bank. They are included in the staff unit of the head office of the commercial bank, and their salaries and payments equivalent to salary are made from the expenses of the head office of the commercial bank.

The head of the Internal Control Service must have higher economic or legal education and at least two years of management experience in a subdivision of a commercial bank related to the execution of banking operations, or at least one year of work experience in the Internal Control Service.

A person appointed to the position of head or employee of the Internal Control Service must:

• know banking and financial legislative acts;
• know international standards for combating money laundering of income from criminal activities and financing of terrorism;
• have knowledge of accounting rules and must regularly attend special training courses for advanced training.

12. The following persons cannot be appointed to the position of head or employee of the Internal Control Service:

• persons who have demonstrated mismanagement of the entrusted department or failure to perform their duties conscientiously in their activities and personal conduct;
• persons previously criminally liable by a court for a crime in the economic sphere.

13. Within 10 (ten) working days after adopting the decision on forming the structure of the internal control system of the commercial bank and appointing the head of the Internal Control Service, the bank must notify the Central Bank, attaching questionnaire data about the appointed persons.

14. The head and employees of the Internal Control Service have the right:

• to request and obtain necessary management and accounting documents from the heads and employees of the commercial bank's departments for the purpose of conducting internal control;
• to make copies of documents obtained for the purpose of conducting internal control, as well as copies of files and other records stored in the commercial bank's electronic databases, local computer networks, and autonomous computer systems;
• to request and receive assistance from specialists of other departments of the commercial bank;
• to enter the premises of the commercial bank's departments, as well as rooms used for storing documents (archives), cash and valuables (cash vaults), and rooms for processing computer data and storing data in electronic form, with the written permission of the Chairman of the Management Board of the commercial bank;
• to issue instructions to the heads of bank branches to suspend operations related to the financing of terrorism, with the written consent of the Chairman of the Management Board or his authorized deputy;
• to submit proposals to the Chairman of the Management Board of the commercial bank regarding future actions on clients' operations, including obtaining additional information or verifying existing information in accordance with legislation;
• to perform other actions in accordance with these Rules and internal documents.

15. The head and employees of the Internal Control Service do not have the right to sign or certify payment, credit, and accounting documents on behalf of the commercial bank.

16. The head and employees of the Internal Control Service are obliged in the performance of their duties to:

• take necessary measures to achieve the goals and tasks assigned by these Rules and internal documents within the scope of their authority;
• ensure the storage and return of documents obtained from the relevant departments of the commercial bank;
• observe the confidentiality of information obtained in the performance of their duties;
• perform other obligations in accordance with these Rules and internal documents.

17. The head of the Internal Control Service is directly accountable to the Chairman of the Management Board of the commercial bank and is independent of other departments of the commercial bank.

Employees of the Internal Control Service are directly accountable to the Head of the Internal Control Service.

18. Employees of the commercial bank's departments assist in the performance of the duties of the Internal Control Service in accordance with these Rules and internal documents.

19. The procedure for mutual relations between employees of the commercial bank's departments and the head or employees of the Internal Control Service is established by internal documents.

20. Commercial banks must regularly retrain employees to ensure that employees of the Internal Control Service, bank departments directly serving clients (responsible executors, cashiers, etc.), legal service, internal audit, and security service have access to the latest information, including modern methods, techniques, and directions of legalization of income obtained from criminal activity and financing of terrorism, and to clearly explain all aspects of legislation and obligations in combating the legalization of income obtained from criminal activity and financing of terrorism.

21. The Internal Control Service, in cooperation with other relevant departments of the commercial bank, develops an annual program for the preparation, retraining, and training of commercial bank employees on issues of combating the legalization of income obtained from criminal activity and financing of terrorism (hereinafter referred to in the text as the training program). This program must reflect:

• the procedure for conducting training, its forms (primary briefing, planned, unplanned training), and deadlines;
• the appointment of persons responsible for organizing the conduct of training;
• the procedure for checking employees' knowledge.

The training program is approved by the Management Board of the commercial bank.

Chapter III. Due Diligence of Clients

22. Commercial banks must independently take measures for due diligence of clients in the following cases:

a) when establishing economic and civil-law relations, including:

• when a legal or physical person applies to open a bank account (deposit);
• when a physical person applies to obtain a bank plastic card;
• when legal and/or physical persons apply to purchase securities issued by the commercial bank;
• when legal and/or physical persons own shares of the commercial bank's authorized capital equal to or exceeding one percent;
• when a physical person applies for a loan;

b) in the following cases of one-time operations:

• when physical persons purchase cash foreign currency in an amount equal to or exceeding 100 times the minimum wage;
• when physical persons change, exchange, and/or convert cash foreign currency in an amount equal to or exceeding 25 times the minimum wage;
• when cash foreign currency is accepted from physical persons for collection and/or expertise;
• when operations (cash withdrawals, payments for goods and services) are carried out using plastic cards through terminals located at the commercial bank by physical persons (excluding payments for utilities and communication services, budget and off-budget funds, and other mandatory payments);
• when physical persons withdraw cash foreign currency from plastic cards;
• when physical persons purchase foreign currency;
• when money transfers are carried out or received without opening or using a bank account (excluding payments for utilities and communication services, budget and off-budget funds, and other mandatory payments);

c) when suspicious operations are carried out;

d) when there are doubts about the accuracy or sufficiency of previously obtained information about the client.

23. Measures for due diligence of clients are also carried out with respect to clients whose accounts were opened before these Rules entered into force.

24. Measures for due diligence of clients taken by commercial banks must include:

• verification of the identity and authority of the client and, if acting on behalf of another person, that person, based on relevant documents;
• identification of the beneficial owner of the client;
• continuous study of business relations and operations carried out by the client to check their consistency with information about such a client and their activities.

25. Identification of the client and the beneficial owner of the client by the commercial bank is carried out based on the information provided in Appendices 1 and 2 to these Rules, as well as documents and other necessary information serving as the basis for the execution of operations and other transactions.

26. Identification of a physical person — client by the commercial bank is carried out based on a document confirming identity (passport or a document replacing it). In this case, the commercial bank must independently review the original of such a document.

27. When carrying out measures for due diligence of clients with respect to legal entities, commercial banks must obtain from them relevant documents confirming state registration, information about management, and information specified in the founding documents.

During the process of due diligence of legal entities, the commercial bank must take reasonable and available measures to identify the beneficial owner of the client — a physical person who owns or controls the client, including by studying the property and management structure of the client and its founders (shareholders holding ten percent or more of the shares of the company, participants).

28. If the client or the beneficial owner of the client is a legal entity to which the requirements of normative legal documents on disclosure of information about the ownership structure apply, it is not required to identify and confirm the founders of such a legal entity (shareholders holding ten percent or more of the shares of the company, participants).

29. For the purpose of detailed study of the client — legal entity, the commercial bank must pay special attention to:

• the composition of the client's founders (shareholders holding ten percent or more of the shares of the company, participants), identifying persons holding more than 10 percent of the client's authorized fund (capital);
• the structure of the client's management bodies and their authority;
• the registered amount of the client's authorized fund (capital).

30. All documents enabling the identification of the client and other participants in the operation must be valid on the date they are submitted.

31. It is not required to conduct measures for due diligence of clients with respect to state authorities and management bodies.

32. If there are doubts about the reliability of information (documents) obtained from clients, commercial banks must take measures to verify (authenticate) this information (documents). In such cases, commercial banks may contact relevant organizations to clarify the reliability (truthfulness) of information (documents) about clients.

33. In establishing and carrying out agency relations with a non-resident bank, in addition to identifying the non-resident bank, the commercial bank must:

• collect information about it to have full information about the features of its business activity;
• determine the reputation and supervision quality of the non-resident bank based on open information, including whether investigative actions regarding violations of rules on combating the legalization of income obtained from criminal activity and financing of terrorism have been conducted or not;
• obtain confirmation regarding the availability of the opportunity to provide necessary identification information about clients upon request by the bank-correspondent with respect to "transit accounts";
• store all information about electronic payments when establishing relations with other banks for the purpose of carrying out transit transfers.

The decision on establishing agency relations with a non-resident bank is adopted by the Management Board of the commercial bank.

34. Commercial banks must ensure that non-resident banks with which they establish agency relations apply international standards of supervision and relevant inspection procedures for operations.

35. In the process of continuing agency relations with non-resident banks or their subsidiary banks, branches, and representative offices located in the territory of states not participating in international cooperation in the field of combating the legalization of income obtained from criminal activity and financing of terrorism, commercial banks must pay special attention to all operations carried out with them.

36. Commercial banks:

• must take measures aimed at preventing the establishment of relations with non-resident banks whose accounts are used by banks without management bodies permanently operating in the territory of the states where they are registered;
• may provide payment details and other information related to these settlements to bank-correspondents in the course of international settlements;
• must pay special attention to and conduct detailed analysis of operations related to international money transfers where information about the sender (surname, name, patronymic of physical persons; name, location (postal address), and account number of legal entities) has not been submitted or has been partially submitted;
• must strengthen supervision over the activities of their foreign subsidiary banks, branches, and representative offices located in states not participating in international cooperation in the field of combating the legalization of income obtained from criminal activity and financing of terrorism;
• are obliged to request information to be reported to the head office of the commercial bank if their foreign subsidiary banks, branches, and representative offices cannot take appropriate measures to combat the legalization of income obtained from criminal activity and financing of terrorism due to the presence of prohibitions in the legislation of the countries where they are located. In turn, commercial banks must notify the Central Bank and the Department about this.

Foreign subsidiary banks, branches, and representative offices of commercial banks must comply with the internal rules of the commercial bank when carrying out measures to combat the legalization of income obtained from criminal activity and financing of terrorism, if the legislation of the country where they are located establishes lighter internal control measures than those of the commercial bank.

37. In establishing and carrying out relations with companies providing services on international money transfer systems (hereinafter referred to in the text as international money transfer systems), in addition to identifying such an organization, the commercial bank must:

• collect information about it to have full information about the features of its business activity regarding international money transfers;
• determine the reputation of the organization based on open information, including whether investigations have been conducted or not regarding shortcomings related to the legalization of income obtained from criminal activity and financing of terrorism;
• store all information about electronic payments.

The decision on establishing agency relations with international money transfer systems is adopted by the Management Board of the commercial bank.

38. Commercial banks carrying out operations on international money transfers, including through international money transfer systems:

• must maintain accounting for their departments (branches, offices, etc.) providing such services and employees of these departments;
• carry out operations on money transfers after conducting due diligence of physical person — clients;
• ensure that outgoing money transfers are sent with accurate information about the client-sender (surname, name, patronymic (if available); document confirming identity (passport or document replacing it) series and number; if an account was used in the course of the operation, then its number or the unique number of the operation) and the recipient (surname, name, patronymic (if available); if an account was used in the course of the operation, then its number or the unique number of the operation);
• require the submission of minimum information about senders (surname, name, patronymic (if available); if an account was used in the course of the operation, then its number or the unique number of the operation) from non-resident banks and international money transfer systems for money transfers in amounts up to 25 times the minimum wage;
• require the submission of minimum information about senders (surname, name, patronymic (if available); document confirming identity (passport or document replacing it) series and number; address of residence or date and place of birth of the sender; if an account was used in the course of the operation, then its number or the unique number of the operation) from non-resident banks and international money transfer systems for money transfers in amounts equal to or exceeding 25 times the minimum wage;
• take reasonable and available measures to identify international money transfers lacking the required information about the recipient and/or sender;
• develop an internal document based on risk assessment establishing the procedure for measures taken by the commercial bank upon detection of international money transfers lacking the required information about the recipient and/or sender (execution, rejection, suspension, or others).

39. Commercial banks must have the opportunity to obtain additional information about money transfer senders from non-resident banks and international money transfer systems within three working days in accordance with contracts concluded with them.

If such an opportunity is not available, commercial banks must consider the issue of terminating the contract with such international money transfer systems.

40. Commercial banks participating as intermediaries (transit banks) in payment transfers:

• must ensure that all information about the sender and recipient attached to electronic payments, along with information about the sender, is sent and stored for a period of not less than five years;
• take reasonable and available measures to identify international money transfers lacking the required information about the recipient and/or sender;
• develop a program establishing the procedure for measures taken by the commercial bank upon detection of international money transfers lacking the required information about the recipient and/or sender, based on risk assessment;
• consider the issue of notifying the Department about such transfers upon detection of international money transfers lacking the required information about the recipient and/or sender.

41. If the client and the beneficial owner of the client have previously been identified by the commercial bank in accordance with these Rules, re-identification of the client and the beneficial owner of the client is not mandatory.

42. Re-identification of the client and the beneficial owner of the client must be carried out if doubts arise about the reliability of information obtained as a result of previous identification.

43. When identifying the client and the beneficial owner of the client, the commercial bank must compare the obtained information with the List of persons specified in clause 52 of these Rules (hereinafter referred to in the text as the List), which is formed by the Department in the manner established by legislation and submitted to commercial banks, and with the List of states not participating in international cooperation in the field of combating the legalization of income obtained from criminal activity and financing of terrorism.

If persons included in the List are identified during the process of identifying the client and the beneficial owner of the client, the commercial bank must carry out measures established in Chapter VIII of these Rules.

44. Commercial banks have the right to refuse to carry out operations for the client in the following cases:

• if the management body of the legal entity or the person authorized to act on behalf of the legal entity is not located at their location (postal address);
• if intentionally false documents are submitted or documents required by legislation are not submitted;
• in other cases provided for by legislation.

45. Commercial banks are prohibited from:

• opening accounts (deposits) for anonymous persons, i.e., physical or legal persons opening an account without submitting documents necessary for their identification;
• opening accounts for obviously fictitious names;
• opening accounts without the personal participation of the person opening the account or their authorized representative;
• establishing and continuing relations with non-resident banks whose management bodies permanently operating are not located in the territory of the states where they are registered;
• issuing securities and other financial instruments payable to bearer;
• providing services for receiving or sending money funds in foreign currency without identifying the client, including through international money transfer systems;
• carrying out operations with persons included in the List;
• establishing subsidiary banks, branches, or representative offices in the territory of states not participating in international cooperation in the field of combating the legalization of income obtained from criminal activity and financing of terrorism.

46. If it is not possible to conduct due diligence of the client, the commercial bank must consider the issue of notifying the Department about this and must either refrain from entering into cooperation relations with such a client or from carrying out operations with such a client, or terminate any practical business relations with them.

47. If there is information about cases of violation by a non-resident bank of the requirements of international standards for combating the legalization of income obtained from criminal activity and financing of terrorism, the Management Board of the commercial bank must consider the issue of taking appropriate measures, up to terminating cooperation with such a representative bank.

Chapter IV. Criteria and Signs of Suspicious and Dubious Operations

48. An operation is recognized as suspicious if one of the following criteria and signs is present:

• an operation or the client carrying it out assigned a high risk level by the commercial bank;

return of funds previously received by a resident customer under a contract for the delivery of goods (performance of work, provision of services) to a non-resident on a regular basis;

the emergence of doubts (or) regarding the authenticity (reliability) of the documents submitted for the operation and (or) the inconsistency of information about the operation, including information about one of the parties performing the operation, with information available at the commercial bank;

the abnormal behavior of the customer when applying for an operation (application, request), for example: nervousness, hesitation, the presence of persons controlling the customer's behavior, their aggressiveness, or the customer's request for advice via telephone for trivial reasons;

the customer's abnormal concern about confidentiality issues, or the customer's unjustified refusal to provide information requested by the commercial bank regarding the operation, or the unjustified delay in providing such information;

the impossibility of identifying the customer's partners in the operation being performed;

the operation does not have a clear economic essence and does not correspond to the description of the customer's activities and type of activity;

the unjustified increase in the turnover of funds in the customer's account, unrelated to the description of the customer's activities;

the obvious inconsistency of operations being performed by the customer with the participation of the commercial bank with generally accepted practices for performing such operations;

the unjustified distribution of amounts of operations similar to those being performed by the customer;

the procedure for making payments involves non-standard or unusual complex schemes differing from the customer's usual activities;

the introduction of significant changes to the nature of the funds or other property directly before the start of the execution of an operation previously agreed upon by the customer;

the exchange of banknotes of one denomination into banknotes of another denomination by an individual in an amount equal to or exceeding 500 times the minimum monthly wage established on the day of the exchange;

the deposit of cash funds in the form of cash by an individual into the bank account of a legal entity or individual entrepreneur as a loan, credit, financial assistance, or contribution to the charter capital (capital) in an amount equal to or exceeding 500 times the minimum monthly wage established on the day the operation is performed;

the provision of funds by a non-resident to a resident as a grant, financial assistance, loan, or interest-free assistance;

the transfer of funds in an amount equal to or exceeding 500 times the minimum monthly wage established on the day the operation is performed from the accounts of legal entities or individual entrepreneurs as financial assistance or a loan;

the transfer of funds in an amount equal to or exceeding 500 times the minimum monthly wage established on the day the operation is performed from the accounts of legal entities or individual entrepreneurs to the accounts of individuals as dividends;

the performance of operations (payment or cash withdrawal) by five or more international payment cards from one counterparty's terminal within one day, where the amount of each card's operation is equal to or exceeds 25 times the minimum monthly wage.

49. An operation is recognized as suspicious if one of the following criteria and signs is present:

one of the parties performing the operation is a person who permanently resides, stays, or is registered in a state that does not participate in international cooperation in the field of combating money laundering and terrorist financing;

the receipt or sending of funds in foreign currency from abroad by individuals, including through money transfer systems, simultaneously or multiple times within a period not exceeding 3 months, in a total amount equal to or exceeding 500 times the minimum monthly wage;

the sale or purchase of funds in foreign currency by individuals simultaneously or multiple times within a period not exceeding 3 months, in a total amount equal to or exceeding 500 times the minimum monthly wage;

the transfer of funds to a bank account opened for an anonymous person outside the territory of the Republic of Uzbekistan, as well as the transfer of funds from the territory of the Republic of Uzbekistan to an anonymous person's account.