Explanation regarding the Decision on Amendments and Additions to the Regulation on the Procedure and Conditions for Licensing Banking Activities

The decision of the Central Bank Board "On Amendments and Additions to the Regulation on the Procedure and Conditions for Licensing Banking Activities" was registered with the Ministry of Justice on June 5, 2023, under No. 3252-3.

Recently, a number of measures aimed at ensuring the stability of the financial and banking system in our country and providing convenient and high-quality financial services by banks have been implemented.

At the same time, due to the need to create additional legal conditions for attracting foreign investment in this sector, restrictions on the purchase of shares of banks operating in the territory of the republic listed on foreign stock markets by non-residents of the Republic of Uzbekistan have been partially lifted, granting them the right to purchase such shares.

In particular, the decision of the Central Bank Board "On Amendments and Additions to the Regulation on the Procedure and Conditions for Licensing Banking Activities" provides for the following:

• renaming the ministry due to the establishment of the Ministry of Economy and Finance of the Republic of Uzbekistan on the basis of the Ministry of Finance of the Republic of Uzbekistan since January 1, 2023;

• the possibility for legal entities registered in a state or territory that provides a preferential tax regime and (or) does not provide for disclosure of the identity of the ultimate beneficial owner and submission of information during financial operations, and individuals residing in such a state or territory, to be founders and shareholders of a bank;

• non-submission of data confirming the immobility of funds intended for acquisition through financial organizations under the control of authorized bodies of a state or territory that provides a preferential tax regime and (or) does not provide for disclosure of the identity of the ultimate beneficial owner and submission of information during financial operations, when bank shares are purchased by individuals and legal entities through foreign stock markets.

In connection with the adoption of this decision, compliance of the norms specified in the Regulation "On the Procedure and Conditions for Licensing Banking Activities" with higher normative legal acts will be ensured.