Law of the Republic of Uzbekistan on Non-Bank Credit Organizations and Microfinance Activities

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22.07.2026

18.04.2025 01

12.02.2025

22.12.2024

28.02.2024

21.04.2022

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[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Specific Types of Lending / 07.22.06.06 Other Types of Lending; 2. 21.00.00.00 Comprehensive Documents on Amendments and Additions / 21.01.00.00 Laws of the Republic of Uzbekistan] [ TSZ: 1. Finance / Banks and other credit institutions. Loans]

Law of the Republic of Uzbekistan

On Non-Bank Credit Organizations and Microfinance Activities

Adopted by the Legislative Chamber on December 28, 2021 Approved by the Senate on March 17, 2022

Chapter 1. General Provisions

Article 1. Purpose of this Law [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.01.00 General Issues; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Specific Types of Lending / 07.22.06.02 Micro-lending. Lending to small business entities]

The purpose of this Law is to regulate relations in the field of activities of non-bank credit organizations and microfinance activities.

Article 2. Legislation on Non-Bank Credit Organizations and Microfinance Activities

Legislation on non-bank credit organizations and microfinance activities consists of this Law and other legislative acts.

See: Resolution No. 28/2 of the Board of the Central Bank of the Republic of Uzbekistan dated December 6, 2022 "On Approval of the Regulation on Coordination and Regulation of Activities of Microfinance Organizations and Pawnshops" (registration number 3412, January 11, 2023).

If the international treaty of the Republic of Uzbekistan establishes rules other than those provided for in the legislation on non-bank credit organizations and microfinance activities of the Republic of Uzbekistan, the rules of the international treaty shall apply.

Article 3. Non-Bank Credit Organizations [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.03.00.00 Legal Entities / 03.03.01.00 General Rules; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Specific Types of Lending / 07.22.06.02 Micro-lending. Lending to small business entities; 3. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Specific Types of Lending / 07.22.06.03 Housing Construction Lending. Mortgage; 4. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops]

The following credit organizations that carry out a set of financial operations permitted by this Law, which are carried out by banks, are non-bank credit organizations:

microfinance organization - a legal entity carrying out microfinance activities, as well as providing other services provided for in this Law;

See: Paragraph 1 of the Regulation on the Procedure for Passing Licensing and Notification Procedures in the Field of Microfinance Organization and Pawnshop Activities, approved by Resolution No. 30/26 of the Board of the Central Bank of the Republic of Uzbekistan dated December 30, 2022 (registration number 3423, March 7, 2023).

pawnshop - a legal entity carrying out activities to provide short-term microloans to individuals based on the pledge of movable property (goods) intended for personal consumption;

See: Paragraph 1 of the Regulation on the Procedure for Passing Licensing and Notification Procedures in the Field of Microfinance Organization and Pawnshop Activities, approved by Resolution No. 30/26 of the Board of the Central Bank of the Republic of Uzbekistan dated December 30, 2022 (registration number 3423, March 7, 2023).

mortgage refinancing organization - a legal entity carrying out activities to attract financial resources and direct them to refinance mortgage loans;

See previous edition.

guarantee organization - a legal entity that professionally carries out activities to provide guarantees (sureties) for the fulfillment of monetary obligations of legal and natural persons to a credit institution, as well as providing other services provided for by legislation;

factoring organization - a legal entity carrying out financing (factoring) activities by assigning claims to another person. (Article 3 was supplemented by the fifth and sixth paragraphs based on Law No. URQ-1058 of the Republic of Uzbekistan dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

Article 4. Activities of Non-Bank Credit Organizations [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.10.00.00 Law of Obligations / 03.10.02.00 Ensuring Performance of Obligations / 03.10.02.05 Guarantee; 2. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Lease). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04); 3. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.14.00 Contract for Financing by Assignment of Claims (Factoring); 4. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.22.00 Insurance / 03.11.22.01 General Rules; 5. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Specific Types of Lending / 07.22.06.02 Micro-lending. Lending to small business entities]

Microfinance organizations:

have the right to carry out microfinance activities;

perform the functions of a payment agent (sub-agent) or agent of banks, insurance and other financial institutions;

provide consulting and information services related to their activities;

See previous edition.

provide loans, leasing, guarantees, financing by assignment of claims to another person (factoring) services, and services related to Islamic financing to business entities in amounts exceeding the microcredit amount;

provide microcredits in foreign currency to legal entities, as well as provide financial services specified in the fifth paragraph of this part in foreign currency;

carry out payment institution activities in the manner established for such institutions. (The fifth paragraph of the first part of Article 4 was replaced by the fifth, sixth, and seventh paragraphs based on Law No. URQ-1058 of the Republic of Uzbekistan dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355) [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.01.00 Central Bank, its structural divisions and institutions]

Services related to Islamic financing are understood as financial services provided in the manner developed by the Central Bank of the Republic of Uzbekistan (hereinafter referred to as the Central Bank in the text) in accordance with the rules of international organizations establishing standards for carrying out Islamic financing. [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops]

Pawnshops:

have the right to provide short-term (up to one year) microloans to individuals based on the pledge of movable property (goods) intended for personal consumption;

have the right to accept movable property (goods) intended for personal consumption from individuals for temporary storage.

See: Article 289 of the Civil Code of the Republic of Uzbekistan.

Mortgage refinancing organizations:

1. have the right to carry out refinancing of mortgage loans through:

a) providing financial resources to banks for mortgage loans granted or to be granted by them;

b) acquiring the right to claim on mortgage loans granted by banks;

c) investing monetary funds in mortgage securities issued by banks;

2. have the right to provide consulting and information services related to the refinancing of mortgage loans.

See previous edition.

Guarantee organizations:

have the right to provide guarantees (sureties) for the fulfillment of monetary obligations of a person to a credit institution;

provide financial resources to credit institutions for the provision of services provided for by legislation;

provide other financial services provided for by legislation.

Carrying out activities to provide guarantees (sureties) on a professional basis means that a legal entity that is not a bank or insurance organization provides guarantees (sureties) more than ten times in a year, except for guarantees (sureties) provided by such legal entity to persons who are its founders (shareholders, participants) or employees.

Factoring organizations:

have the right to acquire or transfer to another person the right to claim as a financial agent on the basis of a financing (factoring) contract by assigning claims to another person;

have the right to maintain accounting for the client under the financing (factoring) contract by assigning claims to another person, as well as to provide other financial services related to claims assigned to another person to the client. (Article 4 was supplemented by the fifth, sixth, and seventh parts based on Law No. URQ-1058 of the Republic of Uzbekistan dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355) [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.24.00.00 Securities. Securities Market / 07.24.01.00 Types of Securities / 07.24.01.01 General Rules]

Non-bank credit organizations have the right to provide services remotely (electronic services), to purchase state securities of the Republic of Uzbekistan, shares in the charter funds (charter capital) of legal entities and their debt securities, to deposit free financial resources as bank deposits (deposits), as well as to have other rights in accordance with legislation.

Article 5. Microfinance Activities

The activities of legal entities to provide the following services are recognized as microfinance activities:

See previous edition.

providing monetary funds in an amount not exceeding one hundred million soums on the basis of repayability, term, and repayment conditions to a borrower who is a natural person - a microloan; (The second paragraph of the first part of Article 5 was edited in the edition of Law No. URQ-914 of the Republic of Uzbekistan dated February 27, 2024 — , 28.02.2024, No. 03/24/914/0161)

providing monetary funds in an amount not exceeding three hundred million soums on the basis of repayability, term, repayment, and conditions for use for certain purposes in cases provided for in the contract, to a borrower who is a business entity or an individual entrepreneur - a microcredit;

providing loans and guarantees in an amount not exceeding the microloan amount, and providing services related to Islamic financing to individuals;

providing leasing and guarantees in an amount not exceeding the microcredit amount, factoring services, and services related to Islamic financing to business entities. [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops]

Banks, microfinance and payment institutions, as well as pawnshops in respect of the part on providing microloans have the right to carry out microfinance activities.

Article 6. Restrictions on the Activities of Non-Bank Credit Organizations [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.22.00 Insurance / 03.11.22.01 General Rules; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.21.00.00 Banking Activity / 07.21.05.00 Bank Deposits and Other Deposit Operations; 3. 09.00.00.00 Entrepreneurship and Economic Activity / 09.17.00.00 Trade / 09.17.01.00 General Rules]

Non-bank credit organizations are not entitled to:

carry out direct production, insurance, and trade activities, except for microfinance organizations providing services related to Islamic financing, and carry out other activities not provided for in this Law;

attract deposits (deposits) from individuals and legal entities;

See previous edition.

attract loan funds from individual participants (shareholders) in an amount exceeding twice the amount of the contribution to the charter fund (charter capital) or the nominal value of the shares they own, except for attracting loan funds in the form of bonds. (The fourth paragraph of Article 6 was edited in the edition of Law No. URQ-1058 of the Republic of Uzbekistan dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

Article 7. Requirements for the Activities of Non-Bank Credit Organizations [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.30.00.00 Combating the Legalization of Income from Criminal Activity, Financing of Terrorism and Proliferation of Weapons of Mass Destruction / 07.30.01.00 Measures Directed at Combating the Legalization of Income from Criminal Activity and Financing of Terrorism]

When carrying out its activities, a non-bank credit organization:

must comply with the requirements of legislation on non-bank credit organizations and microfinance activities, as well as legislation on combating the legalization of income from criminal activity, financing of terrorism and proliferation of weapons of mass destruction;

See: Law No. URQ-660-II of the Republic of Uzbekistan dated August 26, 2004 "On Combating the Legalization of Income from Criminal Activity, Financing of Terrorism and Proliferation of Weapons of Mass Destruction".

ensure that the charter fund (charter capital) is not less than the amount specified in the third part of Article 17 of this Law;

ensure that the qualifications of managerial personnel comply with the requirements specified in Article 16 of this Law.

In addition to the requirements specified in the first part of this Article, a pawnshop must ensure the compliance of its cash office with the requirements of the Central Bank.

Article 8. Sources of Funds for the Activities of Non-Bank Credit Organizations [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.05.00.00 Republic Budget / 07.05.13.00 State Subsidies and Grants]

Own funds of non-bank credit organizations, loans from banks, grants, as well as loan funds attracted from their participants (shareholders) are sources of funds for the activities of non-bank credit organizations. [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.05.00.00 Republic Budget / 07.05.01.00 General Rules; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.24.00.00 Securities. Securities Market / 07.24.01.00 Types of Securities / 07.24.01.02 Shares and Bonds]

See previous edition.

Microfinance organizations and factoring organizations, as well as mortgage refinancing organizations and guarantee organizations, have the right to carry out their activities from the funds specified in the first part of this Article, in addition to the funds specified in the first part of this Article, provided that they comply with the prudential norms specified in Article 26 of this Law: (The first paragraph of the second part of Article 8 was edited in the edition of Law No. URQ-1058 of the Republic of Uzbekistan dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

funds obtained from the placement of corporate bonds;

funds of the State Budget of the Republic of Uzbekistan and state funds;

loan funds of international financial institutions, foreign government financial institutions, non-governmental non-profit organizations, including foreign non-governmental non-profit organizations;

loan funds obtained from legal entities, including foreign legal entities;

funds obtained from the placement of securities compliant with Islamic financing - for microfinance organizations;

funds obtained from the placement of mortgage securities - for mortgage refinancing organizations.

Article 9. Independence of Non-Bank Credit Organizations

Non-bank credit organizations are independent in making decisions related to their activities.

It is prohibited for state bodies and their officials to interfere in the activities of non-bank credit organizations and demand various payments and fees from them, except for cases provided for in this Law.

Article 10. Associations and Other Unions of Non-Bank Credit Organizations [ OKOZ: 1. 01.00.00.00 Constitutional System / 01.17.00.00 Non-Governmental Non-Profit Organizations (also see 03.03.10.03) / 01.17.12.00 Other Unions, Movements, Associations and Other Non-Governmental Non-Profit Organizations]

Non-bank credit organizations may form associations and other unions to protect their common interests and implement joint programs, provided that their establishment does not contradict the requirements of legislation.

Associations and other unions of non-bank credit organizations notify the Central Bank of this within ten days after they are registered by the authorized state body or a decision on their liquidation is made.

Article 11. Carrying Out the Activities of a Microfinance Organization by Payment Institutions [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.01.00 Central Bank, its structural divisions and institutions]

Payment institutions have the right to carry out the activities of a microfinance organization through the means of entering information about the payment institution into the registry of organizations carrying out the activities of a microfinance organization at the Central Bank (hereinafter referred to as the registry in the text).

The following requirements established for microfinance organizations in this Law apply to payment institutions carrying out the activities of a microfinance organization:

their establishment, as well as the opening of branches;

changing the composition of participants (shareholders);

the procedure for entering the registry;

carrying out activities;

regulation and supervision of the activities of non-bank credit organizations, including compliance with prudential norms;

protection of the rights of consumers of microfinance organization services.

The requirements established for the trade name of non-bank credit organizations, the qualification requirements for the managerial personnel of non-bank credit organizations, as well as the time limits established in the first part of Article 20 of this Law for submitting documents for entry into the registry do not apply to payment institutions carrying out the activities of a microfinance organization.

One of the members of the executive body of a payment institution carrying out the activities of a microfinance organization must comply with the requirements established in Article 16 of this Law for the head of the executive body of a microfinance organization.

Payment institutions carrying out the activities of a microfinance organization must submit existing credit information to credit bureaus and the State Registry of Credit Information in accordance with legislation on the exchange of credit information.

The revocation of the license of a payment institution to carry out activities is grounds for removing it from the registry of organizations carrying out the activities of a microfinance organization, except for cases of its re-registration as a microfinance organization. In the event that the supreme management body of a payment institution makes a decision to carry out activities as a microfinance organization, such organization:

must notify the Central Bank of this within ten days from the date of license revocation;

must undergo re-registration as a microfinance organization and submit information to the Central Bank within forty-five days from the date of license revocation. Until such information is submitted, it is prohibited to carry out activities provided for in the first part of Article 4 of this Law.

Chapter 2. Establishment of Non-Bank Credit Organizations and Their Branches

Article 12. Establishment of Non-Bank Credit Organizations

See previous edition.

Microfinance organizations, factoring organizations, and pawnshops are established in the form of a joint-stock company or a limited liability company, and mortgage refinancing organizations and guarantee organizations are established in the form of a joint-stock company. (The first part of Article 12 was edited in the edition of Law No. URQ-1058 of the Republic of Uzbekistan dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

See previous edition. (The second part of Article 12 was issued based on Law No. URQ-1058 of the Republic of Uzbekistan dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

Non-bank credit organizations must be registered in the manner established by legislation.

Article 13. Trade Name of a Non-Bank Credit Organization

See previous edition.

The trade name of a non-bank credit organization must indicate its organizational and legal form, as well as the words "microfinance organization", "factoring organization", "mortgage refinancing" or "pawnshop", depending on the type of organization, and in the abbreviated name of a microfinance organization (if any) the abbreviation "MFO". (The first part of Article 13 was edited in the edition of Law No. URQ-1058 of the Republic of Uzbekistan dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

See previous edition. (The second part of Article 13 was edited in the edition of Law No. URQ-1026 of the Republic of Uzbekistan dated February 11, 2025 — , 12.02.2025, No. 03/25/1026/0131)

Non-bank credit organizations are not entitled to use a trade name that differs from that specified in their charter on official letterheads, seals, stamps and other documents related to their activities, as well as in advertising, envelopes, printed information sheets and printed publications.

See previous edition.

As one of the types of non-bank credit organizations, legal entities registered with the state but who have not submitted documents for registration within three months after state registration, and legal entities that have not sent a notification to the Central Bank about the commencement of pawnshop activities, are not entitled to use the word combinations "microfinance organization", "mortgage refinancing", "factoring organization" or the abbreviation "MFO" in their firm names, as well as the word "pawnshop". (Paragraph 4 of Article 13 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355) See previous edition.

Legal entities that are not non-bank credit organizations are not entitled to use words, word combinations, and/or abbreviations indicating the activity of a factoring organization, pawnshop, mortgage credit refinancing, or lending to individuals in their firm names, except for legal entities carrying out such activities in accordance with legislation. (Paragraph 5 of Article 13 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355) See previous edition.

The requirements of this Article do not apply to guarantee organizations. (Article 13 supplemented with paragraph 6 based on the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

Article 14. Founders and participants (shareholders) of a non-bank credit organization

Legal and natural persons, including residents and non-residents of the Republic of Uzbekistan, may be founders and participants (shareholders) of a non-bank credit organization. [ OKOB: 1. 01.00.00.00 Constitutional system / 01.17.00.00 Non-profit organizations (including see 03.03.10.03) / 01.17.04.00 Political parties and mass movements; 2. 01.00.00.00 Constitutional system / 01.17.00.00 Non-profit organizations (including see 03.03.10.03) / 01.17.05.00 Religious organizations; 3. 01.00.00.00 Constitutional system / 01.17.00.00 Non-profit organizations (including see 03.03.10.03) / 01.17.06.00 Trade unions; 4. 09.00.00.00 Entrepreneurship and economic activity / 09.03.00.00 Bankruptcy and rehabilitation (including see 03.03.03.00) / 09.03.01.00 General rules]

The following persons may not directly or indirectly own shares in the authorized fund (authorized capital) of a non-bank credit organization:

natural persons who are residents of a state or territory that provides a preferential tax regime and/or does not provide for the disclosure of the identity of the beneficial owner and information on financial transactions, and/or natural persons residing in such a state or territory;

legal entities registered in a state or territory that provides a preferential tax regime and/or does not provide for the disclosure of the identity of the beneficial owner and information on financial transactions, or legal entities that are residents of such a state or territory, have a governing body residing or registered there;

natural persons who do not meet the integrity requirements specified in paragraph 2 of Article 16 of this Law;

legal entities whose governing body member does not meet the integrity requirements specified in paragraph 2 of Article 16 of this Law;

persons declared bankrupt;

political parties, trade unions, religious organizations;

state bodies, except for cases provided for by legislation;

other non-bank credit organizations operating on the territory of the Republic of Uzbekistan.

A person owning a share in the authorized fund (authorized capital) of a non-bank credit organization through another person controlled by them is a person indirectly owning a share in the authorized fund (authorized capital) of a non-bank credit organization.

Control is understood as a mutual relationship between persons corresponding to one of the following criteria:

ownership by a person of a controlling share in the authorized fund (authorized capital) of a legal entity;

the right of a person who is a participant (shareholder) to appoint or replace the majority of the members of the governing bodies of such a legal entity;

the opportunity for a person to influence the activities of a legal entity in accordance with a contract concluded with it and/or the rules of its charter.

A natural person who directly or indirectly owns or controls a legal entity is the beneficial owner of that legal entity.

Article 15. Change in the composition of participants (shareholders) of a non-bank credit organization See previous edition.

Natural and legal persons, including natural and legal persons acting jointly with their respective close relatives and persons related to them, as well as non-residents of the Republic of Uzbekistan (hereinafter in the text referred to as non-residents), must notify the Central Bank before acquiring directly or indirectly a share in the authorized fund (authorized capital) of a non-bank credit organization:

constituting ten percent or more, but no more than twenty percent, as a result of one or several agreements;

constituting twenty percent or more, before acquiring directly or indirectly, must obtain prior permission from the Central Bank. (Paragraph 1 of Article 15 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355) See previous edition.

In the notification under paragraph 1 of this Article, information confirmed by documents regarding the sources of funds directed to acquire a share in the authorized fund (authorized capital) of a non-bank credit organization is submitted to the Central Bank.

If obtaining prior permission to acquire a share in the authorized fund (authorized capital) of a non-bank credit organization requires prior consent of the antimonopoly body, the application for obtaining prior permission to acquire a share in the authorized fund (authorized capital) of a non-bank credit organization is considered by the Central Bank taking into account the decision of the antimonopoly body. (Article 15 supplemented with paragraphs 2 and 3 based on the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

To obtain prior permission, a person intending to acquire a share in the authorized fund (authorized capital) of a non-bank credit organization submits an application to the Central Bank via the Central Bank's electronic platform (hereinafter in the text referred to as the electronic platform) with the following attachments:

1. in the case of a new participant (shareholder) entering the composition of participants (shareholders) of a non-bank credit organization:

a) information confirmed by documents regarding the sources of funds directed to acquire a share in the authorized fund (authorized capital) of a non-bank credit organization;

b) information confirming the compliance of the person intending to acquire a share in the authorized fund (authorized capital) of a non-bank credit organization with the requirements specified in paragraph 2 of Article 14 of this Law;

c) the relevant documents specified in paragraph 3 of Article 20 of this Law, if the person intending to acquire a share in the authorized fund (authorized capital) of a non-bank credit organization is a non-resident;

2. in the case of an increase in the amount of the share (number of shares) belonging to a participant (shareholder) — information confirmed by documents regarding the sources of funds directed to increase shares in the authorized fund (authorized capital) of a non-bank credit organization.

Agreements concluded on the acquisition of shares in the authorized fund (authorized capital) of a non-bank credit organization without the prior permission of the Central Bank are considered void.

Obtaining subsequent permission from the Central Bank is required if a person acquires a share in the authorized fund (authorized capital) of a non-bank credit organization in circumstances beyond their control (legal succession, inheritance, gift, or acquisition of property rights based on a court decision). From the day the person acquires a share in the authorized fund (authorized capital) of a non-bank credit organization in circumstances beyond their control until the day the Central Bank makes a relevant decision, or in the event of a decision by the Central Bank to refuse to grant subsequent permission, from the day such a decision is made until such share is transferred to another person, the right of such person to call an extraordinary general meeting of participants (shareholders), include issues in the agenda, as well as nominate candidates for the supervisory board (if any) and executive bodies is suspended.

A person who has acquired a share in the authorized fund (authorized capital) of a non-bank credit organization in circumstances beyond their control must submit an application to the Central Bank via the electronic platform for subsequent permission and information confirming the compliance of such person with the requirements specified in paragraph 2 of Article 14 of this Law within sixty days from the day of acquisition.

The Central Bank makes a decision to grant prior or subsequent permission or to substantiatedly refuse to grant prior or subsequent permission within fifteen working days from the day the documents specified in paragraph 2 or 5 of this Article are received.

The prior permission to acquire a share in the authorized fund (authorized capital) of a non-bank credit organization remains legally valid for six months from the day it is obtained.

The following are grounds for refusing to grant prior or subsequent permission:

failure to submit documents in full volume and/or the presence of incorrect and/or distorted information in them;

non-compliance of the person acquiring or acquiring in circumstances beyond their control a share in the authorized fund (authorized capital) of a non-bank credit organization with the requirements specified in paragraph 2 of Article 14 of this Law;

use of funds borrowed, pledged, other funds with liabilities attached, as well as funds obtained from criminal activities to acquire shares in the authorized fund (authorized capital) of a non-bank credit organization.

A share in the authorized fund (authorized capital) of a non-bank credit organization acquired by a participant (shareholder) in circumstances beyond their control in the event that no application is submitted or subsequent permission is refused:

must be transferred to another person within three months from the day subsequent permission is refused;

in the event that no application is submitted for obtaining subsequent permission, from the day the share is acquired.

If the presence of a person specified in paragraph 2 of Article 14 of this Law is identified in the composition of persons directly or indirectly owning shares in a non-bank credit organization, the Central Bank sends a directive to the non-bank credit organization and its senior management body demanding their replacement. From the day the directive is received, the right of the person specified in the directive to call an extraordinary general meeting of participants (shareholders), include issues in the agenda, as well as nominate candidates for the supervisory board (if any) and executive bodies is suspended.

The person specified in the directive of the non-bank credit organization or the Central Bank has the right to appeal the directive to the administrative court in the manner established by legislation. Filing an appeal against the directive does not exempt from executing the decision of the Central Bank.

A non-bank credit organization must submit changes and/or additions made to the charter to the Central Bank within five working days from the day they are registered with the state in accordance with legislation, after the composition of participants of the non-bank credit organization has changed.

Article 16. Requirements for senior management personnel of non-bank credit organizations

Members of the supervisory board (if any) and executive body of a non-bank credit organization or a person performing the duties of a sole executive body, chief accountant or other official performing the duties of accounting and financial management, heads of branches, as well as other persons specified by the Central Bank (hereinafter in the text referred to as senior management personnel) must comply with the integrity requirements specified in paragraph 2 of this Article, as well as the qualification requirements for senior management personnel specified in paragraph 3 of this Article.

Integrity requirements include:

the absence of unexpunged or unrehabilitated convictions for crimes in the economic sphere, crimes against the order of management, as well as crimes related to the financing of terrorism and the legalization of proceeds from criminal activity; See previous edition.

the absence of evidence of the involvement of senior management personnel in actions and/or inaction that led to the deterioration of the financial condition of a financial (credit) organization, its bankruptcy, or the termination of the activity being carried out. (Paragraph 3 of bullet point of paragraph 2 of Article 16 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

Qualification requirements:

1. for the head of the executive body or a person performing the duties of a sole executive body: See previous edition.

a) in a microfinance organization, factoring organization, or pawnshop — having higher economic education or work experience of not less than two years in the banking and financial sector; (Paragraph 'a' of sub-paragraph 1 of paragraph 3 of Article 16 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355) See previous edition.

b) in a mortgage refinancing organization and a guarantee organization — having higher economic education and work experience of not less than five years in the banking and financial sector, including at least three years of work experience in managerial positions in these sectors; (Paragraph 'b' of sub-paragraph 1 of paragraph 3 of Article 16 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

2. for the chief accountant or other official performing the duties of accounting and financial management: See previous edition.

a) in a microfinance organization, factoring organization, or pawnshop — having higher education or work experience of not less than two years related to maintaining accounting records, preparing financial reports, or auditing activities; (Paragraph 'a' of sub-paragraph 2 of paragraph 3 of Article 16 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355) See previous edition.

b) in a mortgage refinancing organization and a guarantee organization — having higher economic education or work experience of not less than three years related to maintaining accounting records, preparing financial reports, or auditing activities. (Paragraph 'b' of sub-paragraph 2 of paragraph 3 of Article 16 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

A non-bank credit organization must submit a written notification to the Central Bank regarding:

the appointment (election) of a senior management personnel of a non-bank credit organization within five working days from the day of appointment (election), attaching information on the compliance of the senior management personnel with the requirements specified in this Article and indicating the reasons for the release of the person who previously held this position;

the fact of non-compliance of a senior management personnel of a non-bank credit organization with the requirements specified in this Article and the measures taken against them within ten working days from the day this fact is identified.

If the Central Bank identifies the fact of non-compliance of a senior management personnel of a non-bank credit organization with the requirements specified in this Article, a directive is sent to the non-bank credit organization regarding their replacement.

Article 17. Authorized fund (authorized capital) of a non-bank credit organization [ OKOB: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.27.00.00 Currency Regulation and Currency Control / 07.27.01.00 General Rules]

The authorized fund (authorized capital) of a non-bank credit organization is formed in the national currency of the Republic of Uzbekistan and consists only of monetary funds contributed by the founders (participants, shareholders) of the non-bank credit organization.

The use of funds borrowed, pledged, other funds with liabilities attached, as well as funds obtained from criminal activities to form the authorized fund (authorized capital) of a non-bank credit organization is prohibited.

The minimum amount of the authorized fund (authorized capital): See previous edition.

for a guarantee organization — one hundred billion sum; (Article 17 supplemented with paragraph 2 based on the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

for a mortgage refinancing organization — twenty-five billion sum; See previous edition.

for a microfinance organization and a factoring organization — two billion sum; (Paragraph 4 of paragraph 3 of Article 17 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

for a pawnshop — five hundred million sum.

The authorized fund (authorized capital) of a non-bank credit organization must be formed and kept in a bank account until the day an application for registration is submitted or a notification about the commencement of pawnshop activities is sent.

Article 18. Branches of a non-bank credit organization [ OKOB: 1. 03.00.00.00 Civil Law / 03.03.00.00 Legal Entities / 03.03.09.00 Representative Offices and Branches. Subsidiary Enterprises]

A separate subdivision of a non-bank credit organization that is not a legal entity and carries out its activities in the name of the non-bank credit organization on the basis of a regulation approved by its authorized management body is a branch of the non-bank credit organization.

See Article 47 of the Civil Code of the Republic of Uzbekistan.

A branch of a non-bank credit organization has a single authorized fund (authorized capital) and balance sheet with the non-bank credit organization, as well as is provided with its property. [ OKOB: 1. 03.00.00.00 Civil Law / 03.15.00.00 Participants of Civil Circulation, Means of Individualization of Goods, Works and Services / 03.15.01.00 Firm Name]

The name of a branch of a non-bank credit organization must include the firm name of the non-bank credit organization that established it. See previous edition.

If a microfinance organization or a factoring organization carries out its activities from the funds specified in paragraph 2 of Article 8 of this Law, it must comply with prudential norms when opening a branch of a microfinance organization or a factoring organization. (Paragraph 4 of Article 18 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

A non-bank credit organization must send a notification via the electronic platform to the Central Bank within ten working days from the day of opening a branch, attaching the decision of the authorized management body on the establishment of the branch, the regulation on the branch, and information on the head of the branch. [ OKOB: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops]

Before opening a branch of a pawnshop, it must ensure the compliance of the branch's cash rooms with the requirements of the Central Bank.

If the financial condition of a non-bank credit organization deteriorates as a result of the activities of a branch, the Central Bank has the right to demand the closure of this branch.

A notification about the change of the name or location of a branch must be sent to the Central Bank via the electronic platform within three days from the day such a change occurred.

A non-bank credit organization must notify the Central Bank via the electronic platform about the closure of a branch within five days from the date of the decision to close it.

The establishment of branches of foreign legal entities carrying out activities of non-bank credit organizations in the Republic of Uzbekistan is not permitted.

Chapter 3. Registration of non-bank credit organizations, sending a notification about the commencement of pawnshop activities, and removal of information about a non-bank credit organization from the registry

Article 19. Conditions for carrying out activities of non-bank credit organizations See previous edition.

The activities of a microfinance organization, a mortgage refinancing organization, a guarantee organization, or a factoring organization are carried out after their information is entered into the respective registry of organizations carrying out microfinance activities, registry of mortgage refinancing organizations, registry of guarantee organizations, or registry of factoring organizations. (Paragraph 1 of Article 19 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See Article 44 of the Civil Code of the Republic of Uzbekistan.

Pawnshop activities are carried out after the Central Bank confirms the acceptance of the notification about the commencement of pawnshop activities. Confirmation of the acceptance of the notification is carried out by entering the pawnshop into the registry of pawnshops.

Before sending the notification about the commencement of activities, a pawnshop must ensure the compliance of its cash rooms with the requirements of the Central Bank. Instead of fulfilling this requirement, a pawnshop has the right to submit a comprehensive insurance policy.

A microfinance organization must ensure the integrity, inviolability, and security of cash and valuables when carrying out activities with them. See previous edition.

The activities of a microfinance organization, a mortgage refinancing organization, a guarantee organization, or a factoring organization carried out before their registration, as well as the activities of a pawnshop carried out before the Central Bank confirms the acceptance of the notification about the commencement of pawnshop activities, are considered illegal. Income obtained as a result of such activities is confiscated to the State Budget of the Republic of Uzbekistan. (Paragraph 5 of Article 19 in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

Article 20. Documents submitted for registration See previous edition.

A microfinance organization, mortgage refinancing organization, guarantee organization, or factoring organization (hereinafter referred to as the applicant) must submit the following documents to the Central Bank via the electronic platform no later than three months after state registration:

(Paragraph 1, item 1 of Article 20, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

• an application indicating the applicant's firm name and location (postal address), as well as its bank account details;
• information confirming that the participants (shareholders) of the applicant are not persons specified in Part 2 of Article 14 of this Law;
• information confirmed by documents regarding the sources of funds contributed to form its charter fund (charter capital);
• information regarding the compliance of the applicant's managerial staff with the requirements established by Article 16 of this Law.

A mortgage refinancing organization, in addition to the documents specified in Part 1 of this Article, must submit the following documents:

• documents establishing credit and investment policy, risk management policy, and asset and liability management policy;
• a draft of the standard main credit agreement (refinancing agreement);
• a business plan for the next three years.

See previous edition.

When a microfinance organization, mortgage refinancing organization, guarantee organization, or factoring organization is established by non-residents, or when non-residents participate in their charter fund (charter capital), in addition to the documents specified in Parts 1 and 2 of this Article, the following documents must be submitted:

(Paragraph 1 of Part 3 of Article 20, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See previous edition.

• a written confirmation from the supervisory body of the legal entity granting permission to establish a microfinance organization, mortgage refinancing organization, guarantee organization, or factoring organization, or to participate in their charter fund (charter capital), or a certificate that such permission is not required, or a certificate from the legal entity that there is no supervisory body exercising control over its activities;

• (Paragraph 2 of Part 3 of Article 20, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

• financial reports for the last reporting year certified by an audit organization — in the case of participation by legal entities;

• income declarations for the last two years — in the case of participation by individuals.

Documents submitted by non-residents must be certified by the consular institution of the Republic of Uzbekistan in the country where the non-resident legal entity is registered or where the non-resident individual resides, or by the Ministry of Foreign Affairs of the country where the non-resident legal entity is registered or where the non-resident individual resides, or by the consular institution or diplomatic mission of the Republic of Uzbekistan in that country, and subsequently certified by the Consular-Legal Department of the Ministry of Foreign Affairs of the Republic of Uzbekistan.

The Central Bank has the right to establish requirements for the form and content of the documents specified in Parts 1, 2, and 3 of this Article, as well as to request additional documents necessary for the applicant's registration from relevant authorized bodies.

Article 21. Procedure for Reviewing Documents and Making a Decision on Registration

Documents submitted by the applicant for registration are reviewed by the Central Bank if submitted in accordance with Article 20 of this Law. In other cases, the Central Bank sends a notice to the applicant within five days from the date of receipt stating that the documents will not be reviewed. This notice must also list the documents that should have been submitted in accordance with Article 20 of this Law.

No fee is charged for the review of documents submitted by the applicant for registration.

See previous edition.

The Central Bank makes a decision to register or to substantiated refusal to register within fifteen working days from the date of receipt of the documents necessary for registration. In cases where a microfinance organization, mortgage refinancing organization, guarantee organization, or factoring organization is established by non-residents, this period may be extended to ten working days.

(Paragraph 3 of Article 21, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

If the information specified in the documents submitted by the applicant for registration changes during the review period, the applicant must promptly notify the Central Bank and submit updated documents within three working days from the moment the changes occurred. In this case, the review period for the documents submitted for registration is extended to ten working days.

The notice to the applicant regarding registration is sent no later than one working day from the date the decision on registration is made.

Information about registration must be published on the official website of the Central Bank within one working day from the date the decision on registration is made.

Article 22. Refusal of Registration

The following serve as grounds for refusal of registration:

• the documents submitted by the applicant do not comply with the requirements of legislation on non-bank credit organizations and microfinance activities and (or) contain incorrect or distorted information;
• the presence in the composition of the applicant's participants (shareholders) of persons specified in Part 2 of Article 14 of this Law;
• the non-compliance of managerial staff with the requirements established by Article 16 of this Law;
• the applicant's charter fund (charter capital) does not comply with the requirements of Article 17 of this Law;
• the presence of a recommendation from the supervisory body of the non-resident legal entity to refuse registration;
• the applicant's failure to submit documents for registration within the time limits established by this Law.

The notice of refusal of registration (hereinafter referred to as the notice of refusal) is sent to the applicant no later than one working day from the date the decision on refusal of registration is made, indicating the grounds for refusal.

If registration is refused on the grounds specified in items 2 through 6 of Part 1 of this Article, the notice of refusal must also indicate the period within which the applicant may eliminate the grounds for refusal and resubmit the documents for review. This period must be proportional to the time necessary to eliminate the grounds for refusal, but must not be less than ten working days.

The repeated review of documents submitted by the applicant for registration is carried out within a period not exceeding ten days from the date the documents are received.

During the repeated review of documents submitted by the applicant for registration, refusal of registration on new grounds not previously indicated in the notice of refusal is not permitted.

If documents submitted by the applicant for registration are resubmitted without eliminating the grounds for refusal, the Central Bank notifies the applicant within five working days from the date the documents are received that they will not be reviewed.

See previous edition.

Within thirty days from the date of occurrence of one of the following circumstances, a microfinance organization, factoring organization, mortgage refinancing organization, or guarantee organization must remove from its firm name the combinations of words "microfinance organization," "factoring organization," "mortgage refinancing," as well as the abbreviation "MFO" and the combination of words "guarantee provision" (if present), or make a decision to terminate activities or to terminate as a result of reorganization:

(Paragraph 1 of Part 7 of Article 22, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

• upon receipt of the Central Bank's notice that documents will not be reviewed again because they were submitted without eliminating the grounds for refusal;
• if documents necessary for registration are not submitted within the period specified in the notice of refusal for repeated review;
• if registration is refused on the ground specified in item 7 of Part 1 of this Article.

Article 23. Procedure for Notifying about the Commencement of Pawnshop Activities

[OKAZ: 1. 07.00.00.00 Legislation on Finance and Credit. Bank Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops]

The notice of the commencement of the pawnshop's activities must be sent to the Central Bank via the electronic platform no later than three months after the pawnshop's state registration, attached with the following documents:

• information confirming that the participants (shareholders) of the pawnshop are not persons specified in Part 2 of Article 14 of this Law;
• information confirmed by documents regarding the sources of funds contributed by the participants (shareholders) of the pawnshop to form its charter fund (charter capital);
• information regarding the compliance of the pawnshop's managerial staff with the requirements established by Article 16 of this Law.

See. Law of the Republic of Uzbekistan No. URQ-701 dated July 14, 2021 "On Licensing, Permitting, and Notification Procedures," Chapter 5.

When a pawnshop is established by non-residents or when non-residents participate in its charter fund (charter capital), in addition to the documents specified in Part 1 of this Article, the relevant documents specified in Part 3 of Article 20 of this Law are submitted in the manner provided for in Part 4 of this Article.

The notice of the commencement of the pawnshop's activities is certified by the electronic digital signature of the person authorized to conduct business on behalf of the pawnshop.

When submitting the notice of commencement of activities to the Central Bank, the pawnshop undertakes to comply with the requirements and conditions established by legislation for carrying out its activities.

No fee is charged for sending the notice of commencement of the pawnshop's activities to the Central Bank.

Article 24. Removal of Information about Non-Bank Credit Organizations from the Registry

See previous edition.

A decision to remove information about a non-bank credit organization from the respective registry of organizations carrying out microfinance activities, mortgage refinancing organizations, guarantee organizations, factoring organizations, or pawnshops (hereinafter referred to as the respective registry) is made by the Central Bank in the following cases:

(Paragraph 1 of Article 24, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

• when a non-bank credit organization carries out activities prohibited and (or) not provided for by this Law;

See previous edition.

• when a microfinance organization, mortgage refinancing organization, guarantee organization, or factoring organization applies with a request to remove information about itself from the respective registry of organizations carrying out microfinance activities, mortgage refinancing organizations, guarantee organizations, or factoring organizations, as well as when the Central Bank receives a notice about the termination of the pawnshop's activities;

(Paragraph 3 of Article 24, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

• when an entry is made in the Unified State Register of Entrepreneurship Subjects regarding the termination of the non-bank credit organization's activities;

See previous edition.

• when microfinance organization activities are changed to microfinance bank activities;

(Paragraph 5 of Article 24, supplemented with item 5 based on Law of the Republic of Uzbekistan No. URQ-1026 dated February 11, 2025 — , 12.02.2025, 03/25/1026/0131)

• when a non-bank credit organization becomes insolvent (unable to satisfy creditors' claims within three months from the date their performance periods begin and (or) liabilities exceed assets);

• when obstruction is created to the Central Bank in performing its supervisory functions;

• when a non-bank credit organization carries out operations during the period of restrictions on carrying out certain operations;

• when the applicant uses forged documents for registration or for the notice of commencement of pawnshop activities — based on a court decision.

See previous edition.

The Central Bank has the right to make a decision to remove information about a non-bank credit organization from the respective registry in the following cases:

(Paragraph 1 of Part 2 of Article 24, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

• when the requirements established by Article 7 of this Law are not met;

• when activities provided for in Article 4 of this Law are not carried out for more than six consecutive months;

• when false or unreliable information is provided regarding the fulfillment of requirements and conditions established for the pawnshop to carry out activities.

See previous edition.

Within one working day from the date the Central Bank makes a decision to remove information about a non-bank credit organization from the respective registry, it notifies the non-bank credit organization of this and publishes information about the adopted decision on the official website of the Central Bank.

(Paragraph 3 of Article 24, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See previous edition.

A non-bank credit organization is not entitled to provide new services from the date of receipt of the Central Bank's notice regarding the removal of information about itself from the respective registry.

(Paragraph 4 of Article 24, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See previous edition.

Within thirty days after the Central Bank makes a decision to remove information about itself from the respective registry, a non-bank credit organization must remove from its firm name the words or combinations of words "microfinance organization," "factoring organization," "mortgage refinancing," "pawnshop," as well as the abbreviation "MFO" and the combination of words "guarantee provision" (if present), or make a decision to terminate activities or to terminate as a result of reorganization.

(Paragraph 5 of Article 24, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

Chapter 4. Regulation and Supervision of Non-Bank Credit Organization Activities

Article 25. Powers of the Central Bank on Regulation and Supervision of Non-Bank Credit Organization Activities

State regulation and supervision of non-bank credit organization activities are carried out by the Central Bank.

For the purpose of regulating the activities of non-bank credit organizations, the Central Bank establishes:

• the procedure for passing through permitting and notification procedures;
• minimum requirements for ensuring information security and cybersecurity of non-bank credit organizations;
• requirements for pawnshop cash rooms;
• a special legal regime for testing new financial operations, technologies, and services by non-bank credit organizations in a controlled limited environment (coverage area, testing period, number and (or) volume of services and operations, number of consumers, etc.) ("regulatory sandbox");
• the procedure for microfinance organizations to act as payment agents (sub-agents) or agents of banks, insurance, and other financial organizations;
• the procedure for microfinance organizations to provide services related to Islamic financing;

See previous edition.

• requirements for the classification and valuation of assets by microfinance organizations, mortgage refinancing organizations, guarantee organizations, and factoring organizations, and for the formation of reserves against possible losses on assets based on classification;

(Paragraph 8 of Part 2 of Article 25, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See previous edition.

• minimum requirements for the interaction of microfinance organizations, mortgage refinancing organizations, guarantee organizations, and factoring organizations with consumers of their services;

(Paragraph 9 of Part 2 of Article 25, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

• internal control rules for combating the legalization of proceeds from criminal activity, financing of terrorism, and financing of the proliferation of weapons of mass destruction, jointly with the specially authorized state body.

For the purpose of supervising the activities of non-bank credit organizations, the Central Bank establishes:

• rules for conducting activities and financial operations by non-bank credit organizations, maintaining accounting records, the form, structure, and content of reports, methodology for preparing financial and supervisory reports, their periodicity and submission deadlines, deadlines for submitting information necessary for assessing risks and supervising their activities;

See previous edition.

• the procedure for calculating prudential norms for microfinance organizations, mortgage refinancing organizations, guarantee organizations, and factoring organizations, as well as the permissible values of these norms.

(Paragraph 3 of Part 3 of Article 25, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

For the purpose of supervising the activities of non-bank credit organizations, the Central Bank has the right to:

• request and inspect reports and documents from non-bank credit organizations, persons associated with them, as well as associations (unions) of non-bank credit organizations, and demand explanations of the received information;
• subject non-bank credit organizations to inspection (audit);
• establish maximum values for interest rates and payments on consumer credits and microloans provided by microfinance organizations, as well as microloans provided by pawnshops;

See previous edition.

• establish requirements for the internal audit of microfinance organizations, mortgage refinancing organizations, guarantee organizations, and factoring organizations.

(Paragraph 5 of Part 4 of Article 25, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See previous edition.

The Central Bank maintains the registry of organizations carrying out microfinance activities, the registry of mortgage refinancing organizations, the registry of guarantee organizations, the registry of factoring organizations, as well as the registry of pawnshops.

(Paragraph 5 of Article 25, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See. Chapter 2 of the Law of the Republic of Uzbekistan No. URQ-582 dated November 11, 2019 "On the Central Bank of the Republic of Uzbekistan."

Article 26. Compliance with Prudential Norms

See previous edition.

Microfinance organizations and factoring organizations carrying out activities from funds specified in Part 2 of Article 8 of this Law, as well as mortgage refinancing organizations and guarantee organizations, must comply with prudential norms.

(Paragraph 1 of Article 26, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

Prudential norms include:

• capital adequacy coefficients;
• liquidity coefficients;
• maximum amount of risk related to a single borrower or a group of related borrowers;

See previous edition.

• maximum amount of risk related to persons associated with a microfinance organization, guarantee organization, or factoring organization;

(Paragraph 5 of Part 2 of Article 26, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

• maximum amount of investments in the charter funds (charter capitals) and (or) debt securities of legal entities.

See previous edition.

Compliance with prudential requirements is not required for pawnshops, as well as for microfinance organizations and factoring organizations carrying out activities from their own funds, bank loans, and borrowed funds attracted from their participants (shareholders).

(Paragraph 3 of Article 26, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See previous edition.

Article 27. Provision of Services to Persons Associated with a Microfinance Organization, Factoring Organization, or Guarantee Organization

(Title of Article 27, in the edition of Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

See previous edition.

Based on the second part of Article 8 of this Law, it is prohibited for microfinance organizations, factoring organizations, and guarantee organizations carrying out activities from the funds specified in the second part of this Article to provide services to persons related to them or acting on behalf of such persons on significantly more favorable terms than those provided to persons not related to these organizations.

(The first part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

See previous edition.

Persons related to a microfinance organization, a guarantee organization, or a factoring organization include:

(The first bullet point of the second part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

its managerial staff;

See previous edition.

persons who directly or indirectly own twenty percent (20%) or more of the shares (stakes) in the charter capital of the microfinance organization, guarantee organization, or factoring organization;

(The third bullet point of the second part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

persons exercising control over it, under its control, or under the control of a third party together with it;

close relatives (persons related by kinship or affinity, i.e., parents, full and half brothers and sisters, spouses, children, including adopted children, grandparents, grandchildren, parents of spouses, full and half brothers and sisters of spouses) of the natural persons specified in the second through fourth bullet points of this part;

See previous edition.

legal entities if persons owning twenty percent (20%) or more of the shares (stakes) in the charter capital of the legal entity exercise control over the microfinance organization, guarantee organization, or factoring organization.

(The sixth bullet point of the second part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

Providing significantly more favorable terms means:

See previous edition.

the provision by the microfinance organization, guarantee organization, or factoring organization of services to a person related to it or acting in the interests of such a person that it does not provide to other persons due to their nature, purpose, specific characteristics, and risk;

(The second bullet point of the third part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

charging a lower fee for providing services than required from other persons or accepting collateral at a value higher than that required from other persons.

See previous edition.

A microfinance organization, guarantee organization, or factoring organization may provide services to persons related to it, taking into account the requirements of this Article, based on the decision of the supervisory board (if available) or the highest management body.

(The fourth part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

See previous edition.

If a person becomes a related person to a microfinance organization, guarantee organization, or factoring organization after signing a service contract with it, the supervisory board (if available) or the highest management body of the microfinance organization must, within thirty (30) days from the date this person became a related person, approve this contract or issue an order to terminate it.

(The fifth part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

See previous edition.

A member of the supervisory board (if available) or the highest management body of a microfinance organization, guarantee organization, or factoring organization must not be present at a meeting regarding the issue of a service contract concluded or to be concluded between themselves or between themselves and a related person, nor attempt to influence the decision to be made.

(The sixth part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

See previous edition.

A microfinance organization, guarantee organization, or factoring organization must maintain a separate register of contracts for services provided to persons related to it and submit the register to the Central Bank upon its request.

(The seventh part of Article 27 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

Article 28. Measures and Sanctions Applied to Non-Bank Credit Organizations [OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.19.00.00 Banking System / 07.19.01.00 Central Bank, its structural divisions and institutions; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.30.00.00 Combating the Legalization of Income Obtained from Criminal Activity and Financing of Terrorism / 07.30.01.00 Measures to Combat the Legalization of Income Obtained from Criminal Activity and Financing of Terrorism]

The Central Bank has the right to apply measures and sanctions to non-bank credit organizations for:

violation of the requirements of legislation on non-bank credit organizations and microfinance activities, including established prudential norms, as well as legislation on combating the legalization of income obtained from criminal activity, financing of terrorism, and financing of the proliferation of weapons of mass destruction;

See Article 243 of the Criminal Code of the Republic of Uzbekistan, Article 1793 of the Code of Administrative Liability of the Republic of Uzbekistan.

violation of the rights of consumers of their services;

See the Law of the Republic of Uzbekistan No. 221-I dated April 26, 1996 "On Protection of Consumer Rights".

providing false or incorrect information to the Central Bank regarding the fulfillment of established requirements and conditions for carrying out activities in a notification procedure;

See previous edition.

failure to comply with requirements regarding information security and cybersecurity.

(The fourth bullet point of the first part of Article 28 was added based on the Law of the Republic of Uzbekistan No. URQ-964 dated September 20, 2024 — , 21.09.2024, No. 03/24/964/0736 — enters into force from December 22, 2024)

Upon detection of violations specified in the first part of this Article, the Central Bank has the right to apply the following measures and sanctions:

sending mandatory executive instructions to non-bank credit organizations regarding the elimination of violations detected in their activities, including the elimination of causes leading to the violation of the rights of consumers of non-bank credit organization services;

restricting the execution of certain operations for a period of up to three months;

levying a fine on a non-bank credit organization in an amount of up to five percent (5%) of its own capital;

See previous edition.\n removing information about the non-bank credit organization from the relevant registry;

(The fifth bullet point of the second part of Article 28 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

suspending or terminating activities carried out in a notification procedure.

In applying measures and sanctions, the Central Bank takes into account:

the level of risk, the nature, scale, and consequences of violations;

the systematic nature and duration of violations;

the impact of committed violations on the financial condition of the non-bank credit organization;

the opportunity to change the situation as a result of applied measures and (or) sanctions;

the causes leading to the emergence of detected violations and (or) risks;

the effectiveness (efficiency) of previously applied measures and sanctions.

Chapter 5. Accounting, Reporting, Internal Audit, and Audit in Non-Bank Credit Organizations

Article 29. Accounting and Reporting in Non-Bank Credit Organizations [OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.29.00.00 Accounting. Financial Reporting / 07.29.01.00 General Rules]

Non-bank credit organizations:

must organize and maintain accounting in accordance with legislation;

must timely submit financial and regulatory reports in the forms and procedures established by the Central Bank. The non-bank credit organization is responsible for the integrity and reliability of the reports submitted.

Article 30. Internal Audit Service See previous edition.

Microfinance organizations and factoring organizations with a balance sheet value of assets exceeding ten billion soums, pawnshops with a balance sheet value of assets exceeding five billion soums, as well as mortgage refinancing organizations and guarantee organizations must establish an internal audit service.

(The first part of Article 30 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

The internal audit service of a non-bank credit organization is accountable to the supervisory board of the non-bank credit organization.

The internal audit service monitors and evaluates the activities of this body or person, as well as branches, by checking and monitoring compliance with legislation, constituent documents, and other documents, established rules and procedures for carrying out financial and economic operations, ensuring the full and correct reflection of data in accounting and reporting, and ensuring the preservation of assets.

Article 31. Audit in Non-Bank Credit Organizations [OKOZ: 1. 09.00.00.00 Entrepreneurship and Economic Activity / 09.04.00.00 Audit Activity / 09.04.07.00 Other Issues of Audit Activity]

The annual financial report of non-bank credit organizations must be audited. Audit in non-bank credit organizations may be carried out upon the request of the Central Bank generally regarding their activities, as well as regarding specific areas of their activities.

Non-bank credit organizations must announce their annual financial report with the audit opinion at least two weeks before the date of the annual general meeting of participants (shareholders) of the non-bank credit organization.

See previous edition.

Chapter 6. Protection of the Rights of Consumers of Services of Microfinance Organizations, Factoring Organizations, and Pawnshops (The name of Chapter 6 is in the edition of the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

Article 32. Basic Rules for Providing Services by Microfinance Organizations and Pawnshops [OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops]

Microfinance organizations and pawnshops must observe the principles of honesty, transparency, mutual respect, and impartiality towards consumers (clients) when providing services.

Microfinance organizations and pawnshops provide services based on the rules developed by them in accordance with the requirements of this Law.

The rules for providing services by microfinance organizations and pawnshops must include:

information on the list of services provided, their cost, including the procedure for calculating the full cost of the loan (microloan), as well as information on the volume and terms of providing services;

terms of providing services, including requirements imposed on consumers (clients) for obtaining loans (microloans);

the list of documents to be submitted by consumers (clients) for using services, the procedure for their submission, and the review period;

methods for notifying consumers (clients) about the decision to provide services or the justified refusal to provide such services. [OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.10.00 Paid Services]

The presence of an order or consent (acceptance) of the consumer (client) regarding the use of such services in a form provided by legislation serves as the basis for the provision of paid services by microfinance organizations and pawnshops.

To determine the consumer's (client's) ability to timely fulfill their obligations to the microfinance organization or pawnshop, the microfinance organization or pawnshop has the right to use information submitted by the consumer (client) and (or) independently obtained from the credit bureau or other sources.

The microfinance organization or pawnshop:

must review documents within the period specified in the rules for providing services and make a decision to provide services or a justified refusal to provide such services;

must notify the consumer (client) in writing within three (3) days from the date of making such a decision, without delay.

The following are prohibited for microfinance organizations and pawnshops:

charging interest, brokerage fees, and penalties (fines, late fees), applying other liability measures in an amount constituting more than half of the annual debt amount under a loan (microloan) contract with a natural person;

charging payments for reviewing loan applications, servicing loan accounts, issuing loans (microloans), as well as charging penalties for early repayment of loans (microloans);

forcing the consumer (client) to use other paid services of the microfinance organization, pawnshop, or another third party as a condition for using the service;

issuing loans (microloans) in foreign currency to natural persons, as well as accounting for their obligations in foreign currency;

accepting residential real estate from natural persons as collateral for the security of loans (microloans) with a repayment period of up to one year — for microfinance organizations;

issuing a loan (microloan) to a natural person if there is overdue debt on loans (microloans) previously obtained by that person.

Interest rates and payments on consumer loans and microloans issued by microfinance organizations, as well as microloans issued by pawnshops, must not exceed the maximum values established by the Central Bank.

See previous edition.

The rules of this Chapter:

apply to the relations of banks with their own consumers (clients) in carrying out microfinance activities;

apply to the part relating to the activities of guarantee organizations in their relations with their own consumers (clients).

(The ninth part of Article 32 was added based on the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, No. 03/25/1058/0355)

Article 33. Rights of Consumers (Clients) [OKOZ: 1. 01.00.00.00 Constitutional System / 01.06.00.00 Rights, Freedoms, and Duties of Man and Citizen / 01.06.02.00 Basic (Constitutional) Personal Rights and Freedoms / 01.06.02.06 Right to Seek, Find, and Disseminate Any Information; 2. 03.00.00.00 Civil Legislation / 03.12.00.00 Obligations Arising from Caused Damage / 03.12.04.00 Compensation for Moral Harm]

Consumers (clients) of the services of microfinance organizations and pawnshops:

have the right to receive correct and complete information about the service, as well as about the organization providing the service;

have the right to freely choose the service provided by the microfinance organization or pawnshop and its quality at the appropriate level;

have the right to the safety of the service;

have the right to full compensation for material damage caused by the service with defects, as well as the illegal action (inaction) of the organization providing the service, and compensation for moral harm;

have the right to appeal to the court and other competent state bodies to protect their violated rights or legally protected interests.

Consumers (clients) of the services of microfinance organizations and pawnshops may also have other rights in accordance with legislative acts.

The consumer (client) has the right, without being charged a fine, to:

refrain from using the unused amount of the loan (microloan) by notifying the organization issuing (to issue) the loan (microloan) in writing within two weeks from the date the loan (microloan) contract was concluded;

repay the issued loan (microloan) amount early or pay the value of the leased object early, as well as pay interest (the lessor's interest income) calculated for the period of actual use.

Article 34. Disclosure of Information by Microfinance Organizations and Pawnshops [OKOZ: 1. 12.00.00.00 Information and Informatization / 12.03.00.00 Information Resources. Use of Information Resources / 12.03.04.00 Open and Publicly Available Information. State Information Resources]

Information on the terms of providing a loan (microloan), its amount, terms, repayment procedure, and the procedure for calculating its full cost must be open for public review and posted on the official website (if available). Open information must not differ from the terms of the services provided and information about them.

Before concluding a service contract with the consumer (client), microfinance organizations and pawnshops:

must ensure full disclosure of reliable information about the services provided, taking into account the requirements specified in the third part of this Article. Refusal to provide information on the terms and cost of services provided is not permitted;

must explain their rights and obligations, as well as the consequences of non-fulfillment or inadequate fulfillment of obligations assumed under the service contract;

must familiarize them with the procedure for changing the terms of services provided, including the procedure for reviewing debt repayment terms and the procedure for attaching enforcement to collateral property.

The following information on the terms of providing a loan (microloan), its use, and repayment must be posted at the places where services are provided (places for accepting applications for loans (microloans)), including on their official website (if available):

the name of the organization issuing the loan (microloan), its location, contact phone numbers, official website (if available), information about its inclusion in the registry of organizations carrying out microfinance activities or the pawnshops registry;

requirements imposed on the borrower for obtaining a loan (microloan);

terms for reviewing documents submitted for obtaining a loan (microloan) and making a decision to provide a loan (microloan) or a justified refusal to provide a loan (microloan);

types of loans (microloans);

amounts of loans (microloans) and their repayment terms;

interest rates in annual percent, and if variable interest rates are applied, the procedure for determining them;

types of securing the performance of obligations under the loan (microloan) contract;

the date on which interest is calculated for the use of the loan (microloan) or the procedure for determining it;

methods of providing a loan (microloan), including remote service systems;

terms during which the borrower has the right to refuse to obtain a loan (microloan);

the periodicity of payments by the borrower when repaying the loan (microloan), paying interest on the loan (microloan), and making other payments;

the borrower's liability for non-fulfillment or inadequate fulfillment of the loan (microloan) contract, the amount of penalties (fines, late fees), and the procedure for determining them;

formulars or other standard forms specifying the general terms of the loan (microloan) contract.

The information specified in the third part of this Article must be delivered to the attention of the borrower free of charge.

If third parties are involved by the creditor in disseminating information on the terms of providing a loan (microloan), its use, and repayment, such persons must disclose information in the volume and procedure specified in the third part of this Article.

Upon the borrower's request, the microfinance organization and pawnshop must provide complete information on the actual amount of debt and, if the terms of the service contract change in a way that leads to changes in payments, a new schedule of payments.

If the name and (or) location (postal address) of the microfinance organization and pawnshop changes, it must notify borrowers and creditors by publishing relevant information in mass media and on its official website (if available) within a period not exceeding two working days from the date such changes occurred. This requirement also applies to cases where the name or location (postal address) of a branch of a non-bank credit organization changes.

Article 35. Terms of the Loan (Microloan) Contract [OKOZ: 1. 03.00.00.00 Civil Legislation / 03.10.00.00 Obligation Law / 03.10.05.00 Contract. Conclusion, Modification, and Termination of Contracts]

Microfinance organizations and pawnshops issue loans (microloans) based on loan (microloan) contracts (hereinafter referred to as the contract in the text).

The terms of the contract are agreed upon with the borrower and include:

the amount of the loan (microloan) or the credit limit and the procedure for changing it;

the interest rate in annual percent, and if a variable interest rate is applied, the procedure for determining it;

the term of validity of the contract and the repayment term for the loan (microloan);

the number, amount, and periodicity (terms) of the borrower's payments under the contract, as well as the method of paying the principal amount of the loan (microloan) and interest on it (differentiated or annuity);

the procedure for changing the number, amount, and periodicity (terms) of the borrower's payments in case of partial early repayment of the loan (microloan);

conditions for ensuring the fulfillment of obligations under the contract and the requirements imposed on such collateral (if any);

the liability of the microfinance organization or pawnshop and the borrower for failure to fulfill or improper fulfillment of the contract terms, the amount of penalty (fine, penalty) or the procedure for determining them.

Other conditions provided for by legislation may also be included in the contract.

Amendment of contract terms is carried out in compliance with the requirements established by law.

Microfinance organizations and pawnshops are not entitled to unilaterally change or supplement the terms of contracts regarding the services they provide, except for the cases provided for in the sixth part of this article.

A microfinance organization or pawnshop has the right to make a decision to reduce the interest rate, reduce the amount of penalty (fine, penalty) or cancel it in whole or in part, establish a period during which the penalty (fine, penalty) is not collected, or cancel its collection, as well as to change other terms of the contract, provided that this does not lead to an increase in the borrower's debt. The microfinance organization or pawnshop must send the borrower a notice of the change in contract terms and, if the amount of future payments changes, information about future payments, and ensure the opportunity to use information about changes in contract terms.

Contract terms that restrict the rights of the consumer (client) and (or) impose additional obligations on them not provided for by legislation are void. The microfinance organization or pawnshop must compensate or reimburse the material damage caused to the consumer (client) as a result of including such terms in the contract through the court.

See: Chapter 41 of the Civil Code of the Republic of Uzbekistan.

Article 36. Consideration of Complaints [OKOZ: 1. 02.00.00.00 Fundamentals of State Administration / 02.07.00.00 Administrative Procedures (Regimes) / 02.07.08.00 Appeals of Physical and Legal Persons]

Microfinance organizations and pawnshops must have a procedure establishing the procedure for considering complaints from their consumers (clients).

Complaints from consumers (clients) may be oral, written, or electronic, and must be considered and answered in writing within a period not exceeding fifteen days from the day the complaint was received by the microfinance organization or pawnshop, or up to one month if additional study, inspection, and (or) request for additional documents are required.

Microfinance organizations and pawnshops are not entitled to restrict the right of consumers (clients) to address complaints with requests. Refusal to accept complaints is not permitted.

Article 37. Confidentiality of Information See previous edition.

Microfinance organizations, factoring organizations, and pawnshops guarantee the confidentiality of information regarding the financial operations of their borrowers (clients) and creditors. Members of the management bodies of the microfinance organization, factoring organization, and pawnshop, as well as their employees, are obliged to maintain the secrecy of information concerning the operations of the non-bank credit organization, its borrowers (clients), and operations with creditors. (The first part of Article 37 was edited by the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355) See previous edition.

Persons to whom confidential information was entrusted or who became aware of such information in connection with the performance of their official duties are liable in the established order for disclosing this information. (The second part of Article 37 was edited by the Law of the Republic of Uzbekistan No. URQ-964 dated September 20, 2024 — , 21.09.2024, 03/24/964/0736 — enters into force from December 22, 2024) See previous edition.

The rules established by legislation on bank secrecy apply to microfinance organizations, factoring organizations, and pawnshops. (The third part of Article 37 was edited by the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

Chapter 7. Final Provisions

See previous edition.

Article 38. Specific Features of Changing the Activities of a Non-Bank Credit Organization, Reorganizing It, and Liquidating a Non-Bank Credit Organization (The title of Article 38 was edited by the Law of the Republic of Uzbekistan No. URQ-1026 dated February 11, 2025 — , 12.02.2025, 03/25/1026/0131) See previous edition.

A microfinance organization may change its activities to the activities of a microfinance bank in the manner provided for by the Law of the Republic of Uzbekistan "On Banks and Banking Activities". (Article 38 was supplemented with the first part based on the Law of the Republic of Uzbekistan No. URQ-1026 dated February 11, 2025 — , 12.02.2025, 03/25/1026/0131) [OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activities / 07.22.00.00 Lending / 07.22.01.00 General Issues]

Reorganization of a non-bank credit organization is carried out in the forms of merger, accession, division, separation, and transformation based on the decision of the general meeting of participants (shareholders). See previous edition.

When a microfinance organization or factoring organization is reorganized in the form of division or separation, the newly formed microfinance organization or factoring organization becomes the legal successor to the obligations and (or) must comply with prudential norms if it carries out activities from the funds provided for in the second part of Article 8 of this Law. (The third part of Article 38 was edited by the Law of the Republic of Uzbekistan No. URQ-1058 dated April 17, 2025 — , 18.04.2025, 03/25/1058/0355)

Reorganization and liquidation of a non-bank credit organization are carried out in accordance with legislation.

See: Articles 49, 53 of the Civil Code of the Republic of Uzbekistan, Chapter 10 of the Law of the Republic of Uzbekistan "On Joint Stock Companies and Protection of Shareholders' Rights", Chapter 7 of the Law of the Republic of Uzbekistan "On Limited and Additional Liability Companies".

Article 39. Resolution of Disputes

Disputes in the field of activities of non-bank credit organizations and microfinance activities are resolved in the manner established by legislation.

Article 40. Liability for Violation of Legislation on Non-Bank Credit Organizations and Microfinance Activities

Persons guilty of violating the legislation on non-bank credit organizations and microfinance activities are liable in the established order.

Article 41. Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan [OKOZ: 1. 21.00.00.00 Comprehensive Documents on Amendments and Additions / 21.01.00.00 Laws of the Republic of Uzbekistan]

1. The following amendments and additions shall be made to the Law of the Republic of Uzbekistan No. 154-I "On the Central Bank of the Republic of Uzbekistan" adopted on December 21, 1995 (in the edition of the Law of the Republic of Uzbekistan No. URQ-582 adopted on November 11, 2019) (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2019, No. 11, Article 790; 2021, Supplement to No. 4, No. 10, Article 968):

1. Article 11 first part:

tenth bullet point shall be stated as follows:

"uses justified reasoning in licensing banking activities, registering organizations carrying out microfinance organization activities and mortgage refinancing organizations, as well as in regulating and supervising the activities of banks, organizations carrying out microfinance organization activities, mortgage refinancing organizations, pawnshops, and banking groups";

nineteenth bullet point shall be stated as follows:

"carries out control measures, including remotely, to identify violations in banks, organizations carrying out microfinance organization activities, mortgage refinancing organizations, and pawnshops";

2. Article 12 first part:

tenth bullet point shall be stated as follows:

"licenses the activities of banks, payment institutions, payment system operators, currency exchanges, and credit bureaus, regulates the activities of banks, as well as microfinance organizations, pawnshops, mortgage refinancing organizations (hereinafter in the text referred to as non-bank credit organizations), payment institutions, payment system operators, currency exchanges, credit bureaus, and banking groups, and exercises control over such activities";

fifteenth bullet point shall be stated as follows:

"carries out monitoring and control over compliance with the procedure for submitting information related to the rules of internal control and combating the legalization of proceeds from criminal activity, financing of terrorism, and financing of the proliferation of weapons of mass destruction by persons subject to the control of the Central Bank";

seventeenth bullet point shall be stated as follows:

"takes measures to ensure the protection of the rights and legitimate interests of consumers of services of banks and non-bank credit organizations (hereinafter in the text referred to as credit institutions), transparency of financial services, and increasing the level of financial literacy of the population and business entities";

Article 20 :

eighth bullet point shall be stated as follows:

"determines the procedure for calculating prudential norms for banks, including systemically important banks, as well as banking groups, microfinance organizations, and mortgage refinancing organizations, and the permissible values of these norms";

the words "of microcredit organizations" in the twelfth bullet point shall be deleted;

supplemented with the fourteenth bullet point of the following content:

"makes a decision on the registration of organizations carrying out microfinance organization activities and mortgage refinancing organizations";

the fourteenth to twenty-eighth bullet points shall be considered respectively as the fifteenth to twenty-ninth bullet points;

Article 60 :

first part:

second bullet point shall be stated as follows:

"the procedure and conditions for state registration of banks and credit bureaus";

the words "in the field of banking activities" in the fourth bullet point shall be deleted;

the words "microcredit organizations, pawnshops, mortgage refinancing organizations" in the tenth bullet point shall be deleted;

the words "microcredit organizations, mortgage refinancing organizations, and credit bureaus" in the fifteenth bullet point shall be deleted;

supplemented with the eighteenth, nineteenth, and twentieth bullet points of the following content:

"special legal regime ('regulatory sandbox') for testing new financial operations, technologies, and services by legal entities in a controlled limited environment (coverage area, test period, number and (or) volume of operations and services, number of consumers, etc.)";

"the procedure for carrying out the functions of a payment agent (sub-agent) by microfinance organizations";

"the procedure for providing services related to Islamic financing by microfinance organizations";

the eighteenth bullet point shall be considered the twenty-first bullet point;

third part shall be stated as follows:

"The Central Bank maintains state registers of banks and credit bureaus, registers of licenses granted to banks, payment institutions, payment system operators, currency exchanges, and credit bureaus, a register of organizations carrying out microfinance organization activities, a register of mortgage refinancing organizations, a register of pawnshops, as well as registers of documents with a permitting nature and notifications";

Article 61 :

first part:

eleventh bullet point shall be stated as follows:

"the procedure for calculating prudential norms for banks, including systemically important banks, as well as banking groups, microfinance organizations, and mortgage refinancing organizations, and the permissible values of these norms";

second part:

fourth bullet point the word "microcredit" shall be replaced with the word "microfinance";

fifth bullet point shall be stated as follows:

"setting the maximum values of interest rates and payments on consumer loans and microloans granted by banks and microfinance organizations, as well as on microloans granted by pawnshops";

the words "microcredit organizations, pawnshops, mortgage refinancing organizations" in the thirteenth bullet point shall be deleted;

Article 65 :

fourteenth bullet point shall be stated as follows:

"carrying out activities for refinancing mortgage loans";

supplemented with the fifteenth, sixteenth, and seventeenth bullet points of the following content:

"carrying out microfinance organization activities";

"acquisition, directly or indirectly, of a share of ten percent or more in the charter fund (charter capital) of a non-bank credit organization by physical and legal persons, including their close relatives and persons associated with them, as well as non-residents, as a result of one or several agreements";

"acquisition of a share in the charter fund (charter capital) of a non-bank credit organization of the volume provided for in the fourteenth bullet point of this article in cases where the share is acquired in circumstances independent of the recipient";

7. Article 65 1 first part :

seventh bullet point shall be stated as follows:

"opening or closing a branch of a microfinance organization";

supplemented with the eighth bullet point of the following content:

"opening or closing a branch of a pawnshop";

8. Article 67 second part shall be stated as follows:

"If a non-bank credit organization violates legislative requirements, including established prudential norms, or provides false or incorrect information to the Central Bank regarding the fulfillment of requirements and conditions for carrying out activities (actions) in a notification procedure, the Central Bank:

has the right to send mandatory instructions to the violator to eliminate identified violations in its activities;

to collect a fine up to five percent of its own capital;

to restrict the conduct of certain operations for a period of up to three months;

to remove information about the non-bank credit organization from the register of organizations carrying out microfinance organization activities or the register of mortgage refinancing organizations or the register of pawnshops;

to suspend or terminate activities carried out in a notification procedure";

Chapter 10 :

supplemented with Article 67 1 of the following content:

"Article 67 1 . Special 'Regulatory Sandbox' Legal Regime in the Field of Financial Services

The activity of legal entities to test new financial operations, technologies, and services in a controlled limited environment (coverage area, test period, number and (or) volume of operations and services, number of consumers, etc.) is a special legal regime in the field of financial services ('regulatory sandbox').

The introduction and termination of the special legal regime, as well as the procedure for carrying out activities within the framework of this regime, are determined by the Central Bank.

The special legal regime is introduced by the Central Bank by approving a special temporary procedure for the special legal regime, which provides for:

the validity period of the special legal regime, which may not exceed three years;

norms of legislative acts not applicable to participants of the special legal regime;

the procedure and criteria for evaluating the effectiveness and efficiency of the introduction of the special legal regime, including target indicators;

other information necessary for the introduction and application of the special legal regime.

After the expiration of the validity of the special legal regime, an analysis is carried out on the appropriateness of introducing new financial operations, technologies, and services tested within the framework of the special legal regime.

If the introduction of new financial operations, technologies, and services tested within the framework of the special legal regime is deemed appropriate, the Central Bank prepares proposals for amendments and additions to legislative acts regarding the introduction of new financial operations, technologies, and services tested within the framework of the special legal regime without restricting their validity";

supplemented with Article 69 1 of the following content:

"Article 69 1 . Mutual Cooperation of the Central Bank with State Bodies and Organizations within the Framework of Licensing, Permitting, and Notification Procedures

The Central Bank has the right to request information necessary for making decisions within the framework of licensing, permitting, and notification procedures from state bodies and organizations.

State bodies and organizations must provide the information requested by the Central Bank, which is necessary for making the relevant decision".

2. The following changes shall be made to the Civil Code of the Republic of Uzbekistan approved by Laws No. 163-I adopted on December 21, 1995, and No. 256-I adopted on August 29, 1996 (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1996, Supplement to No. 2, No. 11-12; 1997, No. 2, Article 56, No. 9, Article 241; 1998, No. 5-6, Article 102; 1999, No. 1, Article 20, No. 9, Article 229; 2001, No. 1-2, Article 23, No. 9-10, Article 182; 2002, No. 1, Article 20, No. 9, Article 165; 2003, No. 1, Article 8, No. 5, Article 67; 2004, No. 1-2, Article 18, No. 5, Article 90, No. 9, Article 171; Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2006, No. 4, Article 154, Nos. 9, Articles 494, 498; 2007, No. 1, 3, 5 Articles, No. 4, Articles 156, 164, No. 8, Article 367, No. 9, Article 416, No. 12, Articles 598, 608; 2008, No. 4, Article 192, No. 12, Article 640; 2009, No. 9, Article 337; 2010, No. 9, Articles 335, 337, 340; 2011, No. 12/2, Articles 363, 364, 365; 2012, No. 4, Articles 106, 109, No. 12, Article 336; 2013, No. 10, Article 263; 2014, No. 5, Article 130, No. 12, Article 343; 2015, No. 8, Articles 310, 312; 2016, No. 4, Article 125; 2017, No. 4, Article 137, No. 9, Article 510, No. 12, Article 773; 2018, No. 1, Article 4, No. 4, Article 224, No. 7, Article 433, No. 10, Article 673; 2019, No. 3, Articles 161, 166, No. 5, Article 267, No. 10, Article 671, No. 12, Articles 880, 886; 2020, No. 1, Articles 3, 4, No. 10, Article 593; 2021, Supplement to No. 4, No. 8, Article 801, No. 10, Article 968):

1. Article 289 first part shall be stated as follows:

"Acceptance of movable property intended for personal consumption of citizens as collateral for short-term microloans may be carried out as entrepreneurial activity by specialized organizations — pawnshops carrying out their activities in a notification procedure";

Article 750 shall be stated as follows:

"Banks and other credit institutions may conclude financing contracts as a financial agent in exchange for renunciation in favor of another person of a monetary claim". See previous edition. (Based on the Law of the Republic of Uzbekistan No. URQ-1137 dated April 21, 2026 — , 21.04.2026, 03/26/1137/0396, the date of deletion of paragraph 3 of Article 41 is July 22, 2026)

4. The following changes shall be made to the Law of the Republic of Uzbekistan No. URQ-33 "On Consumer Credit" adopted on May 6, 2006 (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2006, No. 5, Article 216; 2012, No. 4, Article 105; 2021, Supplement to No. 4):

1. Article 4 second part shall be stated as follows:

"Banks and non-bank credit organizations, as well as payment institutions carrying out microfinance organization activities are financial consumer credit granting organizations";

2. Article 17 third part shall be stated as follows:

"Information on the consumer credit contract and its fulfillment by the borrower is submitted to credit bureaus for the formation of a credit history and is used by them in the manner established by legislation. Information on the financial consumer credit contract is also submitted to the State Registry of Credit Information".

5. The second part of Article 16 of the Law of the Republic of Uzbekistan No. URQ-301 "On Exchange of Credit Information" adopted on October 4, 2011 (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2011, No. 10, Article 271; 2013, No. 4, Article 98; 2015, No. 8, Article 312; 2019, No. 3, Article 166; 2020, No. 1, Articles 3; 2021, Supplement to No. 4, No. 10, Article 968) shall be stated as follows:

"Credit information providers, which are banks and non-bank credit organizations, as well as payment institutions carrying out microfinance organization activities, must submit existing credit information in their possession to the State Registry of Credit Information and credit bureaus".

6. The eighth bullet point of the second part of Article 18 of the Law of the Republic of Uzbekistan No. URQ-578 "On Payments and Payment Systems" adopted on November 1, 2019 (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2019, No. 11, Article 786; 2021, Supplement to No. 4, No. 10, Article 968) shall be stated as follows:

"microfinance organization activities".

7. Subparagraph 'b' of paragraph 20 of the Appendix to the Law of the Republic of Uzbekistan No. URQ-600 "On State Duty" adopted on January 6, 2020 (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2020, No. 1, Article 1, No. 3, Article 201, No. 5, Article 298, No. 10, Article 593, No. 12, Article 691; 2021, No. 1, Article 13, Supplement to No. 4, No. 7, Article 661, Nos. 8, Articles 800, 803, No. 10, Article 968) shall be deleted.

8. The words "and other credit institutions" in the second bullet point of Article 14 of the Law of the Republic of Uzbekistan No. URQ-677 "On Auditing Activities" adopted on February 25, 2021 (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2021, No. 2, Article 146) shall be deleted.

9. The following amendments and additions shall be made to the Law of the Republic of Uzbekistan No. URQ-701 "On Licensing, Permitting, and Notification Procedures" adopted on July 15, 2021 (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2021, No. 7, Article 661):

1. Position 14 of Annex 1 shall be deleted;

Annex 2 shall be supplemented with positions 48 1 , 48 2 , and 48 3 of the following content:

"48 1 .

Decision on Entering a Microfinance Organization into the Register of Organizations Carrying Out Microfinance Organization Activities

Carrying out Microfinance Organization Activities

Central Bank of the Republic of Uzbekistan

48 2 .

Decision on Entering a Payment Institution into the Register of Organizations Carrying Out Microfinance Organization Activities

Carrying out Microfinance Organization Activities

---"

Central Bank of the Republic of Uzbekistan

48 3 .

Initial (subsequent) permission for acquiring a share in the charter fund (charter capital) of a non-bank credit organization

Physical and legal persons, including their respective close relatives and other physical and legal persons acting in concert with them, as well as non-residents, acquiring directly or indirectly a share constituting ten percent or more of the charter fund (charter capital) of a non-bank credit organization as a result of one or several agreements

Central Bank of the Republic of Uzbekistan

Acquisition in cases not dependent on the acquirer of a share of ten percent or more of the charter fund (charter capital) of a non-bank credit organization

»;

3-appendix of :

Position 10 shall be stated in the following edition:

«

Notification of opening or closing a branch of a microfinance organization

Opening a branch of a microfinance organization

Central Bank of the Republic of Uzbekistan

»;

shall be filled with the following content of position 10 1 :

«

10 1 .

Notification of opening or closing a branch of a pawnshop

Opening a branch of a pawnshop

Central Bank of the Republic of Uzbekistan

».

Article 42. Recognizing certain legislative acts of the Republic of Uzbekistan as having lost their force

The following shall be recognized as having lost their force:

1. Law of the Republic of Uzbekistan No. URQ-50 dated September 15, 2006 "On Microfinance" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2006, No. 9, Article 492);

2. Law of the Republic of Uzbekistan No. URQ-53 dated September 20, 2006 "On Microcredit Organizations" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2006, No. 9, Article 495);

3. Law of the Republic of Uzbekistan No. URQ-339 dated December 17, 2012 "On Private Banking and Financial Institutions and Guarantees of Their Activities" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2012, No. 12, Article 330);

4. Articles 18 and 19 of the Law of the Republic of Uzbekistan No. URQ-345 dated December 29, 2012 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2012, No. 12, Article 336);

5. Article 39 of the Law of the Republic of Uzbekistan No. URQ-352 dated April 30, 2013 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2013, No. 4, Article 98);

6. Article 25 of the Law of the Republic of Uzbekistan No. URQ-373 dated September 4, 2014 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2014, No. 9, Article 244);

7. Articles 32 and 41 of the Law of the Republic of Uzbekistan No. URQ-391 dated August 20, 2015 "On Amendments and Additions Directed at Further Strengthening the Trust Protection of Private Property and Business Entities, Eliminating Obstacles in Their Rapid Development" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2015, No. 8, Article 312);

8. Article 12 of the Law of the Republic of Uzbekistan No. URQ-418 dated December 29, 2016 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of Additional Measures to Ensure Rapid Development of Business Activity, Comprehensive Protection of Private Property, and Qualitative Improvement of the Business Environment" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2016, No. 12, Article 385);

9. Article 13 of the Law of the Republic of Uzbekistan No. URQ-429 dated April 18, 2017 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2017, No. 4, Article 137);

10. Articles 4 and 5 of the Law of the Republic of Uzbekistan No. URQ-494 dated October 3, 2018 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan Directed at Developing Economic Relations and Business" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2018, No. 10, Article 670);

11. Article 42 of the Law of the Republic of Uzbekistan No. URQ-522 dated February 18, 2019 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of the Activities of Some State Bodies in the Field of Security and Defense" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2019, No. 2, Article 47);

12. Article 39 of the Law of the Republic of Uzbekistan No. URQ-586 dated December 3, 2019 "On Amendments to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Improvement of the Procedure for Determining Wages, Pensions, and Other Payments" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2019, No. 12, Article 880);

13. Article 5 of the Law of the Republic of Uzbekistan No. URQ-612 dated March 17, 2020 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2020, No. 3, Article 203);

14. Articles 172, 174, and 215 of the Law of the Republic of Uzbekistan No. URQ-683 dated April 21, 2021 "On Amendments to Certain Legislative Acts of the Republic of Uzbekistan" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2021, Appendix to No. 4);

15. Article 18 of the Law of the Republic of Uzbekistan No. URQ-721 dated October 12, 2021 "On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan in Connection with the Adoption of the Law of the Republic of Uzbekistan 'On Licensing, Permitting, and Notification Procedures'" (Information Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2021, No. 10, Article 968).

Article 43. Ensuring the implementation, delivery, and explanation of the essence and significance of this Law

The Central Bank shall ensure the implementation of this Law, its delivery to executors, and the explanation of its essence and significance among the population.

Article 44. Aligning legislation with this Law [OKOB: 1. 01.00.00.00 Constitutional System / 01.11.00.00 Cabinet of Ministers of the Republic of Uzbekistan (see also 02.01.00.00)]

The Cabinet of Ministers of the Republic of Uzbekistan:

shall align government decrees with this Law;

shall ensure that state management bodies review and repeal their normative legal acts that contradict this Law.

Article 45. Entry into force of this Law

This Law enters into force from the day of its official publication.

Non-bank credit organizations shall, within six months from the date this Law enters into force, align their firm names with the requirements established in Article 13 of this Law.

From the date this Law enters into force and until the firm name is aligned with Article 13 of this Law, microcredit organizations shall be recognized as microfinance organizations.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV

Tashkent city,

April 20, 2022,

No. URQ-765 (, 21.04.2022, No. 03/22/765/0332; 28.02.2024, No. 03/24/914/0161; 21.09.2024, No. 03/24/964/0736; 12.02.2025, No. 03/25/1026/0131; 18.04.2025, No. 03/25/1058/0355; 21.04.2026, No. 03/26/1137/0396)