Procedure for Commercial Banks to Maintain Accounts in the National Currency of the Republic of Uzbekistan for Non-Residents

Approved by

The Board of Directors of the Central Bank of the Republic of Uzbekistan

No. 231, dated September 5, 1998

"APPROVED"

Procedure for Commercial Banks to Maintain Accounts in the National Currency of the Republic of Uzbekistan for Non-Residents

[State registered by the Ministry of Justice of the Republic of Uzbekistan on October 22, 1998, under No. 510]

This procedure ceases to have legal force from September 1, 2020, based on the Resolution of the Board of Directors of the Central Bank of the Republic of Uzbekistan No. 18/5 dated August 29, 2020 "On Approval of the Rules for Carrying Out Currency Operations in the Republic of Uzbekistan" (registration No. 3281, dated August 31, 2020).

1. General Provisions

1.1. In accordance with the Law of the Republic of Uzbekistan "On Currency Regulation" and Article 40 of the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan," the Central Bank of the Republic of Uzbekistan establishes the following procedure for commercial banks of the Republic of Uzbekistan to maintain demand deposit accounts in the national currency of the Republic of Uzbekistan for non-residents. The opening of accounts for non-residents is carried out in the manner prescribed by the Instruction of the Central Bank "On Bank Accounts Opened in Banks of the Republic of Uzbekistan."

1.2. Accounts in the national currency of the Republic of Uzbekistan are opened for legal and natural persons who are non-residents, as well as for foreign banks that have concluded relevant agreements with commercial banks of the Republic of Uzbekistan.

2. Accounts in National Currency of Legal Entities – Non-Residents

2.1. Accounts in the national currency of the Republic of Uzbekistan are opened for the following legal entities – non-residents:

• Foreign diplomatic and other official missions, international organizations and their branches, as well as representative offices of foreign organizations that do not engage in economic or other commercial activities in the Republic of Uzbekistan, staying in the Republic of Uzbekistan and enjoying immunity and diplomatic privileges;
• Participants in open electronic auctions of commodity and raw material exchanges;
• Entities carrying out the purchase (sale) of shares of companies in organized auctions;
• Entities carrying out their activities in the Republic of Uzbekistan through a permanent establishment.

2.2. The following may be transferred to accounts in the national currency of the Republic of Uzbekistan of legal entities – non-residents:

• Proceeds from the sale of foreign currency in the domestic currency market of the Republic of Uzbekistan, in the manner established by legislation;
• Consular fees and other sums obtained on the territory of the Republic of Uzbekistan on legal grounds;
• Sums received from "loro" accounts of foreign banks in commercial banks of the Republic of Uzbekistan from the head office abroad;
• Sums received in the form of charity and financial assistance;
• Dividends and other income obtained as a result of the investment activities of a legal entity – non-resident that established a representative office in the Republic of Uzbekistan;
• In other cases established by the Central Bank of the Republic of Uzbekistan.

2.3. Funds in the national currency of the Republic of Uzbekistan in the accounts of non-residents may be used, at the order of the account holder, to pay for current expenses for their storage on the territory of the Republic of Uzbekistan (payment of rent; payment for utilities and other similar services; purchase of goods and materials to ensure daily activities; payment for lease of communication channels; payment for costs of sending and delivering cargo, mail items, and periodicals; payment of wages and other rewards to employees under labor contracts; payment of employees' business trip expenses; payment of insurance premiums for mandatory and voluntary types of insurance; payment for treatment expenses for employees in case of accidents or illness), as well as for other purposes in accordance with current legislation.

2.4. Cash funds in the national currency of the Republic of Uzbekistan from the accounts of legal entities – non-residents may be withdrawn in the amount necessary to pay wages and other payments to employees under labor contracts, to pay for employees' business trip expenses, as well as for other purposes established by the procedure for legal entities – non-residents. The cash limit for a non-resident is established by the servicing commercial bank with the consent of the account holder. The representative offices and branches of a non-resident must comply with the procedure for conducting cash operations established for residents of the Republic of Uzbekistan.

3. Accounts in National Currency of Natural Persons – Non-Residents

3.1. Accounts in the national currency of the Republic of Uzbekistan for natural persons – non-residents are opened for foreign citizens temporarily staying in the Republic of Uzbekistan.

Funds exchanged into national currency through foreign currency exchange branches in accordance with the established procedure for bringing them into the Republic of Uzbekistan in accordance with legislation, and other sums obtained on legal grounds on the territory of the Republic of Uzbekistan, may be credited to these accounts.

3.2. Funds in the national currency of the Republic of Uzbekistan may be spent to pay for current expenses of a natural person – non-resident during their stay living in the territory of the republic.

4. "Loro" Representative Accounts in National Currency of Foreign Banks

4.1. Foreign banks holding the appropriate license for carrying out operations in foreign currency may open "loro" representative accounts in commercial banks of the Republic of Uzbekistan.

Commercial banks of the Republic of Uzbekistan open representative accounts in the national currency of the Republic of Uzbekistan for foreign banks based on agreements concluded on establishing representative relations.

4.2. Service of representative accounts is carried out independently by commercial banks in the manner provided for in the terms of agreements concluded with foreign banks.

4.3. The following funds in the national currency of the Republic of Uzbekistan may be transferred to representative accounts of foreign banks:

• Funds received through commercial banks of the Republic of Uzbekistan and from the sale of foreign currency on the currency exchange of the Republic of Uzbekistan;
• Funds received under import contracts for the delivery of goods or provision of services, if the terms of the contracts provide for settlement in som (in this case, the bank servicing the importer – resident of the Republic of Uzbekistan indicates in the payment document the purpose of the payment and the number of the concluded contract);
• Funds received from other current international operations provided for by legislation.

4.4. Funds in the national currency of the Republic of Uzbekistan transferred to representative accounts of foreign banks may be used in the following manner:

• As payment for goods exported under export contracts concluded at commodity and raw material and agro-industrial exchanges;
• As funds received in the form of money transfers, socially significant payments, and transfers established by the procedure;
• For forming the charter capital of an enterprise;
• For transfer to accounts of representative offices and branches of legal entities – non-residents for subsequent use in accordance with paragraphs 2.3 and 2.4 of this Procedure;
• For other purposes provided for by legislation.

4.5. It is prohibited to withdraw funds from representative accounts of foreign banks at the request of residents of the Republic of Uzbekistan.

4.6. It is prohibited to transfer funds between "loro" accounts of foreign banks in commercial banks of the Republic of Uzbekistan, to transfer funds from the specified accounts to deposits, as well as to grant and receive loans.

4.7. The commercial bank that opened a representative account for a foreign bank must notify the Central Bank of the Republic of Uzbekistan of information about the representative bank within three days.

4.8. The Central Bank of the Republic of Uzbekistan has the right to establish requirements for foreign banks that have opened "loro" accounts in commercial banks of the Republic of Uzbekistan.

4.9. Commercial banks submit information about the movement of funds on representative accounts opened by foreign banks in the form and within the deadlines established by the Central Bank of the Republic of Uzbekistan.

5. Accounts in National Currency of Non-Residents Carrying Out Activities Through a Permanent Establishment in the Republic of Uzbekistan

5.1. Funds in the national currency of non-residents carrying out their activities through a permanent establishment in the Republic of Uzbekistan are stored in accounts opened in commercial banks on the territory of the Republic of Uzbekistan and are used by them in accordance with legislation.

5.2. The following funds may be credited to these accounts:

• Funds obtained from the sale of goods (performance of works, provision of services) and from other activities carried out by the permanent establishment in the Republic of Uzbekistan in accordance with legislation;
• Sums transferred from accounts opened in other banks of the Republic of Uzbekistan by the permanent establishment;
• Sums obtained from the sale of foreign currency to commercial banks;
• Funds in the accounts of the permanent establishment at clearing chambers of commodity and raw material exchanges;
• Dividends and other income obtained by the legal entity – non-resident that established the permanent establishment as a result of investment activities in the Republic of Uzbekistan.

5.3. Funds held in these accounts may be used, at the order of the account holder, for:

• Payment of taxes and other mandatory payments in accordance with legislation;
• Transfer to accounts opened in other banks of the Republic of Uzbekistan by the account holder;
• Purchase of foreign currency;
• Payment of expenses, as well as for other purposes provided for in paragraph 2.3 of this Procedure.

6. Accounts in the National Currency of the Republic of Uzbekistan of Non-Resident Legal Entities Participating in Open Electronic Auctions of Commodity and Raw Material Exchanges and Carrying Out the Purchase (Sale) of Company Shares in Organized Auctions

6.1. Funds in the national currency of legal entities – non-residents participating in open electronic auctions of commodity and raw material exchanges and carrying out the purchase (sale) of company shares in organized auctions are stored in accounts opened in commercial banks of the Republic of Uzbekistan.

6.2. The following funds may be credited to these accounts:

• Funds obtained from the sale of products in open electronic auctions of commodity and raw material exchanges;
• Funds received from the purchase (sale) of shares in organized auctions;
• Other funds not prohibited by the legislation of the Republic of Uzbekistan.

6.3. Funds held in these accounts may be used, at the order of the account holder, for:

• Purchase of foreign currency;
• Re-transfer to accounts opened at clearing chambers of commodity and raw material exchanges.

6.4. Commercial banks exercise control over the compliance of operations being carried out with the requirements of this Procedure.