Procedure for Opening and Operating Foreign Currency Accounts by Commercial Banks

Approved by Resolution No. 232 (Protocol No. 15) of the Board of the Central Bank of the Republic of Uzbekistan September 5, 1998

Registered by the Ministry of Justice of the Republic of Uzbekistan on October 22, 1998, under No. 511

This Procedure becomes invalid on September 1, 2020, based on Resolution No. 18/5 of the Board of the Central Bank of the Republic of Uzbekistan dated August 29, 2020, "On Approval of the Rules for Carrying Out Currency Operations in the Republic of Uzbekistan" (Registration No. 3281, August 31, 2020).

I. GENERAL PROVISIONS

1.1. This Procedure establishes the rules for commercial banks to operate demand deposit foreign currency accounts (hereinafter referred to as currency accounts) of legal entities and individuals—residents and non-residents—in accordance with the Laws of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" and "On Currency Regulation."

The opening of currency accounts is carried out in the manner established by the "Instruction on Opening Bank Accounts in Banks of the Republic of Uzbekistan" (Registration No. 1948, April 27, 2009). (Clause 1.1 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319)

1.2. Payments from currency accounts are carried out by commercial banks within the limit of the balance of funds in the accounts. In addition, operations performed on currency accounts may be carried out by commercial banks within the limits of overdraft limits established by commercial banks using bank cards. (Clause 1.2 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319)

1.4. Interest rates and the amount of commission fees for operations of commercial banks are set forth in the bank account contract.

1.5. Commercial banks have the right to receive commission fees for banking operations in foreign currency.

1.7. Banks guarantee the confidentiality of operations, accounts, and funds transferred by their clients and correspondents. All bank employees are obliged to keep secret information regarding the operations, accounts, and funds deposited by the bank, its clients, and correspondents.

Information about clients' accounts is provided to third parties in the manner established by the Law of the Republic of Uzbekistan "On Bank Secrecy." (Clause 1.7 supplemented with a second paragraph based on Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319)

1.8. Commercial banks provide necessary guarantees for the storage and unconditional return of deposits in accordance with contracts concluded with depositors. (Clause 1.8 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319)

II. FOREIGN CURRENCY ACCOUNTS OF LEGAL ENTITIES — RESIDENTS

2.1. Funds of resident legal entities in foreign currency are stored in currency accounts opened in commercial banks within the territory of the Republic of Uzbekistan, and they use these funds independently in accordance with legislation.

Foreign currency received by resident legal entities, including currency proceeds from the export of goods (works, services), must be compulsorily credited to their accounts in commercial banks, unless otherwise established by legislation by the Central Bank.

2.2. For enterprises with foreign investment, foreign currency received from abroad may be transferred to temporary accumulation foreign currency accounts opened before their state registration in the amount established by legislation.

Use of funds in such accounts is permitted only for payment of contributions to the charter fund; if registration is refused, the funds are returned to the person who transferred them.

2.3. The following amounts in foreign currency may be credited to currency accounts of resident legal entities:

a) payments related to conducting foreign trade; b) funds purchased within the territory of the Republic of Uzbekistan through commercial banks; c) cash foreign currency received in cases established by legislation; d) funds received and transfers made related to loans, foreign investments, and debts, as well as payments for their implementation, in the manner established by legislation; e) funds being transferred to the charter fund (charter capital) of legal entities in the manner established by legislation; f) payments related to bank cards; (Sub-clause 'e' of Clause 2.3 amended by Resolution No. 16/7 of the Board of the Central Bank of the Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319)

g) non-trade payments in cases established by legislation; h) transfers from accounts opened in other banks within the Republic of Uzbekistan by the account owner; i) funds received in other cases established by legislation.

2.4. Funds in currency accounts may be used for the following purposes at the request of the account owner:

a) transfers for payments related to carrying out current international operations; b) payment of the bank's commission fee for foreign currency operations and expenses related to sending employees on business trips outside the Republic of Uzbekistan (including in cash form); c) payment of loans, debt funds, interest, and other income; d) transfer of payment for expenses related to forming the charter fund (charter capital) of legal entities in the manner established by legislation; e) sale within the territory of the Republic of Uzbekistan; f) transfers for non-trade payments in cases established by legislation; g) transfers to accounts opened in other banks of the Republic of Uzbekistan by the account owner; 2.4-1) payment in the form of dividends; h) other purposes established by legislation.

III. FOREIGN CURRENCY ACCOUNTS OF LEGAL ENTITIES — NON-RESIDENTS

3.1. Currency accounts are opened for the following non-resident legal entities:

Representatives of foreign diplomatic and other official missions, international organizations and their branches, as well as representatives of other foreign organizations in the Republic of Uzbekistan that do not carry out economic or other commercial activities, which are located in the Republic of Uzbekistan and enjoy immunity and diplomatic privileges; Participants in open electronic auctions of commodity and raw material exchanges; Persons carrying out the purchase (sale) of company shares in organized trades; (Clause 3.1 supplemented with a fourth paragraph based on Resolution No. 3/6 of the Board of the Central Bank of the Republic of Uzbekistan dated February 16, 2019 (Registration No. 511-12, March 25, 2019) — National Database of Legislation, March 25, 2019, No. 10/19/511-12/2814)

Persons carrying out their activities in the Republic of Uzbekistan through a permanent establishment. (Clause 3.1 amended by Resolution No. 22/8 of the Board of the Central Bank of the Republic of Uzbekistan dated June 30, 2018 (Registration No. 511-11, July 28, 2018) — National Database of Legislation, July 30, 2018, No. 10/18/511-11/1586)

3.2. The following funds may be transferred to these accounts:

a) foreign currency transferred to the name of the account owner from abroad, as well as from their own accounts opened in other banks of the Republic of Uzbekistan; b) foreign currency to be paid by commercial banks: — on payment documents sent from abroad to the name of the account owner in foreign currency; — on payment documents in foreign currency brought from abroad by the account owner via bank cards; (Third paragraph of sub-clause 'b' of Clause 3.2 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319) — on named payment documents in foreign currency submitted to the bank, on which operations were carried out within the territory of the Republic of Uzbekistan without remittance entries; 3.2-1) dividends and other income received as a result of the investment activities of a non-resident legal entity that established the representative office in the Republic of Uzbekistan. (Clause 3.2 supplemented with sub-clause 'b1' based on Resolution No. 3/6 of the Board of the Central Bank of the Republic of Uzbekistan dated February 16, 2019 (Registration No. 511-12, March 25, 2019) — National Database of Legislation, March 25, 2019, No. 10/19/511-12/2814)

c) cash foreign currency: — cash foreign currency brought from abroad by the account owner and registered by customs authorities upon entry into the Republic of Uzbekistan, or sent as a valuable mail item in the name of a commercial bank for the account owner; (Second paragraph of sub-clause 'c' of Clause 3.2 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319) — cash foreign currency brought in cases where it was not registered at customs upon entry into the Republic of Uzbekistan, including cases where filling out a customs declaration is not required; — cash foreign currency sent from abroad in postal mail items to the name of the account owner; 3.2-1) funds received from the sale of airline tickets in the manner established by legislation; (Sub-clause introduced in accordance with the Resolution of the Board of the Central Bank registered by the Ministry of Justice on December 22, 2011, No. 511-6)

d) other funds transferred or received in cash in accordance with the current laws of the Republic of Uzbekistan and normative documents of the Central Bank.

3.3. Funds held in these accounts may be used at the order of the account owner:

a) transferred abroad in the form accepted by the bank (bank transfer, letter of credit, check); b) payment of the bank's commission fee for foreign currency operations and expenses related to sending employees on business trips outside the Republic of Uzbekistan (including in cash form); (Sub-clause introduced in the edition of the Resolution of the Board of the Central Bank registered by the Ministry of Justice on September 12, 2017, No. 511-8)

c) payment or transfer in sums based on the actual cost of purchasing foreign currency on the day the operation is carried out within the territory of the republic; d) transfer to the account owner's own accounts opened in other banks of the Republic of Uzbekistan, as well as use for other purposes provided for by current laws.

3.4. Funds received from abroad and temporarily transferred to temporary foreign currency accounts by foreign organizations (firms) before they are registered in the established manner are transferred to the accounts of non-resident legal entities, or if they are not registered, returned to the persons who transferred these funds.

IV. FOREIGN CURRENCY ACCOUNTS OF INDIVIDUALS

4.1. Resident individuals (including individual entrepreneurs without legal entity status) and non-residents may open foreign currency accounts in commercial banks within the territory of the Republic of Uzbekistan and use funds in these foreign currency accounts independently in accordance with legislation.

4.2. Owners of accounts may carry out operations on these accounts personally, as well as through persons authorized by them, in accordance with this Procedure.

4.3. The following may be transferred to the accounts of resident individuals (including individual entrepreneurs without legal entity status):

a) foreign currency transferred for payment to commercial banks: — on shipments coming from abroad to the name of the account owner; — on payment documents sent in foreign currency from abroad to the name of the account owner; — on payment documents in foreign currency brought from abroad via bank cards; (Fourth paragraph of sub-clause 'a' of Clause 4.3 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319) — on named payment documents submitted to the bank in foreign currency, on which operations were carried out within the territory of the Republic of Uzbekistan without remittance entries;

b) foreign currency transferred from other accounts opened in banks of the Republic of Uzbekistan by the account owner;

c) cash foreign currency; (Sub-clause 'c' of Clause 4.3 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319)

d) interest in foreign currency;

e) other non-trade transfers transferred or received in cash in cases provided for by current legislation and normative documents of the Central Bank of the Republic of Uzbekistan.

4.4. Funds in the accounts of resident individuals (including individual entrepreneurs without legal entity status) may be used at the order of the account owner:

a) transferred to: — individuals' accounts abroad in an amount not exceeding the equivalent of 5,000 US dollars; — abroad based on invoices, settlement documents, and other documents for treatment, education, and insurance; — abroad for expenses related to the filling, issuance, and use of patents and author's certificates; — payment for services of consular and other official institutions of foreign states; — payment of monetary funds based on judgments, decisions, and rulings of notarial and judicial bodies; — for expenses related to participation in contests, exhibitions, and competitions, as well as employment related to contracts and other operations not having a trade nature; — to accounts opened in the name of the account owner in foreign banks in accordance with the requirements of the laws of the Republic of Uzbekistan; — to the account owner's own accounts opened in other banks of the Republic of Uzbekistan;

b) paid in cash foreign currency (on payment documents in foreign currency), including for taking abroad. In such cases, permission to take out foreign currency in the amount established by current normative documents is granted;

4.4-1) paid in cash foreign currency from currency accounts of resident individuals—physical persons carrying out entrepreneurial activity without forming a legal entity;

c) paid or transferred in sums based on the purchase cost of foreign currency on the day the operation is carried out within the territory of the republic;

d) used for payment of the bank's commission fee for foreign currency operations;

e) used for other purposes provided for by the current laws of the Republic of Uzbekistan and normative documents of the Central Bank.

4.5. The following may be transferred to the accounts of non-resident individuals:

a) foreign currency transferred to the name of the account owner from abroad, as well as from their own accounts opened in other banks of the Republic of Uzbekistan;

b) by a commercial bank: — on payment documents in foreign currency sent from abroad to the name of the account owner; — on payment documents in foreign currency brought from abroad via bank cards; (Second paragraph of sub-clause 'b' of Clause 4.5 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319) — on named payment documents in foreign currency submitted, on which operations were carried out within the territory of the Republic of Uzbekistan without remittance entries;

c) cash foreign currency: — brought from abroad by the account owner and registered at customs authorities upon entry into the Republic of Uzbekistan, or sent as a valuable mail item in the name of a commercial bank for the account owner; (Second paragraph of sub-clause 'c' of Clause 4.5 amended by Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319) — cash foreign currency brought in cases where it was not registered at customs upon entry into the Republic of Uzbekistan, including cases where filling out a customs declaration is not required; — cash foreign currency sent from abroad in postal mail items to the name of the account owner; — received and issued through international money transfer systems based on relevant certification documents; — withdrawn from the account owner's bank card based on an ATM (terminal) receipt; — found legally within the territory of the Republic of Uzbekistan upon presentation of relevant certification documents; — withdrawn from a bank account based on certification documents; (Sub-clause 'c' of Clause 4.5 supplemented with fifth to eighth paragraphs based on Resolution No. 16/7 of the Board of the Central Bank of the Republic of Uzbekistan dated April 28, 2018 (Registration No. 511-10, June 4, 2018) — National Database of Legislation, June 7, 2018, No. 10/18/511-10/1319)

d) interest in foreign currency;

e) other cash funds sent or received in accordance with the current laws of the Republic of Uzbekistan and normative documents of the Central Bank.

4.6. Funds in the accounts of non-resident individuals may be used at the order of the account owner:

a) transferred to the account owner's own accounts opened in other banks of the Republic of Uzbekistan, as well as transferred abroad in the form accepted by the bank (bank transfer, check, etc.);

b) paid in cash foreign currency (on payment documents in foreign currency), including for taking abroad. In such cases, permission to take out foreign currency in the amount established by current normative documents is granted;

c) paid or transferred in sums based on the purchase cost of foreign currency on the day the operation is carried out within the territory of the republic;

d) used as a commission fee for operations carried out by commercial banks;

e) transferred to accounts opened in other banks of the Republic of Uzbekistan by the account owner, as well as used for other purposes provided for by current legislation. (Sub-clause 'e' of Clause 4.6 amended by Resolution No. 3/6 of the Board of the Central Bank of the Republic of Uzbekistan dated February 16, 2019 (Registration No. 511-12, March 25, 2019) — National Database of Legislation, March 25, 2019, No. 10/19/511-12/2814)

V. FOREIGN CURRENCY ACCOUNTS OF NON-RESIDENTS CARRYING OUT ACTIVITIES IN THE REPUBLIC OF UZBEKISTAN THROUGH A PERMANENT ESTABLISHMENT

5.1. Funds of non-residents carrying out their activities in the Republic of Uzbekistan through a permanent establishment in foreign currency are stored in currency accounts opened in commercial banks within 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:

Foreign currency transferred from the account of the non-resident who established the permanent establishment abroad; Foreign currency transferred from accounts opened in other banks of the Republic of Uzbekistan by the permanent establishment; Foreign currency purchased in the domestic currency market. (Paragraph supplemented based on Resolution No. 22/8 of the Board of the Central Bank of the Republic of Uzbekistan dated June 30, 2018 (Registration No. 511-11, July 28, 2018) — National Database of Legislation, July 30, 2018, No. 10/18/511-11/1586)

Dividends and other income received as a result of the investment activities of a non-resident legal entity that established a permanent establishment in the Republic of Uzbekistan. (Paragraph supplemented based on Resolution No. 3/6 of the Board of the Central Bank of the Republic of Uzbekistan dated February 16, 2019 (Registration No. 511-12, March 25, 2019) — National Database of Legislation, March 25, 2019, No. 10/19/511-12/2814)

5.3. Sums held in these accounts may be used at the discretion of the account owner:

For sale through commercial banks within the territory of the Republic of Uzbekistan; For payment of expenses related to business trips of employees outside the Republic of Uzbekistan in the established manner (including in cash form); For transfer to accounts outside the territory of the Republic of Uzbekistan; (Fourth paragraph supplemented based on Resolution No. 3/6 of the Board of the Central Bank of the Republic of Uzbekistan dated February 16, 2019 (Registration No. 511-12, March 25, 2019) — National Database of Legislation, March 25, 2019, No. 10/19/511-12/2814)

For transfer to the account owner's own accounts opened in other banks of the Republic of Uzbekistan, as well as use for other purposes provided for by current legislation.

(See previous edition) (Clause 5.4 became invalid based on Resolution No. 22/8 of the Board of the Central Bank of the Republic of Uzbekistan dated June 30, 2018 (Registration No. 511-11, July 28, 2018) — National Database of Legislation, July 30, 2018, No. 10/18/511-11/1586)

Deputy Chairman of the Central Bank S. RAHIMOV

VI. FOREIGN CURRENCY ACCOUNTS 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 TRADES

(Title of Section VI amended by Resolution No. 3/6 of the Board of the Central Bank of the Republic of Uzbekistan dated February 16, 2019 (Registration No. 511-12, March 25, 2019) — National Database of Legislation, March 25, 2019, No. 10/19/511-12/2814)

6.1. Funds of non-resident legal entities participating in open electronic commodity exchanges and carrying out the purchase (sale) of society shares in organized trades are held in foreign currency accounts opened in commercial banks within the territory of the Republic of Uzbekistan. (Paragraph 6.1 was edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated February 16, 2019 No. 3/6 (registration number 511-12, 25.03.2019) — National Database of Legislative Acts of the Republic of Uzbekistan, 25.03.2019, 10/19/511-12/2814)

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

foreign currency purchased in the domestic currency market;

foreign currency transferred through exchange brokers based on a brokerage service contract.

funds received from the purchase (sale) of shares in organized trades. (Paragraph 6.2 was supplemented with a third item based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated February 16, 2019 No. 3/6 (registration number 511-12, 25.03.2019) — National Database of Legislative Acts of the Republic of Uzbekistan, 25.03.2019, 10/19/511-12/2814)

6.3. Funds in these accounts may be transferred to other accounts opened by the account holder in banks within the territory of the Republic of Uzbekistan or outside the territory of the Republic of Uzbekistan, upon the instruction of the account holder.

6.4. Commercial banks submit information regarding the movement of funds in foreign currency accounts to the Central Bank of the Republic of Uzbekistan. (Part VI was added based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan dated June 30, 2018 No. 22/8 (registration number 511-11, 28.07.2018) — National Database of Legislative Acts of the Republic of Uzbekistan, 30.07.2018, 10/18/511-11/1586)