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Uzbekistan’s Payment Agent Regulation: What You Need to Know

Tashkent, Uzbekistan - The Central Bank of Uzbekistan (CBU) has introduced regulations governing payment agents and subagents to enhance financial stability and security in the country.

Requirements for Banks and Payment Organizations

  • All banks and payment organizations are required to maintain a registry of their payment agents and subagents.
  • Financial institutions can utilize investment intermediaries, non-bank entities that carry out transactions and operations on behalf of clients.

Licenses for Operating as an Investment Intermediary

  • The Ministry of Economy and Finance (MoEF) issues licenses for operating as an investment intermediary.
  • Commercial banks and insurance companies can also act as investment intermediaries without obtaining a separate license.

Restrictions for Foreign Banks and Financial Institutions

  • Foreign banks or financial institutions are free to enter into agency agreements with Uzbek entities, but specific restrictions apply to employing payment agents and subagents for delivering payment services within Uzbekistan.
  • Under Uzbek law, payment agents and subagents can only be used by duly licensed banks and payment organizations.
  • Foreign entities cannot offer payment services or use payment agents and subagents in Uzbekistan without obtaining the relevant license as per Uzbek legislation.

Options for Foreign Banks Seeking to Operate in Uzbekistan

  • Establish a subsidiary in accordance with Uzbek law requirements and register it with the CBU.
  • Establish a payment organization in Uzbekistan and obtain the necessary license from the CBU.

Outsourcing Banking Activities (BaaS) in Uzbekistan: What You Need to Know

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If entities are interested in providing BaaS in Uzbekistan, they should consider the following:

  • The absence of a thorough regulatory framework makes it advisable for interested entities to consult with legal experts and, if necessary, the CBU prior to initiating the implementation of BaaS.
  • The list of foreign jurisdictions recognized by Uzbekistan includes 38 countries, allowing investment intermediaries from these jurisdictions to work within the country’s securities market without a local license.

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