Financial Crime World

Uzbekistan Payment Agent Registry and Regulations

The Uzbek government has implemented regulations requiring banks and payment organizations to maintain a registry of their payment agents and subagents. Additionally, financial institutions can utilize investment intermediaries, non-bank entities that facilitate securities transactions on behalf of clients.

Foreign Bank Participation

Foreign banks can enter into agency agreements with local entities in Uzbekistan, subject to bank secrecy, personal data protection, and other confidentiality requirements. However, specific restrictions apply to employing payment agents and subagents for delivering payment services within the country.

Payment Agent Requirements

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 utilize payment agents and subagents in Uzbekistan without obtaining the relevant license.

  • Only licensed banks and payment organizations can use payment agents and subagents.
  • Foreign entities must obtain a license to offer payment services or utilize payment agents and subagents in Uzbekistan.

Investment Intermediaries

Foreign financial institutions are permitted to use investment intermediaries without restrictions. Commercial banks and insurance companies can also act as investment intermediaries without requiring a separate license.

  • Foreign financial institutions can use investment intermediaries without restrictions.
  • Commercial banks and insurance companies can act as investment intermediaries without a separate license.

Regulatory Sandbox

The Central Bank of Uzbekistan (CBU) has approved regulations on creating a regulatory sandbox for new financial transactions, technologies, and services. The sandbox is designed to provide access to the local securities market for foreign investors.

  • The CBU has approved regulations for a regulatory sandbox.
  • The sandbox provides access to the local securities market for foreign investors.

List of Recognized Foreign Jurisdictions

The National Agency for Prospective Projects (NAPP) has recognized 38 foreign jurisdictions, including countries such as Australia, China, Canada, and the United States.

  • 38 foreign jurisdictions have been recognized by NAPP.
  • Countries such as Australia, China, Canada, and the United States are among those recognized.

Consultation

Given the absence of a thorough regulatory framework, it is advisable for interested entities to consult with legal experts and the CBU prior to initiating the implementation of Bank Account Opening Services (BaaS).

  • Interested entities should consult with legal experts and the CBU before implementing BaaS.
  • A thorough regulatory framework does not currently exist in Uzbekistan.

Kinstellar’s Expertise

Our team at Kinstellar is dedicated to providing expert guidance on national and EU regulations that may affect your fintech business. With a unique blend of legal acumen and commercial opportunities, we’re ready to assist you every step of the way.