Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

RESOLUTION OF BOARD OF CENTRAL BANK OF THE REPUBLIC OF UZBEKISTAN

of August 30, 2022 No. 19/14

About approval of the Regulations on procedure for introduction by the Central bank of the Republic of Uzbekistan for special legal regime in the field of financial services

According to the Law of the Republic of Uzbekistan "About the Central bank of the Republic of Uzbekistan" the Board of the Central bank of the Republic of Uzbekistan DECIDES:

1. Approve Regulations on procedure for introduction by the Central bank of the Republic of Uzbekistan for special legal regime in the field of financial services according to appendix.

2. This resolution becomes effective from the date of its official publication.

Appendix

to the Resolution of Government of the Central bank of the Republic of Uzbekistan of August 30, 2022 No. 19/14

Regulations on procedure for introduction by the Central bank of the Republic of Uzbekistan for special legal regime in the field of financial services

This Provision determines procedure for introduction and cancellation by the Central bank of the Republic of Uzbekistan (further - the Central bank) special legal regime in the field of financial services (further - "regulatory sandbox"), and also implementation of activities within this mode.

Chapter 1. General provisions

1. In this Provision the following basic concepts are used:

the statement - the legal entity - the resident of the Republic of Uzbekistan who submitted in the Central bank the application for approbation of new financial transactions, technologies and services (further - financial service);

the coapplicant - the legal entity - the resident of the Republic of Uzbekistan who addressed to the Central bank together with the applicant for approbation of financial service;

the organizations under control to the Central bank, - banks, non-bank credit institutions, operators of payment systems, payment institutes, credit bureaus, the currency exchanges;

approbation - rendering new financial service within "regulatory sandbox";

the participant of "regulatory sandbox" - the legal entity to whom approbation of new financial service within "regulatory sandbox" is resolved;

effective period of "regulatory sandbox" - the period established by mutual consent between the Central bank and the participant of "regulatory sandbox" in the form of temporary procedure for "regulatory sandbox" (further - temporary procedure), for the term which is not exceeding three years.

2. Main objectives of "regulatory sandbox" are:

improvement of competition in the market of financial services;

assistance in implementation of new financial services on the terms of protection of the rights of clients of financial services and ensuring stability of financial system;

expansion of types of financial services, increase in their popularity, and also compliance to their customer requirements and achievement of level of satisfaction with them;

enhancement of the legislation by successful results of approbation of financial service.

3. The financial services permitted to approbation shall correspond to one of the following criteria:

the financial service is new to the market of financial services of the republic;

consumer features of financial service are improved rather existing services;

in the legislation there are restrictions or inaccuracies interfering rendering financial service.

4. For approbation of financial service the organizations under control to the Central bank, and also other legal entities, control of whom is exercised by regulating authority of the financial sphere (monitoring body), according to the conventional international practice, can act as the applicant and the coapplicant.

At the same time within this provision approbation is not allowed:

financial services of legal entities which activities are regulated by other state bodies and the organizations, except the Central bank;

financial services of the organizations under control to the Central bank, in the certain spheres regulated by other state bodies and the organizations;

the financial services rendered without observance of regulations of acts of the legislation on counteraction of legalization of income gained from criminal activities, to financing of terrorism and financing of distribution of weapons of mass destruction, acts of the consumer protection law, and also the acts of the legislation adopted according to the conventional international standards (recommendations of Basel Committee on Banking Supervision, International accounting standards, etc.).

5. The applicant and the coapplicant - the legal entity shall conform to all following requirements:

is not in process of reorganization and liquidation, and also not to be declared bankrupt and in its relation proceedings on insolvency are not initiated;

beneficial owners, members of governing bodies have no the outstanding or not removed criminal record for the crimes in the sphere of economy or crime against procedure for management or crime connected with legalization of income gained from criminal activities, financing of terrorism and financing of distribution of weapons of mass destruction;

beneficial owners, members of governing bodies do not live, are not registered and are not residents of the state and the territory which is providing preferential tax regime and (or) not providing disclosure of information on the identity of the beneficial owner and carrying out financial transactions;

on the date of submission of the statement for approbation of financial service concerning the applicant and the coapplicant (in the presence), under control to the Central bank, the restrictions on implementation of financial transactions interfering approbation of financial service within "regulatory sandbox" are not applied.

If in the acts of the legislation regulating activities of the applicant and (or) coapplicant the concept of "the beneficial owner" is not determined, the beneficial owner is understood as the physical person who is actually owning or controlling the applicant and (or) the coapplicant.

6. Within "regulatory sandbox" is included into power of the Central bank:

decision making about feasibility or inexpediency of creation of "regulatory sandbox" after the offered new financial service, prolongation of its term within effective period of "regulatory sandbox", about approbation cancellation;

approval of temporary procedure, and also the forms of the reporting on process of approbation of financial service by the participant of "regulatory sandbox" represented to the Central bank;

conducting check of activities of the participant of "regulatory sandbox" for approbation of financial service regarding inspection and single questions;