The Central bank commented on the limitation of international transfers for payment services

The Central Bank of Uzbekistan reacted to the messages being distributed on social networks regarding restrictions on cross-border transfers for payment organizations.

It is noted that the payment organization Brio Group LLC has not adopted the requirements of paragraph 311 of the rules of internal control (registration number 3266, June 30, 2020), that is, without reflecting the required information about the recipient and (or) sender, and without reasonable and possible necessary measures to identify international transfers of this type.

In accordance with the law”on currency regulation", the opening of accounts abroad to Resident Legal Entities and the disposal of foreign exchange funds in it can be carried out within the framework of decisions of the president or government of Uzbekistan.

However, in practice, the payment organization Brio Group LLC (Asan) opened an account in a foreign bank and conducted operations through the bank account in question, contrary to the requirements of the above law.

According to Article 4 of the law”on payments and payment systems", a payment organization is a legal entity that is not a bank, carries out activities for the provision of payment services. Payment organizations also have the right to provide payment services on the territory of the Republic under a license from the central bank.

At the same time, payment services are the service that the payment supplier (payment organization) provides to the user (customer) from payment services, in which payment organizations do not directly participate as buyers or sellers of goods (services), and the service of supplying their payments to beneficiaries abroad and receiving them from them is not considered a foreign trade transaction for them.

In this regard, it is not in accordance with the legislation that payment organizations classify the practices of supplying their customers ' payments to the beneficiary abroad as a foreign trade operation and Exchange the received funds for other currencies, as well as participate in transactions as a transboundary and interstate transit organization.

Uzbekistan has no restrictions on payments for international payment services and cross-border transfers, as well as international online services, and can make payments through the platforms of commercial banks.

"The central bank will continue to regularly monitor cases of legislative violations in the activities of payment organizations, taking all measures regarding the activities of payment organizations within the framework of legislation,” the message said.

Recall that at the end of August, it became known that the Central bank fined Osun for violating the law on the legalization of income from crimes and combating the financing of terrorism in the implementation of payment transactions.