Opening and managing operations of individual accounts in Uzbekistan

Opening a bank account in Uzbekistan may seem a complicated task, especially for non-residents, but with the right approach and knowledge of all necessary procedures, this process becomes much simpler and clearer. In this material, our partners on the legal panel in Uzbekistan have thoroughly analyzed all aspects of this issue, starting from the requirements and necessary documents, finishing with the peculiarities of working with Uzbek banks.

This information will be useful for both individuals and legal entities that are planning to start or are already operating in Uzbekistan.

Opening accounts for individuals in Uzbekistan

Nowadays opening an account in different countries can be a marathon with an impressive list of required documents. When filling out an application to open an account, the bank requests a certain list of information on the basis of which it will conduct its KYC verification procedure. The requirements for residents and non-residents are slightly different.

Resident

1. Surname, first name and patronymic
2. Date and place of birth
3. Nationality
4. Place of permanent and (or) temporary residence
5. Details of the passport or ID-card or the document replacing them: series and number of the document, date of issue of the document, name of the authority that issued the document
6. PINPL (personal identification number of a physical person)

Non-resident

1. the same as for residents
2. Must arrive on the territory of RUz within 15 days (depending on banks)
3. Collecting and capturing additional verified information about the client available in public sources and databases4.    Obtaining information from the client on the fund sources or other property for the transactions performed by the client 
4. Examining the objectives of the operations planned or performed by the client
5. Continuous monitoring of the client’s transactions on a regular basis
    

Non-residents automatically fall into the category of high-risk clients and are subject to additional verification, which means the waiting period for the  decision of bank may vary depending on the bank and its conditions. According to the legal framework, it contains 5 banking days, but in practice, the process is often possible to manage within 2-3 days.

• Documents are accepted also in Russian.

It is important to note that generally, banks in Uzbekistan have a good approach to the issues regarding KYC and AML procedures. They strictly follow the requirements of the Central Bank and organize internal control systems, taking into account the identified risks and assessment of their impact on banking activities. This allows them to control potential risks effectively and ensure the safety of banking operations.

Payments on accounts of non-resident individuals. Restrictions on the territory of the Republic of Uzbekistan

Conducting transactions is generally not a significant challenge, and in fact, there are numerous options available to facilitate such operations . Many transactions can be conducted remotely from other countries using online payment systems or banking applications.

However, restrictions related to AML/CFT (anti-money laundering and countering the financing of terrorism) and territorial restrictions should be taken into account.

Some of the major limitations include the followings:

1. Sanctions imposed on certain countries and their banks. For example, there are restrictions on making payments with Russia and Russian banks.
2. Countries listed by the FATF list, such as Iran and North Korea (DPRK), may have restrictions on payments.
3. Restrictions may also be imposed if the Economic Crime Department decides to freeze funds or suspend transactions for certain individuals or entities.
4. The Bank may also face restrictions if it fails to conduct proper KYC check.

These limitations are important to consider when planning and executing financial transactions to ensure compliance and prevent unforeseen problems.

Within the framework of international agreements on the territory of the Republic of Uzbekistan the exchange of information on financial accounts is carried out and aimed at preventing tax evasion through automatic exchange of data on financial assets and income of non-residents with the tax authorities of their countries. In particular, the exchange of financial information is carried out with OECD and CIS countries.

In case  you still have questions regarding opening bank accounts in Uzbekistan, our lawyers are able to give you an appropriate advice. 

Author: Nilufar Mirjalilova

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