Gov’t to scrap currency sale fines, tighten jewelry trade rules

The Legislative Chamber’s deputies passed the first reading of a draft law on currency and precious metals transactions.

The draft law proposes introducing criminal and administrative liability for the illegal acquisition or sale of precious metals and stones. Amendments will be made to Article 177 of the Criminal Code and Article 170 of the Administrative Responsibility Code, which address illegal currency transactions.

Simultaneously, the draft law seeks to abolish administrative penalties for evading the mandatory sale of a portion of foreign currency proceeds. Currently, officials face fines ranging from 8 to 12 BCU (3 to 4.5 million UZS) for such violations.

Shamsiddin Sakhibnazarov, Head of the Department for Combating Economic Crimes at the Prosecutor General’s Office, reported 99 cases of illegal trading in precious metals and stones since 2020. Authorities seized gold, silver, diamonds, and emeralds valued at 44 billion UZS.

The black market trade in gold products is estimated at $600 million. While independent prospectors mined and sold about 40 kg of gold to the state in 2020, this figure plummeted 100-fold last year.

The draft law was supported by 126 deputies, with no votes against. One member of the Legislative Chamber abstained, and four did not vote.

In April, President Shavkat Mirziyoyev signed a law supporting the jewelry industry. Refining enterprises were granted the right to sell precious metals to jewelers in convenient forms and volumes, while jewelers were permitted to resell semi-finished products and blanks to other manufacturers, provided pricing requirements are met.

Penalties for violations of precious metals regulations were also tightened. Fines now range from 30 to 50 BCU (11.25 to 18.75 million UZS, increasing to 12.36 to 20.6 million UZS from August 1).