Uzbekistan to introduce stricter monitoring for large bank transfers and currency withdrawals

Starting in August, commercial banks in Uzbekistan will implement stricter reporting requirements for significant money transfers and cash-based foreign currency operations. This update follows recent amendments to the internal control rules designed to combat the legalization of proceeds from criminal activity, the financing of terrorism, and the proliferation of weapons of mass destruction.

Photo: KUN.UZ

Effective August 9, financial institutions must conduct mandatory due diligence on customers performing one-off transactions, whether as a single operation or a series of linked transfers, under specific conditions. One such trigger for verification is the withdrawal of cash foreign currency from a bank counter using cards issued by other banks, provided the amount equals or exceeds 500 BCA (Base Calculating Amount), which currently translates to UZS 206,000,000. Additionally, due diligence is required for any transaction totaling UZS 175,000,000 or more that is conducted without opening or using a bank account.

The new regulations also lower the threshold for detailed data sharing regarding domestic electronic payments and transfers. For transactions equal to or exceeding 25 BCA (UZS 10,300,000), banks must transmit comprehensive details about both the sender and the recipient. An exception is made if the receiving bank can access full sender information through other verified sources. In such instances, the sending bank is only required to provide the sender’s PINFL along with the account number or a unique transaction code that ensures the transfer remains traceable.

Even smaller transfers fall under the updated monitoring framework. For transactions valued below 25 BCA, banks are still obligated to transmit the names of both the sender and the recipient, as well as the account number or a transaction identifier to maintain a clear audit trail from origin to destination.