Uzbekistan moves to ease capital outflow rules for overseas investments

The document amends existing rules governing certain foreign exchange transactions tied to capital movements, allowing a number of operations to proceed without prior regulatory approval.

Under the proposed changes, individuals would be permitted to transfer up to $10,000 per calendar year abroad to contribute to or form the charter capital of foreign companies. Transfers to overseas brokerage or investment accounts would also be allowed, though only through licensed investment intermediaries.

The draft draws a distinction between state-affiliated and private enterprises. Companies with state participation could transfer up to $100,000 annually for investments in foreign firms, as well as for establishing branches, representative offices, and trade houses. Private businesses would be granted a higher ceiling of $200,000 per year for the same purposes.

Simplified procedures would also apply to working capital transfers for branches and representative offices. Private companies could send up to $100,000 for this purpose, while state-owned enterprises would be capped at $50,000 annually.

A separate provision – carried over from existing regulation – preserves the right to transfer funds for charter capital formation and equity participation in US-registered companies, as well as to provide branches with working capital within the limits of available account balances.

Capital movements linked to banking operations would continue to be governed by the laws on banks and banking activity and on currency regulation. All other transactions of this nature would require a presidential decree or Cabinet of Ministers resolution.

Every capital movement operation must be registered in the FERUz foreign exchange accounting system. Residents are required to submit quarterly reports on their overseas investment activity to their servicing banks, which in turn must forward that information to the Central Bank.

Failure to submit the required data on time and in the prescribed manner would result in the suspension of subsequent capital movement operations. Any changes to the terms of a capital movement transaction must be documented in a supplementary agreement and submitted to the bank within 10 days.

Public discussion of the draft is open until 5 June.

Background

The proposal follows a November 2025 presidential decree signed by Shavkat Mirziyoyev establishing the Uzbek-American Business and Investment Council. At the time, Mirziyoyev directed authorities to lift restrictions on investment transactions in the United States for Uzbek residents – specifically those related to transferring funds from bank accounts for charter capital formation and replenishing working capital in branches and representative offices.

The Central Bank responded in December, amending its capital movement regulations to allow residents to invest in US-registered companies up to the amount of foreign currency held in their accounts.