Central Bank says Tax Committee’s proposal to monitor large P2P transfers violates Constitution

Speaking to Kursiv, Deputy Chairman of the Central Bank Abrorkhoja Turdaliyev said the proposed measure conflicts with Article 41 of Uzbekistan's Constitution.

According to Turdaliyev, the article guarantees the right to own property and protects the confidentiality of bank transactions, deposits, and accounts under the law.

The Central Bank warned that implementing the proposal could lead to violations of citizens' constitutional rights, greater reliance on cash payments, an outflow of funds from the banking system into the informal economy, expansion of the shadow economy, and a widening gap between cash and cashless transactions.

The regulator also noted that it had previously informed the Tax Committee that the draft resolution was inconsistent with the Law "On Bank Secrecy."

In addition, the Central Bank said it had not been informed why the threshold for mandatory reporting had been set at 500 base calculation values per month. The regulator stressed that personal data and bank secrecy are subject to strict protection within Uzbekistan's banking system.

At the end of June, the Tax Committee published the draft resolution for public consultation. The proposal would require financial institutions to submit information on monthly P2P transfers exceeding 500 base calculation values, excluding transfers between close relatives.