Rules for purchase of foreign currency are expected to be tightened for business entities in Uzbekistan. The Central Bank has published a draft of the relevant document.

According to the current regulation, when placing an order with a service bank for the purchase or sale of foreign currency, a business shall submit the purpose and supporting documents.

The regulator proposed to expand the additional information that businesses shall provide to the bank, in particular:

• contract (deal, invoice) entered into for a currency transaction;
• to service loans in foreign currency - the principal sum and interest repayment schedule;
• in the case of repatriation of profits, dividends and other income of foreign investors - a document on the distribution of profits and the payment of dividends, a conclusion of an audit firm or a tax authority, and a certificate of tax authorities on the payment of income tax;
• when transferring funds by non-residents to their accounts abroad or to foreign enterprises established by these non-residents - documents justifying the legal acquisition of funds in national currency.

Also, currency exchange transactions with non-resident natural persons are proposed to be carried out upon presentation of documents confirming receipt of funds from legal sources. In this case, the amount of the operation should not exceed the amount specified in the submitted documents.

According to the Central Bank's explanation, the proposed changes and addenda do not mean restricting or tightening currency operations, but clarifying the existing norms, simplifying the process of carrying out certain transactions, and generalizing scattered norms.

Discussion of the draft will continue through November 19.