26 Uzbekistan Banks Fined 3.8 billion Soms for Violating Regulations

Tashkent, Uzbekistan - A recent report presented at the forty-first plenary session of the Senate of the Oliy Majlis has revealed that in 2022, a total of 26 banks in Uzbekistan were collectively find 3.8 billion soms.  These penalties were imposed in 56 cases where the banks were found to have violated the country's banking legislation.

The Central Bank's report for 2022 emphasized that a series of inspections were conducted throughout the year, which included 19 thematic inspections in commercial banks and 9 in microfinance organizations.  These investigations covered the loans of approximately 39,000 customers, amounting to 37 trillion soms.

This accounted for 58% of the total loan portfolio of the banks under scrutiny.

Following the inspections, appropriate measures were taken against banks that failed to accurately report information regarding capital and liquidity standards. These measures included halting certain operations, imposing financial sanctions, and implementing other effective actions to address the violations as required by law.

Specifically, fines totaling 3.8 billion soms were imposed on 26 banks across 56 cases due to non-compliance with banking regulations.  Furthermore, the licenses of "Hi-Tech Bank" and "Turkestan" private joint-stock commercial banks, which authorized their banking activities, were revoked due to their failure to meet the requirements set by the banking legislation.  Measures were taken to ensure the full reimbursement of bank depositors' funds.

Depositors of "Turkiston," a private joint-stock commercial bank, received a refund of 251 billion soms through the deposit guarantee fund for citizens.

Additionally, significant efforts were made to minimize the adverse impacts of economic sanctions and export restrictions on the country's economy in response to geopolitical tensions.  The report stressed the importance of enhancing the compliance control system to effectively uphold banking regulations.

These measures demonstrate the Uzbekistan government's commitment to maintaining a robust and compliant banking sector, ensuring the protection of depositors' funds, and promptly addressing violations.  The findings of the report underscore the significance of adhering to banking legislation for the stability and integrity of Uzbekistan’s financial system.