Central Bank Fines Banks for Violating Prudential Norms and Legislation

Tashkent, Uzbekistan (UzDaily.com) — In September, the Banking Supervision Committee of the Central Bank held nine meetings during which 43 issues were considered, the regulator’s press service reported.

The majority of the issues—28 in total—concerned registration and licensing. These included appointments of members to the supervisory boards and management of banks (14), amendments to banks’ charters (5), approvals for ownership stakes in banks (3), auditor certification (3), registration of new microfinance companies (2), and issuance of a microfinance bank license (1).

The remaining 15 issues related to the financial condition of credit institutions. This included analysis of compliance with the Central Bank’s prudential regulations, results of inspections of banks and microfinance organizations, and measures to counter money laundering, terrorist financing, and other illicit activities.

During the supervision process, the regulator issued warnings to seven banks and 13 payment organizations regarding potential sanctions for violating prudential norms, non-compliance with legislation, and deficiencies identified during inspections.

In addition, eight banks were fined for violations of Central Bank requirements, including breaches of anti-money laundering rules, counter-terrorism financing regulations, restrictions on the proliferation of weapons of mass destruction, and legislation governing client relations.