Central Bank of Uzbekistan (CBU)

Overview

The Central Bank of the Republic of Uzbekistan was established on September 7, 1991, following Uzbekistan's independence from the Soviet Union, and commenced operations on October 7, 1991. The Bank serves as Uzbekistan's primary monetary authority, responsible for implementing monetary and foreign exchange policy, regulating and supervising the banking system, and overseeing payment system infrastructure. The introduction of the national currency "som" on July 1, 1994, marked Uzbekistan's achievement of complete monetary independence and independent central banking operations.

Current Chairman: Timur Ishmetov (as of 2024-2025)

Headquarters: Tashkent, Uzbekistan

Status: Independent central bank with integrated banking supervision and regulatory authority

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

The Central Bank of Uzbekistan exercises comprehensive authority over the banking sector:

Regulatory Authority:

• CBU is the state body regulating the banking sector

• Licensing authority for all banks and banking institutions

• Powers of regulation and prudential supervision over all credit organizations

Supervisory Framework:

• Transition to Risk-Based Supervision (RBS): Gradual implementation with World Bank technical assistance

• Basel Core Principles: Self-assessment against global standards (2019)

• Prudential Standards: Capital adequacy, liquidity, asset quality requirements

• Systemic Risk Monitoring: Focus on largest and most interconnected banks

• Compliance Assessment: Alignment with international regulatory standards

Commercial Banking Oversight:

• Regulation of commercial bank operations and activities

• Capital requirements and leverage ratio monitoring

• Liquidity coverage and net stable funding ratios

• Large exposure limits and concentration management

Credit Organization Classification:

• First-tier banks (with broader permitted activities)

• Second-tier banks (with restricted activities)

• Specialized credit organizations

• Cooperative credit organizations

Supervisory Approach:

• Scheduled on-site inspections and risk-based examinations

• Offsite monitoring and reporting requirements

• Ongoing transition from compliance-based to risk-based supervision

• Gradual strengthening of supervisory capabilities through technical assistance

The Central Bank of Uzbekistan emphasizes financial sector modernization and inclusion:

Banking Sector Development:

• Support for increasing banking system penetration

• Credit accessibility expansion to underserved populations

• Microfinance sector coordination (non-bank entities)

• Rural banking initiatives

Digital Financial Services:

• Mobile payment system development

• Electronic wallet expansion

• Digital banking services for individuals and SMEs

• Payment system modernization and accessibility

Technical Assistance:

• World Bank partnership on financial sector reform

• Capacity building for supervisory staff

• Regulatory framework strengthening

• Risk management systems enhancement

The Central Bank of Uzbekistan implements comprehensive AML/CFT measures:

Legal Framework:

• Law dated August 26, 2004 on Combating Money Laundering and Terrorist Financing

• National AML/CFT/CPF system aligned with international standards

• Coordination with FIU and law enforcement authorities

Supervisory Framework:

• AML/CFT supervision integrated with prudential oversight

• Customer due diligence requirements for banks

• Suspicious transaction reporting obligations

• Record-keeping and documentation requirements

• Beneficial ownership verification

Emerging Risks:

• Digital asset and cryptocurrency transaction monitoring

• Trade-based money laundering detection

• Terrorism financing prevention through financial sector

International Cooperation:

• Participation in AML/CFT mutual evaluation processes

• Coordination with FATF and regional bodies

• Exchange of information with other central banks

Regulatory Powers

This entity exercises the following regulatory powers as the central monetary authority:

Regulatory Role and Function

Legal Foundation

The Central Bank of Uzbekistan operates under the constitutional and legislative framework established following independence:

• Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" (adopted 1991, amended through 2019)

• Law of the Republic of Uzbekistan "On Banks and Banking Activity" (2019, aligned with international standards)

• Law on Payments and Payment Systems (as amended)

• AML/CFT Legal Framework: Law dated August 26, 2004, on Combating Money Laundering and Terrorist Financing

• Banking Supervision Framework: Regulations aligned with Basel Core Principles (self-assessment 2019-2021)

The CBU's modern regulatory framework reflects recent reforms implemented with World Bank technical assistance, transitioning from compliance-based to risk-based supervision across both prudential and AML/CFT domains.

Licensing and Authorization Relevance

The Central Bank of Uzbekistan (CBU) is a key licensing authority in Uzbekistan's financial system:

The licensing process typically involves assessment of capital adequacy, fitness and propriety of management, business plan viability, AML/CFT compliance frameworks, and IT systems readiness.

Payments and Money Movement Relevance

The Central Bank of Uzbekistan implements monetary policy through a framework reformed to strengthen inflation management:

Current Policy Framework:

• Base rate (policy rate) adjustments to control inflation and money supply

• Inflation targeting approach adopted in recent years

• Coordination with government fiscal policy for macroeconomic stability

Monetary Operations:

• Open market operations through standing facilities

• Reserve requirement management for banking system liquidity

• Foreign exchange interventions to stabilize som exchange rate

Economic Growth Support:

• Balance between price stability and sustainable economic growth

• Support for credit expansion to productive sectors

• Financial inclusion measures aligned with monetary objectives

Regional Integration:

• Coordination with CIS central banks on monetary policy cooperation

• Participation in regional payment system networks

The Central Bank of Uzbekistan operates and regulates domestic and international payment systems:

Primary Payment Systems

UZCARD Payment System:

• Historical domestic card payment network

• Debit card issuance and processing

• ATM and point-of-sale terminal network

• Integration with international card schemes

HUMO Payment System:

• Launched 2019 as modern national payment system

• Contactless card payment capabilities

• International cooperation with Visa, Mastercard, China Union Pay

• Co-badged cards for local and international use

• Humo-Visa

• Humo-Mastercard

• Humo-UnionPay

• Infrastructure integration with Uzcard completed in 2023

• Interoperability of terminals across card networks

Mobile and Electronic Wallets:

• Milliy Mobile App for transfers to electronic wallets

• Automatic currency conversion on receipt

• Support for receipt of transfers from Russia in national currency

• Integration with domestic card networks (UzCard, Humo)

Payment Processing:

• Processing and clearing center operations

• Local transaction processing for domestic and international cards

• Support for Visa, Mastercard, American Express, Diners Club, and other schemes

• Fraud prevention and transaction security

Interbank Infrastructure

• Real-time gross settlement systems for large-value payments

• Clearing and settlement infrastructure for retail payments

• Coordination with regional payment systems (CIS)

Regulation and Oversight

The CBU maintains oversight of payment system operators and participants:

• Payment system licensing and registration

• Operational security and resilience requirements

• Risk management standards for payment service providers

• Participation and access requirements for banks

Som Exchange Rate Policy:

• CBU sets exchange rate without obligations to buy or sell at set rate

• Managed float approach balancing stability and market signals

• Foreign exchange market oversight and regulation

Currency Liberalization (2017):

• Significant liberalization of foreign exchange controls following 2017 reforms

• Enhanced accessibility for international trade transactions

• Reduction of non-tariff barriers related to currency access

• Integration toward freely convertible currency status

Foreign Exchange Regulations:

• Strict enforcement of currency exchange and payment regulations

• Requirements for currency market transactions

• Monitoring of international payments and transfers

• Integration with AML/CFT frameworks for FX transactions

International Reserves:

• Foreign exchange reserve management

• Coordination with IMF and international monetary authorities

Historical Milestones:

• July 1, 1994: Introduction of national currency som, achieving monetary independence

• August 13, 1994: Som introduced at official exchange rate

• Economic Transition: Complete separation of monetary system from Russia and former Soviet states

Current Currency Management:

• Som as sole legal tender

• Banknote and coin issuance by CBU

• Cash circulation management

• Currency counterfeiting prevention

Payment Systems Governed or Overseen

The CBU operates and/or oversees the national payment and settlement infrastructure of Uzbekistan. Specific systems include:

Relationship to Other Regulators

International Monetary Fund (IMF):

• Member of the International Monetary Fund

• Participation in Article IV consultations

• Technical assistance programs for financial sector reform

• Coordination on monetary and exchange rate policies

Commonwealth of Independent States (CIS):

• Regional monetary cooperation

• Participation in CIS central bank coordination mechanisms

• Integration with regional payment systems

• Cross-border payment arrangements

World Bank:

• Financial Sector Assessment Program (FSAP)

• Uzbekistan Financial Sector Reform Project partnership

• Technical assistance on supervisory framework

• Capacity building support

Alliance for Financial Inclusion (AFI):

• New Chair of AFI's Eastern Europe & Central Asia Policy Initiative

• Leadership in regional financial inclusion efforts

• Coordination on policy harmonization across Central Asia

Bilateral Central Bank Relationships:

• Cooperation with major central banks

• Exchange of expertise and best practices

• Payment system interoperability development

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

Headquarters:

• Central Bank of the Republic of Uzbekistan

• Address: Tashkent, Republic of Uzbekistan

• Website: https://cbu.uz/en/

Executive Board:

• Management structure and leadership contacts available on official website

• Chairman: Timur Ishmetov

Regulatory Inquiries:

• Banking supervision contacts

• Payment system regulatory division

• AML/CFT supervision unit

• International relations department

Notes on Naming and Language