Central Bank to monitor large-scale money transfers

The Central Bank of Uzbekistan has proposed tightening control over transactions made using bank cards. Under the new regulations, if illegal activity is detected, the use of bank cards and mobile app accounts may be restricted for up to three days.

A representative of the Central Bank, Sodir Meliboev, speaking at a session of the Legislative Chamber of the Oliy Majlis, stated that the draft law aims to regulate payment services, reduce financial risks, and prevent violations of the rights of payment service users.

According to him, the rise in online payment fraud necessitates the implementation of anti-fraud and biometric identification systems. “As we make payments more convenient, it also becomes necessary to ensure their security,” emphasized the Central Bank official.

“To reduce risks in the payment services market, a new category called ‘critical payment organizations’ will be introduced, subject to two additional requirements: first, conducting independent risk assessments, and second, implementing risk management systems,” Meliboev said.

The draft law expands the types of payment system activities from 9 to 13. At the same time, the number of permitted services will be five for payment organizations and six for payment agents. Mobile operators will be allowed to act as payment organizations under a special license without establishing a separate legal entity.

Additionally, banks will no longer need to obtain a license to operate as a payment system operator. Instead, a notification-based system will be introduced.

The Central Bank has also categorized payment market violations into three levels: gross, serious, and minor. Based on this classification, sanctions will be applied to payment service providers.

Meliboev noted that the regulator would receive additional powers “to ensure security and protect consumers' interests,” though he did not provide specific details. The draft law has been agreed upon with relevant ministries and agencies and will not require additional budget funding.

The Legislative Chamber’s press service clarified that the bill envisions automated monitoring of three or more consecutive transfers, along with the implementation of control mechanisms over the use of bank cards and large-sum transfers between individuals, using biometric and other enhanced security measures.

The draft law passed its first reading in the Legislative Chamber: 125 deputies supported the bill, while six abstained from voting.