RESOLUTION OF BOARD OF CENTRAL BANK OF THE REPUBLIC OF UZBEKISTAN

of January 23, 2010 No. 3/5

About approval of the Regulations on procedure for licensing of activities of microcredit institutions

According to the laws of the Republic of Uzbekistan "About the Central bank of the Republic of Uzbekistan" (Sheets of Oliy Majlis of the Republic of Uzbekistan, 1995, N 12, the Art. 247), "About microcredit institutions" (2006, N 9, the Art. 495) the Board of the Central bank of the Republic of Uzbekistan decides sheets of Oliy Majlis of the Republic of Uzbekistan:

1. Approve Regulations on procedure for licensing of activities of microcredit institutions according to appendix.

2. Recognize to invalid:

the resolution of Board of the Central bank of the Republic of Uzbekistan of October 7, 2006 N 24/4 "About approval of the Regulations on procedure for licensing of activities of microcredit institutions" (рег. N 1635 of October 31, 2006) (Collection of the legislation of the Republic of Uzbekistan, 2006, N 43-44, Art. 436);

the resolution of Board of the Central bank of the Republic of Uzbekistan of August 15, 2009 N 23/4 "About modification and amendments in Regulations on procedure for licensing of activities of microcredit institutions" (рег. N 1635-1 of September 14, 2009) (Collection of the legislation of the Republic of Uzbekistan, 2009, N 38, the Art. 418).

3. This resolution becomes effective after ten days from the date of its state registration in the Ministry of Justice of the Republic of Uzbekistan.

 

Appendix

to the Resolution of Board of the Central bank of the Republic of Uzbekistan of January 23, 2010 No. 3/5

Regulations on procedure for licensing of activities of microcredit institutions

This Provision according to the laws of the Republic of Uzbekistan "About the Central bank of the Republic of Uzbekistan", "About microcredit institutions", "About licensing of separate types of activity" determines procedure for licensing of microcredit institutions in the territory of the Republic of Uzbekistan.

I. General provisions

1. In this Provision the following basic concepts are applied:

microcredit institution - the legal entity performing activities for rendering services in the field of issue of the microcredit, microloan, microleasing and rendering other microfinancial services according to the Law "About Microcredit Institutions" ;

department of licensing - structural division of the Central bank of the Republic of Uzbekistan (further in the text - the Central bank) to which the obligation of consideration of the documents submitted on receipt of the license is assigned;

Committee - Committee of banking supervision of the Central bank of the Republic of Uzbekistan.

2. According to article 9 of the Law of the Republic of Uzbekistan "About microcredit institutions" in cases, stipulated by the legislation, the microcredit institution performs activities for rendering microfinancial services after receipt of the license.

II. The requirements to microcredit institution established for receipt of the license

3. Since October 1, 2017 the minimum size of authorized capital of microcredit institutions is established in the amount of 2,0 of one billion bags.

4. The microcredit institutions performing activities shall bring till January 1, 2019 the authorized fund to the size specified in Item 3 this provision.

5. The authorized capital of microcredit institution is created of money, and also other property which size does not exceed twenty percent from the size of authorized capital of this organization.

6. Use for forming of authorized capital of microcredit institution of the means received on credit, on the security, and other raised funds is not allowed.

7. The following persons cannot be founders or members (shareholders) of microcredit institution:

other non-bank credit institutions, except as specified participations (shareholding) of foreign microcredit institutions in authorized capital of the operating microcredit institutions in the Republic of Uzbekistan;

the physical persons who are constantly living in offshore zone, and legal entities - nonresidents, in it registered;

the legal entities and physical persons having accounts in the banks located in offshore zones;

legal entities, if their shareholder (participant) is the physical person who is constantly living in offshore zone, or the legal entity, in it registered;

state bodies, political parties, labor unions and religious organizations;

persons having not removed criminal record for crime in the field of economy or crime against procedure for management (in case of ownership of 10 and more percent of authorized capital of microcredit institution).

III. Payments for receipt of the license by microcredit institutions

8. For consideration of the application about licensing of microcredit institution collection is levied. Collection for de novo review of the statement is not levied.

9. For licensing of microcredit institution the state fee in the amount of, established by the Law of the Republic of Uzbekistan "About the state fee" is collected.

10. The amount of collection is established by the Cabinet of Ministers of the Republic of Uzbekistan.

11. In case of issue of the duplicate of the license or its renewal half of the amount of collection paid for consideration of the application about licensing of microcredit institution is levied.

IV. Licensed requirements and conditions

12. Licensed requirements and conditions when implementing activities of microcredit institution are:

 compliance with law of the Republic of Uzbekistan "About microcredit institutions", and also other legislation connected with activities of microcredit institutions;

the size of authorized capital of microcredit institution shall not be less than the size provided in Item 3 this provision;

technical reinforcement and equipment of premises of cash desks means of the security fire alarm;

the candidate recommended for position of the head of governing body of microcredit institution has the corresponding higher education and labor experience.

V. Submission of documents for receipt of the license

13. For receipt of the license the microcredit institution no later than one month after state registration represents to the Central bank or its relevant head territorial administration the following documents directly, through means of mail service or electronically, with the notification on their obtaining:

statement for licensing. The e-mail address of the license applicant can be specified in the statement for licensing;

information about structure of governing bodies of microcredit institution;

the document of bank confirming forming of authorized capital of microcredit institution.

The documents submitted electronically are confirmed by the digital signature of the license applicant.

Instruction in the statement for licensing of the e-mail address of the license applicant is its consent to receipt of the notification on the made decision according to its statement electronically through information system.

14. For the purpose of ensuring mutual work and interchange of information systems in microcredit institution shall be:

modem communication for connection to telecommunication network of bank;

the separate high-quality communication line between the building of microcredit institution and automatic telephone exchange where the equipment of telecommunication network of bank is installed;

the guaranteed electric utility service (220 V);

the software providing conducting daily financial accounting;

other technical means necessary for the organization of activities of microcredit institution.

The building of microcredit institution and its cash rooms shall be technically strengthened and equipped with means of the security fire alarm.

About technical reinforcement and equipment means of the security fire alarm of the building of microcredit institution and its cash rooms, availability of the modem and high-quality communication line for the purpose of ensuring mutual work and interchange of information systems, and also the software complying technical requirements on implementation of transactions of financial accounting it is necessary to receive the decision of the relevant head territorial administration of the Central bank.

15. All submitted documents numbering more than one leaf shall be stitched separately in the form of case, are certified by the signature of the head of microcredit institution.

16. If the documents specified in Item 13 of this provision are provided to the relevant head territorial administration of the Central bank, the head territorial administration in three-day time studies completeness of document package according to requirements of this provision then sends it together with the conclusion provided in Item 14 of this provision to the Central bank.

17. The statement with all enclosed documents necessary for receipt of the license, are considered by the Central bank within thirty days from the date of their receipt.

18. In case of complete completeness of document package, and also compliance to requirements of the legislation and this provision the department of licensing brings question of issue of the license to microcredit institution in Committee.

19. Central Bank shall notify the license applicant on the made decision within three days after adoption of the relevant decision.

The notification on decision making on licensing goes (is handed) to the license applicant in writing, including electronically through information system, with indication of bank account details and payment due date of the state fee.

20. The microcredit institution shall start implementation of the activities within six months from the moment of licensing.

21. After decision making about licensing of microcredit institution the Central bank draws up in triplicate the legal case including the following:

statement for licensing;

constituent documents of microcredit institution;

copy of the certificate on state registration of microcredit institution;

information about structure of governing bodies of microcredit institution;

the document of bank confirming forming of authorized capital of microcredit institution;

the document confirming payment of the state fee for licensing;

conclusion of the relevant head territorial administration of the Central bank about technical reinforcement and equipment of premises of cash desk means of the security fire alarm;

decision of the Central bank on licensing of microcredit institution;

the license granted on implementation of activities of microcredit institution.

22. The legal cases prepared in triplicate are distributed by the Central bank as follows:

one copy including the original of the license is transferred to microcredit institution under list of her head. The legal case submitted microcredit institution is stored in the special place intended for storage of legal documents;

one copy remains in the Central bank;

one copy goes to the head territorial administration of the Central bank in the location of microcredit institution.

Information containing in registers of licenses is posted on the website of the Central bank and is open for acquaintance.

23. Central Bank has the right to refuse licensing in the following cases:

discrepancies of the submitted documents to the requirements established by the legislation;

availability in documents of the doubtful or distorted data.

24. The decision on refusal in licensing goes (is handed) to the license applicant in writing, including electronically through information system. The license applicant, after complete remedial action, specified in the decision, can submit documents in the Central bank for de novo review. The term specified in the notice on refusal in licensing shall be proportional to time necessary for remedial action.

In case of consideration of the application, given repeatedly for the purpose of receipt of license for activities of microcredit institution, it is not allowed to refuse licensing on the bases which are earlier not specified in the notice on refusal in licensing of microcredit institution.

De novo review of the documents submitted for licensing of microcredit institution is performed during the term which is not exceeding fifteen days from the date of receipt of the statement with necessary documents.

The application submitted after the term specified in the decision on refusal in licensing of microcredit institution is considered again given.

The decision on refusal in licensing of microcredit institution can be appealed in court in the procedure established by the legislation.

VI. Additional requirements to creation of microcredit institution with participation of physical persons and legal entities - nonresidents

25. Ceased to be valid.

26. With participation in creation of microcredit institution or participation in its authorized fund (as the shareholder) legal entities - nonresidents to the documents provided in Item 13 of this provision in addition are represented:

a) the copy of the decision of authorized body of the legal entity - the nonresident about the purchase and (or) holding of shares (shares) of microcredit institution which is in the territory of the Republic of Uzbekistan;

b) the financial reporting of the legal entity confirmed with auditing firm - the nonresident for the last three years (activities implementation is at least three years obligatory);

c) in the presence of requirements from the legislation of the country of the legal entity - the nonresident the document confirming the consent of monitoring body to its establishment or participation in authorized fund (participation as the shareholder) - in the microcredit institution which is in the territory of the Republic of Uzbekistan;

d) confirmation of solvency of the legal entity - the nonresident, issued by the servicing bank;

e) the following information about founders of the legal entity - the nonresident:

for founders - legal entities: name of firm, date and place of state registration, share in authorized fund (capital) of the founder;

for founders - physical persons: surname, name, middle name, place of residence (address completely), share in authorized fund (capital) of the founder.

27. With participation in creation of microcredit institution or participation in its authorized fund (as the shareholder) the physical person - the nonresident  the tax declaration in the last two years in addition is attached to the documents provided in Item 13 of this provision.

28. The documents specified in Items 26 and 27   of this provision are legalized in accordance with the established procedure in the consular establishment of the Republic of Uzbekistan which is in the country in which the legal entity - the nonresident is registered or the physical person - the nonresident lives, and in case of its absence - in the Ministry of Foreign Affairs of the country in which the legal entity - the nonresident is registered or the physical person - the nonresident, lives in consular establishment or diplomatic representation of this country in the Republic of Uzbekistan with the subsequent approval in consular management of the Ministry of Foreign Affairs in the Republic of Uzbekistan.

29. In case of consideration of the applications of nonresidents and assessment of their financial condition the Central bank relies on information and opinion of monitoring bodies of the country of nonresidents. If necessary the Central bank has the right to apply own criteria and opinions.

30. The bases for statement variation on licensing of microcredit institution with participation of nonresidents can be the following:

if there is probability of rendering adverse influence on local economy or competitive environment;

if monitoring bodies of the country of the nonresident recommend refusal;

if in authorized fund (capital) of the nonresident there are means received from criminal activities or as a part of its shareholders (participants) there are legal entities registered in offshore zones or the physical persons who are constantly living in offshore zone;

if there are accounts in the banks located in offshore zones;

if founder are the physical persons who are constantly living in offshore zone or the legal entities registered in this zone;

if financial condition of the nonresident unsatisfactory.

VII. The requirements established to the name of microcredit institution

31. The trade name of microcredit institution shall conform to requirements of the legislation on trade names and contain the phrase "microcredit institution".

VIII. Creation of branch of microcredit institution and registration in the Central bank

32. The branch is the separate division of microcredit institution created out of the territory of its arrangement and performing all its functions or part of functions, including representative.

The branch of microcredit institution in the form of the center of retail services is its division rendering retail services, including microfinancial services in non-cash form, and created out of the territory of arrangement of the organization.

33. The name of branch, branch in the form of the center of retail services shall match with the name of the microcredit institution which created them, with indication of respectively words "branch", "center of retail services". The branches of microcredit institutions created in the territory of the Republic of Uzbekistan are not considered as legal entities.

34. According to the legislation based on the decision of governing body of microcredit institution the branch of microcredit institution is created or liquidated after preliminary receipt of consent of the Central bank, and branch in the form of the center of retail services - in ten-day time from the date of its opening with condition of the notice of the Central bank of the Republic of Uzbekistan.

35. The branch performs the activities based on the Regulations on branch and the license, the granted microcredit institution approved by governing body of microcredit institution.

36. For creation of branch the microcredit institution shall:

have satisfactory financial condition;

have necessary program technical means and skilled accounting workers for creation of the daily composite balance sheet of microcredit institution;

have the respective rooms and the equipment meeting the requirements of the Central bank (if implementation of activities with cash to money and values is provided).

37. The condition of microcredit institution is recognized satisfactory the following cases:

receipt of net profit by results of the current year;

the amount of overdue loans which payment due date is delayed for the term of more than 30 days for the last 6 months constitutes less than 5% of amount of credit portfolio of microcredit institution.

the paragraph the fourth is excluded.

38. For creation of branch of microcredit institution and its statement on accounting in the Central bank the following documents are submitted to the Central bank:

economically reasonable statement for creation of this branch;

decision of governing body of microcredit institution on creation of branch;

information about the candidate for position of the head of branch;

the conclusion of the relevant head territorial administration of the Central bank about technical reinforcement and the equipment of premises of cash desk of branch means of the security fire alarm (if implementation of activities with cash and values is provided).

39. The document package provided for the organization of branch is considered by the Central bank within thirty days.

40. In case of complete completeness of the provided document package, and also compliance to requirements of the legislation and this provision the department of licensing brings question of registration of branch of microcredit institution in Committee. If the provided document package contradicts requirements of this provision and the legislation, the packet returns with indication of the reasons.

40-1. The microcredit institution when opening branch in the form of the center of retail services from the date of its opening submits within ten-day term within the Central bank of the Republic of Uzbekistan the following documents:

notice on opening of the center of retail services;

decision of the supreme body of management of microcredit institution on the organization of the center of retail services.

41. In case of identification further of availability of the wrong or false information in the documents submitted for the organization of branch of microcredit institution and also deterioration in financial position of microcredit institution as a result of activities of its branch the Central bank has the right to demand liquidation of this branch.

42. The branch of microcredit institution, according to the procedure, established by the legislation, opens the bank account in the location and makes transactions according to the legislation and regulations on branch of microcredit institution.

IX. Renewal of the license and issue of the duplicate

43. Renewal of the license is made according to the Law of the Republic of Uzbekistan "About licensing of separate types of activity".

44. In case of loss of the original of the license the microcredit institution in week time in writing notifies on it the Central bank and submits the following documents for its recovery:

the statement for issue of the duplicate of the license with indication of the reason of its loss, and also measures taken to officials, responsible for storage of the license, and the performed actions for the prevention of similar cases;

the reference from lost and found, confirmatory loss of the license;

the copy of the announcement of recognition of the lost invalid license published in mass media.

45. Central Bank within one month considers the submitted documents and, having made sure of compliance to Item 44 this provision of the measures taken by microcredit institution issues the duplicate of the license of the microcredit institution which lost its original.

46. If after receipt of the duplicate earlier lost license is found, the microcredit institution hands over the original of the license for cancellation in the Central bank within five working days.

X. Suspension, cancellation of the license or its cancellation

47. Central Bank can make the decision on suspension of action of the license in cases:

violations by microcredit institution of requirements of the Law "About Microcredit Institutions" and other legislation, including licensed requirements and conditions;

failures to carry out by microcredit institution of the decisions obliging to eliminate the violations revealed in its activities.

48. The decision of the Central bank on suspension of action of the license is carried to microcredit institution in writing no later than three days from the date of its acceptance.

49. Central Bank shall establish the term of elimination by microcredit institution of the circumstances which entailed suspension of action of the license. The specified term cannot exceed six months.

50. In case of elimination by microcredit institution of the circumstances which entailed suspension of action of the license, the Central bank shall in three-day time from the date of receipt of supporting documents make the decision on renewal of its action.

51. The license is terminated in cases:

insolvency of microcredit institution;

systematic misstatement of reporting data;

delays of implementation of activities for provision of the microcredits more than six months from the moment of licensing and in other cases provided by the law.

52. The license it can be terminated also in case of not elimination by microcredit institution of the circumstances which entailed suspension of action of the license in the time established by the Central bank. The license is terminated from decision date about its termination.

53. In case of identification of the fact of receipt of the license with use of false documents the license is cancelled.

54. If the microcredit institution within three months from the moment of the direction (delivery) of the notification on licensing does not submit the document confirming payment of the state fee to the Central bank, the Central bank has the right to cancel the specified license.

54-1. Data on suspension, renewal, cancellation of the license and its cancellation are subject for publication in mass media, and also on the official website of the Central bank.

XI. Final provision

55. All documents requested according to this Provision are represented with compliance with law of the Republic of Uzbekistan "About state language".

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