In a recent crackdown on regulatory compliance, the Central Bank of Uzbekistan has fined 16 commercial banks for various violations uncovered during control activities at local branches. The disciplinary actions were confirmed by the Central Bank's press service.
During the Banking Supervision Committee's review of payment organizations and banks in October 2023, attention was focused on ensuring compliance with legal requirements, risk management protocols related to the prevention of money laundering and financing of terrorism, and adherence to prudential norms. The examination revealed several shortcomings, prompting the Central Bank to take decisive measures.
One commercial bank faced restrictions on specific operations due to non-compliance with Central Bank instructions and a failure to meet assigned tasks. Furthermore, the license of one payment organization was suspended for 10 working days. Additionally, warnings were issued to five commercial banks and one microfinance organization regarding the application of measures and sanctions for identified deficiencies in their activities.
The most widespread action taken was the imposition of fines on 16 banks for violations detected during control activities conducted at local branches.
The Banking Supervision Committee's decisions place the responsibility on the management of the affected commercial banks to promptly rectify identified shortcomings. They are also mandated to create reserves against potential losses, follow prudential regulations set by the Central Bank, address existing weaknesses in their operations, and improve their overall financial situation.
The Central Bank emphasized that these measures are essential for upholding the stability and reliability of the banking sector, ensuring the financial soundness of institutions, and safeguarding against potential risks associated with money laundering and terrorism financing. As part of ongoing efforts to enhance regulatory oversight, the Central Bank reaffirmed its commitment to enforcing compliance standards across the financial industry.
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