Tashkent International Financial Center to impose fines of up to $10 million for violations.
Participants in the Tashkent International Financial Center (TIFC) could face fines of up to $10 million or 10% of the value of the transactions involved for violating the center’s rules, under a new constitutional law signed by President Shavkat Mirziyoyev..
The Tashkent International Financial Center (TIFC) is set to impose fines reaching up to $10 million or 10% of the transaction value for any violations of its regulations, as outlined in a new constitutional law signed by President Shavkat Mirziyoyev.
This legislation designates the TIFC as a unique territory functioning under its own legal framework, as established by a presidential decree. It also governs the legal relationships associated with the center's operations.
English has been established as the official language for the financial center.
The governance of the TIFC will include the TIFC Council, led by the president, along with the TIFC Administration, the Financial Services Authority, and the Tashkent International Commercial Court.
According to the law, each governing body is required to release an annual transparency report by the end of April following the year in review. Furthermore, all decisions made by the financial center will only take effect after being published in the official register.
The new legislation also imposes penalties on participants involved in commercial or financial activities that breach the law or the center's regulations, with fines potentially reaching $10 million or 10% of the transaction value that led to the violation.
This law will take effect 10 days after its official publication.
Saida Mirziyoyeva, head of the Presidential Administration, announced the signing of the constitutional law on July 10, calling it one of the most significant economic advancements in the country this year and the culmination of nearly ten years of efforts to enhance Uzbekistan's investment climate.
She emphasized that the law signifies "an investment in the world's most valuable market asset – trust," noting that clear regulations and robust legal protections for capital would help establish Tashkent as a key player in the global financial system and a catalyst for regional economic growth.
The initiative to create the TIFC commenced in March when President Mirziyoyev signed a decree to establish the financial center within the Tashkent City business district. On June 2, the Legislative Chamber of the Oliy Majlis approved draft laws concerning the TIFC and the Enterprise Uzbekistan International Digital Technology Centre in their second and third readings.
Following feedback from the Senate regarding the powers of the international commercial court, the qualifications for judges, and the regulation of the center's special legal framework, the TIFC bill was revised by a conciliation commission. The Senate subsequently approved the amended law on July 9.