A law aimed at introducing Islamic banking activities in Uzbekistan has been adopted.
This law introduced amendments and additions to the Tax and Civil Codes as well as 7 other laws.
"On Amendments and Additions to Certain Legislative Acts of the Republic of Uzbekistan Aimed at Introducing Islamic Banking Activities in Uzbekistan" law was adopted.
It is reported that the law introduced amendments and additions to the Tax and Civil Codes as well as 7 other laws.
In particular, this law introduces:
• the concepts of Islamic banking activity, Islamic financial operations, Islamic financial standards, and investment deposit into the legislation;
• a license granting the right to conduct Islamic banking activities, establishing specific requirements for obtaining this license;
• a list of Islamic financial operations that can be carried out by banks holding a license granting the right to conduct Islamic banking activities;
• permission for banks conducting Islamic banking activities to directly engage in trade activities and to establish legal entities and acquire shares or stakes in the charter funds of legal entities without restrictions;
• the establishment of an Islamic finance council at the Central Bank and in banks, along with requirements for its activities, to coordinate matters related to Islamic finance.
Furthermore, specific features of taxation for Islamic financial operations are established.
This Law shall enter into force three months after the date of its official publication.
