The Tax Committee of Uzbekistan has announced that it respects the position of the Central Bank regarding banking secrecy and the monitoring of peer-to-peer (p2p) transfers. The committee emphasized that any exchange of information with banks must be conducted strictly within the legal framework, preserving banking secrecy, protecting personal data, and maintaining public trust in the banking system.
The committee noted that Article 41 of the Constitution guarantees the secrecy of bank operations, deposits, and accounts. These matters are regulated by legislation, including the Law on Banking Secrecy and the Tax Code.
The Law on Banking Secrecy stipulates that information about bank clients related to tax matters may be provided to tax authorities in accordance with the law. The Tax Code also outlines the obligations of banks to provide information to tax authorities in cases and procedures specified by tax legislation.
However, the committee stressed that p2p transfers between individuals are not inherently subject to taxation. “This does not mean establishing mass surveillance over citizens' personal transfers,” the committee stated.
According to the committee, the proposed project aims to create a “safe, clear, and internationally compliant” format for cooperation with banks. The public discussion of the draft has concluded. All proposals, including the Central Bank's position, will be carefully reviewed before final conclusions are drawn, the statement said.
Earlier, Central Bank Deputy Chairman Abrorkhodja Turdaliev stated that the proposal to provide tax authorities with data on large card-to-card transfers contradicts Article 41 of Uzbekistan's Constitution. The Central Bank also noted that the draft resolution conflicts with the Law on Banking Secrecy.
The regulator warned that implementing the project could lead to violations of citizens' constitutional rights, increased use of cash, outflow of funds from the banking system into informal circulation, and expansion of the shadow economy. The regulator also expressed ignorance about why the threshold of 500 times the base calculation value (206 million soums) was chosen for data disclosure.
In late June, the Tax Committee published for public discussion a draft Cabinet of Ministers resolution approving the procedure for banks to provide tax authorities with information on accounts or deposits of legal entities and individuals. Transfers from close relatives are exempt, as are transfers between a person's own cards.
The draft faced criticism during public discussion, with users arguing that such a norm could violate constitutional rights and undermine trust in the banking system.
Subsequently, the Tax Committee clarified that the initiative does not abolish banking secrecy or grant tax authorities unrestricted access to citizens' accounts. The committee stated that the project is intended to establish uniform rules for information exchange between banks and the tax service.
The issue of monitoring p2p transfers is not new. In May 2023, the Central Bank opposed providing tax authorities with information on p2p transfers covered by banking secrecy. In April of the same year, Central Bank Chairman Timur Ishmetov, while discussing possible increased monitoring of p2p transfers, emphasized that any decision must comply with banking secrecy requirements.
Source: www.gazeta.uz