Transformation of Currency Regulation: Uzbekistan’s Investment Regime for the United States

As of 1 January 2026, amendments to currency regulation entered into force in the Republic of Uzbekistan, aimed at facilitating cross-border investments. These measures establish a distinct legal framework governing transactions related to investments in the economy of the United States of America.

Regulatory Framework of the Reform

The legal basis for these changes is the Presidential Decree of the Republic of Uzbekistan dated 11 November 2025 No. UP-210 “On the Establishment of the American–Uzbek Business and Investment Council.”

The Decree identifies the development of economic cooperation with the United States as a priority. In particular, it provides for the removal of restrictions on the transfer of funds by residents of Uzbekistan for the purposes of:

• formation of share capital in companies established in the United States;
• financing the activities of branches and representative offices.

In implementation of the Decree, the Central Bank of the Republic of Uzbekistan adopted Resolution No. 2536-2 dated 12 December 2025, introducing amendments to the existing framework governing foreign exchange transactions.

 Key Regulatory Developments

From 1 January 2026, investment operations carried out by residents of Uzbekistan (both legal entities and individuals) in the United States, including:

• incorporation of legal entities;
• acquisition of equity interests in companies,

may be performed without the need to obtain additional approvals from state authorities, provided that sufficient funds are available in the resident’s bank account.

Accordingly, such transactions have been reclassified from a permission-based regime to a regime of free execution.

 Practical Implications for Investors

The introduced changes significantly simplify the investment process:

• No quantitative restrictions

The volume of investment is determined solely by the availability of funds in the investor’s bank account.

• Special regime for the United States

Transactions involving this jurisdiction are subject to a distinct regulatory approach, differing from the general foreign exchange control regime.

 Continuing Obligations

Notwithstanding the liberalisation of domestic regulation, investors must continue to comply with a number of requirements:

• Tax regulation
  Residents are required to comply with the tax legislation of the Republic of Uzbekistan, including the obligation to declare participation in foreign companies.
• International banking compliance
  Transfers of funds to the United States remain subject to financial institutions’ requirements regarding verification of the source of funds (Proof of Funds), as well as anti-money laundering (AML) standards.

 Conclusion

The adopted reforms introduce a more flexible mechanism for cross-border investment and create favourable conditions for residents of Uzbekistan seeking to enter the U.S. market. At the same time, compliance with tax and regulatory requirements remains essential at both the domestic and international levels.