Adopted by the Legislative Chamber on 25 October 2022 Approved by the Senate on 1 June 2023
Chapter 1. General Provisions
Article 1. Purpose and scope of this Law
The purpose of this Law is to regulate relations related to conflict of interests.
This Law shall apply to state bodies and local public authorities, state institutions, state unitary enterprises, state trust funds, as well as joint-stock companies in which the state share in the charter fund (charter capital) amounts to 50 percent or more (hereinafter referred to as state bodies or other organizations).
This Law shall also apply:
to legal entities in which the total share of state bodies or other organizations in the charter fund (charter capital) amounts to 50 percent or more;
to legal entities in which the total share of the organizations specified in the second paragraph of this part amounts to 50 percent or more, only in respect of their relations in the field of public procurement.
Article 2. Legislation on conflict of interests
The legislation on conflict of interests consists of this Law and other legislative acts.
The laws regulating pre-trial criminal proceedings and judicial proceedings may establish additional rules governing relations related to conflict of interests.
If an international treaty of the Republic of Uzbekistan establishes rules other than those provided for by the legislation of the Republic of Uzbekistan on conflict of interests, the provisions of the international treaty shall apply.
Article 3. Basic concepts
For the purposes of this Law, the following basic concepts shall apply:
employee of a state body or other organization — a management employee engaged in labour (service) activities in state bodies or other organizations under an employment contract (agreement) or in an elective or appointive position;
conflict of interests — a situation in which a personʼs personal (direct or indirect) interest affects or may affect the proper performance of his or her official or service duties, and in which there is a contradiction (existing or potential) between personal interest and the rights and lawful interests of citizens, organizations, society, or the state;
special unit for regulation of conflict of interests (special unit) — an internal anti-corruption control unit and/or personnel unit within a state body or other organization;
personal interest — any benefit or advantage that an employee of a state body or other organization, or persons related to him or her, may directly or indirectly obtain as a result of the employeeʼs decision or participation in the decision-making process;
close relatives — parents, brothers, sisters, sons, daughters, spouses, as well as parents, brothers, sisters and children of the spouses.
Article 4. Basic principles of regulating relations related to conflict of interests
The basic principles of regulating relations related to conflict of interests shall include:
legality;
priority of the lawful interests of citizens, organizations, society and the state;
openness and transparency;
impartiality;
intolerance towards corruption.
Article 5. Persons related to an employee of a state body or other organization
The following persons shall be recognized as related to an employee of a state body or other organization:
close relatives of the employee;
a legal entity whose shares or interests in the charter fund (charter capital) are owned by the employee and/or his or her close relatives;
a legal entity in which the employee or his or her close relatives are heads or members of the management body.
Article 6. Rights and obligations of an employee of a state body or other organization when regulating relations related to conflict of interests
An employee of a state body or other organization shall have the right to:
apply to the special unit for consultation;
provide additional information in electronic or written form beyond that required in the declaration of potential conflict of interests.
An employee of a state body or other organization shall be obliged to:
perform his or her official or service duties conscientiously and refrain from any actions related to personal interests that may affect or could affect their performance;
not allow personal interests that may lead to or cause a conflict of interests when performing official or service duties;
in case of an existing conflict of interests, inform his or her immediate superior (head of the organization — higher supervisor) or the special unit before a decision is made on documents under his or her proceedings;
not coerce subordinates or other employees into actions (or inaction) motivated by his or her personal interests;
report within one working day any offers of employment received from organizations under the supervision of the state body or other organization where he or she works;
report any cases of conflict of interests known to him or her in relation to other employees;
provide information upon request of the special unit for the purpose of regulating potential conflict of interests.
An employee of a state body or other organization may have other rights and obligations in accordance with the legislation.
Article 7. Rights and obligations of persons related to an employee of a state body or other organization when regulating relations related to conflict of interests
Persons related to an employee of a state body or other organization shall, when entering into relations with the state body or other organization where the employee performs his or her duties, have the right to:
receive free consultation from the special unit to prevent conflict of interests;
file a complaint against actions (inaction) or decisions of the state body or other organization concerning the regulation of conflict of interests.
Persons related to an employee of a state body or other organization shall, when entering into relations with the state body or other organization where the employee performs his or her duties:
not allow conflicts of interests motivated by personal gain;
complete a declaration of potential conflict of interests in electronic or written form and not knowingly provide false or inaccurate information therein.
If persons related to an employee knowingly provide false or inaccurate information in the declaration of potential conflict of interests, it may entail the legal consequences provided for in this Law.
Article 8. Restrictions on preventing conflict of interests in the activities of an employee of a state body or other organization
For the purpose of preventing conflict of interests, an employee of a state body or other organization shall not:
derive personal benefit through abuse of official position;
conceal information or knowingly provide false or inaccurate data when disclosing information on conflict of interests;
work concurrently (hold a second job) in organizations subordinate to or under the control of each other, except in cases provided for by law;
be a founder (shareholder, participant) of commercial organizations, except where ownership of up to ten percent of freely circulating shares in joint-stock companies is permitted;
own shares or interests in the charter fund (charter capital) of an entrepreneurial entity under the control of the state body or other organization where he or she is employed, or serve as a member of the management body of such an entity, except in cases provided for by the laws or decisions of the President of the Republic of Uzbekistan, or where such activity constitutes official duties under the law.
if a person owns such shares or interests, or is a member of management bodies of an entrepreneurial entity under the control of a state body or other organization, and is appointed to a position in that state body or organization, he or she must, within one month, divest such shares or interests and withdraw from the management bodies in the manner prescribed by law;
participate as a representative in the consideration of matters related to himself or herself or related persons in the state body or organization where he or she works, unless acting as a legal representative under the law;
personally participate in the purchase or lease of property belonging to the organization in which he or she works.
An employee whose employment contract with a state body or other organization has been terminated, or who has been dismissed from service, may, within two years thereafter, be employed by organizations or their structural subdivisions that were under his or her direct or indirect supervision at the previous place of work only on the basis of a conclusion issued by the official performing the functions of the internal anti-corruption control unit of the organization where the employee previously worked.
The restriction specified in the fifth paragraph of part one of this article shall apply only to employees of state bodies, local public authorities, state trust funds, heads of state institutions and state unitary enterprises, as well as to heads of joint-stock companies in which the state share in the charter fund (charter capital) amounts to 50 percent or more.
The restriction specified in the eighth paragraph of part one of this article shall also apply to persons related to an employee of a state body or other organization.
For the purposes of this Law, the term “control” refers to the right of an employee of a state body or other organization to personally or through a subordinate person inspect the activities of a given organization, to apply privileges (preferences) or impose any form of liability (or initiate such liability), or to issue licenses and other permitting documents (or accept notifications) in respect of that organization.
Depending on the specific nature of the official duties or service powers of an employee of a state body or other organization, other restrictions established by legislation may also apply.
Chapter 2. State regulation of relations related to conflict of interests
Article 9. Powers of the Anti-Corruption Agency of the Republic of Uzbekistan in the field of regulating relations related to conflict of interests
The Anti-Corruption Agency of the Republic of Uzbekistan is the specially authorized state body in the field of regulating relations related to conflict of interests (hereinafter referred to as the specially authorized state body).
The specially authorized state body shall:
request and study information and materials related to conflict of interests from state bodies or other organizations;
coordinate the activities of state bodies and other organizations in regulating relations related to conflict of interests;
review the activities of state bodies and other organizations in regulating relations related to conflict of interests, including on the basis of applications from individuals and legal entities;
when cases of conflict of interests are identified, submit representations to state bodies or other organizations to annul or amend relevant decisions, transactions or other documents, or file claims in court for invalidation thereof;
approve the standard forms of the Register of Conflicts of Interests, the Notice of Existing Conflict of Interests, and the Declaration of Potential Conflict of Interests;
issue methodological recommendations to state bodies and other organizations on regulating conflicts of interests;
exercise control over the full compensation of damage caused to the interests of citizens, organizations, society or the state as a result of a conflict of interests;
organize systematic professional training and capacity building for employees of special units, developing relevant skills;
draw up a report on administrative offences related to failure to comply with the legislation on conflict of interests and forward it to the court for consideration in accordance with the legislation on administrative liability.
The specially authorized state body may also exercise other powers in accordance with the legislation.
Article 10. Powers of state bodies and other organizations in the field of regulating relations related to conflict of interests
State bodies and other organizations, in the field of regulating relations related to conflict of interests, shall:
establish a system for notifying existing conflicts of interests by employees;
post the prescribed forms of the Declaration of Potential Conflict of Interests and the Notice of Existing Conflict of Interests on their official websites;
amend or annul decisions adopted in violation of conflict-of-interest rules;
amend or annul transactions concluded in violation of conflict-of-interest rules, or file claims in court for their invalidation in accordance with established procedure;
organize the activities of ethics commissions and special units responsible for regulating relations related to conflict of interests;
establish internal departmental procedures for preventing conflicts of interests within state bodies or other organizations;
ensure impartial organization of service investigations into identified conflicts of interests and consideration of their results by ethics commissions;
take measures to encourage employees who set a positive example in preventing conflicts of interests;
take measures to ensure compensation for damage caused to citizens, organizations, society or the state as a result of conflicts of interests, and to restore public confidence in the respective state body or organization.
State bodies and other organizations may also exercise other powers in accordance with the legislation.
Article 11. Powers of the ethics commission of state bodies or other organizations in regulating relations related to conflict of interests
Compliance by an employee of a state body or other organization with the requirements of this Law shall be overseen by the ethics commission established within that state body or organization.
The ethics commission shall:
take measures to ensure that employees of the state body or other organization comply with the requirements set out in this Law;
consider the sufficiency (correctness) of measures taken to regulate conflicts of interests;
exercise collegial oversight over cases involving existing conflicts of interests;
issue a conclusion, based on the results of a service investigation, as to whether employees of the state body or other organization have violated (or not violated) the requirements of this Law;
submit proposals to the head of the state body or other organization to hold an employee liable who failed to report a conflict of interests, knowingly provided false or inaccurate information, or concealed such information.
The ethics commission may exercise other powers in accordance with legislation.
Article 12. Powers of the special unit in regulating relations related to conflict of interests
The special unit shall:
consolidate information on identified cases of conflict of interests involving employees of the state body or other organization;
conduct a service investigation in respect of an employee of the state body or other organization who has violated the requirements of this Law;
carry out explanatory work among employees, in accordance with legislation, to prevent conflicts of interests;
review declarations of potential conflict of interests and notices of existing conflict of interests, and submit proposals to the ethics commission based on the results;
issue a conclusion, in response to reports from employees regarding conflicts of interests, as to whether a conflict of interests exists or not;
analyze identified cases of conflict of interests in state bodies or other organizations and develop proposals for their regulation;
prepare annual reports on compliance with the requirements of this Law in state bodies or other organizations and ensure that such reports are posted on its official website.
The special unit may exercise other powers in accordance with legislation.
Chapter 3. Measures for disclosure of information on conflict of interests and for identifying conflicts of interests
Article 13. Disclosure of information on conflict of interests
Disclosure of information on conflict of interests shall be carried out by an employee of a state body or other organization through submission of a notice of existing conflict of interests and a declaration of potential conflict of interests.
Disclosure of information on conflict of interests by persons related to an employee of a state body or other organization shall be carried out through submission of a declaration of potential conflict of interests.
Article 14. Notice of existing conflict of interests
A notice of existing conflict of interests shall contain:
the surname, first name, patronymic and position of the employee of the state body or other organization who is reporting the existing conflict of interests, as well as the personal identification number of the individual;
the surname, first name, patronymic and personal identification number (if available) of the employeeʼs close relative in respect of whom the conflict arises, or the name and taxpayer identification number of the person related to the employee;
information on the existing conflict of interests.
The notice of existing conflict of interests shall include the measures taken to regulate the conflict and shall be certified by the handwritten signature or electronic digital signature of the employee and/or his/her immediate supervisor (in certain cases, the deputy).
Article 15. Procedure for submitting a notice of existing conflict of interests
An employee of a state body or other organization must, within one business day from the moment the existing conflict of interests becomes known to him or her, complete a notice in the prescribed form and submit it to his or her immediate supervisor (the head of the organization — superior supervisor) or to the special unit if:
a close relative has been hired directly under the employeeʼs supervision (except for appointments to positions belonging to the political group of public civil service positions), or persons related to the employee have been engaged to perform work for the employee under a civil-law contract;
the employee is participating in decision-making on matters related to persons connected to him or her;
a close relative is working as a responsible official in the area of an inspection being conducted at the entity (legal person) under inspection, or that inspection object (legal person) is a related person;
any other existing conflict of interests becomes known to the employee.
Article 16. Procedure for reviewing a notice of existing conflict of interests
The head executive of the state body or other organization and the head of the special unit are responsible for regulating conflicts of interests.
The head of a structural division of a state body or other organization shall, within one business day, provide the special unit with information on the measures taken, within his or her powers, to regulate the existing conflict of interests.
The special unit shall, within three business days, submit the information to the ethics commission for consideration of the sufficiency (correctness) of the measures taken.
Article 17. Declaration of potential conflict of interests
A declaration of potential conflict of interests shall contain:
the position of the employee of the state body or other organization and his or her surname, first name, patronymic, as well as the personal identification number;
the surnames, first names and patronymics of the employeeʼs close relatives, their personal identification numbers (if available), and their place of work and position;
the official name and taxpayer identification number of any joint-stock company in which the employee or his/her close relatives are shareholders;
the official name and taxpayer identification number of any legal entity of which a close relative of the employee is a founder (participant) or a member of a management body.
The declaration of potential conflict of interests shall be certified by the handwritten signature or electronic digital signature of the employee who completes it.
Article 18. Procedure for submitting a declaration of potential conflict of interests
If an employeeʼs personal data change, the employee shall complete a declaration of potential conflict of interests and submit it to the special unit annually no later than 15 January.
A candidate for a position in a state body or other organization, as well as an employee being transferred to another position, shall complete and submit a declaration of potential conflict of interests in the prescribed form.
The special unit shall:
consolidate and analyze the annual declarations of potential conflict of interests by 15 February each year;
by March 1 each year, submit proposals to the ethics commission to ensure the sufficiency (correctness) of measures to regulate potential conflicts of interests;
based on the opinion adopted by the ethics commission, submit proposals to the employeeʼs immediate supervisor or to the superior head of the state body or other organization on measures to regulate potential conflicts of interests.
When a candidate is hired or an employee is transferred after submitting the declaration of potential conflict of interests, the special unit shall carry out the actions provided for in part three of this article within five days.
Article 19. Declaration of potential conflict of interests submitted by persons related to an employee of a state body or other organization
A declaration of potential conflict of interests submitted by persons related to an employee shall contain:
the surname, first name, patronymic and personal identification number of the individual related to the employee, or the name and taxpayer identification number of the legal entity;
the surname, first name, patronymic and position of the employee of the state body or other organization;
information on the family relationship with the employee;
information evidencing the legal entityʼs relation to the employee of the state body or other organization.
The declaration of potential conflict of interests shall be certified by the handwritten signature or electronic digital signature of the individual who completes it, or of the representative (authorized person) of the legal entity.
Article 20. Identification of a conflict of interests
A conflict of interests shall be identified by examining information obtained from the following sources:
the declaration of potential conflict of interests provided for in Article 17 of this Law;
proposals received in the course of public procurement, minutes of meetings of the procurement commission, and concluded contracts;
applications or notifications from individuals and legal entities regarding an existing or potential conflict of interests in the activities of an employee of a state body or other organization;
registers of affiliated persons and ultimate beneficial owners of commercial organizations;
the registration module for business entities on the Unified Portal of Interactive Public Services of the Republic of Uzbekistan;
the “Unified Electronic Registry of Civil Status Acts” information system;
the interagency hardware-software complex “Unified National Labor System”;
the Central Securities Depository;
a submission introduced based on the results of a review conducted by the specially authorized state body.
Obtaining information from the sources specified in the fifth to ninth indents of part one of this article shall be carried out upon the request of the head of the special unit.
Instances of an existing or potential conflict of interests involving an employee of a state body or other organization posted in the mass media, including on the Internet, shall be identified by collecting and examining information about them.
The study of the information referred to in part one of this article shall be carried out by the special unit.
Chapter 4. Review and verification of measures to regulate conflicts of interest
Article 21. Measures applied to situations involving a conflict of interests
To regulate conflicts of interests, taking into account their specific features, one of the following measures shall be taken:
transferring an employee of a state body or other organization who is directly subordinate to a manager in respect of whom a conflict of interests has arisen to the subordination of another manager where no conflict of interests arises;
voluntary recusal or mandatory removal of an employee of a state body or other organization from membership of a collegial body where a conflict of interests may arise;
revising the scope of the employeeʼs official duties or service powers;
imposing restrictions on the employeeʼs use of information and documents of the state body or other organization that may lead to a conflict of interests;
ensuring collegial control over the exercise by the employee of powers to make unilateral decisions in accordance with legislation;
submitting proposals to the employee of the state body or other organization to eliminate his/her personal interest in accordance with legislation;
the employee waiving personal interests that conflict with the interests of the state body or other organization where he/she performs labor (service) activities;
if it is impossible to eliminate the employeeʼs personal interest, transferring the employee, with his/her consent, to another position equivalent to the previous one, or terminating the employment (service) contract on general grounds.
Measures to regulate a conflict of interests shall be taken with the consent of the employee of the state body or other organization.
When taking measures to regulate a conflict of interests, no preference or advantage may be given to any person, group, or organization, nor may employees of state bodies or other organizations, or citizens, be discriminated against.
State bodies or other organizations may, by mutual agreement with their employee, take other measures not prohibited by law to regulate a conflict of interests.
Article 22. Ensuring confidentiality of documents related to conflicts of interests
Employees involved in regulating and identifying conflicts of interests shall not disclose personal data entrusted to them or that became known to them in the performance of professional, service, or labor duties.
Protection of personal data during the regulation of a conflict of interests in the activities of an employee of a state body or other organization shall be carried out in accordance with legislation on personal data.
Article 23. Consideration of applications and notifications from individuals and legal entities regarding situations of conflict of interests
Each application or notification from individuals and legal entities to state bodies and other organizations concerning an existing or potential conflict of interests of an employee shall be considered and examined in the manner and within the time limits established by law.
Information on cases where a conflict of interests has been allowed, identified during the review, shall be submitted by the special unit to the ethics commission and considered within ten business days.
The ethics commission shall submit proposals to the head of the state body or other organization to take measures to eliminate the conflict of interests or to hold the employee appropriately liable.
Article 24. Record-keeping of information on conflicts of interests
State bodies or other organizations shall maintain a Register for Accounting of Conflicts of Interests.
Existing or potential conflicts of interests shall be entered into the Register for Accounting of Conflicts of Interests on the following grounds:
when an existing conflict of interests is identified based on a declaration submitted by a candidate upon hiring to a state body or other organization;
when an employee of a state body or other organization, upon transfer to another position, reports information about his/her existing conflict of interests;
when an existing conflict of interests is identified based on an annual declaration of potential conflict of interests submitted by an employee;
when a notice of an existing conflict of interests is submitted;
when a declaration of potential conflict of interests is submitted;
when a conflict of interests of an employee is identified through official electronic databases;
when the existence of a conflict of interests of an employee is confirmed on the basis of a received application or notification;
when a conflict of interests of an employee is identified as a result of service or other types of inspections conducted in accordance with the law.
In addition to the grounds specified in part two of this article, the Register shall include:
information on measures taken to regulate existing or potential conflicts of interests;
information on measures of influence applied to an employee of a state body or other organization who knowingly provided false or inaccurate information or concealed such information during disclosure of a conflict of interests.
The special unit is responsible for ensuring that accounting of identified conflicts of interests is kept in a timely and complete manner.
Article 25. Review of measures taken to regulate conflicts of interests
The ethics commission of state bodies or other organizations shall, every half-year, adopt a conclusion on existing or potential conflicts of interests and review the sufficiency (correctness) of the measures taken to regulate them.
The ethics commission of state bodies or other organizations, together with the special unit, shall analyze identified cases of conflicts of interests and conduct explanatory work among the employees of the state body or other organization.
Chapter 5. Final provisions
Article 26. Decisions adopted or transactions concluded in the presence of a conflict of interests
Decisions adopted or transactions concluded in the presence of a conflict of interests shall be recognized by a court as void.
If a decision adopted or a transaction concluded in the presence of a conflict of interests is recognized void, the profit obtained as a result of adopting such decision or concluding such transaction shall, by court procedure, be transferred to state revenue without requiring the return of everything received under the transaction. In this case, expenses related to the performance of such void transaction shall be reimbursed at the expense of the person who allowed the conflict of interests.
Losses caused to individuals or legal entities, including state bodies or other organizations, as a result of a decision or transaction being recognized void due to a conflict of interests may be recovered, in recourse (regress) order, from the culpable employees of the state body or other organization.
Article 27. Appealing decisions of state bodies or other organizations on regulating conflicts of interests
An employee of a state body or other organization shall have the right to appeal, in the chain of subordination, to a higher organization, to the specially authorized state body, or to a court, against decisions adopted by state bodies or other organizations on the regulation of conflicts of interests.
Article 28. Dispute resolution
Disputes arising in the field of regulating relations connected with conflicts of interests in the activities of state bodies or other organizations shall be resolved in the manner prescribed by law.
Article 29. Liability for violation of legislation on conflicts of interests
Persons guilty of violating the legislation on conflicts of interests shall be liable in the manner prescribed by law.
Article 30. Amendments and additions to certain legislative acts of the Republic of Uzbekistan
1) In part four of Article 1758, the words “and conflict of interests” shall be deleted;
2) Supplement with Article 1934 as follows:
“Article 1934. Failure to comply with legislative requirements on conflicts of interests
Failure by an official or employee of a state body or other organization to report the existence of a conflict of interests as required by legislation on conflicts of interests —
shall entail a fine in the amount of three to five times the base calculation amount (BCA).
The same offense committed repeatedly within one year after the imposition of an administrative penalty —
shall entail a fine in the amount of five to ten times the BCA.
Failure by an official of a state body or other organization, having become aware of an existing or potential conflict of interests provided for by the legislation, to take measures to regulate such conflict —
shall entail a fine in the amount of five to ten times the BCA.
If the offense specified in the third part of this article is committed repeatedly within one year after the imposition of an administrative penalty —
shall entail a fine in the amount of ten to fifteen times the BCA.
If the offenses specified in the first and third parts of this article are committed in the sphere of public procurement —
officials shall be fined in the amount of twenty to thirty times the BCA”;
3) In part one of Article 245, after the number “1933”, add “1934”;
4) In part one of Article 24510, replace the words “in Article 2157” with “in Articles 1934 and 2157”.
2. To introduce the following additions to the Civil Code of the Republic of Uzbekistan, approved by the Laws dated December 21, 1995, No. LRU-163-I and August 29, 1996, No. LRU-256-I (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1996 — 2022):
1) Supplement Article 114 with parts three and four as follows:
“If a transaction concluded in the presence of a conflict of interests is recognized void, the profit obtained as a result of concluding such transaction shall, by court procedure, be transferred to the state revenue without requiring the return of everything received under the transaction. Expenses related to the execution of such a transaction shall be reimbursed at the expense of the person who allowed the conflict of interests.
If a transaction concluded in the presence of corruption is recognized void, the losses caused to individuals and legal entities as a result of concluding such a transaction shall be compensated by the guilty persons in court procedure.”
2) Supplement Article 116 with part two as follows:
“A transaction concluded with corruption, including in the presence of a conflict of interests, shall be recognized void by a court”.
3. In the Law of the Republic of Uzbekistan dated January 3, 2017, No. LRU-419 “On combating corruption” (Bulletin of the Chambers of the Oliy Majlis of the Republic of Uzbekistan, 2017, No. 1, Article 1; 2019, No. 1, Article 5; 2021, Supplement to Issue 4), the fourth indent of Article 3 shall be stated as follows:
“conflict of interests — a situation in which a personʼs personal (direct or indirect) interest affects or may affect the proper performance of his/her official or service duties and in which a contradiction arises (an existing conflict of interests) or may arise (a potential conflict of interests) between the personal interest and the rights and legitimate interests of citizens, organizations, society, or the state.”
Article 31. Ensuring implementation, dissemination, and public explanation of this Law
The Anti-Corruption Agency of the Republic of Uzbekistan, the Ministry of Justice, and other interested organizations shall ensure the implementation of this Law, its communication to implementers, and the explanation of its essence and significance among the population.
Article 32. Bringing legislation into conformity with this Law
The Cabinet of Ministers of the Republic of Uzbekistan shall:
bring governmental decisions into conformity with this Law;
ensure that republican executive authorities review and repeal their by-laws that contradict this Law.
Article 33. Entry into force of this Law
This Law shall enter into force six months after the date of its official publication.
President of the Republic of Uzbekistan SH. MIRZIYOYEV
