Взаимодействие науки и общества –
путь к инновационному развитию
64
DUAL LEGAL SYSTEM IN INTERMATIONAL FINANCIAL CENTERS
Turdialiev Mukhammad Ali Po
‘
latjon o
‘
g
‘
li,
Senior Lecturer of the “International Private Law”
Department at Tashkent State
University of Law.
Abstract.
This paper explores the concept of "dual legal system" in the context
of international financial centers (IFCs). The work considers the main aspects and
characteristics of such a system, which implies the coexistence of various legal
norms and jurisdictions within one MFC. The main reasons for the emergence of dual
legal systems in the MFC, as well as their impact on financial activities and
investments, will be analyzed.
Keywords:
dual legal system, international financial centers, jurisdictions,
financial activities.
ДВОЙНАЯ ПРАВОВАЯ СИСТЕМА В МЕЖДУНАРОДНЫХ
ФИНАНСОВЫХ ЦЕНТРАХ
Турдиалиев Муҳаммадали Пулатжон уғли
,
Старший преподаватель кафедры “Международное частное право”
Ташкентского государственного юридического университета
Аннотация.
Данная работа исследует концепцию «двойной правовой
системы»
в контексте международных финансовых центров (МФЦ).
Статья рассматривает основные аспекты и характеристики такой
системы, которая предполагает сосуществование различных правовых
норм и юрисдикций внутри одного МФЦ. Проанализированы основные
причины возникновения двойных правовых систем в МФЦ, а также их
влияние на финансовую деятельность и инвестиции.
Ключевые слова:
двойная правовая система, международные
финансовые центры, юрисдикции, финансовая деятельность.
In the context of globalization and the development of international
financial relations, international financial centers (IFCs) are becoming key nodes
in the global economy, providing a variety of financial transactions and attracting
investments from various countries. One of the interesting aspects related to the
activities of the MFC is the existence of the so-called
“
dual legal system
”
.
The dual legal system in international financial centers is the coexistence of
several legal rules and jurisdictions within the same financial center. This means
that, in addition to the national laws of the host country of the MFC, there are also
special legal rules and regulations that apply only to certain entities and
transactions carried out within the framework of the MFC.
Взаимодействие науки и общества –
путь к инновационному развитию
65
The dual legal system in international financial centers is the coexistence of
various legal rules and jurisdictions that apply to international financial
transactions and activities within these centers [1 p. 49-51]. This is the result of a
desire to provide more flexible and adaptive regulation that promotes the
development of the financial sector and attracts international investment.
Examples of international financial centers with a dual legal system:
Hong Kong:
Hong Kong is an example of an international financial center with a dual
legal system. It has a
“
one country, two systems
”
system, whereby Hong Kong has
its own laws and legal system that is different from China
’
s mainstream legal
system. This state of affairs provides unique rules and regulatory mechanisms for
banking and financial activities, making Hong Kong one of the leading
international financial centers in Asia [2 p. 41-49].
Singapore:
Singapore also provides an example of an international financial center with
a dual legal system. There is a Common Law mechanism and a system of law that
affects the activities of companies and banks that trade and invest in the region.
This combination of legal norms and rules creates an attractive environment for
foreign investors and entrepreneurs, stimulating the development of the financial
sector and economic growth.
Luxembourg:
Luxembourg is known as a European financial center with a dual legal
system. French, German and Luxembourgish legal norms coexist here, making
this country an attractive destination for financial institutions and corporations
looking for a stable and favorable environment for international financial
transactions.
In each of these examples, the dual legal system provides flexibility and
adaptability for the financial sector and attracts international investment, making
these international financial centers competitive on the world stage.
The presence of dual legal systems in international financial centers is an
important factor in their successful functioning and attractiveness for
international investors and entrepreneurs. Here are a few reasons why this is
important:
1. Flexibility and adaptability: The dual legal system allows international
financial centers to create rules and regulations that are most effective in meeting
the needs of international financial transactions. It allows you to quickly respond
to changes in market conditions and apply special legal instruments to ensure
flexibility and adaptability [3 c. 118].
2. Attractiveness for investors: The presence of a dual legal system provides
investors with a stable and transparent legal environment, which reduces risks
and increases investment confidence. Investors prefer to operate in an
environment where there are clear rules of the game and specialized legal
regulations appropriate to the specifics of financial transactions.
Взаимодействие науки и общества –
путь к инновационному развитию
66
3. Improving conditions for financial transactions: The dual legal system
contributes to the simplification and acceleration of financial transactions and
banking operations. It allows the use of specialized legal mechanisms, such as
expedited litigation or arbitration, which facilitate faster and more efficient
execution of contracts and transactions.
4. Attracting international companies: International companies prefer to
base their operations in dual legal financial centers because it provides them with
access to world markets and investors, as well as creates convenient conditions
for international transactions.
5. Promote the development of the financial sector: The dual legal system
promotes the development and strengthening of the financial sector in
international financial centers. These special rules and regulations stimulate the
development of innovations and financial instruments, which contribute to the
diversity of services and increase the competitiveness of the financial market.
In general, the presence of dual legal systems in international financial
centers ensures a harmonious interaction between global financial flows and the
local legal environment. This helps attract international investment, stimulates
economic growth and ensures the sustainability of the financial sector on the
global stage.
The presence of a dual legal system in international financial centers (IFCs)
is a crucial element that underpins their significance and effectiveness in the
global financial landscape. The dual legal system, which allows for the coexistence
of different legal norms and jurisdictions within these centers, has proven to be a
catalyst for fostering financial growth, attracting international investments, and
facilitating cross-border financial transactions. One of the key advantages of the
dual legal system is its ability to offer flexibility and adaptability in a constantly
evolving global financial environment. IFCs can tailor their legal frameworks to
suit the specific needs and demands of international financial activities, providing
a conducive environment for financial institutions, corporations, and investors to
operate effectively and efficiently.
Moreover, the dual legal system enhances the attractiveness of IFCs for
international investors and businesses. The clear and transparent legal
environment, coupled with specialized legal norms tailored to financial activities,
instills confidence and reduces risks for investors, encouraging greater capital
inflows and stimulating economic development in these financial hubs.
The dual legal system also plays a significant role in improving the
conditions for financial transactions and operations within IFCs. By employing
specialized legal mechanisms such as expedited judicial procedures or
arbitration, IFCs ensure swift and effective contract enforcement, thereby
facilitating smooth and timely financial transactions. Furthermore, the presence
of a dual legal system in IFCs contributes to the development and strengthening
of their financial sectors. This system fosters innovation and the creation of
Взаимодействие науки и общества –
путь к инновационному развитию
67
diverse financial instruments, which in turn enhances the competitiveness and
sophistication of the financial markets in these centers. Despite its many benefits,
the dual legal system also raises certain challenges, such as the need for effective
regulation and supervision to prevent potential risks and abuses. Striking the
right balance between promoting financial innovation and maintaining financial
stability is crucial to sustain the growth and reputation of IFCs.
In conclusion, the dual legal system in international financial centers plays
a pivotal role in their success as key drivers of global financial integration and
economic development. This unique legal framework enables IFCs to adapt
swiftly to changing market conditions, attract international investments, and
facilitate seamless financial transactions. As the global financial landscape
continues to evolve, the continued success of IFCs will rely on their ability to
maintain a well-regulated and innovative dual legal system that fosters trust,
stability, and growth in the international financial arena.
References:
1.
Крутовская, А.А., 2017. Правовые аспекты функционирования
международных финансовых центров. Отечественная юриспруденция, (1
(15)), pp.49-51;
2.
Укин, С.К. and Батырбекова, Д.С., 2018. Действие актов Центра
Международного финансового центра" Астана" и особенности их
исполнения во времени, пространстве и по кругу лиц. Вестник Института
законодательства и правовой информации Республики Казахстан, (4 (53)),
pp.41-49;
3.
Нурбекова, Г.Т. and Исабекова, В.С., 2021. НЕКОТОРЫЕ ВОПРОСЫ
ОРГАНИЗАЦИИ ДЕЯТЕЛЬНОСТИ СУДА МЕЖДУНАРОДНОГО ФИНАНСОВОГО
ЦЕНТРА АСТАНА. Упорядник, p.118.
