Anti-Money Laundering (AML) Law of Azerbaijan: Customer Due Diligence (CDD)
General Requirements
The AML law of Azerbaijan requires monitoring entities to conduct thorough Customer Due Diligence (CDD) before establishing business relations or carrying out transactions above the designated threshold. This includes:
- Wire transfers, regardless of amount
- Situations where there’s suspicion of money laundering or terrorism financing
- If identification data is suspected to be invalid
Identification of Customers
Monitoring entities must identify customers through:
Legal Persons
- Notarized copies of charter and state registration certificates
Individuals
- ID documents
Entrepreneurs without a legal person
- ID cards
- Certificate from the relevant tax agency
Verification of Identity
Monitoring entities must verify identification data using reliable, independent sources. For customers acting on behalf of another person, monitoring entities should obtain sufficient identification data to verify the identity of that other person.
Ongoing Due Diligence
Scrutiny of transactions to ensure consistency with customer knowledge and risk profile. Reviewing existing records, particularly for higher-risk categories of customers or business relationships.
Enhanced Due Diligence
- For non-resident customers
- Legal entities
- Trusts
- Companies with nominee shareholders or shares in bearer form
- Correspondent banking relationships
- Situations specified by Article 7.2 of the law