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Azerbaijan’s Anti-Money Laundering and Know-Your-Customer Regulations: What You Need to Know
In an effort to combat money laundering and terrorist financing, the Azerbaijani government has implemented strict regulations on anti-money laundering (AML) and know-your-customer (KYC) requirements for businesses operating in the country. This article delves into the key aspects of these regulations and what they mean for your business.
Identity Verification: A Must
As part of the AML/KYC process, end-users will be asked to perform some random gestures as a liveness check. This is a crucial step in verifying an individual’s identity and preventing fraud. Shufti Pro, a leading identity verification platform, uses specialized document verification services to authenticate documents submitted by customers.
Documents Required for Verification
In Azerbaijan, the following documents are considered proof of identity:
- Identity card
- Driving license
- Passport
For address verification, the following documents are accepted:
- A current utility bill (gas, electricity, telephone or mobile phone bill)
- Bank statement issued no more than three months ago that shows the end-user’s address and name
- Document issued by a government department showing the end-user’s address and name
Timing of Verification
Identity verification is not a one-time process. It is required in multiple instances as per regulations, and businesses must choose when to deploy identity verification procedures based on their requirements.
Politically Exposed Persons and Enhanced Due Diligence Measures
As part of Azerbaijan’s Enhanced Due Diligence (EDD) requirements, businesses are required to determine if a customer is a Politically Exposed Person (PEP), holds a public office or exhibits a higher risk profile. Shufti Pro provides an AML Screening service that screens an individual’s selected ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs and sanctioned individuals.
Reliance on External Services
In the absence of explicit regulations, clients may seek the services of a third-party for fulfilling AML/KYC obligations. However, they will remain liable for maintaining regulatory compliance and fulfilling AML and KYC obligations.
Record Retention
As per Azerbaijani regulations, businesses are required to retain data for no less than five years. This information is part of their AML and KYC obligations for due diligence.
In conclusion, understanding Azerbaijan’s anti-money laundering and know-your-customer regulations is crucial for businesses operating in the country. By following these guidelines, you can ensure compliance with regulatory requirements and maintain a strong reputation in the industry.