Notaries, Lawyers, and Auditors Face Scrutiny Over Anti-Money Laundering Efforts

Azerbaijan’s notaries, lawyers, and auditors are under scrutiny due to their compliance with anti-money laundering (AML) regulations. A recent report by international experts found that the understanding of ML risks varies amongst supervisors, with some demonstrating a better grasp than others.

Areas for Improvement in Azerbaijan’s AML/CFT System

The report highlighted several areas where improvement is needed:

• The real estate sector is weighted as bearing higher ML risk, yet there has been no supervision in this area during the period under review.
• The sanctioning regime needs improvement.
• Notaries, lawyers, and auditors are not adequately equipped to identify and prevent money laundering due to a lack of training and resources.

Lack of AML Procedures at Law Firms and Auditing Firms

The report criticized law firms and auditing firms for their inadequate AML procedures. These firms:

• Fail to properly identify and report suspicious transactions.
• Are not adequately trained to detect and prevent money laundering.

Guidance Issued to Improve AML Compliance

In response to the report’s findings, Azerbaijan’s regulatory authorities have issued guidance urging:

• Notaries and lawyers to improve their AML compliance by identifying and reporting suspicious transactions, and providing resources and training.
• Auditing firms to improve their AML procedures by identifying and reporting suspicious transactions, and providing resources and training.

Conclusion

The report’s findings highlight the need for notaries, lawyers, and auditors in Azerbaijan to improve their AML compliance. It is essential that these professionals are equipped with the necessary training and resources to identify and prevent money laundering, and that they are held accountable for any failures to comply with AML regulations.

In conclusion, the report’s findings demonstrate a need for improvement in Azerbaijan’s AML/CFT system, particularly among notaries, lawyers, and auditors. It is imperative that these professionals take immediate action to improve their AML compliance and work towards creating a more robust and effective anti-money laundering regime in Azerbaijan.