Financial Crime World

Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Laws in Azerbaijan: Latest Updates

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Targeted Financial Sanctions Law of Azerbaijan

The latest updates to the AML and CTF laws in Azerbaijan include significant changes to the Targeted Financial Sanctions Law. Here are some key points:

  • The law defines the procedure for applying targeted financial sanctions to prevent terrorism, terrorist financing, and proliferation of Weapons of Mass Destruction (WMD).
  • It regulates the criteria for individuals and institutions to be sanctioned, types of targeted financial sanctions, assets to which they are applied, and rules of application.

Inclusion and Removal from Sanctions List

The inclusion and removal of individuals from the sanctions list takes place on the basis of a court decision. A new chapter (LX) was added to the Code of Criminal Procedure regulating the procedure for including natural persons and institutions subject to sanctions in the domestic list.

Amendments to Other Laws

The following laws were amended as part of the updates:

  • “On Banks”: Credit organizations are required to submit information and documents on operations to be monitored against money laundering and terrorist financing.
  • “On Insurance Activity” and “On Investment Funds”: Insurers, reinsurers, and insurance intermediaries must also submit such information and documents.
  • “On Notary Activities”: Transactions related to the alienation of a share in a housing cooperative must be notarized.

Cashless Transactions

The following transactions are now included in cashless payments:

  • Payments for real estate transactions exceeding 15,000 manats
  • Purchase/sale of precious stones/metal articles/cultural products exceeding 15,000 manats
  • Share transactions in housing cooperatives exceeding 15,000 manats

Fines and sanctions were introduced for failure to take measures to freeze assets.

Recommendations

Organizations that attract/manage deposits, banks, non-bank credit institutions, insurance companies, realtors, notaries, auditors, and independent persons providing accounting and tax advisory services should obtain legal advice on the above-mentioned issues. This will ensure compliance with the updated AML and CTF laws in Azerbaijan.