Financial Crime World

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Azerbaijan: Ziraat Bank Embraces Risk-Based Approach to AML, Boosts Compliance Efforts

Ziraat Bank Azerbaijan OJSC has taken a significant step towards strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures by establishing an internal control system that adheres to national legislation and international norms.

Enhancing Detection and Prevention of Illicit Financial Transactions

The bank’s efforts are aimed at enhancing its ability to detect and prevent illicit financial transactions. At the heart of the bank’s AML/CFT strategy is a risk-based approach, which involves conducting customer due diligence based on the level of risk associated with each transaction.

Focusing Resources on High-Risk Customers and Transactions

This approach enables the bank to focus its resources on high-risk customers and transactions, thereby minimizing the likelihood of false positives or missed opportunities for suspicious activity.

Comprehensive Policies and Procedures

To achieve this goal, Ziraat Bank has developed a comprehensive set of policies and procedures that outline its general AML/CFT standards and principles. The bank’s AML/CFT Policy and internal rules were approved by the Supervisory Board in December 2014, and are regularly updated to reflect changes in local legislation and international standards.

Compliance Framework

The bank’s compliance framework is designed to ensure that all employees are aware of their responsibilities and obligations under the AML/CFT regime. The Management Board and all staff members are required to adhere to the bank’s policies and procedures, which are based on internationally recognized standards, including those set by:

  • Financial Action Task Force (FATF)
  • Basel Committee
  • Wolfsberg Group

Customer Due Diligence Program

Ziraat Bank’s customer due diligence program involves a thorough identification-verification process, risk rating, and ongoing monitoring of customers. The bank also conducts regular reviews and updates customer profile information to ensure that its records are accurate and up-to-date.

Ongoing Training and Support

To support its AML/CFT efforts, Ziraat Bank has appointed a compliance officer responsible for monitoring the implementation of policies and procedures, as well as preparing and submitting reports on transactions. The bank also provides ongoing training to employees to enhance their knowledge and skills in areas such as:

  • Suspicious transaction identification
  • Risk-based approach
  • Due diligence process
  • Country-specific requirements

Internal Audits

Internal audits are conducted regularly to ensure that the bank’s AML/CFT processes are adequate and effective. These audits aim to detect potential errors and deficiencies, prevent them from occurring, and minimize associated risks.

Conclusion

Overall, Ziraat Bank’s commitment to a risk-based approach to AML/CFT demonstrates its dedication to maintaining high standards of compliance and preventing illicit financial activity in Azerbaijan.