Azerbaijan’s Banking Industry Rocked by Latest Scandal Exposing Massive Slush Fund and Money Laundering Scheme

A $2.9 Billion Slush Fund and International Money Laundering Scheme Revealed

A massive leak of bank records has uncovered a staggering $2.9 billion slush fund and international money laundering scheme operated by Azerbaijan’s ruling elite, with European politicians and financial institutions complicit in the scheme. The scandal, dubbed the Azerbaijani Laundromat, has sent shockwaves through Brussels and Strasbourg.

Investigation Uncovers Complicity of European Politicians

The investigation identified several delegates of the Parliamentary Assembly of the Council of Europe (PACE) as among the ultimate recipients of the laundered money. Transparency International is calling for an independent investigation into allegations of vote-buying at the Council of Europe, and hundreds of people have written to their delegations in PACE urging them to come clean and support an independent inquiry.

Azerbaijan’s Poor Human Rights Record Exposed

Azerbaijan’s poor human rights record was already well-documented, with a Corruption Perceptions Index score of just 31 out of 100. The country has been criticized for jailing opposition leaders and journalists on fabricated charges, with many forced into exile or seeking asylum in the EU.

PACE Report Highlights Breaches of Codes of Conduct

The Laundromat revelations come as PACE is finalizing a report on democratic institutions in Azerbaijan, which highlighted the case of jailed opposition leader Ilgar Mammadov and investigative journalist Khadija Ismayilova. Following mounting calls for an investigation, PACE set up an independent body to look into allegations, which published its report in April. The report found breaches of codes of conduct and corruptive activities, leading to the banning of 14 former members from Council of Europe premises.

Calls for Action and Accountability

The investigation’s findings have prompted calls for action from Transparency International, with the organization appealing to PACE’s new president to extend the investigative body’s mandate to continue inquiries into allegations against these countries. The Global Anti-Corruption Consortium will be calling on national authorities and international organizations to take action in the coming weeks.

Ongoing Talks Despite Scandal

Despite the scandal, Azerbaijan continues to enjoy a cozy relationship with Europe and the international community, with ongoing talks over a new strategic partnership agreement between the EU and Azerbaijan. Germany is reportedly considering granting Azerbaijan a €1.2 billion loan for its Southern Corridor natural gas pipelines project.

A Call to Action

As leaders deal with Azerbaijan, they must prioritize human rights and ensure that politicians implicated in the Laundromat scheme are investigated and held accountable. The Global Anti-Corruption Consortium will be calling on national authorities and international organizations to take action in the coming weeks.