The Aliyev Family’s Banking Empire: A Web of Control and Influence
Azerbaijan’s First Family, led by President Ilham Aliyev, has a significant stake in the country’s banking sector. Through a complex web of ownership structures and relationships, the Aliyev family and their close associates have control over several major banks in Azerbaijan.
The Extent of Their Control
According to an OCCRP analysis of bank data and records, the Aliyev family has a direct or indirect stake in at least nine banks, including:
- Atabank
- Bank VTB
- Pasha Bank
- Kapital Bank
- Xalq Bank
- Silk Way Bank
- Expressbank
- Azerbaijan Industrial Bank
The First Family’s influence extends to five more banks through government officials, their family members, and close associates.
Concerns About Competition and Transparency
The Aliyev family’s control over the banking sector has raised concerns about a lack of competition and transparency. Zohrab Ismayil, a prominent Azeri economist, notes that “for the last three years, we don’t see much competition in the banking sector, and in some banks the level of service has gone down.”
Ismayil also calls for greater transparency, citing the importance of declaring assets of public servants. “Despite the existence of relevant legislation, the government has not enforced it since 2005. I think this legislation should also cover family members of the president and other high-level officials, as well as members of Parliament and opposition leaders.”
The Complexity of Ownership Structures
The OCCRP analysis found that:
- Atabank is controlled by Ata Holding, with Deputy Minister of Taxes Kamil Ashrafov holding a significant stake.
- Bank VTB is majority-owned by the Russian government, but Ata Holding has a significant stake.
- Pasha Bank is controlled by Pasha Holding, with Aliyev’s father-in-law holding a stake. The bank’s financial statement lists Aliyev’s daughters as ultimate owners.
- Kapital Bank is 99.8 percent owned by Pasha Holding, and its documents list Aliyev’s daughters as ultimate owners.
- Xalq Bank has an independent audit report listing Ideal Biznes Ko LLC, Yevro Standart LLC, and Avangard-1 LLC as shareholders, but the controlling party is listed as L. Aliyeva.
- Silk Way Bank has Arzu Aliyeva listed as a controlling shareholder, with President’s spokesman Azer Gasimov confirming her ownership stake.
Lack of Transparency in Azerbaijan’s Financial Sector
The full extent of the Aliyev family’s banking empire remains unclear due to the lack of transparency in Azerbaijan’s financial sector. The country’s 2012 amendment to the law on access to information closed registry information for commercial institutions, making it difficult for outsiders to uncover the true nature of the First Family’s bank holdings.
Consequences for Azerbaijan
As Azerbaijan seeks to reinvent itself as a modern nation, the lack of competition and transparency in its banking sector is likely to have far-reaching consequences. The country’s citizens deserve to know who controls their banks and how those individuals wield power.