Azerbaijan Eyes Compliance with CFT Regulations as FATF Releases Benin Follow-Up Report 2023

Azerbaijan Makes Significant Progress in Implementing FATF Recommendations

According to a recent report, Azerbaijan has made significant progress in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations to combat terrorism financing. The Benin Follow-Up Report 2023 shows that the country is largely compliant with most of the 40 recommendations.

Efforts and Progress Made

The report highlights Azerbaijan’s efforts in:

• Assessing risk and applying a risk-based approach
• National cooperation and coordination
• Money laundering offense, confiscation, and provisional measures
• Targeted financial sanctions related to terrorism and terrorist financing
• Implementing customer due diligence, record keeping, and internal controls

Partial Compliance and Non-Compliance Identified

However, the report notes that Azerbaijan is:

• Partially compliant with some recommendations, including those related to:
  • Non-profit organizations
  • Financial institution secrecy laws
  • Money or value transfer services
• Non-compliant with a few recommendations, such as:
  • Transparency and beneficial ownership of legal persons and arrangements

FATF Recommendations Aim to Prevent Terrorism Financing

The FATF Recommendations aim to prevent the financing of terrorism and proliferation by setting out a comprehensive framework for countries to implement effective measures to combat money laundering, terrorist financing, and proliferation financing. Azerbaijan’s progress in implementing these recommendations is closely monitored by the international community to ensure that the country is taking adequate steps to counter the financing of terrorism.

Ongoing Efforts and Commitment

Azerbaijan has been working closely with the FATF to strengthen its AML/CFT regime, and the recent report acknowledges the country’s efforts to improve its compliance. However, further work is needed to address the remaining shortcomings identified in the report.

The Azerbaijani authorities have committed to implementing the necessary measures to achieve full compliance with the FATF Recommendations by the next follow-up report. The country’s progress will continue to be monitored closely by the international community to ensure that it meets its commitments and takes adequate steps to combat terrorism financing.