Financial Crime World

Azerbaijan Urged to Boost Financial Institution Fraud Prevention

The Council of Europe’s anti-money laundering body, MONEYVAL, has issued a report calling on Azerbaijan to strengthen its measures to combat money laundering and terrorist financing. The report assesses Azerbaijan’s level of compliance with international standards set by the Financial Action Task Force (FATF) since 2014.

Progress Made, but Room for Improvement

While Azerbaijan has made progress in strengthening its legal and institutional framework, MONEYVAL identified several areas that require improvement:

  • Strengthening investigation and prosecution of money laundering cases
  • Improving domestic cooperation among law enforcement agencies
  • Increasing consistency in investigations and prosecutions

Key Recommendations

MONEYVAL made the following key recommendations to Azerbaijan:

  • Conduct parallel financial investigations in all proceeds-generating crimes
  • Improve supervision of financial institutions and designated non-financial businesses and professions
  • Strengthen enforcement and sanctioning powers for breaches of professional anti-money laundering and counter-terrorist financing obligations

Additional Concerns

MONEYVAL also expressed concerns about:

  • The implementation of targeted financial sanctions by the private sector
  • The adequacy of supervision of compliance
  • The need for Azerbaijan to improve its supervision of legal persons and apply identification and verification measures when dealing with politically exposed persons and beneficial owners

Next Steps

Azerbaijan will report back to MONEYVAL on its progress in improving the implementation of its anti-money laundering and counter-terrorism financing measures by December 2025. The report concludes that Azerbaijan has taken important steps, but more work is needed to ensure effective prevention of financial institution fraud.

Conclusion

In conclusion, while Azerbaijan has made some progress in strengthening its anti-money laundering and counter-terrorism financing measures, there is still much work to be done to prevent financial institution fraud. MONEYVAL’s recommendations provide a roadmap for Azerbaijan to improve its compliance with international standards and effectively combat money laundering and terrorist financing.