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Banking License Application: A Step-by-Step Guide
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The Financial Markets Supervisory Authority (FMSA) has announced new regulations for obtaining a banking license in the Republic of Azerbaijan. This guide outlines the requirements and procedures for foreign citizens and legal persons seeking to establish a bank in the country.
Initial Application Requirements
For individuals, a statement of impeccability verified by notary-approved signature is required. For foreign citizens, a statement on existence or absence of criminal convictions issued by relevant authorities of the country of residence and legalized according to legislation must be submitted.
- For legal persons holding a majority of shares:
- Information on the group of companies, including details on persons with majority shares in other organizations incorporated into the group
- Administration of the group
Additional Documents
- Copies of foundation documents, bank charter, and protocol on establishment of the bank
- Business plan outlining:
- Commercial strategy
- Intended activities
- Organization structure
- Financial broadcasting for the initial three years
- List of intended bank administrators, along with:
- Copies of documents reflecting professional suitability and experience
- Approved by notary
- Application filled by these persons
- Size and list of majority shares in bank and other legal entities
- Signed statement of civil impeccability with notary-approved signatures
Final Application Requirements
Following state registration, a final application must be submitted, including:
- Copies of documents on state registration and charter
- Bank procedures
- Copy of the decision of the general meeting of shareholders on founding the bank and appointment of its administration
If requirements established by the FMSA are not met, a document verifying compliance with such requirements must be submitted. In cases of significant changes to information submitted in the initial application, written information explaining these changes is necessary.
Licensing Process
The FMSA reviews the initial application within 30 calendar days. If mistakes or shortages are found, a notification for correction is sent to the applicant. Re-submitted documents are reviewed by the FMSA within 15 calendar days.
Upon establishment of compliance with requirements and payment of minimum charter capital, the FMSA makes a decision on issuance of a banking license and sends a written notification to the applicant within 5 calendar days.
National Branches of Foreign Banks
No foreign bank may establish branches in the Republic of Azerbaijan without a bank license issued by the FMSA. The review process for establishing local branches of foreign banks consists of two stages: initial application and final application.
The initial application includes:
- Documents legalized according to legislation, such as:
- Charter of the bank
- Copy of decision of competent management authority on establishment of the branch
- List of bank owners holding majority shares
- Information on incorporation within a group of companies