Financial Crime World

Azerbaijan’s Central Bank Establishes Guidelines for Currency Regulation

Strengthening Financial Stability

In a move aimed at strengthening Azerbaijan’s financial stability, the Milli Majlis of the Republic of Azerbaijan has established general principles for currency regulation, while the Central Bank of Azerbaijan (CBA) has been designated as the main body to exercise currency regulation in the country.

Key Provisions

According to Article 12 of the Law on Currency Regulation, the Milli Majlis shall establish guidelines for currency exchange and issue licenses to individuals and legal entities engaged in this activity. The CBA, on the other hand, shall be responsible for monitoring and regulating currency exchange activities to ensure their compliance with the law and prevent illegal transactions.

New Regulations for Licensing

The CBA has introduced new regulations for issuing licenses to individuals and legal entities engaged in currency exchange. Under these regulations:

  • Applicants must submit an application to the Financial Markets Supervision Authority (FMSA) along with documents such as:
    • Identification papers
    • Proof of address
    • A statement on their financial situation
  • Once the application is reviewed and approved, the FMSA shall issue a license to the applicant, which will be valid for a specified period.
  • The license holder must pay a state duty fee within five business days after receiving the decision and deliver a payment confirmation statement to the FMSA.

Objectives of New Regulations

The new regulations aim to:

  • Prevent money laundering and terrorist financing by ensuring that all currency exchange activities are transparent and traceable
  • Protect the rights of individuals and legal entities engaged in currency exchange by providing them with a clear framework for their operations

Response from CBA

“We believe that these new regulations will help strengthen Azerbaijan’s financial stability and prevent illegal transactions,” said a spokesperson for the CBA. “We are committed to ensuring that all currency exchange activities in the country are conducted in accordance with the law and international standards.”

Effective Date and Compliance

The new regulations come into effect immediately, and all individuals and legal entities engaged in currency exchange must comply with them. The CBA has promised to provide guidance and support to license holders to ensure a smooth transition to the new regulatory framework.

Key Points:

  • The Milli Majlis of Azerbaijan has established general principles for currency regulation.
  • The Central Bank of Azerbaijan (CBA) is responsible for monitoring and regulating currency exchange activities.
  • The CBA has introduced new regulations for issuing licenses to individuals and legal entities engaged in currency exchange.
  • Applicants must submit an application along with identification papers, proof of address, and a statement on their financial situation.
  • License holders must pay a state duty fee within five business days after receiving the decision and deliver a payment confirmation statement to the FMSA.
  • The new regulations aim to prevent money laundering and terrorist financing by ensuring transparency and traceability in currency exchange activities.
  • All individuals and legal entities engaged in currency exchange must comply with the new regulations.