Title: Azerbaijan’s Steps to Combat Money Laundering: FATF Assessment and Recommendations

Subtitle: Progress and Challenges in Azerbaijan’s Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) System

Azerbaijan is addressing concerns over money laundering and terrorist financing activities by enhancing its AML/CFT system. The Financial Action Task Force (FATF) assessed the country’s progress during an on-site visit to Baku between March 1 and March 15, 2023.

FATF Evaluation of Azerbaijan’s AML/CFT Measures

Team of experts’ visit
Assessment of Azerbaijan’s AML/CFT measures
Provision of recommendations for improvement

Key Findings from the FATF Report

Progress in the implementation of Customer Due Diligence (CDD) measures for designated non-financial businesses and professions (DNFBPs)
Advancements in the supervision of non-profit organizations’ transactions

Remaining Challenges

Lack of adequate risk-assessment procedures for money laundering and terrorist financing risks
Concerns over legal provisions regarding the confiscation and forfeiture of proceeds of crime

FATF Recommendations

Establish a national risk assessment mechanism
Strengthen legal frameworks related to the forfeiture and confiscation of proceeds of crime

Azerbaijan’s Response and Commitment

Implementation of FATF recommendations
Strengthening AML/CFT system
Improving reputation and ensuring financial sector transparency

FATF Monitoring and Future Evaluations

Closely monitoring Azerbaijan’s implementation of recommendations
Providing further guidance where necessary
Next evaluation scheduled for March 2026