Financial Crime World

Azerbaijan Urged to Bolster Anti-Money Laundering Measures by European Watchdog

MONEYVAL Report Highlights Deficiencies in Azerbaijan’s Anti-Money Laundering Efforts

Strasbourg, 12th February 2024

In its latest report, the Council of Europe’s anti-money laundering body, MONEYVAL, called on Azerbaijani authorities to strengthen their efforts against money laundering, terrorist financing, and proliferation financing. Here are the key findings:

Comprehensive Assessment of Azerbaijan’s Progress

The report, released on February 12, 2024, provides a comprehensive assessment of Azerbaijan’s progress in implementing the required measures against money laundering and related financial crimes. It commended some advancements but highlighted several deficiencies.

Concerns over Insufficient Measures

MONEYVAL raised concerns over insufficient measures to prevent the use of cash transactions in large amounts and to regulate real estate transactions. It advised Azerbaijan to:

  • Strengthen preventive measures
  • Improve supervision

Need for Improvements in DNFBP Supervision

The report indicated a need for improvements in the supervision of Designated Non-Financial Businesses and Professionals (DNFBPs). Azerbaijan was advised to:

  • Expand coverage
  • Enhance risk assessment methodology
  • Provide training to relevant authorities

Better Coordination and Communication among Law Enforcement Agencies

There were calls for better coordination and communication among law enforcement agencies in Azerbaijan. MONEYVAL also recommended improvements in the legal framework for mutual legal assistance and for confiscation and recovery of proceeds of crime.

EU’s Call for Strengthened Measures against Money Laundering and Terrorism Financing

The report’s publication followed the European Council’s call for strengthened measures to combat money laundering and terrorism financing. EU Commissioner for Home Affairs, Ylva Johansson, emphasized the importance of a multi-agency approach to tackle these issues.

Pressure on Azerbaijani Authorities to Demonstrate Progress

Azerbaijani authorities are now under pressure to demonstrate progress in implementing these recommendations to further strengthen their anti-money laundering framework and safeguard their financial system from illicit activities.