Financial Crime World

Azerbaijan: MONEYVAL Evaluates Azerbaijan’s Progress in Combating Financial Crime

Following the Latest Mutual Evaluation Report

Subtitle: An in-depth analysis of Azerbaijan’s implementation of anti-money laundering and counter-terrorist financing (AML/CFT) measures as evaluated by MONEYVAL.

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[Azerbaijan, MONEYVAL, Mutual Evaluation, Financial Crime, Anti-Money Laundering, Counter-Terrorist Financing]

Baku, the capital city of Azerbaijan, has once again come under the scrutiny of global financial watchdogs following the publication of the latest Mutual Evaluation report by MONEYVAL, the Financial Action Task Force (FATF) style regional body.

Becoming a Member and Past Evaluations

Azerbaijan became a member of MONEYVAL in 2006 and underwent its first evaluation in 2008. Since then, various progress reports have been issued to assess the country’s adherence to AML/CFT measures. The latest round of evaluation took place between February and April 2022, focusing on the implementation of these measures in the real estate sector and designated non-financial businesses and professions (DNFBPs).

The MONEYVAL Evaluation Process

The MONEYVAL evaluation process includes on-site inspections, interviews with key stakeholders, and an examination of legislation and regulations. The assessment covers three areas:

  1. Political commitment and resources
  2. Legal framework
  3. Effective implementation

Azerbaijan’s Progress in the Mentioned Areas

Political commitment and resources

The report indicates that Azerbaijan has shown significant efforts to enhance its AML/CFT framework. Yet, challenges remain in terms of implementation and enforcement of these measures in practice.

Azerbaijan has achieved remarkable developments in its legal framework since the last evaluation. The country has implemented numerous regulations, such as additional reporting and record-keeping requirements for certain DNFBPs.

Effective implementation

Several weaknesses in implementation were identified, most notably in the real estate sector and DNFBPs. MONEYVAL makes recommendations for further steps to resolve these issues, including the establishment of a national risk assessment process and more effective implementation of international best practices within the real estate sector.

Stay tuned for more updates on Azerbaijan’s progress in combating financial crime and counter-terrorist financing based on the latest MONEYVAL evaluation report.