Financial Crime World

Azerbaijan Urged to Enhance Money Laundering Probes Amid MONEYVAL Concerns

Council of Europe’s Anti-money Laundering Body Criticizes Azerbaijani Authorities

Strasbourg, February 12, 2024 – In a strongly worded report, MONEYVAL, the Council of Europe’s anti-money laundering and counter-terrorist financing (AML/CFT) body, has urged Azerbaijani authorities to strengthen their efforts to combat money laundering (ML) and terrorist financing (TF).

Recommendations to Enhance Azerbaijani Anti-Money Laundering Measures

The following recommendations highlight the key areas MONEYVAL believes Azerbaijani authorities need to address to effectively combat ML and TF:

  1. Investigatory Powers

    • Priority should be given to enhancing investigatory powers.
    • Effective implementation of existing legislation.

  2. Implementation of Laws

    • Strengthening the implementation of AML/CFT laws.

  3. Supervisory Arrangements

    • Significant improvement of supervisory arrangements in the financial sector.
    • Strengthening the regulatory framework.

MONEYVAL’s Concerns

The report expressed several concerns:

  • Insufficient number of ML and TF cases brought to trial.
  • Limited utilization of financial intelligence to investigate suspicious transactions.

Cooperation with International Partners

To address these issues, MONEYVAL encouraged Azerbaijani authorities to:

  • Intensify cooperation with international partners in the fight against financial crimes.

International Scrutiny on Azerbaijan’s Financial System

The report comes at a time when the international community is turning its focus on Azerbaijan’s financial system. In recent years, concerns have emerged regarding the lack of transparency and the presence of illicit funds allegedly connected to:

  • Political figures.
  • Businessmen.
  • Organized crime groups.

MONEYVAL’s Role

MONEYVAL aims to assist Azerbaijan in addressing these concerns by offering the necessary recommendations and closely monitoring its progress in implementing them. The organization will conduct its next evaluation mission to Azerbaijan in late 2024. In the meantime, Azerbaijani authorities must demonstrate their commitment to addressing ML and TF concerns.