Financial Crime World

Azerbaijan Urged to Strengthen AML/ CFT Measures by MONEYVAL

Strasbourg, February 12, 2024

The Council of Europe’s anti-money laundering body, MONEYVAL, has called on Azerbaijani authorities to further strengthen measures to combat money laundering, terrorist financing, and the financing of proliferation. According to a new report published today, significant improvements are needed in the areas of preventive measures and supervision.

Report Highlights Key Areas for Improvement

  • Preventive measures: Azerbaijan needs to improve its legal and institutional framework to tackle money laundering, terrorist financing, and the financing of proliferation.
  • Supervision: MONEYVAL recommends that Azerbaijani authorities increase domestic cooperation at an operational level between law enforcement agencies to effectively investigate and prosecute money laundering cases.

Effectiveness in Countering Terrorist Financing

Azerbaijan has achieved a substantial level of effectiveness in countering terrorist financing, with the authorities demonstrating their ability to successfully investigate TF offenses. However, major improvements are needed to pursue investigations and prosecutions more effectively.

Key Recommendations

  • Ensure consistency in investigations and prosecutions by pursuing cases involving legal persons for money laundering.
  • Conduct systematically parallel financial investigations in all proceeds-generating crimes, including terrorist financing, to trace assets.
  • Strengthen supervision of compliance with anti-money laundering/counter-terrorist financing regulations.
  • Apply preventive, targeted, and proportionate risk mitigation measures in the Non-Profit Organisations (NPO) sector.

Implementation of Targeted Financial Sanctions

Azerbaijan has a sound legal framework in place for implementing targeted financial sanctions without delay for terrorist financing and proliferation financing. However, concerns were identified about the implementation of these measures by the private sector, as well as the adequacy of supervision of compliance.

Call to Action

MONEYVAL calls on Azerbaijani authorities to swiftly implement the recommended measures to strengthen its anti-money laundering and counter-terrorist financing regime.

Timeline for Improvement

Azerbaijan will report back to MONEYVAL on progress achieved in improving the implementation of its anti-money laundering and counter-terrorist financing measures by December 2025.