Financial Crime World

Title: Three Regulatory Bodies Leading the Fight Against Financial Crimes in Azerbaijan

Overview

Azerbaijan, located in the South Caucasus region, boasts a thriving economy with three primary regulatory bodies dedicated to preventing and combating financial crimes. In this article, we explore the roles and functions of the Central Bank of the Republic of Azerbaijan, Financial Markets Supervision Authority (FMSA), and Financial Monitoring Services (FMS-AZ).

Central Bank of the Republic of Azerbaijan (CBRA)

Role and Responsibilities

The Central Bank, serving as the primary financial regulatory body, plays a crucial role in maintaining financial stability. Its responsibilities include:

  • Regulating and supervising banks
  • Maintaining currency stability
  • Ensuring the overall financial health of the economy
  • Setting regulations, licensing, and overseeing financial institutions to prevent and detect financial crimes as part of its anti-money laundering (AML) and counter-terrorist financing (CFT) duties

Financial Markets Supervision Authority (FMSA)

History and Function

Created in 2012, FMSA is the national financial market regulator. Its primary functions consist of:

  • Ensuring the stability and transparency of financial markets
  • Supervising financial market infrastructures and non-bank credit institutions
  • Registering, monitoring, and supervising various financial institutions and market players to adhere to AML/CFT regulations in mitigating money laundering and terrorist financing risks

Financial Monitoring Services (FMS-AZ)

Role as the Primary FIU

Established to monitor and analyze financial transactions within the country, FMS-AZ functions as the primary Financial Intelligence Unit (FIU). As Azerbaijan’s FIU:

  • It collects, analyzes, and disseminates information to prevent and investigate money laundering and terrorist financing activities
  • It is a critical player in the international network of FIUs, enabling the exchange of financial intelligence between national and international entities

Importance of the Regulatory Bodies in Combating Financial Crimes

Protecting the Financial System and Citizens

As financial crimes increasingly pose a threat to the global economy, the work conducted by these regulatory bodies in Azerbaijan is essential to maintaining the integrity of the country’s financial system and ensuring a safer and more secure financial environment for citizens and businesses alike.