FAQ

Funds of every kind, property, whether movable or immovable, corporeal or incorporeal, tangible or intangible, legal documents evidencing the title to such property, obtained directly or indirectly through the commission of an offence provided by the Criminal Code of the Republic of Azerbaijan.

– credit institutions;
– insurers, reinsurers, insurance intermediaries;
– investment companies;
– legal persons providing leasing services;
– institutions and other organizations providing post services that are engaged in transfers of the funds;
– pawnshops;
– investment funds and their managers;
– non–governmental organizations, branch or representative office of foreign non-governmental organizations in the Republic of Azerbaijan or religious organizations parts of activities of which consist of receiving, collecting, delivering or transferring the funds;
– persons who have obtained a license for currency exchange activities.

– natural and legal persons involved in purchase and sale of precious stones, precious metals, as well as the jewelry or the other goods made of precious stones and precious metals,
– natural and legal persons that provide intermediary services on purchase and sale of real estate,
– lottery and sports betting games organizers,
– lawyers,
– notaries,
– persons providing legal, accountancy, tax consultancy
– auditors

Conversion or transfer of funds or other property, knowing that such funds or other property is the proceeds of crime, for the purpose of concealing or disguising the illicit origin of the funds or other property or of helping any person who is involved in the commission of any crime to evade the legal consequences of his or her action, or accomplishment of financial transactions or other deals for the same purposes by using funds or other property, knowing that such funds or other property is the proceeds of crime; or the concealment or disguise of the true nature, source, location, disposition, movement or ownership of or rights with respect to funds or other property, knowing that such funds or other property is the proceeds of crime.

The information on suspicious transactions shall be submitted before the execution of the transaction. Where non–execution of a transaction is impossible or where it is known that non–execution of the transaction may cause impediments for identification of the beneficial owner, after execution of the transaction the monitoring entities shall immediately inform the Financial Monitoring Service.

Financial institutions and DNFBP are obliged to freeze without delay terrorist funds or other assets of natural or legal persons designated on the basis of relevant United Nations Security Council Resolutions, as well as legislation of the Republic of Azerbaijan and international instruments on counter terrorist financing to which the Republic of Azerbaijan is a party, and without prior notification to the persons involved immediately make STR to the Financial Monitoring Service about it.

If during two business days, the Financial Monitoring Service does not order to further suspend the execution of transactions the financial institutions and DNFBPs may execute the transaction.

Yes.

No, it shall not. If a transaction formally suits to any criterion mentioned in «Criteria on Determination of Transactions Subject to Monitoring», but there is no suspicions on that the funds or other property are the proceeds of a criminal activity or are related to terrorist financing, then monitoring subjects, applying the principle «know your customer», shall examine the transaction more thoroughly. In this case the submission of the information to the Financial Monitoring Service is not required.

As it is provided for in Annex 1 to the «Regulation on Submission Data by Monitoring Entities and Other Persons Involved in Monitoring to the Financial Monitoring Service under the Central Bank of the Republic of Azerbaijan» the form shall be filled in by monitoring entities and other persons involved in monitoring and submitted through the following means: hard copy signed and sealed by authorized competent person of monitoring entity and other person involved in monitoring; electronic carrier approved via electronic signature.

The information shall be submitted in hard copy in the following way: shall be put in fixed light-proof envelope and sealed; the name, address and the number of monitoring entity and other person involved in monitoring in relevant form are indicated in the top left angel of the cover of the envelope – in case of enclosing two or more number of data to envelope, each number of data shall be numbered sequentially; the name and address of the Financial Monitoring Service shall be indicated in the bottom right corner of the cover of the envelope; “DATA” note shall be indicated in the top right corner of the envelope; data shall be forwarded to the Financial Monitoring Service by official submission or by post via registered notification letter.

Filling the paragraphs marked with «asterisk» icons is obligatory. If these paragraphs are not filled, form is not accepted and returned.

Identification procedure is the complex of measures carried out in order to determine identity, legal capacity, representation competences and professional activity of customer, beneficiary and representative. Verification procedure is the complex of measures carried out in order to determine the veracity of identification data on customer, beneficiary and representative, obtained via reliable sources.

Identification of a natural person shall be carried out on the basis of the relevant identification documents.

All monitoring entities or other persons involved in monitoring have to develop and implement AML/CFT internal control systems

Yes.

Monitoring entities shall apply CDD requirements to customers existing until the entrance into force of this Law, on the basis of materiality and risk and to conduct due diligence on such existing relationships at appropriate times.

No, it may not. The information shall be submitted to the competent authority of the foreign state provided that the information will not be used for purposes not indicated in the request.

Information shall be submitted to the competent authority of the foreign state only if it does not contradict with the legislation of the Republic of Azerbaijan and does not affect its national interests or the submitted information forms a basis for a competent authority of the foreign state to initiate a criminal investigation or to send a relevant request.

Monitoring is a measure of control carried out by the financial monitoring organ, based on the information on transactions with the funds or other property received from the monitoring entities, other persons involved in monitoring, the supervision authorities, or other known sources.

Cash foreign currency, securities the value or nominal of which is expressed in foreign currency, precious stones, precious metals, as well as the jewelries or other goods made of the precious stones or precious metals.

Individuals who are or have been entrusted with prominent public functions in a foreign country (Heads of State or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials), as well as their family members or close associates.

Criminal liability.

Administrative liability.

Violation of the requirements of the Law of the Republic of Azerbaijan «On the Prevention of the Legalization of Criminally Obtained Funds or Other Property and the Financing of Terrorism» by the monitoring entities and other persons involved in monitoring, operating under a license may cause revocation (annulling) of a license in accordance with the legislation of the Republic of Azerbaijan, or undertaking other measures stipulated in the legislation of the Republic of Azerbaijan.

Foreign branches and subsidiaries of monitoring entities having permanent business in the «Black List» countries (jurisdiction) shall comply with the requirements of the legislation of the Republic of Azerbaijan and international standards against the legalization of criminally obtained funds or other property and the financing of terrorism, to the extent that the legislation of the country (jurisdiction) where they are operating permits. Monitoring entities are required to inform their appropriate supervision authorities in written form, when a foreign branch or subsidiary is unable to observe international standards against the legalization of criminally obtained funds or other property and the financing of terrorism because this is prohibited by host country legislation.

Monitoring entities are required to obtain senior management approval for establishing business relationships with a politically exposed person of a foreign country. Where a customer has been accepted and the customer or beneficial owner is subsequently found to be, or subsequently becomes a politically exposed person of a foreign country, monitoring entities should be required to obtain senior management written approval to continue the business relationship. Monitoring entities are required to take reasonable measures to establish the source of wealth and the source of funds of customers and beneficial owners identified as politically exposed person of foreign countries.

Monitoring entities are required to have policies and procedures in place to address any specific risks associated with non-face to face business relationships or transactions. These policies and procedures shall apply when establishing customer relationships and when conducting ongoing due diligence. Measures for managing the mentioned risks shall include specific and effective CDD procedures that apply to non-face to face customers.