Investment companies

Investment companies have corresponding rights and duties in accordance with 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» (hereinafter – Law).

Investment companies have the following rights:

Exemption from any liability for breach of any restriction on disclosure of the bank or other legally protected secrecy, as well as causing the material and moral damage emerged as a result of the disclosure of information, when the information on the transaction which is subject to monitoring to the Financial Intelligence Unit (hereinafter – FIU) is submitted to the FIU in good faith and in the manner defined by this Law;

To be informed about the results achieved as a result of submission of information to FIU.

Investment companies have the following duties:

identification and verification of customers and beneficial owners;

acquiring of information on the purpose and essence of business relationships from customer and regular update of the information;

application of additional identification measures on high-risk transactions;

taking measures for identification of politically exposed persons or beneficiaries of foreign States;

identification of purpose and essence of all complex, large-scope, unusual, as well as clearly non-economic or illegal transactions and development of written report on them;

storage of relevant documentation for at least five years;

when required by law, development and introduction of internal control systems;

Submission of information to FIU related to the following operations and cases:

  • cash transactions equal to or more than 20000 manat;
  • irrespective of the amount, availability of suspicious transactions or transactions creating sufficient grounds for such suspicions concerning criminally obtained funds or other property and financing of terrorism;
  • any transactions with the funds or other property associated with the citizens of the country (territory) determined by the article 7.3 of this Law, with the persons registered or that, who has a residency or permanent business in this country (territory), with the persons who has a bank account in Investment companies registered in this country (territory);
  • irrespective of the amount, any monetary and other property transactions of politically exposed persons of foreign States;
  • irrespective of the amount, transfer of funds from anonymous accounts that are out of the jurisdiction of the Republic of Azerbaijan to the Republic of Azerbaijan or transfer funds to the anonymous accounts that are out of the jurisdiction of the Republic of Azerbaijan;
  • detection of previously submitted incorrect identification information on a customer or beneficiary;
  • if accurate identification of parties of a transaction, in the manner established by law, is not possible;
  • if submission of identification information on a customer or beneficiary is denied;
  • transactions with the persons included in certain lists based on the relevant UN resolutions, as well as the legislation of the Republic of Azerbaijan and the international agreements it is signatory to.

If observation of requirements in the field of fighting legalization of criminally obtained funds or other property and terrorist financing by foreign branches and affiliated legal entities (if any) is prohibited by the legislation of the country they are located in, to submit written notification to the Financial Monitoring Service of the Republic of Azerbaijan about this fact.

Considering peculiarities of activities of customers, to take measures on identification and verification of the customers whose business relationships emerged before the law became effective and presently continue.

Availability of internal rules and procedures on regulation of business relationships emerged without direct creation of contacts via technological tools or regulation of undertaken transactions.

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