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Azerbaijan may set new rules in field of currency exchange activities

Economy Materials 5 June 2023 11:59 (UTC +04:00)
Azerbaijan may set new rules in field of currency exchange activities
Elchin Mehdiyev
Elchin Mehdiyev
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BAKU, Azerbaijan, June 5. The Central Bank of Azerbaijan may set an upper limit on currency exchange operations carried out by persons who have received a license to operate in this area, Trend reports.

This is reflected in the proposed amendment to the law "On the Central Bank of the Republic of Azerbaijan", which was submitted for discussion at today's meeting of the Committee of the Milli Majlis (Parliament) on economic policy, industry and entrepreneurship.

A person wishing to carry out activities in this area must apply to the financial market supervisory authority to obtain a license. According to the draft, this supervisory authority may be the Central Bank of Azerbaijan.

The application must also be accompanied by a copy of the charter of a non-resident legal entity, the decision of the authorized management body on the establishment of a branch, the financial statements of a non-resident legal entity that has been audited for at least the last three financial years (and when creating a legal entity for less than three years) and the auditor's opinion.

According to the current legislation, a certificate was attached to the application stating that the founder (founders) had no criminal record for crimes in the field of economic activity, issued by the relevant executive authority. It is also a condition that the founder no longer has a criminal record for crimes in the economic field.

The application must also include information about the absence of the founder (founders or head of the executive body in the presence of a legal entity) of a criminal record for crimes in the economic sphere and, if the founder (head of the executive body in the presence of a legal entity) is a foreigner, then a certificate issued by the relevant state authorities of the resident country on the absence of he has a criminal record for crimes in the economic field and legalized in accordance with the procedure established by law.

The amendment reflects the requirement to include the following documents in the application:

- if the founder is a legal entity, information and documents containing its name, address, type of commercial activity, information covering at least the last 3 financial years (and when creating a legal entity for less than three years – the last financial year or years) and audited, as well as a copy of the decision of the authorized management body on the acquisition are required, the specified share of participation of this person;

- If the founder is a foreign legal entity - additionally legalized, a document confirming registration in the country of location, the charter (Regulations), financial statements and auditor's report that have been audited for at least the last three financial years (the last financial year or year if the legal entity was established in less than three years);

– if the founder is an individual - information and documents containing his surname, first name, patronymic and citizenship, data of the identity document, permanent residence, type of activity, and if the founder is a foreigner (except foreigners whose permanent residence is the territory of the Republic of Azerbaijan), then additionally positive recommendations and/or bank statements from one or more financial institutions of the resident country;

- information and documents on the amount of the authorized (equity) capital, the share of each owner in the authorized (equity) capital and the source of funds allocated for the acquisition of the share;

- bank document on payment of the minimum authorized (equity) capital;

- information on the relationship between the participants and the beneficial owner(s) in the form established by the Central Bank;

- list of owners and persons (the head of the executive body, if he is a legal entity) performing managerial functions in connection with important participation shares;

- when considering an application for a license, the Central Bank may obtain information from independent and reliable sources, as well as from relevant state bodies (institutions) on the financial position of the owners of shares in the authorized (equity) capital of the applicant, the beneficial owners and the source of the authorized (equity) capital;

- state bodies (institutions) must provide the information requested by the Central Bank of the Republic of Azerbaijan within seven days. State bodies (institutions) cannot refuse to provide this information, referring to the fact that the requested information relates to commercial secrets, tax secrets or other confidential information protected by law, except for state secrets;

- this article also applies to persons wishing to subsequently obtain a significant share of the participation of a person who has received a license for currency exchange activities and is the beneficial owner;

- for the purposes of this Law, a criminal record of the relevant persons is established on the basis of a certificate issued by a body (institution) determined by the relevant executive authority at the request of the Central Bank of the Republic of Azerbaijan.

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