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Monitoring regime of Azerbaijan on FATF standards can be cancelled

Business Materials 27 May 2009 20:32 (UTC +04:00)

Azerbaijan, Baku, May 27 / Trend I. Khalilova, N. Ismayilova /

Azerbaijan adopted the law "Counteraction of legalization of illegal money and property and financing of terrorism". It allowed Council of Europe's expert group Moneyval reflecting positive achievements of Azerbaijan in the last official report, inter-departmental working group against money laundering head, chairman of the state securities committee Rufat Aslanli said on May 27.

"Moreover plenary meeting Moneyval decided to pass bureau the right to suspend monitoring regime in case of fulfillment of all decisions envisaged in the President's decree for the law to come into force - adoption of financial monitoring agency's charter, approval of corresponding additions and changes in the code on administrative violations and the Criminal code," Aslanli said.  

Presently, charter of financial monitoring agency has been prepared and submitted for approval. The agency was established under the Azerbaijani Central Bank. 

Moreover, amendments to the corresponding legislative acts were also prepared. Their discussions are under completion. 

Next meeting of Moneyval will be held in late 2009 though it usually holds summer session. 

According to foreign experts, the money laundering cases are frequent in countries without the control mechanism. Some points of the bill must be reconsidered in order to bring it to international standards. The report on suspect operations, interstate money turnover, as well as financial and business-obligation must be reconsidered. The cooperation must be established with organizations on money laundering.

The government will create a financial intelligence agency next.

Azerbaijan became the first country to receive the assessment in accordance with new requirements Moneyval in 2003. They are a set of individual assessments of each standard of FATF on the basis of 40 + 8 (40 standards to counter dirty money, and eight - to counter financing of terrorism). However, each standard has a few paragraphs, a total of about 180 sub points.

Azerbaijan is largely consistent with the FATF standards and assessment. The assessment that Moneyval gave to the country was higher than the estimate of an interdepartmental expert group.

Azerbaijan was assigned to the category of states that mostly meet the standards of FATF. Since then, the standards are supplemented by a new standard on combating terrorist financing.

The second assessment mission was conducted in 2008, which was also described as constructive.

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