Azerbaijan introduces licensing of processing centers

Business Materials 26 August 2014 17:21 (UTC +04:00)

Baku, Azerbaijan, Aug.26

By Zulfiyya Kurbanova - Trend:

Azerbaijan plans to introduce licensing of processing centers in the country.

According to the draft of regulations for the authorization and supervision of the processing activities, prepared by the Central Bank of Azerbaijan (CBA), a license to practice process activities will be issued for an indefinite term. Draft of regulations is published on the website of the Central Bank.

Surveillance under the activities of processing centers will be managed by the Central Bank on the basis of the reports submitted.

In addition, the service centers are required to submit to the CBA an annual financial report, the business plan for the next year, the audit report by the international payment organizations, as well as information about changes in the structure of the board center.

Suspension of the activities of processing centers and a license revocation will be carried out by the Central Bank in case if activities of the center will not be initiated within 12 months after the issuance of the license, in case of non-prescriptions for the elimination of the violations found in this period, as well as on the basis of the appeal of the center.

Service centers that provide practice process activities should ensure the adjustment of its activities in compliance with this document within one year after the entry of these rules into force.

In Azerbaijan, there are two fully functioning processing centers: Millikart Group [founders are 18 local banks and the Bank] and Azericard [under the sole founder - the International Bank of Azerbaijan]. Kapital Bank and Bank of Azerbaijan [center was established to service roadmaps] also implement processing activities.

By the end of June 2014 the number of payment cards in Azerbaijan amounted to 6003 million units, a 5.8 percent increase from the beginning of the year. The number increased by 13.2 percent compared to the same period of 2013. Total turnover on payment cards at ATMs and POS-terminals in January-June this year amounted to 5.634 billion AZN, and the total number of operations amounted to 37.93 million units.

The official exchange rate for August 26 is 0.7844 AZN / USD.