Baku, Azerbaijan, Jan. 8
CEOs of compulsorily liquidated or bankrupt companies will not be able to head credit bureaus in Azerbaijan, according to the “Procedure for Regulation and Supervision of Activity of Credit Bureaus” approved by the Financial Market Supervisory Authority of Azerbaijan.
The ban is valid for two years after the compulsory liquidation or bankruptcy of a legal entity, according to the document.
The Supervisory Authority assesses activity of the credit bureau, effectiveness of its work, oversees the exchange of information in the bureau and ensuring the inviolability of personal data.
The credit bureau should submit reports to the Supervisory Authority, which, in turn, monitors the bureau’s activity. Comprehensive inspections should be conducted at least once every three years.
Thematic inspections take place in case of frequent personnel reshuffles in the management of the credit bureau, a large number of complaints from consumers of services and in other cases.
The authorized capital of credit bureaus should not be less than 2 million manats.
In December last year, Azerbaijan’s banking market participants decided to create Azerbaijan Credit Bureau LLC. Chairman of the Board of the International Bank of Azerbaijan Khalid Ahadov was elected Chairman of the Supervisory Board of the Azerbaijan Credit Bureau.
The International Bank of Azerbaijan, Bank Respublika, Xalq Bank, Kapital Bank, PASHA Bank, Rabitabank, Unibank and Ziraat Bank Azerbaijan became the founders of the Azerbaijan Credit Bureau LLC.
The private credit bureau will contain more information than the Centralized Credit Registry and cover a bigger number of borrowers. The bureau will receive information not only from banks, but also from insurance and leasing companies, mobile communication operators, etc.
(1.7001 manats = 1 USD on Jan. 8)