By his decree from 16 July of the year President Ilham Aliyev has endorsed the Regulation on the Financial Monitoring Service under the Central Bank that is the main point in realization of the Law on counteraction to legalization of money and property received by criminal way and terrorism financing.
The Presidential Administration’s press service informs that the Central Bank was charged with approving Agency’s structure and staff for 15 days and solving issues following the decree. The Cabinet was given a month to make the proposals for bringing the appropriate legislative acts in compliance with the decree, make together with other bodies of executive power the relevant amendments to the standard and legal acts and solve the matter of material and technical maintenance of the Service.
Earlier Rufat Aslanli, the chairperson of the State Securities Committee and the head of the law-maker group, said that after adoption and commencement of the Draft Law, Moneyval (the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures) published a statement which covered positive results and achievements of Azerbaijan.
A Moneyval’s plenary session also made a decision to empower its office with the right to halt monitoring of Azerbaijan in case of the latter implements all decisions covered by presidential decree on law application. Among these decisions are approval of the Charter of Financial Monitoring Body under the Central Bank of Azerbaijan, adoption of relevant amendments to the Administrative and Criminal Codes.
The plenary session also decided to transfer to its Bureau the right to stop the monitoring of Azerbaijan in case the latter implements all decisions covered by the presidential decree on law application, in particular if Azerbaijan approves the Charter of the Financial Monitoring Body and passes draft amendments and additions to the Administrative and Criminal Codes.
Earlier this year Financial Action Task Force (FATF) called the member states and other countries to be extremely careful in deals with persons and financial organizations residing or located in Azerbaijan.
Moneyval’s next session will be held at the end of 2009 and Azerbaijan will have a chance for full removal of monitoring on simplified system.
On 24 February 2009, President of Azerbaijan Ilham Aliyev signed the Draft Law on counteraction to legalization of the money and property received by criminal way and terrorism financing adopted by the Parliament on February 10. The decree says of establishment of Financial Monitoring Service under the National Bank and gives a month to the NB to develop and submit the Regulation on the Service.
In its public statement passed on 12 December 2008 the FATF appealed financial institutions of other countries to be extremely careful in deals with Azerbaijan and carry out due check of clients to remove risk of money laundering/terrorism financing. To the Expert Group appeal it was indicated to re-consider the Bill on Counteraction to ML/TF passed in the second reading in Azerbaijan as it fails to conform to key international standards to the large extent and adopt immediately complex legislation complying with the requirements.
Rosfinmonitoring’s notification can aggravate realization of financial operations between Russia and Azerbaijan.
In its evaluation Moneval also pointed out that the country fails to fulfill structural, legislative and institutional requirements when certain type of institute is lacking in the country.
Out of the 40 FATF standards there were recognized Azerbaijan’s non-conformity in fight against breaches on money laundering, audit of clients, politically persecuted persons, new technologies and face-to-face business, non-standard deals, reporting on suspicious deals, internal control, audit, sanctions, foreign branches and subsidiaries, management and relations with clients, lack of a body on FIU, on statistics, freezing and confiscation of terrorist funds, non-profit organizations.
Source: ABC.AZ
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