BAKU, Azerbaijan, August 3. The Azerbaijan
Banks Association (ABA) and the Azerbaijan Fintech Association
(AzFina) have issued a statement regarding the agreed approach to
payment instruments.
The associations noted that Azerbaijan has made significant
progress in recent years in developing its payment ecosystem and
expanding cashless transactions. They stressed that, as a result of
consistent reforms, the expansion of digital financial services and
the introduction of innovative payment solutions, the volume and
coverage of cashless payments continue to grow.
“Modernization of payment infrastructure and the expansion of
digital banking services also require more effective risk
management in this area and increased attention to ensuring
compliance with legislative requirements. Taking the above into
account, the Azerbaijan Banks Association (ABA) and the Azerbaijan
Fintech Association (AzFina) have reached an agreement on applying
a risk-based approach to incoming transactions involving payment
instruments in order to minimize the risks of misuse of services
provided by banks and electronic money institutions,” the statement
said.
According to the agreed approach, each payment instrument
belonging to a payment service user will allow a maximum of five
incoming transactions per day and incoming transactions totaling up
to 20,000 manats per month. The approach also envisages that banks
and electronic money institutions will provide payment service
users with only one payment instrument for each financial service
product linked to their accounts.
The associations particularly emphasized that, at the current
stage, no limits are planned for outgoing transactions involving
payment instruments.
“As noted above, this approach is risk-based and does not aim to
restrict legitimate incoming transactions by customers. Incoming
transactions conducted using payment instruments belonging to
customers themselves and their close relatives are exempt from the
application of these limits.
At the same time, limits will not be applied in cases where
customers provide the necessary information regarding their
transactions and these transactions correspond to their risk
profile. Similarly, if payment service users provide appropriate
justification, banks and electronic money institutions will ensure
the provision of additional payment instruments required by them,”
the statement said.
ABA and AzFina reiterated that the approach will not create
additional restrictions or difficulties for payment service users
with legitimate payment practices and will not negatively affect
their daily operations. “Payment service users will continue to
carry out their transactions through digital payments in the
traditional manner, using the advantages of digital payment
services, including POS terminal infrastructure installed at
business entities and electronic banking services,” the statement
added.
