BAKU, Azerbaijan, August 21. Azerbaijan's
Central Bank has held officials at three non-bank credit
organizations (NBCOs) administratively liable as part of its
supervisory measures, the regulator said.


SF Azerbaijan NBCO LLC and one of its officials were fined
50,000 manats ($29,412) and 10,000 manats ($5,882), respectively,
by a decision of the Khatai District Court in Baku for violating
legislation on combating the legalization of criminally obtained
property and the financing of terrorism.


The official of BOKT IDK LLC was also fined 2,000 manats
($1,176) for violating the requirements of the law on non-bank
credit organizations and rules governing the submission of borrower
information to the Centralized Credit Registry.


An official of Prior Credit NBCO OJSC was fined 3,000 manats
($1,765) on the same grounds.


As a result of the Central Bank's supervisory measures,
officials at the three NBCOs were fined a combined 15,000 manats
($8,824), while SF Azerbaijan NBCO LLC was separately fined 50,000
manats ($29,412).


NBCOs operate under licenses issued by the Central Bank and
provide loans and other financial services permitted under
Azerbaijan's law on non-bank credit organizations.







More than 50 licensed NBCOs are currently registered with the
Central Bank. They include Aqrarkredit NBCO OJSC, PARA NBCO OJSC,
FINCA Azerbaijan NBCO, KredAqro NBCO LLC, FinEx Kredit NBCO OJSC,
AzFinans NBCO LLC, Irshad NBCO LLC, AZPUL NBCO LLC and Nova Credit
NBCO LLC.


Central Bank Governor Taleh Kazimov said at a news conference
last year that the regulator's priority was not rapid growth in
lending but maintaining financial stability and ensuring
sustainable lending.


"We will introduce quite a number of innovations in non-bank
credit organizations and the microfinance sector in general. We
believe the changes we have made to the rules governing NBCOs will
support the sector's development," Kazimov said.


He said the Central Bank was not interested in the rapid
expansion of daily loans because both financial institutions and
consumers could face significant risks.


"Given the high risks in these areas, we have increased reserve
requirements. The growth of daily loans is not of interest to the
Central Bank from the perspective of developing a strategic
sector," he said.