BAKU, Azerbaijan, August 31. The Central Bank
of Azerbaijan (CBA) has held officials of two non-bank credit
institutions (NBCIs) administratively liable as part of its ongoing
supervisory measures.


According to the CBA, Embafinans OJSC and one of its officials
were fined for violating legislation on preventing the legalization
of criminally obtained property and the financing of terrorism.


Under a ruling by the Yasamal District Court of Baku, Embafinans
OJSC was fined 20,000 manats (approximately $11,765), while its
official was fined 4,000 manats (approximately $2,353).


In addition, an official of Caspian Invest LLC was also held
administratively liable for violating the same legislation.


Under a ruling by the Narimanov District Court of Baku, the
official of Caspian Invest LLC was fined 2,000 manats
(approximately $1,176).







The court rulings were issued under Articles 598.1.1, 598.1.2
and 598.1.6 of the Code of Administrative Offenses. The articles
provide for liability for violations of requirements aimed at
preventing the legalization of criminally obtained property and the
financing of terrorism.


More than 50 licensed NBCIs currently operate in Azerbaijan and
are included in the Central Bank’s registry. They include
Aqrarkredit OJSC NBCI, PARA NBCI OJSC, FINCA Azerbaijan QBCO,
KredAqro NBCI LLC, FinEx Kredit NBCI OJSC, AzFinans NBCI LLC,
Irshad NBCI LLC, AZPUL NBCI LLC, Nova Credit NBCI LLC and other
institutions.


CBA Chairman Taleh Kazimov said at a news conference last year
that the regulator’s main priority is 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 institutions (NBCIs) and the microfinance sector in general.
We believe that the changes we have made to the rules governing
NBCIs will support the development of the sector. The Central Bank
is not interested in the development or rapid growth of daily loans
because both financial institutions and consumers could face
significant risks. Therefore, 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,” the CBA chairman emphasized.