BAKU, Azerbaijan, October 15.
A unified limit is applied to illegal betting operations in
Azerbaijan, Executive Director of the Central Bank of Azerbaijan
(CBA), Shahin Mahmudzade, said at a press conference dedicated to
the presentation of the Financial Stability Report in Baku on
Thursday, Trend's
correspondent reports from the event.
According to him, in order to restrict transactions related to
illegal gambling and betting activities in Azerbaijan, banks,
electronic money institutions, and other financial entities have
reached an agreement to implement unified limits on payments.
He noted that banks previously applied varying limits to
transfers associated with illegal gambling and betting operations.
Subsequently, banks and other financial market participants came
together and decided to standardize these limits.
"In the past, each bank had its own limit; some imposed
restrictions based on the number of transfers, while others set
limits on the transaction amounts. Banks, electronic money
institutions, and other participants collaborated and agreed to
unify these limits. A rule is now in place prohibiting more than
five such transactions per card," Mahmudzade pointed out.
According to the CBA representative, the primary objective of
this unified approach is to restrict the use of bank cards for
illegal gambling and betting activities. In this regard,
coordinated action among financial sector participants is
crucial.
He emphasized that the agreement among banks on standardized
limits is also intended to prevent customers from encountering
inconsistent restrictions across different banks.
Mahmudzade also touched upon the mechanism, implemented as of
October 1, that allows individuals to prohibit loans from being
taken out in their own names. He remarked that citizens can place
restrictions on the issuance of loans in their names via the
electronic platform of the Azerbaijan Credit Bureau.
"A person can prohibit themselves from taking out loans. Even if
they were to share their personal information with someone else,
this mechanism makes it possible to prevent a new loan from being
issued in their name. Since lifting the prohibition takes some
time, this provides an opportunity for the bank to contact the
client and verify the legitimacy of the transaction," he
explained.
According to the CBA executive, banks should also enable
clients, via their mobile apps, online platforms, and other
electronic services, to place restrictions on obtaining loans from
that specific bank.
He added that the mechanism for self-prohibiting loan
acquisition, along with additional restrictions implemented by
banks, serves to strengthen the financial security of citizens.
Mahmudzade also noted that the adoption of a unified approach by
banks regarding transactions linked to illegal gambling aligns with
international practice. According to him, when financial
institutions make joint decisions and operate based on shared
principles in this area, it leads to more effective outcomes.
