BAKU, Azerbaijan, October 30. Financial
institutions in Azerbaijan will undergo a new risk assessment if
the volume or value of their transactions increases by 40% or more
compared with the previous calendar year, Trend’s correspondent reports.


This provision is included in a draft law amending the Law on
the Central Bank of the Republic of Azerbaijan, discussed at a
plenary session of the Azerbaijani Parliament on Friday.


Under the draft law, the Central Bank of Azerbaijan (CBA) will
supervise financial institutions and the financial groups to which
they belong in line with anti-money laundering and
counter-terrorist financing legislation and the Law on Targeted
Financial Sanctions.


The CBA will regularly assess the risks of money laundering and
terrorist financing, including the risk that financial institutions
may fail to comply with relevant legal requirements.


Additional assessments will be required when significant changes
occur in an institution's management or operations. These include
restructuring, changes in beneficial ownership, business
activities, customer base or geographical reach, as well as a 40%
or greater increase in transaction volume or value compared with
the previous year.


The CBA will also be able to request documents and information
from financial institutions and financial groups in writing,
setting deadlines for their submission.







The scope and frequency of supervisory measures will depend on
the risks identified, the effectiveness of institutions' internal
controls and procedures, national money laundering and terrorist
financing risks, and the size and structure of financial
institutions and groups.


The draft law also sets out which financial groups will be
subject to consolidated supervision for anti-money laundering and
counter-terrorist financing purposes. These include groups
comprising banks, life insurers, reinsurers, insurance
intermediaries, investment companies, investment funds and their
managers, as well as representative offices of foreign investment
funds.


The existing legislation already authorizes the CBA to supervise
financial institutions under anti-money laundering and
counter-terrorist financing rules and targeted financial sanctions
requirements. Financial institutions are required to comply with
these rules.


Following discussions, the draft law was put to a vote and
adopted in its third reading.