Azerbaijan

New Documents

The Financial Monitoring Service of Azerbaijan announced updates to the jurisdiction’s sanctions list with respect to the Islamic State of Iraq and the Levant and al-Qaida sanctions regime.

The Financial Monitoring Service for the Republic of Azerbaijan published its 2018 annual report, highlighting the regulator’s efforts in combating money laundering and terrorist financing.

News

Enforcement Actions

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Important Facts

  • The U.S. State Department identifies Azerbaijan as major money laundering jurisdiction. The country’s geographic location makes it a transit point for illicit funding between the East and the West. The major source of criminal proceeds in Azerbaijan is widespread public corruption, which is prevalent across all sectors. International reports identify Azerbaijan as a transit country for the Afghan drug trade and Azerbaijani authorities suspect that the illicit drug trade generates a significant amount of illicit funds. Other sources of illegal funds include tax evasion, smuggling, fraud and organized crime. Money laundering likely occurs in the financial sector, including non-bank financial entities and alternative remittance systems. Additionally, there is a significant black market for smuggled goods in Azerbaijan, which serves as a transit country for illicit goods. There remains a hole in the anti-money laundering legal framework, which excludes dealers of arts, antiques and other high-value consumer goods, entities dealing with jewelry and precious metals, travel agencies, and auto dealers from the list of covered entities.
Source: 2020 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 1 High :
Largely Compliant : 5 Substantial :
Partially Compliant : 23 Moderate :
Non-Compliant : 18 Low :
Not-Applicable : 2

BASEL i

Rank : 66/141
Score : 5.24/10

TRANSPARENCY INTERNATIONAL i

Rank : 126/180
Score : 30/100

Tax Justice Network i

Rank : N/A
Score : N/A