Azerbaijan has achieved significant progress in aligning its anti-money laundering and countering the financing of terrorism (AML/CFT) framework with international standards.
The country’s first progress report under the 5th round of evaluation was approved at the plenary session of MONEYVAL, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism. The report reflects the advancements made in addressing the deficiencies identified in the 2023 evaluation report. According to MONEYVAL’s assessment, Azerbaijan has demonstrated substantial improvements in this area.
To strengthen compliance with the standards of the Financial Action Task Force (FATF), Azerbaijan has implemented key measures, including developing and promoting national and international AML/CFT strategies. Following the 2023 evaluation, comprehensive risk assessments across multiple sectors were completed, and new legislation and regulatory acts were adopted to enhance transparency in AML/CFT and beneficial ownership. Sectoral laws governing financial institutions were amended, awareness-raising and training initiatives were conducted, and the scope of statistical reporting in line with required standards was expanded. Oversight of legal, accounting, and auditing services was also strengthened.
As a result, MONEYVAL experts highlighted that the Azerbaijani government has significantly improved the alignment of its AML/CFT legal and regulatory framework with FATF recommendations. Based on the justifications presented, positive decisions were made on each of the seven FATF recommendations, resulting in upgraded ratings.
Azerbaijan will continue to maintain institutional cooperation with MONEYVAL in the coming stages. The measures implemented not only enhance the country’s collaboration with international financial institutions and partners but also strengthen the transparency of the national financial system and the effectiveness of law enforcement agencies in the AML/CFT domain.