The Bases for Determining High-Risk Zones (“The Bases”) to prevent the legalization of criminally obtained funds or other property and the financing of terrorism have been approved by Decision of the Cabinet of Ministers of the Republic of Azerbaijan
No.350 dated 2 October 2023.
In accordance with the Decision, high-risk zones (states or territories) shall be determined based on:
- The Decisions of the United Nations Security Council, World Bank and International Monetary Fund;
- The published mutual evaluations or detailed reports, as well as progress reports of the Financial Action Task Force (FATF), Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism of the Council of Europe (MONEYVAL), FATF-Style Regional Bodies (FSRBs), another specialized international or regional organizations and;
- To be determined by the Financial Monitoring Service based on FATF’s public statements.
It is worth to note that the financial supervisory authority imposes specific restrictions and unique mandates on high- risk areas. Such directives are communicated directly to the persons or entities concerned through the relevant supervisory authorities that are responsible for their operation.
Upon entry into force of this Decision, the Rule on determination of the list of countries (territories) that are suspected in either legalization of criminally obtained funds or other property, financing of terrorism, support of the dangerous trends of transnational organized crime, armed separatism, extremism and mercenary, participation in illegal drug dealership and other psychotropic substances production or circulation thereof, or the countries (territories) that do not require disclosing identification information when conducting financial transactions, dated 25 June 2010 and No. 123 is repealed.
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