U.S. to allocate $29.3 million to Azerbaijan

The U.S. will allocate $29.3 million to Azerbaijan to develop democracy in 2011, the website foreignassistance.gov. reported.

U.S. assistance to Azerbaijan is aimed at promoting democratic reforma, strengthening governmental checks and balances, increasing public participation in state affairs, as well as combating domestic and transnational crime, including money laundering, terrorism financing, corruption, human and drug trafficking. U.S. assistance also helps to expand and diversify the country's economic growth by eliminating critical economic policy and institutional constraints to ensure stability and sustained growth in the sectors of the economy.

Georgia will receive $ 90.1 million in 2011, Armenia - $ 45.2 million, Russia $ 68.7 million, Turkey - $ 5.9 million.

Source: foreignassistance.gov

Azerbaijan actively opposed terrorist organizations - US

Azerbaijan actively opposed terrorist organizations seeking to move people, money, and material through the Caucasus.

The country stepped up efforts and has had some success in reducing the presence of terrorist facilitators and hampering their activities.

It says in Country Reports on Terrorism 2010 report released by the US Department of State on 18 August, News.Az reports.

'Law enforcement bodies continued to pursue terrorist groups and facilitators operating in Azerbaijan. In October 2009, a Baku court sentenced two Lebanese nationals, Ali Muhammad Karaki and Ali Hussein Najmeddin, to prison terms of 15 years each, and sentenced four Azerbaijani accomplices to terms of two to 14 years. The court found that the group was planning attacks on the Israeli Embassy. The investigation revealed that Karaki and Hussein were linked to Hizballah and others in Iran. According to press reports, Karaki and Najmeddin were released in a prisoner exchange with Iran and deported in August 2010, along with 12 Iranian nationals'.

The report says that the Azerbaijani government continued to implement its law on anti-money laundering and counterterrorist financing (AML/CTF) and established a Financial Investigative Unit (FIU). In October, the Central Bank prepared an action plan to bring Azerbaijan's AML/FIU into conformity with the standards of the UN, the Financial Action Task Force (FATF), and other international organizations and conventions. In addition, the Azerbaijan government submitted its plan to the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), the FATF-style regional body. MONEYVAL reviewed Azerbaijan's proposals in December and agreed to withdraw its advisory on non-compliance for Azerbaijan, and removed Azerbaijan from the FATF Watch List. The United States worked with the FIU to improve the legal AML/CTF framework, establish information systems, build capacity for AML/CTF stakeholders, and develop a strategy plan for the FIU. Azerbaijan continued to identify possible terrorism-related funding by distributing lists of suspected terrorist groups and individuals to local banks.

In September, Azerbaijan and Russia signed a border demarcation agreement regarding Azerbaijan's 390-kilometer border with Russia. On November 18, Azerbaijan signed a security cooperation agreement with Caspian Sea littoral states to coordinate law enforcement efforts aimed at smuggling, narcotics trafficking, organized crime, and terrorism.

Source: News.Az

New anti-money laundering trends being discussed in Azerbaijan

First regional conference on Anti- Money Laundering and Countering Financing of Terrorism is taking place in Baku on 17-18 February.

Director of Financial Monitoring Service (FMS) under the Central Bank of Azerbaijan Adishirin Gasimov has reported that the conference is attended by representatives of financial intelligence units of 20 countries and Expert group of Council of Europe on Anti-Money Laundering and Countering of Financing of Terrorism(Moneyval).

"Among the participants there are also executive director of Basel Management Institution, UNO commission on drug and crime fight and about 40 experts. The conference is discussing new challenges of anti- laundering , international cooperation, new trends and typology as well as national informative bases",- A.Gasimov said.

Source: ABC

Azerbaijan renews criteria for suspicious transactions to be monitored

Special indicators for transactions subject to monitoring were renewed to improve the national system in counteracting the law on money or other property obtained in a criminal way and the financing of terrorism in Azerbaijan. This will take into account the proposals for monitoring and international experience, the Financial Monitoring Service under the Central Bank of Azerbaijan (CBA) said on Thursday.

The criteria (specific indicators) of determining the facts that give rise to doubts in connection with money or other property obtained via a criminal way and the financing of terrorism have been prepared on the basis of the provisions of the Financial Monitoring Service. They were approved on December 30, 2011.

Special indicators are used to detect attempts to conduct these operations and inform the Financial Monitoring Service about this.

Along with the approved criteria, the Financial Monitoring Service must determine the specific indicators within the internal control systems taking into account the characteristics of the monitoring agencies

The Financial Monitoring Service was established in accordance with President Ilham Aliyev's decree dated Feb. 23, 2009. The monitoring covers credit institutions, insurance and reinsurance organisations, the professional securities market, the leasing services of credit institutions, money transfers through post offices and other organisations, pawn shops, investment funds, transactions with precious metals, stones and purchase products, non-governmental and religious organisations, lotteries, and providing real estate services.

Source: Trend.az

Azerbaijani parliament adopts draft law on combat with money laundering and terrorism financing

The law envisions creation of a special structure to deal with the financial investigation and examination of the legality of income sources under banking transactions, exceeding AZN 20,000.

The draft law is aimed at creation of the legislative basis for revealing the law offenses, connected with money laundering and terrorism financing.

Speaking before the deputies, deputy chairman of the board of the National bank of Azerbaijan Rufat Aslanly explained that the persons or organizations to undergo monitoring will be considered suspected of the crime.

He said the monitoring by the financial inspection does not mean that they will check the activity of the banks, insurance companies and entrepreneurs on the spots.

"The financial inspection will get information about suspicious operations from the companies, engaged in financial transactions. Considering that the report on the financial operation between the two economic subjects is sent to the financial inspection, it does not mean that one of the establishments is suspected of the crime.

"The structure to deal with financial monitoring, is not empowered to hold inspections of the due economic establishments, interfere with the financial operations. For example, a body receives information about the financial transaction, exceeding AZN 20,000.

At the same time, the body is presented the opinion of the financial operator about his client. It means that the customer has a good reputation as to them. If the financial inspection has other questions, they appeal to the financial operator, not to the client, that holds the transaction", said Aslanly.

The deputies voted for this draft law after discussions.

Source: Today.Az