Azerbaijan introduces new rules and limits for incoming transactions
The Azerbaijan Banks Association (ABA) and the Azerbaijan Fintech Association (AzFina) have agreed to apply a risk-based approach to incoming transactions in order to prevent the misuse of payment instruments.
Edgar Abdullayev, Chairman of the Board of the Public Union "Azerbaijan Fintech Association," stated that the main goal of the new approach is to increase the effectiveness of the fight against illegal financial transactions.
"We are taking another step toward a more effective organization of the fight against illegal commercial activity, the legalization of criminally obtained funds, the financing of terrorism, and illegal gambling," Edgar Abdullayev noted.
According to him, the measures being introduced will serve to strengthen transparency and security in the payment ecosystem, as well as the timely detection and prevention of risky transactions.
Under the agreed approach, a maximum of 5 incoming transactions per day is envisaged for each payment instrument of payment service users, while the maximum top-up amount per month will be 20,000 manats.
Along with this, banks and electronic money institutions plan to provide only one payment instrument for each financial product linked to a customer's account. At this stage, no limits are envisaged for outgoing transactions on payment instruments.
Edgar Abdullayev emphasized that the new approach will not have a negative impact on the daily activities of users who carry out legal and standard payment transactions.
"These restrictions will not affect users who carry out legal and standard payment transactions. On the contrary, they will serve to create a more reliable, stable, and healthy payment environment," the chairman of AzFina stated.
Incoming transactions made by customers on payment instruments belonging to themselves or their close relatives will be an exception to the established limits. At the same time, the limits are not envisaged to be applied in cases where the necessary information on the transactions has been provided and they correspond to the customer's risk profile.
Upon the submission of appropriate justifications, banks and electronic money institutions will also be able to issue additional payment instruments to customers.
ABA and AzFina state that users with a good-faith payment record will continue to use POS terminals, electronic banking services, and other digital payment options as before.
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