CBA strengthens control over financial flows

The Milli Majlis has adopted in the third and final reading amendments providing for the expansion of the powers of the Central Bank of Azerbaijan (CBA) to supervise financial institutions.

As Report informs, the bill on amendments to the law "On the Central Bank of the Republic of Azerbaijan" was discussed at today's plenary session of the parliament.

According to the draft, the CBA will periodically assess the risks of financial institutions and financial groups in the field of combating the laundering of criminally obtained funds and the financing of terrorism.

A repeat assessment will be carried out in the event of significant changes in the management or activities of a financial institution or a group that includes it. In particular, this concerns reorganization, a change of beneficial owners, changes in types of activity, the client base or the geography of operations, as well as an increase in the intensity or volume of operations by 40% or more compared with the previous calendar year.

The frequency and intensity of supervisory measures will be determined taking into account the identified risks, the effectiveness of the internal rules and control mechanisms of financial organizations, as well as the risks of laundering criminal proceeds, financing terrorism, and the proliferation of weapons of mass destruction at the national level.

Supervision will extend not only to individual financial institutions, but also to financial groups as a whole, including banks, insurance and reinsurance companies, investment companies and funds, as well as the persons managing them.

In addition, the CBA will receive the right to request documents and information from financial institutions and groups in written form. They will have to provide the requested materials within the period established by the regulator.

After the discussion, the bill was put to a vote and adopted in the third reading.