Regulatory Alerts2025-05-07
Methodological Guidelines for Institutional Risk Assessment on Money Laundering, Terrorism Financing, Proliferation and Proliferation Financing
The Central Bank of the Republic of Azerbaijan issued these Methodological Guidelines to mandate annual institutional risk assessments for money laundering, terrorism financing, proliferation, and related risks across all financial institutions. The framework requires entities to calculate inherent, internal control adequacy, and residual risks using standardized quantitative scoring scales and weighting formulas tailored to their customer base, products, delivery channels, and geographic exposure. Upon assessment completion, institutions must align findings with their risk appetite statements, implement targeted mitigation action plans, and submit detailed annual reports to the supervisory authority.
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