Regulatory Alerts2025-06-03
Law of the Republic of Azerbaijan on Credit Unions
Issued by the President of Azerbaijan, this law establishes the legal and operational framework for credit unions as non-bank financial institutions focused on mutual lending among voluntarily joined individuals and small entrepreneurs. It mandates Central Bank licensing, ongoing supervision, and strict accounting compliance while defining minimum membership thresholds, capital requirements, loan limits, and a three-tier governance structure. The legislation standardizes establishment, liquidation, and dispute resolution procedures to protect member rights, ensure transparent financial reporting, and align credit union activities with national competition and anti-money laundering regulations.
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