Regulatory Alerts2025-09-29
Law on Prevention of Legalization of Criminally Obtained Property and the Financing of Terrorism
The Republic of Azerbaijan enacted this legislation to establish a comprehensive legal framework requiring financial institutions and designated non-financial businesses and professions to implement robust customer due diligence, beneficial ownership identification, and risk-based monitoring measures. The law mandates reporting entities to verify customer identities, identify ultimate beneficial owners through a defined hierarchy, and apply enhanced due diligence for complex or high-risk transactions exceeding specified thresholds. It further empowers the Financial Intelligence Unit to coordinate national policy, supervise compliance, and align domestic regulations with international anti-money laundering and counter-terrorist financing standards.