Law of the Republic of Azerbaijan on Targeted Financial Sanctions

1.1.6. asset freeze – the prohibition of the transfer, conversion or movement of the assets
referred to in Article 4.1 of this Law, as well as the prohibition of disposing of such assets or carrying out any financial transactions or other dealings in respect of such assets in any form.
1.1.7. international lists – the lists established by the sanctions committees of the United
Nations Security Council to prevent terrorism and the financing of terrorism, as well as the proliferation of weapons of mass destruction and the financing of the proliferation of weapons of mass destruction, which include persons and entities subject to sanctions.
1.1.8. national list – the list of individuals and entities subject to sanctions within the
framework of combating terrorism and the financing of terrorism, which are included in the list based on decisions of courts of the Republic of Azerbaijan.
1.1.9. online information resource on targeted financial sanctions – an online
information resource established and administered by the relevant authority (institution) designated by the relevant executive authority for to implement targeted financial sanctions.
1.1.10. economic resources – any type of property that enables the acquisition of assets,
goods, or services, actual or potential natural resources, including energy resources, as well as animals and plants.
1.1.11. without delay – the implementation, immediately or within a few hours, of the
actions prescribed by this Law.
Article 2. Legislation on targeted financial sanctions
The legislation on targeted financial sanctions shall consist of the Constitution of the Republic of Azerbaijan, this Law, the Law of the Republic of Azerbaijan ‘on the Prevention of the Legalization of Criminally Obtained Property and the Financing of Terrorism,’ other normative legal acts, and international treaties to which the Republic of Azerbaijan is a party.
Chapter 2
TARGETED FINANCIAL SANCTIONS AND PROCEDURE FOR THEIR APPLICATION
Article 3. Targeted financial sanctions
3.1. Targeted financial sanctions shall be preventive in nature and, without prejudice to
measures applied in the context of criminal proceedings, shall provide for the following measures to prevent terrorism, the financing of terrorism, the proliferation of weapons of mass destruction and the financing of the proliferation of weapons of mass destruction:
3.1.1. assets freeze without delay.
3.1.2. the prohibition of providing designated persons/entities with assets, economic
resources, or financial or other related services.
3.2. Assets shall remain the property of the individuals or entities holding an interest in
such assets at the time measures relating to assets freeze are implemented. Such assets may remain under the management of or may be administered by third parties through other legal mechanisms applicable prior to the assets freeze, as well as in accordance with other procedures established by normative legal acts.

Article 4. Assets subject to targeted financial sanctions
4.1. The following assets shall be frozen, whether they are directly related to activities
involving terrorism, the financing of terrorism, the proliferation of weapons of mass destruction or the financing of the proliferation of weapons of mass destruction:
4.1.1. assets of designated persons/entities.
4.1.2. assets owned or controlled, directly or indirectly, individually, or jointly, by
designated persons/entities, and other assets derived from or generated through such assets.
4.1.3. assets of individuals and entities acting on behalf of, or at the direction of,
designated persons/entities.
4.1.4. assets of entities owned or controlled, directly or indirectly, individually, or jointly,
by designated persons/entities.
Article 5. Procedure for the application of targeted financial sanctions
5.1. All individuals and entities in the territory of the Republic of Azerbaijan, including
persons subject to obligations under the Law of the Republic of Azerbaijan ‘on the Prevention of the Legalization of Criminally Obtained Property and the Financing of Terrorism’ (hereinafter – reporting entities), as well as persons providing audit services, religious organizations, non-governmental organizations, including branches or representative offices in the Republic of Azerbaijan of non-governmental organizations of foreign states, shall, without delay upon the publication of international and national lists on the online information resource on targeted financial sanctions and without prior notice to the persons referred to in Article 4.1 of this Law, freeze the assets specified in Article 4.1 of this Law and immediately report the freezing thereof, through the said online information resource, to the authority (institution) designated by the relevant executive authority and to the financial monitoring service.
5.2. Immediately upon the electronic publication by the United Nations of the list of
individuals and entities included in the international lists, such lists shall be automatically uploaded to and updated on the online information resource on targeted financial sanctions through the integration of software systems.
5.3. The authority (institution) designated by the relevant executive authority shall, upon
the application of the authority (institution) designated by the relevant executive authority, approve the list of resolutions adopted by the United Nations Security Council to prevent terrorism and the financing of terrorism, the proliferation of weapons of mass destruction and the financing of the proliferation of weapons of mass destruction, which identify the individuals and entities subject to sanctions.
5.4. The assets referred to in Article 4.1 of this Law shall remain frozen for as long as the
designated persons and entities remain included in the relevant list and shall be released without delay only upon their removal from that list.
5.5. It is prohibited for individuals or entities in the territory of the Republic of
Azerbaijan to provide, directly or indirectly, individually or jointly with others, assets, economic resources, financial or other related services to designated individuals and entities, as well as to entities owned or controlled, directly or indirectly, individually or jointly with

others, by such individuals and entities, and to individuals and entities acting on behalf of or at the direction of such individuals and entities.
5.6. Where assets of individuals or entities have been frozen erroneously, such assets
shall be released without delay by the authority (institution) designated by the relevant executive authority following confirmation of the relevant discrepancy, on the basis of an application submitted by such individuals or entities through the online information resource on targeted financial sanctions. The authority (institution) designated by the relevant executive authority shall consider such application immediately.
5.7. Individuals or entities whose rights have been violated as a result of the application
of asset-freezing measures may apply to court for the protection of their rights and compensation for the damage caused.
5.8. The procedure for meeting necessary and unforeseen expenses of the individuals
and entities referred to in Article 4.1 of this Law from frozen assets shall be determined by the authority (institution) designated by the relevant executive authority.
Article 6. Transactions entered into or obligations incurred by designated
persons/entities prior to their inclusion on international lists
6.1. There shall be no restriction on the crediting of interest or other income to frozen
accounts held by individuals and entities included on international lists by the sanctions committees of the United Nations Security Council established to prevent the proliferation of weapons of mass destruction and the financing of the proliferation of weapons of mass destruction, or on the crediting to such accounts of payments arising from transactions, agreements or obligations that arose prior to the application of the provisions of the relevant resolutions of the United Nations Security Council. Following the crediting of such interest, other income, or payments to the accounts, they shall also be subject to the provisions of the relevant resolutions and shall be frozen.
6.2. Where obligations in respect of frozen assets are required to be performed pursuant
to transactions entered into by designated persons and entities prior to their inclusion on international lists, such designated persons and entities shall be entitled to perform those obligations, subject to exceptions established by relevant resolutions of the sanctions committees of the United Nations Security Council established for the purposes of preventing the proliferation of weapons of mass destruction and the financing of the proliferation of weapons of mass destruction. In all cases, interest, other income, and payments arising as a result of such transactions shall be subject to the requirements of Article 6.1 of this Law.
Chapter 3
PROCEDURE FOR ESTABLISHING THE NATIONAL LIST
Article 7. Inclusion of individuals entities on the national list
7.1. The following individuals and entities shall be included on the national list by a
court decision, in accordance with the procedure established by the Criminal Procedure Code of the Republic of Azerbaijan, upon a submission by the authority (institution) designated by the relevant executive authority:

7.1.1. individuals and entities in respect of whom there are reasonable grounds to
suspect that they have committed, participated in or otherwise assisted in the commission of acts of terrorism or the financing of terrorism, attempted to commit such acts, are terrorists, or have participated in any form in the establishment or activities of a terrorist group (gang or organization).
7.1.2. entities owned or controlled, directly or indirectly, individually, or jointly, by the
individuals and entities referred to in Article 7.1.1 of this Law.
7.1.3. individuals and entities acting on behalf of, or at the direction of, the individuals
and entities referred to in Article 7.1.1 of this Law.
7.2. The authority (institution) designated by the relevant executive authority shall
submit a proposal for the inclusion of individuals and entities on the national list on the basis of a substantiated application by the Prosecutor General’s Office of the Republic of Azerbaijan, the supervisory authorities provided for by the Law of the Republic of Azerbaijan ‘on the Prevention of the Legalization of Criminally Obtained Property and the Financing of Terrorism” (hereinafter - supervisory authorities), the authorities (institutions) designated by the relevant executive authority, or the financial monitoring service, or upon a request from a competent authority of a foreign state, as well as on its own initiative. The submission shall be considered by the district (city) court having jurisdiction over the location of the authority (institution) designated by the relevant executive authority, in accordance with the procedure established by the Criminal Procedure Code of the Republic of Azerbaijan.
7.3. An individual or entity included on the national list may apply, through the online
information resource on targeted financial sanctions, to the authority (institution) designated by the relevant executive authority to obtain information concerning the grounds for their inclusion on the national list.
7.4. The authority (institution) designated by the relevant executive authority shall send
a request to relevant authorities of the state of which an individual included on the national list is a national, permanently registered or resident, or in which an entity has been established, is managed or operates, for the inclusion of such individual or entity on the list of designated persons and entities of the state concerned. The request shall specify information demonstrating that the individual or entity meets the criteria set out in Articles 7.1.1–7.1.3 of this Law, together with detailed identifying information concerning that person or entity.
Article 8. Request by a competent authority of a foreign state for the inclusion of
individuals or entities on the national list
8.1. A competent authority of a foreign state shall submit a request for the inclusion of
individuals or entities on the national list directly to the authority (institution) designated by the relevant executive authority, or in accordance with the procedure established by the Law of the Republic of Azerbaijan ‘on Mutual Legal Assistance in Criminal Matters’ or by international treaties to which the Republic of Azerbaijan is a party in this field.
8.2. The authority (institution) designated by the relevant executive authority shall
examine whether the request of the competent authority of the foreign state complies with the legislation of the Republic of Azerbaijan, including the requirements set out in Article 8.3 of this Law, and, where the requirements have not been met, shall request the submission of additional information and documents.

8.3. The request of the competent authority of a foreign state shall be accompanied by
documents substantiating the necessity of including the person or entity on the national list and shall specify the following:
8.3.1. the name of the requested competent authority (institution) of the Republic of
Azerbaijan.
8.3.2. the name of the requesting competent authority of the foreign state.
8.3.3. information concerning the committed or planned criminal offence serving as the
basis for the inclusion on the national list, together with the text of the relevant criminal law of the foreign state.
8.3.4. information demonstrating that the individual or entity whose inclusion on the
national list is requested meets the criteria set out in Articles 7.1.1–7.1.3 of this Law.
8.3.5. detailed identifying information concerning the individual or entity whose
inclusion on the national list is requested.
8.3.6. information concerning the connection of the individual or entity whose inclusion
on the national list is requested with the Republic of Azerbaijan.
8.3.7. the grounds substantiating the necessity of inclusion on the national list.
8.3.8. information on the outcome sought by including the individual or entity on the
national list and reasons why such outcome cannot be achieved by other means or measures.
8.3.9. any other information that the requested competent authority considers necessary
for making a lawful and well-founded decision on the matter.
8.4. The authority (institution) designated by the relevant executive authority shall
consider the request of the competent authority of the foreign state within 15 days and ensure that the competent authority of the foreign state is informed in writing of the outcome of the consideration of the request. Where additional examination is required, the period for consideration of the request may be extended.
Article 9. Notification on the inclusion of individuals and entities on the national list
9.1. Upon a court decision concerning the inclusion of an individual or entity on the
national list becoming legally effective, the authority (institution) designated by the relevant executive authority shall, without delay, include such individual or entity on the national list and publish information thereof on the online information resource on targeted financial sanctions and, where contact details are available, notify the individual or entity of their inclusion on the national list.
9.2. The online information resource on targeted financial sanctions shall contain
information on the grounds for inclusion on the national list, measures to be applied, and the procedure for removal from the national list.
9.3. Where a court decides to include on the national list an individual who is a national
of, registered or resident in a foreign state, or an entity established, managed or operating in a foreign state, the authority (institution) designated by the relevant executive authority shall ensure that the relevant authorities of that state are notified thereof in writing.
Article 10. Removal of individuals or entities from the national list

10.1. Where the grounds for inclusion on the national list cease to exist, the individual or
entity included on the list, as well as any interested persons claiming that their rights and legitimate interests have been violated as a result of the inclusion of such individual or entity on the list, may, except in the circumstances specified in Article 10.5 of this Law, apply to court for the removal of the individual or entity from the national list in accordance with
Article 529 of the Criminal Procedure Code of the Republic of Azerbaijan.
10.2. Where the grounds for inclusion on the national list cease to exist, the authority
(institution) designated by the relevant executive authority shall, on its own initiative or based on an application by the individual or entity concerned, including an interested person claiming that his rights and legitimate interests have been violated as a result of the inclusion of such individual or entity on the list, submit to the court a proposal for the removal of the individual or entity from the national list in accordance with Article 529 of the Criminal Procedure Code of the Republic of Azerbaijan. The authority (institution) designated by the relevant executive authority shall consider an application submitted by the individual or entity concerned, including an application by an interested person claiming that his/her rights and legitimate interests have been violated as a result of the inclusion of such individual or entity on the list, within 15 days and, where the application is considered well-founded, shall submit to the court a proposal for the removal of the individual or entity from the national list. Applications requiring additional examination shall be considered within one month.
10.3. Where an individual or entity has been included on the national list pursuant to a
request from a third state, the authority (institution) designated by the relevant executive authority may, on the basis of a request from the state that submitted the request or from the state of which the individual is a national, permanently registered or resident, or in which the entity was established, is managed or operates, or on its own initiative, apply to the court with a proposal for the removal of the individual or entity from the national list. The authority (institution) designated by the relevant executive authority shall consider the request within 15 days and ensure that the competent authority of the foreign state is informed in writing of the outcome of the consideration of the request. Where additional examination is required, the period for consideration of the request may be extended.
10.4. A request by a competent authority of a foreign state shall be accompanied by
documents substantiating the necessity of removing the individual or entity from the national list and shall specify the following:
10.4.1. the name of the requested competent authority (institution) of the Republic of
Azerbaijan.
10.4.2. the name of the requesting competent authority of the foreign state.
10.4.3. detailed identifying information concerning the individual or entity whose
removal from the national list is requested.
10.4.4. the information specified in Article 529.2 of the Criminal Procedure Code of the
Republic of Azerbaijan and documents confirming that the grounds for inclusion on the national list have ceased to exist.
10.4.5. any other information that the requested competent authority considers necessary
for making a lawful and well-founded decision on the matter.
10.5. Where an individual included on the national list dies, or existence and activities of
an entity are terminated without its rights and obligations transferred to other persons by way of succession, the authority (institution) designated by the relevant executive authority

shall remove the individual or entity from the national list on its own initiative or on the basis of an application by close relatives, heirs or interested persons of the individual, and publish information thereof on the online information resource on targeted financial sanctions.
10.6. On the day a court decision concerning the removal of an individual or entity from
the national list becomes legally effective, the authority (institution) designated by the relevant executive authority shall, without delay, remove such individual or entity from the national list and publish information thereof on the online information resource on targeted financial sanctions.
10.7. A court decision refusing to remove an individual or entity from the national list
may be appealed to a higher court.
10.8. The authority (institution) designated by the relevant executive authority shall
regularly review and update the national list based on new information obtained concerning individuals and entities, as well as requests from competent authorities of foreign states.
Chapter 4
PROCEDURE FOR ESTABLISHING INTERNATIONAL LISTS
Article 11. Inclusion of individuals and entities on international lists
11.1. Where the grounds specified in resolutions of the United Nations Security Council
referred to in Article 5.3 of this Law are established, the authority (institution) designated by the relevant executive authority shall submit an application to the authority (institution) designated by the relevant executive authority for the inclusion of an individual or entity on the international lists. The application shall be accompanied by the following information and documents:
11.1.1. information and documents substantiating the inclusion of the individual or
entity on the international lists.
11.1.2. information and evidence concerning circumstances giving rise to reasonable
grounds to suspect that the individual or entity meets the criteria specified in relevant resolutions of the United Nations Security Council (information obtained as a result of a preliminary investigation, operational-search activities, and other information from identifiable sources).
11.1.3. information necessary for inclusion of the individual or entity on international
lists and for disclosure in the narrative summary of the relevant sanctions committee.
11.1.4. an indication as to whether consent has been given to disclose information
identifying the state submitting the nomination.
11.1.5. the following identifying information necessary to establish the identity of the
individual or entity with sufficient precision:
11.1.5.1. for individuals — first, last, middle names, date and place of birth, nationality,
citizenship, gender, occupation (profession), place of residence and current location, previous addresses, number of the ordinary passport and ID document, date of issue and expiry date, aliases, (if any), phone numbers, email addresses and taxpayer identification number.
11.1.5.2. for legal entities — name, registered address, subsidiary legal entities, branches,
representative offices, field of activity, type of business activity, management, founder(s),

taxpayer identification number, email addresses, telephone numbers, previous names, or identifying information.
11.1.5.3. any other information in sufficient detail that the authority (institution)
designated by the relevant executive authority considers necessary for the inclusion of the individual or entity on the international lists.
11.2. On the basis of the application referred to in Article 11.1 of this Law, the authority
(institution) designated by the relevant executive authority shall, in accordance with the procedures established by the sanction’s committees, submit a nomination to the relevant sanctions committees for the inclusion of the individual or entity on the international lists.
11.3. Where, on the basis of the nomination referred to in Article 11.2 of this Law,
sanctions committees decide to include the individual or entity on the international lists, the relevant information concerning such individual or entity shall be published on the online information resource on targeted financial sanctions in accordance with the procedure established by Article 5.2 of this Law. The authority (institution) designated by the relevant executive authority shall, without delay, publish on the online information resource on targeted financial sanctions information concerning individuals and entities newly included on the international lists, the grounds for their inclusion on such lists and the measures to be applied in connection therewith, as well as the procedures for their removal from such lists.
Article 12. Removal of individuals and entities from international lists
12.1. Where the grounds for inclusion on the international lists cease to exist, the
authority (institution) designated by the relevant executive authority shall apply to the authority (institution) designated by the relevant executive authority for the removal of the individual or entity from the international lists. The application shall be accompanied by the following information and documents:
12.1.1. identifying information of the individual or entity specified in Article 11.1.5 of
this Law.
12.1.2. information and documents demonstrating that the criteria specified in relevant
resolutions of the United Nations Security Council that constituted the basis for the inclusion of the individual or entity on the international list no longer apply, including information obtained as a result of preliminary investigation, operational-search activities, and other information from identifiable sources.
12.1.3. where the individual dies, or existence and activities of the entity have been
terminated without the rights and obligations being transferred to other persons by way of legal succession, information and documents confirming such circumstances.
12.2. On the basis of the application referred to in Article 12.1 of this Law, the authority
(institution) designated by the relevant executive authority shall submit to sanctions committees a nomination for the removal of the individual or entity from the international lists, in accordance with the procedures established by the sanctions committees.
12.3. Individuals and entities included on international lists may apply for their removal
from such lists directly, through their representatives, or through the authority (institution) designated by the relevant executive authority, to the ombudsperson or focal point designated by the sanctions committees.

12.4. An application for the removal from international lists of a deceased individual or
of an entity whose existence and activities have been terminated without the rights and obligations being transferred to other persons by way of legal succession shall, in the case of a citizen of the Republic of Azerbaijan, be submitted to sanctions committees by the authority (institution) designated by the relevant executive authority, or directly to the ombudsperson or focal point designated by sanctions committees by close relatives, heirs, or interested persons of the individual. In such cases, the application shall be accompanied by documents confirming the death of the individual, information concerning his/her heirs, parents or other legal representatives, as well as documents concerning the termination of the existence and activities of the entity without the rights and obligations being transferred to other persons by way of legal succession.
12.5. The sample application form for removal from international lists, the list of
documents to be attached with the application, and other explanatory notes shall be published on the online information resource on targeted financial sanctions.
12.6. An application for removal from international lists to the authority (institution)
designated by the relevant executive authority shall be submitted through the online information resource on targeted financial sanctions.
12.7. The individual or entity submitting the application shall substantiate the request
for removal from international lists and provide information and documents confirming that the person or entity does not meet the criteria specified in Article 11.1 of this Law.
12.8. Where an application for removal from international lists is submitted through the
authority (institution) designated by the relevant executive authority, the documents submitted shall be forwarded to the authority (institution) designated by the relevant executive authority for the provision of an opinion.
12.9. The authority (institution) designated by the relevant executive authority shall
provide the opinion referred to in Article 12.8 of this Law within 15 working days. To obtain additional information and conduct consultations concerning removal from international lists, the authority (institution) designated by the relevant executive authority may send a request to the state of which the individual is a national, in which the person is permanently registered or resides, or in which the entity was established, is managed, or operates.
12.10. An application for removal from international lists shall be considered by the
authority (institution) designated by the relevant executive authority within one month. A relevant nomination shall be prepared and submitted to sanctions committees together with the documents submitted and the final opinion agreed with the authority (institution) designated by the relevant executive authority.
12.11. Where, on the basis of the nomination referred to in Article 12.10 of this Law,
sanctions committees decide to remove the individual or entity from international lists, the authority (institution) designated by the relevant executive authority shall ensure that the relevant information on the online information resource on targeted financial sanctions is updated in accordance with the procedure provided for in Article 5.2 of this Law.
12.12. Where, on the basis of the nomination referred to in Article 12.10 of this Law,
sanctions committees do not decide to remove the individual or entity from international lists, the authority (institution) designated by the relevant executive authority shall notify the individual or entity that submitted the relevant application within 1 working day from the date on which such decision is made.

Chapter 5
FINAL PROVISIONS
Article 13. Supervisory measures
13.1. Supervisory authorities shall supervise compliance with the requirements of this
Law by reporting entities subject to supervision, as well as persons providing audit services, religious institutions, non-governmental organizations, including branches or representative offices in the Republic of Azerbaijan of non-governmental organizations of foreign states.
13.2. Except for supervisory measures over reporting entities, persons providing audit
services, religious institutions, non-governmental organizations, including branches or representative offices in the Republic of Azerbaijan of non-governmental organizations of foreign states, supervision of compliance with the requirements of this Law shall be carried out by the financial monitoring service.
13.3. Violation of the requirements established by this Law shall, in cases and in
accordance with the procedure prescribed by law, give rise to liability and constitute grounds for the suspension or revocation of a license, permit, registration, certificate, or membership authorizing the relevant activity.
13.4. The financial monitoring service, as well as relevant supervisory authorities, shall
develop and provide reporting entities, persons providing audit services, religious institutions, non-governmental organizations, including branches or representative offices in the Republic of Azerbaijan of non-governmental organizations of foreign states, with guidance on compliance with the requirements arising from this Law. With respect to other individuals and entities, guidance on compliance with the requirements arising from this Law shall be developed by the financial monitoring service, which shall take measures to publish such guidance on the online information resource on targeted financial sanctions.
Article 14. Entry into force of this law
This Law shall enter into force on 1 February 2023.
Ilham ALIYEV,
President
The Republic of Azerbaijan
Baku city, 30 December 2022
№ 782-VIQ