Regulatory AlertsAzerbaijan: fintech & payments regulation
RegulatedCBA regulates payments under 2025 Law; licensing required for EMIs and payment institutions
- Lead regulator
- Central Bank of Azerbaijan
- Also involved
- NFIU (AML/CFT supervision)
- Core law
- Law of the Republic of Azerbaijan on Payment Services and Payment Systems (2025)
- Entry capital
- AZN 300,000 (Payment Institution)
- Approval timeline
- —
- Customer assets
- Segregated accounts required
- Data protection
- Law on Personal Data Protection
- Sandbox
- Yes - CBA Regulatory Sandbox
The Central Bank of Azerbaijan (CBA) is the sole supervisor for payment services and electronic money institutions under the 2025 Law on Payment Services and Payment Systems. The regime mandates licensing for payment institutions and electronic money institutions (EMIs). Recent regulatory activity shows a shift towards stricter EMI oversight, including license revocations and the issuance of new EMI licenses to replace existing payment institution licenses.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Institution License[1][2] Requires license under 2025 Law; security standards mandated. | AZN 300,000 | — | Central Bank of Azerbaijan |
| E-money & wallet issuance | LicenceElectronic Money Institution License[3][4] New licenses issued in 2026; strict supervision evident. | — | — | Central Bank of Azerbaijan |
| Domestic money transfer | LicencePayment Institution License[2] Domestic transfers covered under payment institution scope. | AZN 300,000 | — | Central Bank of Azerbaijan |
| Cross-border remittance | LicencePayment Institution License[2][5] Cross-border payments require license and CDD protocols. | AZN 300,000 | — | Central Bank of Azerbaijan |
| Agent network | LicencePayment Institution License[6] Agents must operate under formal agreements with licensed institutions. | — | — | Central Bank of Azerbaijan |
| Open banking / account information | LicencePayment Institution License[7] APIs must comply with CBA Resolution No. 49/3 standards. | — | — | Central Bank of Azerbaijan |
| Foreign-exchange services | LicenceCurrency Exchange License[8] Tiered capital (300k-600k AZN) based on operational regions. | AZN 300,000 | — | Central Bank of Azerbaijan |
New — what changed recently
- 2026-06-18License Revocations and EMI Issuances — CBA revoked payment institution licenses of Cibpay and Multi Solutions, issuing them EMI licenses instead.[4]
- 2026-06-02License Revocation of Paysis LLC — CBA revoked the EMI license of Paysis LLC for non-compliance with the 2025 Law.[9]
- 2026-01-09Regulation on Payment and EMI Activities — Decision No. 01/2 established comprehensive capital and operational requirements for payment and EMI institutions.[1]
Market-entry checklist
- 1Secure CBA LicenseApply for Payment Institution or EMI license under the 2025 Law with minimum AZN 300,000 capital.
- 2Establish Segregated AccountsSet up segregated client funds accounts as mandated by the 2025 Law and Decision No. 01/2.
- 3Implement Strong AuthenticationDeploy SCA compliant systems per CBA Regulation on Strong Customer Authentication.
- 4Register with NFIURegister as a reporting entity with the National Financial Investigation Unit for AML/CFT compliance.
- 5Adopt ISO 20022 StandardsEnsure all payment messaging and API integrations comply with ISO 20022 standards for IPS participants.
Sources
- Regulation on the Organization and Implementation of Activities by Payment and Electronic Money Institutions · 2026-01-09
- Law of the Republic of Azerbaijan on Payment Services and Payment Systems · 2025-06-04
- Central Bank issued electronic money institution licenses to Cibpay LLC and Multi Solutions LLC · 2026-06-18
- Central Bank Revokes Payment Institution Licenses of Cibpay and Multi Solutions LLCs and Issues Electronic Money Institution Licenses · 2026-06-18
- Regulation on Customer Due Diligence During Wire Transfers · 2025-04-21
- Regulation on the Organization of Work with Payment Agents · 2024-02-01
- Requirements for network channels used between payment service providers for providing payment initiation and account information services · 2025-01-10
- Approval of Currency Exchange License Application, Capital Requirements and Operational Regulation · 2025-06-25
- Central Bank revokes electronic money institution license of Paysis LLC · 2026-06-02