The Central Bank of the Republic of Azerbaijan has approved Methodological Guidance for financial institutions on conducting institutional risk assessments covering money laundering, terrorist financing, the proliferation of weapons of mass destruction, and proliferation financing. The document aims to guide firms through the risk assessment process and strengthen methodological know-how, using approaches based on international practice while taking account of domestic legal requirements. It also reflects the obligation under Article 21.7 of Azerbaijan’s AML/CFT law for financial institutions to identify, assess and document these institutional risks on an annual basis, submit the assessment results to the supervisory authority, and take measures under their internal rules and procedures to manage, eliminate or mitigate the risks.
Central Bank of the Republic of Azerbaijan 2025-04-30
Central Bank of the Republic of Azerbaijan approves methodological guidance for financial institutions’ AML and CFT institutional risk assessments
The Central Bank of the Republic of Azerbaijan has approved Methodological Guidance for financial institutions on conducting institutional risk assessments related to money laundering, terrorist financing, and proliferation financing. The guidance aligns with international practices and domestic legal requirements, mandating annual risk assessments and documentation under Azerbaijan’s AML/CFT law.