Azerbaijani securities committee to aid anti-money laundering efforts
By Nigar Orujova
Azerbaijan's State Committee for Securities will implement a risk-based control over the fight against legalization of illegally acquired funds and properties, as well as terrorism financing.
The Committee said that for this purpose, a new form of reporting for brokers, asset management professionals, investment funds and lottery arrangers is being introduced.
Relevant changes were made to the rules on monitoring the combat against legalization of criminally obtained funds and other properties, as well as on the implementation of anti-terrorism financing legislation.
Brokerage activity rules
The securities committee approved the rules of brokerage activity in the domestic securities market.
The rules regulate overall brokerage activity and set requirements under contracts between brokers and clients on informing the clients, return on assets, etc.
The committee also approved the rules on the reporting requirement for professional securities market participants, and presentation of reports.
These rules were prepared taking into account international standards to define flexible and risk-based regulation and provision of control over the securities market.
The new reporting form will allow conducting special preventive measures to reduce potential risks in the securities market activities, providing financial stability, and periodically evaluate the respective control systems, according to the committee.
Securities market stimulation
Demand and supply stimulation in the Azerbaijani securities market, infrastructure improvement, as well as increasing professionalism and awareness were outlined as the main priorities for the 2013-2014 period, the committee said.
At a recent meeting, Committee chairman Rufat Aslanli issued instructions on effective fulfillment of measures in this connection.
Aslanli welcomed the efforts made in 2012 in this sphere, noting that a relevant state program will play a significant part in taking the market to a totally new level.
A financial monitoring service under the Central Bank of Azerbaijan was created by a presidential decree on February 23, 2009. The service was slated to implement the state policy in the prevention of legalization of illegal funds and other property and financing of terrorism, improve the supervision system and coordinate the work of relevant government agencies.