E-money use in trade, services to be limited in Azerbaijan
By Nigar Orujova
Azerbaijan will start issuing electronic money, which will stimulate non-cash payments in the country, First Deputy Chairman of the Central Bank of Azerbaijan (CBA) Alim Guliyev told journalists on September 24.
"The requirements for organizations that will issue e-money have been defined," Guliyev said. "Electronic money can be used in the trade and service sectors in a limited manner."
The rules for issuing e-money will be prepared after the passage of a relevant draft law, which is in its final stage. The bill enables Azerbaijani banks and local branches of foreign banks to issue e-money.
Legal entities licensed to provide postal and financial services, local organizations as well as local branches of foreign organizations operating in the field will enjoy the same right.
The CBA reserves the right to introduce restrictions on the volumes of e-money issuance.
In addition, the draft law provides the legal basis for opening branches and representative offices of foreign payment organizations active in the country.
Foreign payment organizations and institutions working in the field of e-money need a license of the central bank to open branches in Azerbaijan. The authorized capital of the local branch of a foreign payment organization should exceed the minimum threshold set by the CBA.
The document also outlines the obligations of payment organizations to ensure the safety of customer funds.
According to the document, before the transaction the payment services operator is required to provide information to the client on the data required for payment or a unique identification code, the maximum term of rendering services, the cost of services, the applied currency exchange rate, etc.