Central Bank approves Methodological Guidelines for Institutional Risk Assessment in financial institutions on AML/CFT

30-04-2025

30 April 2025, Baku: The Management Board of the Central Bank approved the ‘Methodological Guidelines for institutional risk assessment in financial institutions on the legalization of criminally obtained property, the financing of terrorism, proliferation and financing of proliferation of weapons of mass destruction’.

The document aims to guide financial institutions in institutional risk assessment related to the legalization of criminally obtained property, the financing of terrorism, proliferation, and financing of proliferation of weapons of mass destruction and support the strengthening of related methodological knowledge. The Guidelines are based on international best practices and aligned with domestic legal requirements, offering a structured approach to conducting and maintaining risk assessments.

Note that, according to Article 21.7 of the Law of the Republic of Azerbaijan ‘on Prevention of the legalization of criminally obtained property and the financing of terrorism’, financial institutions are required to annually identify, assess, document and report to the supervisory authority institutional risks associated with the legalization of criminally obtained property, the financing of terrorism, proliferation, and financing of proliferation of weapons of mass destruction. The institutions should also take actions to manage, eliminate or mitigate related risks in line with their internal rules and procedures.

For the full text of the ‘Methodological Guidelines’ please visit:

https://uploads.cbar.az/assets/d290a5c47f251d932318feaec.pdf