The Board of the Central Bank of Azerbaijan (CBA) has approved amendments to the "Corporate Governance Standards in Banks," requiring each bank to establish an independent structure for handling client complaints.
Previously, banks were only required to set relevant rules, but now they are also obliged to ensure control over their practical application.
The new function will be created as a separate structural unit or through the appointment of a responsible person, taking into account the bank's volume of operations and number of clients. Complaint handling will be based on rules approved by the bank's Supervisory Board. Oversight of this function will be assigned to the Chief Compliance Officer, or in their absence, to the Chief Risk Officer.
The new unit's responsibilities will include receiving and reviewing client appeals, providing consultations and clarifications, maintaining a complaint register, preparing statistics, training staff who interact with clients, and reporting to the bank's management.
Additionally, the units will liaise with the Central Bank regarding client appeals and participate in financial literacy initiatives.
The amendments also expand requirements for ethical standards in the banking sector. Banks are prohibited from making public statements that could damage their reputation, abusing official powers, and engaging in conflicts of interest.
Furthermore, financial institutions must adhere to principles of integrity and transparency in markets, ensure fair treatment of clients, offer products that meet their needs, and enhance the professional level of employees.