Banks, electronic money organizations and other financial institutions in Azerbaijan have agreed to introduce unified limits on transactions related to illegal gambling and bookmaking. This was announced by Shahin Mahmudzade, Director General of the Central Bank of Azerbaijan (CBA), on Thursday at a press conference dedicated to the presentation of the Financial Stability Report.
According to him, previously banks applied different limits on transfers related to illegal gambling and bookmaking operations. Then banks and other financial market participants agreed to unify the restrictions.
"Previously, each bank had its own limit. In some banks, restrictions were set on a certain number of transfers, in others – on amounts that differed from those set in other banks. Banks, electronic money organizations and other participants came together and agreed to unify the limits. Now the principle is applied that no more than five such transactions per card are allowed," noted Sh. Mahmudzade.
According to the CBA representative, the unified approach aims to limit the use of bank cards for illegal gambling and bookmaking activities. Coordination of actions among financial sector participants plays an important role in this.
He emphasized that the unification of limits also helps avoid a situation where clients face different restrictions depending on their servicing bank.
Sh. Mahmudzade also spoke about the self-prohibition mechanism on obtaining loans, introduced on October 1. According to him, citizens can set a ban on issuing loans in their name through the electronic platform of the Azerbaijan Credit Bureau.
"A person can set a self-prohibition on obtaining a loan. Even if he transfers his personal data to another person, this mechanism allows preventing the issuance of a new loan in his name. Since lifting the ban requires a certain time, during this period the bank has the opportunity to contact the client and verify the legality of the operation," he stated.
According to the CBA Director General, banks must also provide clients with the ability to set restrictions on obtaining loans in a specific bank through mobile applications, internet platforms and other electronic services.
He added that the self-prohibition mechanism on obtaining loans and additional restrictions introduced by banks are aimed at enhancing the financial security of citizens.
Sh. Mahmudzade noted that the unified approach of financial institutions to transactions related to illegal gambling aligns with international practice. According to him, joint decisions and adherence to common principles allow financial market participants to achieve more effective results in this area.
