In Azerbaijan, the minimum amount for electronic money transfers that financial institutions must report to the Financial Monitoring Service will be calculated under a new procedure.
The corresponding decision, signed on 21 April by the Chairman of the Board of the Financial Monitoring Service of Azerbaijan, Zaur Fatizade, enters into force on 1 October.
Under the law "On Combating the Legalization of Property Obtained by Crime and the Financing of Terrorism," financial institutions must provide information and documents on electronic money transfer operations equal to or exceeding the minimum threshold set by the financial monitoring body to the financial monitoring authority.
Under the new decision, the minimum threshold for electronic money transfer operations over one calendar year, about which financial institutions must provide information and documents to the Financial Monitoring Service of the Republic of Azerbaijan, is set at 20,000 manats or the equivalent in foreign currency and will apply to each subsequent electronic money transfer operation by a client.
It should be noted that the main change is not an increase in the amount of electronic money transfers, but a change in the procedure for calculating this threshold. Thus, under the previous decision, the minimum amount was also 20,000 manats. Under the new decision, this threshold is determined over one calendar year and will apply to each subsequent electronic money transfer operation carried out by a client during that year.
Also, relevant persons must, by 31 December 2027, ensure the provision to the Financial Monitoring Service of the Republic of Azerbaijan of information on the beneficial owners of legal entities that are their clients before this decision enters into force.
In addition, the decision approved a new version of the "Rule for the Submission of Information and Documents to the Financial Monitoring Service of the Republic of Azerbaijan by Obligated Persons, as well as by Persons Providing Audit Services."