Azerbaijan on Notice: Crack Down on Money Laundering or Face Sanctions?

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Azerbaijan on Notice: Crack Down on Money Laundering or Face Sanctions?



Introduction:-

Located in the South Caucasus region, officially known as the Republic of Azerbaijan, Baku is the capital and largest city. The country is bordered to the east by the Caspian Sea, to the north by Russia (Republic of Dagestan), to the northwest by Georgia, to the west by Armenia and Turkey, and to the south by Iran.
The nation's economy, which is mostly reliant on oil and other energy exports, is supported by its abundance of natural resources. It is recognized as an upper-middle-income country with high levels of economic development and literacy.
 Azerbaijani, a Turkic language, is the official language of the country; 92% of its citizens speak it as their native tongue.

Azerbaijan is a unitary semi-presidential republic that is one of six autonomous Turkic states, a participant in the Organization of Turkic States, and a member of the TÜRKSOY community. It maintains diplomatic ties with eighteen nations and is a member of eighteen international organizations, including the OSCE, the CIS, the GUAM, the Council of Europe, the Non-Aligned Movement, the OSCE, and the NATO Peacekeeping Program. It is also an observer state at the World Trade Organization.

Why is Azerbaijan famous?



The nation and former Soviet republic of Azerbaijan is bordered by the Caucasus Mountains, which cross Asia and Europe, and the Caspian Sea. Its capital, Baku, is well-known for its medieval walled Inner City, which houses the centuries-old stone Maiden Tower, which dominates the city skyline, and the Palace of the Shirvanshahs, a 15th-century royal retreat.The land of fire, Azerbaijan, is home to one of the most well-known attractions, Yanar Dağ, also known as the "Burning Mountain," which is a naturally occurring glowing fire that has been burning for at least 65 years on a mountainside near the Caspian Sea. and The currency of Azerbaijan is the manat (ISO code: AZN; sign: ₼; abbreviation: m).

Azerbaijan on Notice: Crack Down on Money Laundering or Face Sanctions?


The countering money laundering organization of the Council of Europe, MONEYVAL, urges the authorities of Azerbaijan to boost its initiatives in the fight against money laundering (ML), financing of terrorism (TF), and financing of proliferation, with a focus on avoidance and oversight.

The report provides a thorough evaluation of Azerbaijan's compliance with the Financial Action Task Force (FATF) standards. Since MONEYVAL's last assessment of Azerbaijan in 2014, the nation has taken several steps to fortify its institutional and legal framework to fight money laundering and the financing of terrorism (AML/CFT), and it has begun to establish the foundations that were suitable of a functional AML/CTF system.

The evaluation report on Azerbaijan by MONEYVAL states that the nation demonstrates a fair understanding of ML/TF risks, with the main ML predicate offenses being domestic corruption, tax-related crimes, smuggling, and drug trafficking. It also notes that Azerbaijan has achieved a substantial level of effectiveness in countering terrorist financing and that the authorities have proven their ability to successfully investigate TF offenses (seven convictions were secured during the reference period). Similarly, Azerbaijan achieved a substantial level of effectiveness in international cooperation and was commended for the capacities of the authorities to provide and seek constructive assistance.

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