Anti Money Laundering and Combating Financing of terrorism
The Law of the Republic of Azerbaijan "On the Prevention of the Legalization of Criminally Obtained Funds or Other Property and the Financing of Terrorism" (AML\CFT Law) was adopted on 10 February 2009.
With the adoption of this Law, the measures specified in "National Strategy on Increasing Transparency and Combating Corruption and Action Plan on implementation for 2007-2011" adopted by the Decree of the President of Azerbaijan dated 28 July 2007 were implemented. AML\CFT Law of the Republic of Azerbaijan was drafted based on the standards identified in FATF 40+9 Recommendation and other major international instruments.
Latest version of "Bank of Baku" OJSC`s AML policies was approved by the Supervisory Board on 10 January 2011 and current AML officer was appointed on 15 June 2010. Bank`s written polices include preventing, detecting and reporting suspicious transactions (STR) and reporting current transactions (CTR), prohibiting accounts/relationships with shell banks, covering relationships with Politically Exposed Persons (PEPs), their family and close associates, monitoring unusual and potentially suspicious activity on funds transfers, applying AML policies and practices to all of the Bank`s branches and divisions. Bank`s AML procedures and policies designed to obtain, verify and maintain information regarding the true identity of customers and the origin or ultimate beneficial owners of the funds. Bank has procedures to establish a record for each new customer, determining their true identity and noting their respective identification documents and know your customer (KYC) information.
There also policies to reasonably ensure that the Bank only operates with correspondent banks that possess licenses to operate in their countries of origin. Bank screen customers against lists of persons, entities or countries issued by the UN Security Council, EU, OFAC/SDN and the Azerbaijan government or other competent authorities and also uses services of "World-Check" company of "Thomson Reuters". There are policies and practices for identifying and reporting transactions that are required by applicable law to be reported to the authorities. Bank regularly provides training to its employees on identifying and reporting transactions that must be reported to government authorities, examples of different forms of money laundering involving the Bank`s products and services and promptly communicates all changes to AML - related laws, policies or procedures.