Azerbaijan strengthens anti-money laundering and counter-terrorist financing framework

Building on progress noted in MONEYVAL’s 2024 report, which highlighted Azerbaijan’s efforts to improve its legal and institutional framework against money laundering (AML) and terrorism financing (CFT), the latest 2026 follow-up assessment shows the country has continued advancing its reforms.

According to MONEYVAL, Azerbaijan has further enhanced compliance with key Financial Action Task Force (FATF) recommendations, including preventive measures for non-profit organizations, oversight of financial institutions and money transfer services, and transparency of corporate beneficial ownership. Authorities have successfully prosecuted terrorism financing cases and strengthened international cooperation, demonstrating notable operational effectiveness.

The report acknowledges that Azerbaijan has established a solid legal basis for targeted financial sanctions and continues to implement measures to trace and confiscate criminal proceeds. However, MONEYVAL highlights areas needing further improvement, including consistent enforcement, more proactive monitoring of financial institutions, and enhanced scrutiny of high-risk entities.

The country remains under enhanced monitoring, with Azerbaijan expected to report on additional progress in strengthening AML/CFT measures by early 2027. The 2026 assessment reflects the nation’s ongoing commitment to align with international standards and secure its financial system against misuse.