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of December 30, 2022 No. 781-VIQ

About fight against legalization of the property received in the criminal way, and terrorism financing

(as amended on 05-12-2023)

This Law according to Items 15 and 20 of part I of article 94 of the Constitution of the Azerbaijan Republic governs the relations connected with identification and prevention of legalization of the property received in the criminal way, both terrorism financings and creation of the necessary conditions excluding possibility of use of economic system of the country for the illegal purposes, accomplishment in this direction of the obligations following from international treaties which participant is the Azerbaijan Republic, and also implementation of effective intra country and international cooperation for the purpose of protection of interests of the state and society.

Chapter 1. General provisions

Article 1. Basic concepts

1.1. The concepts used for the purposes of this Law have the following values:

1.1.1. the property received in the criminal way - any money, movable or immovable, the material or non-material property benefits, including the virtual assets and legal instruments and documents, the confirmatory rights and interests of property on property directly or indirectly received as a result of making of the crimes enshrined in the Criminal code of the Azerbaijan Republic;

1.1.2. legalization of the property received in the criminal way - crime, the stipulated in Article 193-1 Criminal code of the Azerbaijan Republic;

1.1.3. terrorism financing - crime, the stipulated in Article 214-1 Criminal code of the Azerbaijan Republic;

1.1.4. predicative crime - any crime which entailed receipt of property which can be subject of crime, the stipulated in Article 193-1 Criminal code of the Azerbaijan Republic;

1.1.5. monitoring - measures the investigations made by body of financial monitoring based on data and documents from the known sources;

1.1.6. body of financial monitoring - the body (structure) determined by relevant organ of the executive authority, exercising single regulation and the control in the sphere of prevention of legalization of the property received in the criminal way, and terrorism financings coordinating activities, and also participating in forming of state policy in this sphere;

1.1.7. persons incurring the obligation - the financial institutions having the obligation to perform the measures provided by this Law for the purpose of prevention of legalization of the property received in the criminal way and terrorism financings, and also non-financial institutes and specialists;

1.1.8. financial institutions - the credit institutions, local and foreign insurers, overcautious persons and insurance intermediaries who are engaged in activities for accumulative life insurance, the investment companies, investment funds managing these funds, the representative offices of foreign investment funds, the central depositary, the national operator of mail service, pawnshops, persons rendering services of financial leasing, service providers of virtual assets, payment institutes (except for the payment institutes rendering intermediary services and (or) servicing of accounting information) and the organizations of electronic money and persons who obtained the license for activities for currency exchange;

1.1.9. non-financial institutes and specialists - the realtors, lawyers, notaries, impartial persons rendering legal, accounting and tax consulting services, branches or representations of such foreign legal entities in the Azerbaijan Republic;

1.1.10. the realtor - the physical person or legal entity rendering intermediary services in purchase and sale of real estate;

1.1.11. virtual asset - the digital expression of cost acting as means of exchanging in the payment or investment purposes and existing in system of the address of virtual assets. Digital replacement of national and foreign currency, securities, and also derivative financial instruments is not considered virtual asset;

1.1.12. service providers of virtual assets - persons performing activities for exchange of virtual assets for currency values, national currency and other virtual assets, the translation or the organization of the transfer of virtual asset from the account of the virtual asset or purse used for storage of virtual asset into other account of virtual asset or purse, the organizations of making of transactions (the conclusion of transactions) with the virtual assets or tools allowing to control virtual assets, or their storages, to rendering or participation in rendering the financial services connected with purchase, sale, exchange, primary placement or storage of virtual assets as independent business activity;

1.1.13. observance of requirements for fight against legalization of the property received in the criminal way, and terrorism financing (further - observance of requirements against legalization and terrorism) - observance of requirements of legal acts in the sphere of fight against legalization of the property received in the criminal way, and terrorism financing;

1.1.14. financial group (holding) - the legal entity performing implementation and coordination of group control over other members entering into group, including branches or set of affiliated legal entities into whom rules and procedures in the sphere of fight against legalization of the property received criminal and financing of terrorism at the group level take root;

1.1.15. supervisory authorities - persons incurring the obligation, and also bodies (structures), the stipulated in Article 16 these Laws exercising control of observance of requirements of this Law by persons, the stipulated in Clause 12 these Laws;

1.1.16. control measures - all types of the checking actions applied by control facilities and body of financial monitoring concerning persons incurring the obligation and also concerning persons, the stipulated in Clause 12 these Laws including control, investigation, observation, audit, survey and other similar actions;

1.1.17. foreign legal organization - the trust founded in foreign state (territory) according to the current legislation without formation of legal entity and performing the activities connected with cession of property the founder, being physical person or legal entity, in property of the managing director of foreign legal organization for the purpose of benefit extraction by the beneficiary or group of beneficiaries or within the special purposes on condition of control of foreign legal organization supplier or without such control or other organization with similar properties. The founder, the managing director, the supplier, the beneficiary or group of beneficiaries of foreign legal organization are implied as persons having the appropriate rights and obligations following from the constituent document of foreign legal organization;

1.1.18. the client - person using any services of persons incurring the obligation, or foreign legal organization;

1.1.19. the beneficial owner - the physical person (physical persons) eventually exercising control over the client or being the authentic owner of the client who is the legal entity or foreign legal organization and (or) in whose advantage transaction is made and (or) bargains, and also eventually exercising effective control over the legal entity or foreign legal organization are concluded;

1.1.20. considerable share - immediate or indirect possession of shares, component of 10 (ten) and more percent of the authorized capital, and also voting power or significant effect on decision making by the legal entity allowing to have which participant is based on the agreement;

1.1.21. currency values and national currency - cash national or foreign currency, anonymous documentary securities in national and foreign currency, precious metals and gemstones;


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