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RESOLUTION OF BOARD OF CENTRAL BANK OF THE AZERBAIJAN REPUBLIC

of February 24, 2023 No. 11/1

About approval "Procedure for making of transactions with virtual assets in the Azerbaijan Republic"

Based on article 4.2.3 of the Law of the Azerbaijan Republic "About fight against legalization of the property received in the criminal way, both terrorism financing" and article 22.0.17 of the Law of the Azerbaijan Republic "About the Central bank of the Azerbaijan Republic" the Board of the Central bank of the Azerbaijan Republic DECIDES:

1. Approve "Procedure for making of transactions with virtual assets in the Azerbaijan Republic" it (is applied).

2. Approved by part of 1 this Resolution "Procedure for Making of Transactions with Virtual Assets in the Azerbaijan Republic" becomes effective after acceptance of the regulatory legal acts regulating activities of service providers of virtual asset in the Azerbaijan Republic.

3. Charge to Legal department (Rena Melikova) in 3-day time to provide submission of this Resolution to the Ministry of Justice of the Azerbaijan Republic for entering into the State register of legal acts of the Azerbaijan Republic.

Approved by the Resolution of Board of the Central bank of the Azerbaijan Republic of February 24, 2023, No. 11/1

Procedure for making of transactions with virtual assets in the Azerbaijan Republic

1. General provisions

1.1. This Procedure is prepared according to the laws of the Azerbaijan Republic "About fight against legalization of the property received in the criminal way, and terrorism financing" and "About target financial sanctions" and determines requirements to cases of taking measures of client compliance to the transactions made with virtual assets and data transmission in operational chain.

1.2. Rendering services in transactions with virtual assets in the territory of the Azerbaijan Republic is performed by service providers of virtual assets to whom it is authorized the law.

1.3. Requirements of Item 3.3 of this Procedure do not extend to transactions in which service providers of virtual assets act as owners and beneficiaries of virtual assets.

1.4. Irrespective of other provisions of this Procedure, service providers of virtual assets when making transactions with virtual assets, in addition to the measures established by this Procedure shall take measures according to the laws specified in Item 1.1 of this Procedure if they will determine that the owner of virtual asset and the beneficiary are in the list of persons which are subject to application of target financial sanctions.

2. Basic concepts

2.1. The concepts used in this Procedure have the following values:

2.1.1. the owner of virtual asset - person giving the order on making of transactions with virtual assets;

2.1.2. the beneficiary - person for benefit of whom transactions with virtual assets are performed;

2.1.3. virtual asset - digital expression of the cost acting as means of exchanging for the payment or investment purposes and existing in system of the address of virtual assets. The digital equivalent of national and foreign currency, securities, and also derivative financial instruments are not considered as virtual asset;

2.1.4. the service provider of virtual assets - persons performing as independent business activity activities for exchange of virtual assets for currency values, national currency and other virtual assets, transfer of virtual assets from the account or purse of the virtual asset used for storage into other account or purse of virtual asset or the organization of the translation, the organization 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;

2.1.5. the service provider of the issuer of virtual asset - the person taking the order the order when making transaction with virtual asset and sending virtual asset;

2.1.6. the service provider of the beneficiary of virtual asset - the person accepting virtual asset and allowing the beneficiary to use it;

2.1.7. the account of virtual asset - the account opened at the service provider of virtual assets for making of transactions with virtual assets;

2.1.8. purse of virtual asset - the software or the technical tool which is under control of the owner of virtual asset for making of transactions with virtual assets;

2.1.9. purse of virtual asset without host - the purse of virtual assets which is not stored, not supported and not operated by any service provider of virtual assets;

2.1.10. the address of purse of virtual asset - the combination of letters and figures identifying purse of virtual asset;

2.1.11. the unique transaction reference number - the combination of letters, figures and symbols allowing to monitor transaction in operational chain with virtual assets from beginning to end and appointed for each transaction it is unique;

2.1.12. technology of information transfer - the technology allowing to transfer information on virtual assets and the owner and the beneficiary of virtual assets between service providers of virtual assets during making of transactions with virtual assets.

3. Obligations of the service provider of the issuer of virtual assets

3.1. Before transaction with virtual assets the service provider of the issuer of virtual assets shall apply measures of client compliance according to requirements of the Law of the Azerbaijan Republic "About fight against legalization of the property obtained in the criminal way, and terrorism financing" (further - the Law on BLI/FT).

3.2. The service provider of the issuer of virtual assets in case of transaction with virtual assets provides availability of the following information:

3.2.1. name of the owner of virtual asset (name, surname and middle name of physical person, name and form of business and INN of the legal entity);

3.2.2. personal identification data of the owner of virtual asset (data on birth date and birth place, individual identification number, address or national identification number);

3.2.3. account number of virtual asset or address of purse of virtual asset of the owner of virtual asset;

3.2.4. unique transaction reference number;

3.2.5. name of the beneficiary (name, surname and middle name of physical person, name and form of business and INN of the legal entity);

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info