Combat with money laundering on the securities market will be held with new rules

State Securities Committee (SSC) has amended the rules for them to control the implementation of the requirements of the "Law of Azerbaijan" On the fight against legalization of criminally obtained funds or other property and the financing of terrorism." The rules were adopted on 17 February 2012 and, despite the lack of transparency in the operations of the stock market, reports of violations of the no.

SSC adopted a new form of reporting of financial transactions in the securities market. In the form of statements made certain editorial changes. However, in contrast to the previous period, from now on no monitoring participants will be required to separately report on transactions in excess of 20 thousand manats, and transactions with non-financial institutions. Instead of monitoring the participants the opportunity to communicate made them doubt transactions.

Note that in order to combat money laundering and terrorist financing from operating in the market of securities brokers are required to provide information on the contracts concluded with customers, including the foreign clients, customers, acting by proxy politicians.

The report must be provided with information on the number and volume of transactions, including transactions in cash and financed from abroad. Participants must submit a monitoring Financial Monitoring Service (FMS) under the Central Bank information on transactions likely to money laundering and terrorist financing.

This document refers to brokers, lottery companies, asset managers and investment funds. Quarterly submission of the reports to SSC is required by these rules.

SSC to date has never made statements about violations of these requirements, the brokers and the state of "Azerlotereya" (State monopoly for the subject of draw and instant lotteries). SPS also informed the public about suspicious transactions in the securities market.

Note that some operations on placement of shares by private companies (mainly banks and insurance companies) in Azerbaijan carried out in cash, and only some of them organized by profit. We are talking about tens of millions of manats. Transactions in the secondary market for buying and selling shares are outside the exchange.

According to rules of SSC, details of OTC transactions should be distributed by BSE. However, from March 2012, for unknown reasons, the BSE ceased to publish the data. According to the exchange, only from January 25 to February 25 of this year on the curb were concluded with over 817 thousand shares for a total of 35.7 million manat. - 08B-