Foreign currency amounting 1.1 billion manat exported from Azerbaijan

Baku/09.04.21/Turan: According to the report of the Accounts Chamber for 2020, 7 resident banks in 2019 exported 1.1 billion manats in total outside the country with the justification of "sending to a correspondent account." The exported currency was mainly US dollar and euro banknotes.

"There were no supporting documents providing for the receipt of these funds to the corresponding correspondent accounts of foreign banks with the final destination address during the customs clearance process," the report says.

Why are there no documents on crediting funds exported from the country to a correspondent account abroad? What does the absence of this document mean? Are funds being withdrawn from Azerbaijan illegally?

In early April, the Central Bank announced the indicators of the balance of payments of the Republic of Azerbaijan for the last year.

According to the Bank, 1 billion 987 million 700 thousand dollars deficit was formed in the country's balance of payments.

The most important reason for the balance of payments deficit was a net capital outflow of $ 2.4 billion. $ 1 billion of capital outflow from the country in the form of direct and portfolio investments, and $ 1.4 billion - “other investments” (deposits, cash, loans, etc.) in the form of capital transfers.

According to the latest report by the Washington-based Global Financial Integrity, there is illegal capital that is flowing in a dirty way outside Azerbaijan. The authors of the report argue that from 2004 to 2013, an average of $ 9.5 billion of capital was illegally exported from Azerbaijan annually. According to the organization, Azerbaijan ranks 17th among 144 countries. In general, over 10 years, $ 95 billion has been illegally withdrawn from Azerbaijan.

In connection with the export of foreign currency amounting 1.1 billion manats from Azerbaijan, Turan was told by the Central Bank that the relevant report of the Accounts Chamber covers the results of 2019, not 2020. "These facts reflect problems in the area of ​​customs administration in the framework of inspections carried out at the General Customs Directorate for Air Transport."

The ministry noted that during the checked period, the export outside the country of cash foreign exchange in the equivalent of about 1.1 billion manat was carried out by commercial banks operating in Azerbaijan. “This was done officially and in accordance with the requirements of the law. These transactions are intended to penetrate the correspondent accounts of banks with foreign banks in accordance with normal banking practice. The money consisted precisely of the money of the banks themselves, and not of any clients."

The Central Bank stressed that more than 90 percent of the foreign currency cash exported by banks was in euros: “According to the relevant decision of the European Central Bank, 500 euro banknotes were massively withdrawn from circulation and transferred to commercial banks. For this reason, banks exported these banknotes to be credited to correspondent accounts in foreign banks."

Another part of the withdrawn funds is intended for use in settlements in foreign banks, as well as for placing on deposits with non-resident banks in order to generate income, the department added.

The department noted that the import and export of foreign currency in cash by banks are official banking operations. "These transactions are regulated by business processes and regulatory legal documents in force in banks, and are strictly controlled by the relevant currency control authorities. These transactions were properly reflected and accounted for both in the official reports of the banks themselves and in the reports submitted to the Central Bank, and also in the statement of the balance of payments”.

Member of the Milli Mejlis Committee on Economic Policy, Industry and Entrepreneurship Rufat Guliyev told Turan that there is no need to look for a criminal side in all the discrepancies.

"The Central Bank made a statement on this issue, and there are no documents refuting this justification. Azerbaijan is integrating into the sphere of world trade. In accordance with this, the country's integration into the world financial system is increasing. There are shortcomings in the financial system even in its most protected countries. This applies to the United States, Great Britain, and leading Asian countries,” he said.

According to the member of the committee, the world financial systems would note this if there were serious shortcomings in the process of withdrawing 1.1 billion manat from Azerbaijan. "There is a program called" money of the world. "It prevents the processes associated with illegal, non-transparent financial transactions. If there were shortcomings, special financial bodies in the United States and other countries would record this," Guliyev said.

The MP noted that the international financial system is very loyal to Azerbaijan: “That is, the World Bank, the International Monetary Fund and the world's leading banks give us loans, cooperate with us with pleasure, and finance our projects. If there were one serious problem, these organizations, including the countries where the money was transferred, would react to it, disclose any materials, and begin inspections. "

Referring to the activities of the Accounts Chamber, Guliyev said that the audit activity carried out by the structure is growing every year.

“Based on the materials presented to us, I can say that a lot of work is going on, shortcomings have been identified, and the money have been returned to the budget. Chair of the Accounting Chamber Vugar Gulmammadov told the deputies that inspections have not been completed yet, inspections are continuing. The most important thing for us is to prevent the development of corruption ties with budget money,” Guliyev said.

Economist Gubad Ibadoglu told “Radio Azadlig” that the Central Bank controls transfers of money out of the country. "Naturally, the failure of these 7 resident banks to submit supporting documents in the process of customs clearance, providing for the export of currency funds in the amount of 1.1 billion manats and their receipt on correspondent accounts in foreign banks, indicates that this money is stolen from Azerbaijan. It can also mean illegal withdrawal of funds, "he said.

The expert noted that, according to the Central Bank, in 2019-2020, $ 3.2 billion was officially withdrawn from Azerbaijan abroad: “Sometimes money goes out by official means, that is, it is transferred abroad in the name of importing goods into the country, and then this money used for other purposes without receiving imported goods abroad."

Ibadoglu says that although there are often changes in the direction of ensuring control over this, in the end they cannot fully achieve it.

According to the expert, another option for withdrawing money is that goods are exported from the country and sold, and the profit received from the sale of these export goods does not enter the country in foreign currency.

The economist noted that if for the purchase of imported goods money is transferred and are on some account abroad, then for the purchase of imported goods there must be enclosed documents: “In the absence of these documents, this money is not returned to the country. In all likelihood, 1.1 billion manats issued by these seven resident banks were transferred from the country under this name." The expert stressed that the names of seven resident banks should be named. -0-