It is absurd to make demands on a citizen in a country whose official does not submit an income declaration

'Income Declaration Requirement' for Civil Servants Introduced Amid Currency Transaction Amendments

 A series of modifications to the "Regulations for the Conduct of Operations by Residents of the Republic of Azerbaijan in Foreign Currency, as well as Non-Residents in National and Foreign Currencies" have been enacted, effective from August 9, following a decision by the central bank's Board of Directors. These changes include provisions that grant Azerbaijani citizens the ability to withdraw up to $10,000 monthly abroad using domestic bank payment cards.

Simultaneously, the prior daily limits for individual foreign transfers for personal purposes have been lifted. (Previously, it was capped at $1,000 per month or the equivalent of $10,000 per day).

Addressing inquiries from RFE, banking sector expert Akram Hasanov remarked on the omission of the national currency in the amendments: "Why stipulate the limit in dollars when Azerbaijan's national currency is the manat? Article 19 of the Constitution identifies the sole legal tender as the national currency. While this aspect has been overlooked in recent legislation, it persists in these rules, which is a blunder and a lack of respect for our own currency."

According to Hasanov, another issue pertains to limitations on unofficial currency purchases within Azerbaijan: "An individual cannot purchase over 20,000 manats annually, approximately $12,000. The rationale behind this restriction, attributed to some unidentified authorities, remains unclear. It appears to be incongruent. On one hand, citizens are allowed to take $20,000 abroad, yet simultaneously, they are bound by a 20,000 manat annual limit. It's contradictory."

He further highlighted the incongruity of requiring individuals to indicate the source of funds: "Even government officials in Azerbaijan aren't required to declare their income. Requesting a 'show source' from citizens transferring money abroad, in a nation where public officials evade income declarations, seems unjust. This system is susceptible to abuse since anyone can claim any source, even that it's an inheritance."

Despite his criticisms, Hasanov offered a favorable assessment of the decision's overall impact: "The previous rules specified 'up to $1,000 daily, not exceeding $10,000 monthly.' It was a cumbersome process for individuals. For instance, someone might wish to transfer 10,000 manats at once. Why make them do it daily? The prior setup favored banks, whereas now, a monthly cap of 20,000 is introduced, allowing a lump sum transaction if preferred. This increment from 10,000 to 20,000 is a positive change."

Vugar Bayramov, a member of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship, echoed Hasanov's sentiment, stating that the central bank's aim is to curtail money laundering and reduce currency outflows from the country.

Bayramov indicated that the central bank also endeavors to extend similar regulations to local debit cards used abroad: "Nevertheless, certain countries where our citizens travel may lack fully developed infrastructure for using these cards. In such instances, the newly introduced limits could pose difficulties for our citizens making cash transactions in those nations."

The deputy advised citizens to carry cash during foreign trips, adhering to legally established limits: "According to existing legislation, there are already limits for carrying cash abroad. In this sense, it can help offset these changes."