BAKU, Azerbaijan, August 31. The Central Bank of Azerbaijan (CBA) has held officials of two non-bank credit institutions (NBCIs) administratively liable as part of its ongoing supervisory measures.
According to the CBA, Embafinans OJSC and one of its officials were fined for violating legislation on preventing the legalization of criminally obtained property and the financing of terrorism.
Under a ruling by the Yasamal District Court of Baku, Embafinans OJSC was fined 20,000 manats (approximately $11,765), while its official was fined 4,000 manats (approximately $2,353).
In addition, an official of Caspian Invest LLC was also held administratively liable for violating the same legislation.
Under a ruling by the Narimanov District Court of Baku, the official of Caspian Invest LLC was fined 2,000 manats (approximately $1,176).
The court rulings were issued under Articles 598.1.1, 598.1.2 and 598.1.6 of the Code of Administrative Offenses. The articles provide for liability for violations of requirements aimed at preventing the legalization of criminally obtained property and the financing of terrorism.
More than 50 licensed NBCIs currently operate in Azerbaijan and are included in the Central Bank’s registry. They include Aqrarkredit OJSC NBCI, PARA NBCI OJSC, FINCA Azerbaijan QBCO, KredAqro NBCI LLC, FinEx Kredit NBCI OJSC, AzFinans NBCI LLC, Irshad NBCI LLC, AZPUL NBCI LLC, Nova Credit NBCI LLC and other institutions.
CBA Chairman Taleh Kazimov said at a news conference last year that the regulator’s main priority is not rapid growth in lending, but maintaining financial stability and ensuring sustainable lending.
“We will introduce quite a number of innovations in non-bank credit institutions (NBCIs) and the microfinance sector in general. We believe that the changes we have made to the rules governing NBCIs will support the development of the sector. The Central Bank is not interested in the development or rapid growth of daily loans because both financial institutions and consumers could face significant risks. Therefore, given the high risks in these areas, we have increased reserve requirements. The growth of daily loans is not of interest to the Central Bank from the perspective of developing a strategic sector,” the CBA chairman emphasized.
