3.3 Institutional Framework

of criminally obtained funds or other property and fnancing of terrorism for 2017-2019.66

Pursuant to the National Action Plan, the FMS has facilitated the drafting of a proposed new AML law (“Law on Targeted Financial Sanctions”), which includes various amendments concerning benefcial owners, to better regulate the transparency of legal entities.67 This, and other amendments to existing law, was – at the time of drafting of this study – in the phase of discussion with other state bodies, with the aim of presenting such amendments to the legislative body in 2021. Additionally, the FMS reportedly was providing inputs, in coordination with law enforcement bodies, on key amendments to the Criminal Procedure Code regarding asset recovery and parallel fnancial investigations. These amendments were expected to be submitted to the legislative branch in the Fall of 2021.

To prevent illegal drug consumption and trafcking, targeted legal and institutional measures were implemented and relevant authorities in the Republic of Azerbaijan instituted a risk-based approach. The Program against Illegal Trafcking of Drugs, Psychotropic Substances and their Precursors and Spreading of Drug Addiction for the years 2013-2018 was approved in June 2013.

Additional previous targets of the Government have been to become a party to the Council of Europe Convention on Laundering, Search, Seizure and Confscation of the Proceeds from Crime and on the Financing of Terrorism (Warsaw Convention), to establish national mechanisms on asset recovery and to set up an integrated AML/CFT statistical database. In 2019, the European Union and the Council of Europe, in coordination with Azerbaijani ofcials, launched a new project to Strengthen Anti-Money Laundering and Asset Recovery in Azerbaijan,68 designed to respond to the needs of Azerbaijan in the area of the fght against money laundering, terrorist fnancing and asset recovery, representing a continuation of actions to strengthen capacities to fght and prevent corruption (2015-2017) and to strengthen antimoney laundering (2018). The project has been aligned with cooperation activities identifed in the EU-Azerbaijan Action Plan and the Council of Europe Action Plan for Azerbaijan 2018-2021, a strategic programming instrument that aims to bring Azerbaijan’s legislation, institutions and practice further into line with European standards in the areas of human rights, the rule of law and democracy.69

The following institutions are key bodies and authorities involved in combating organised crime, money laundering or fnancing of terrorism in the country:

• The Financial Monitoring Service (FMS), which is an operationally independent body under the Ministry of

Economy, was established by Decree of the President of the Republic of Azerbaijan numbered 95, dated

May 25, 2018. It is a public legal entity funded from the state budget and implements unifed regulation and supervision as well as coordination of activities in the feld of preventing legalisation of criminally obtained

Structure of Anti-Corruption Directorate, within the Office of the General Prosecutor

Director-deputy Prosecutor General

Deputy Deputy

Senior Prosecutors

Preventive Measures and Inquiry Department

Investigation Department Organisational and Information Support Department Expert Analysis Division

Stationery Section

Logistics Sector Information Technology

Application Sector Operational Department Operational Support Division