One of the main risk factors in Azerbaijan's financial sector is the lack of full transparency in financial flows, Rauf Namazov, Head of Office, Financial Monitoring Service of Azerbaijan, stated at the Risk Management in Financial Institutions event organized by AmCham Azerbaijan, Report informs.
Namazov explained that this issue is particularly evident in the high share of cash transactions and incomplete identification in card‑to‑card transfers: "These cases make it difficult to identify both individuals and legal entities. As a result, investigations of certain transactions and reaching accurate conclusions become questionable."
He added that incomplete information in fast transfers, unclear explanations of transaction purposes, and missing channel details complicate investigations. He also highlighted the growing risks from virtual assets, noting that while they are increasingly used, the lack of full regulation creates challenges: "We observe cases where virtual assets are used to conceal the trail of criminal proceeds."
The official stressed that delayed reporting of suspicious transactions by financial institutions is a serious problem: "In some cases, institutions submit information months or even years later. By then, funds are lost, transferred abroad, and individuals leave the country. This reduces the effectiveness of investigations. Timely identification and reporting of suspicious transactions is crucial to risk prevention."