Azerbaijan has created the legal basis for UN targeted financial sanctions, Report informs.
The draft law "On targeted financial sanctions" was discussed in the third reading in the Milli Majlis (Parliament).
The draft law "On Targeted Financial Sanctions" presented by the President of Azerbaijan as a legislative initiative was prepared based on the recommendations of the FATF (Financial Action Task Force).
The draft law establishes the legal basis and procedure for the application of targeted financial sanctions (TFS) in order to prevent terrorism, terrorist financing, proliferation of weapons of mass destruction and financing of proliferation of weapons of mass destruction in accordance with the relevant resolutions of the United Nations Security Council (UNSC).
As for the main provisions of the draft, the TFS can be applied to fight terrorism and the financing of terrorism, the proliferation and financing of proliferation of weapons of mass destruction.
TFS can be used against individuals and entities. The scope of institutions is specified in Article 1.1.4 of the draft law. The basis for the implementation of TFS measures are the relevant resolutions of the UN Security Council. TFS does not replace the measures applied within the framework of criminal proceedings and is preventive.
TFS measures are implemented in the following forms:
- immediate freezing of assets of natural persons and institutions subject to sanctions;
- Prohibition of providing assets, economic resources or financial and other related services to individuals and institutions subject to sanctions.
The scope of assets is specified in Article 1.1.5 of the draft law, and the scope of economic resources is specified in Article 1.1.10.
Assets are frozen regardless of whether they are related to terrorism and terrorist financing and proliferation financing activities.
Natural persons and institutions subject to sanctions are included in the international lists by the relevant sanctions committees of the UN Security Council, and in the domestic list based on the decisions of the courts of the Republic of Azerbaijan. The procedure for forming these lists, including the provisions for their inclusion and exclusion, are provided in detail in Chapters 3 and 4 of the draft law.
Assets must be frozen without delay and without notice to sanctioned individuals and entities from the time the international and domestic lists are published in the HMS online information resource.
Milli Majlis adopted the draft law "On targeted financial sanctions" in the last - III reading.
The law is expected to enter into force on February 1, 2023.