Baku , Azerbaijan

27-28 March, 2003

Agenda

THE FIRST NATIONAL WORKSHOP ON ANTI-MONEY LAUNDERING MEASURES AND SUPPRESSING FINANCING OF TERRORISM

Concluding Protocol

On 27- 28 March First National Workshop on Anti-Money Laundering Measures and Suppressing Financing of Terrorism was held in Baku on the basis of the relevant programs of OSCE and UN and with their sponsorship.

Due to the increase of drug trafficking and other serious crimes in the region, this issue carries special significance. Receipt of proceeds from criminal activities, laundering of those proceeds and increasing and strengthening connection of the aforementioned offenses to financing of terrorism requires new approaches to be adopted in order to improve the situation, prevent the above-mentioned crimes and strengthen security of countries of the region.

Workshop participants have mentioned in their presentations and during discussions that it is very important to make sure that International Organizations render their assistance to the government of Azerbaijan Republic, primarily, in the field of comprehensive development of national legislation, development of an effective mechanism for its enforcement and establishment of national Financial Investigation Unit (FIU).

Furthermore, concerns of the Government of Azerbaijan Republic have, once again, been raised in the view of lack of its control over its territories under occupation by Armenian armed forces, as well as spreading of serious crimes in these territories, including but not limited to, drug trafficking, arms trading and money laundering.

Participants of the workshop appreciate the need for adopting measures directed towards suppressing all types of terrorist activity and, specifically so, combat against their sources of finance and consider appropriate to propose and submit the following recommendations for consideration of the Government of Azerbaijan Republic:

1. To make sure that a comprehensive law on anti-money laundering measures and suppressing terrorism is adopted;

2. In order to facilitate measures against money laundering and financing of terrorism, the issue of establishment of FIU is to be discussed;

3. It is important to make sure that the country’s efforts to sign (RATIFY the original Azeri version reads to “join international documents” –TRANSLATOR) existing international documents and refine its national legislation are continued;

4. More attention is to be paid to the significance of strengthening of cooperation and coordination of relationship amongst state authorities, ministries and financial institutions working in this area;

5. To make sure that intensive exchange of information on international-scale changes and innovations is organized;

6. It is important to require assistance from international organizations (OSCE, UN and others) in the following areas:

· In development of legislative basis as well as implementation mechanism for anti-money laundering measures and suppressing financing of terrorism;

· In carrying out a legal expertise of national legislation in order to examine its matching the international standards;

· In providing a financial and technical assistance in setting up relevant national authorities;

· In organizing and holding series of training seminars and workshops for employees of the relevant national authorities

7. The issue of compulsory declaration of physical cash transported across the borders, which may be used for financing international terrorism, is to be considered, without imposing any restriction;

8. An expedient system is to be implemented in order to decrease turnover of physical cash, combat shadow economy and facilitate transition to credit card and other no-cash payment modes;

9. An inter-ministerial commission is to be set up in order to develop the basic principals of the public policy in this area and submit them to the Government for discussion and approval.