CBA updates customer compliance rules for electronic fund transfers

The "Rule on the Application of Customer Compliance Measures for Electronic Fund Transfers" has been updated, following Decision No. 09/1 issued by the Central Bank of Azerbaijan (CBA) Board on February 22, 2023, Azernews reports, citing the CBA.

CBA Chairman Taleh Kazimov has signed the new resolution, which impacts both cross-border and domestic electronic transfers. These measures apply to payment organizations, electronic money organizations, local branches of foreign payment organizations, local branches of foreign electronic money organizations, and the national postal operator.

The updated rule emphasizes that intermediary financial institutions must implement measures that ensure the smooth execution of transactions, even when the necessary information is incomplete in the transfer chain. These institutions are now required to establish risk-based policies and procedures to manage electronic transfers with missing or incomplete information. This includes:

- Refusal or suspension of transfers when required information is absent.
- Appropriate actions based on the institution's risk appetite, including reviewing relationships with the relevant financial institution involved in the transfer.

The Department of Legal Assurance for Financial Markets has been tasked with submitting this Decision to the Ministry of Justice for inclusion in the State Register of Legal Acts within three days.