The emerging area of digital assets is of particular interest with regards to anti-money laundering and countering the financing of terrorism (AML/CFT), as it presents additional layers of complexity, more elements of advanced technology, and a faster-evolving and more volatile environment than more “traditional” assets and related transactions. It thus requires updated knowledge transfer and capacity-building for financial organisations who might be exposed to transactions involving this new type of assets.

an initial training session on this topic in December 2021, in cooperation with the Financial Monitoring Service of Azerbaijan (national Financial Intelligence Unit), the project organised a second two-day training course for another 32 representatives of banks and investment companies, as well as the FIU, to familiarise them with key concepts and risks related to virtual assets and virtual asset service providers, as well as take them through relevant procedures and operational controls to detect and prevent cryptocurrency-related crimes.

training offered a combination of national and international interventions, presenting technical specifics of digital and virtual assets, basics of blockchain technologies, cryptocurrencies, e-wallets, tokens, with a focus on international standards and European control requirements related to virtual assets. Emphasis was particularly put on the implementation mechanisms of these requirements for reporting entities, including suspicious activity reporting.

Through this training course, the reporting entities acquired necessary knowledge and skills on how to detect suspicious transactions involving proceeds illegally originating from or passing through online platforms. It also helped them to understand factors to consider while performing customer due diligence for transactions in virtual currencies or involving other types of virtual assets.

initiative will further enhance the government’s efforts to better respond to money laundering threats related to virtual assets.

This training was organised within the framework of the project “Strengthening anti-money laundering and asset recovery in Azerbaijan”, funded by the European Union and the Council of Europe and implemented by the Council of Europe in their Partnership for Good Governance II.