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More legislative acts are available from this sourceLaw of the Azerbaijan Republic
21 October 1994
No 911

About currency settlement

The present Law determines the principles of implementation of operations with currency, authority and functions of the bodies which carry out currency settlement and control over operations with currency, rights and obligations of legal entities and physical persons concerning possession of currency values, their use and disposal, responsibility for violation of currency.

Chapter I. General
Article 1. Main notions
In the present Law the following notions are used:
1. «National currency of the Azerbaijan Republic» (hereinafter - «national currency»):
a) manats in the form of banknotes and coins of the National Bank of the Azerbaijan Republic being in circulation and also those which have been withdrawn from circulation but can be exchanged for money in circulation;
b) manat resources in bank accounts and other credit organisations in the Azerbaijan Republic;
c) manat resources in bank accounts and other credit organisations outside the Azerbaijan Republic.
2. «Securities in national currency» - payment documents in manats (cheques, promissory notes, letters of credit etc.), stock exchange securities (shares, bonds) and other promissory notes.
3. «Foreign currency»:
a) money in the form of banknotes, Treasury notes and coins being in circulation which are legal payment means at the territory of respective country or group of countries and also those which have been withdrawn from circulation but can be exchanged for money in circulation at said territories;
b) resources in bank accounts in currency units of foreign countries, international monetary or settlement units.
4. «Currency values»:
a) foreign currency;
b) securities in foreign currency - payment documents in foreign currency (cheques, promissory notes, letters of credit etc.), stock exchange securities (shares, bonds) and other promissory notes;
c) noble metals - gold, silver, platinum and metals of platinum group (palladium, iridium, rhodium, ruthenium and osmium) in any kind and state except jewellery, other articles of everyday use and scrap of such articles;
d) natural precious stones in raw and finished state (diamonds, rubies, emeralds, sapphires, alexandrites, pearls) except jewellery, other articles of everyday use and scrap of such articles;
Cabinet of Ministers of the Azerbaijan Republic establishes procedure and terms of classifying articles made of noble metals and natural precious stones into either jewellery and other articles of everyday use or scrap of such items.
5. «Residents»:
a) physical persons living permanently in the Azerbaijan Republic including those living temporarily outside the Azerbaijan Republic;
b) legal entities established according to legislation of the Azerbaijan Republic;
c) enterprises and organisations located at the territory of the Azerbaijan Republic which have been established according to legislation of the Azerbaijan Republic but have no status of legal entity;
d) diplomatic and other official representations of the Azerbaijan Republic located outside the Azerbaijan Republic;
e) subsidiaries and representations of residents mentioned in subparagraphs «b» and «c» of the present paragraph located outside the Azerbaijan Republic.
6. «Non-residents»:
a) physical persons living permanently outside the Azerbaijan Republic including those living temporarily at the territory of the Azerbaijan Republic;
b) legal entities and enterprises and organisations located outside the Azerbaijan Republic which have been established according to legislation of the Azerbaijan Republic but have no status of legal entity;
c) foreign diplomatic and other official representations and also international organisations, their subsidiaries and representations located in the Azerbaijan Republic;
d) subsidiaries and representations of non-residents (bureaus and agencies) specified in subparagraph «b» of the present paragraph which are located in the Azerbaijan Republic.
7. «Operations with currency»:
a) operations connected with transfer of proprietary right and other rights onto currency values including use of foreign currency and payment documents in foreign currency as a payment means;
b) bringing in and transfer to the Azerbaijan Republic and also taking out and transfer from the Azerbaijan Republic of currency values;
c) international money transfers.
8. Operations with foreign currency and securities in foreign currency are divided into current operations and operations connected with capital movement.
9. «Current operations with currency»:
a) transfers of foreign currency to the Azerbaijan Republic and from the Azerbaijan Republic for accomplishment of settlements connected with export and import of commodities, works and services and also settlements on crediting export-import operations for a term of maximum 180 days;
b) receiving and granting financial credits for a term of maximum 180 days;
c) transfers to the Azerbaijan Republic and from the Azerbaijan Republic of percents, dividends and other profits from contributions, investments, credits and other operations connected with the capital movement;
d) transfers to the Azerbaijan Republic and transfers from the Azerbaijan Republic of non-trade character, including transfers of wages, pensions, ailments and legacies and other such operations.
10. «Operations with currency connected with capital movement»:
a) direct investments, i.e. investment contributions into the partnership capital of the enterprise with the objective of obtaining profits and right of participation in management;
b) purchase of securities;
c) transfers covering payments for proprietary rights on buildings, structures and other property which according to legislation of the country of its location is considered as real estate including land and its entrails and other rights on real estate;
d) giving and obtaining deferments in payments for export-import operations, works and services for a term exceeding 180 days;
e) placement of currency resources on deposits of authorised banks for a term over 180 days;
f) all other operations with currency besides current operations.
11. «Authorised banks» - banks and other credit organisations having obtained the license of National Bank of the Azerbaijan Republic on operations with currency.

Chapter II. Currency settlement
Article 2. Operations with national currency
1. Settlements between the residents in national currency are accomplished without any restrictions.
2. Procedure of purchase and use of national currency by non-residents in the Azerbaijan Republic are established by National Bank of the Azerbaijan Republic.
3. Taking out and transfer from the Azerbaijan Republic and also bringing in and transfer to the Azerbaijan Republic of national currency and securities in national currency by residents and non-residents are carried out in an order established jointly by National Bank of the Azerbaijan Republic and Cabinet of Ministers of the Azerbaijan Republic.
Article 3. Domestic currency market of the Azerbaijan Republic
1. The residents have the right to buy and sell foreign currency in the domestic currency market of the Azerbaijan Republic in an order and with the objectives determined by National Bank of the Azerbaijan Republic.
2. Purchase and sale of foreign currency in the Azerbaijan Republic are accomplished through the authorised banks in an order established by National Bank of the Azerbaijan Republic. Deals on purchase-sale of foreign currency might be carried out directly between the authorised banks and also through currency exchanges existing on terms established by National Bank of the Azerbaijan Republic.
Purchase and sale of foreign currency without the participation of authorised banks is not permitted.
3. Deals on purchase-sale of foreign currency concluded with violation of provisions of paragraphs 1 and 2 of the present Article are considered invalid.
4. With the objective of stabilisation of manat National Bank of the Azerbaijan Republic carrying out operations connected with purchase-sale of foreign currency intervenes in the currency market and might establish the limit difference between selling rate and buying rate.
Article 4. Proprietary right for currency values
1. In the Azerbaijan Republic currency values might be the property of both residents and non-residents.
They have the right to conclude any deals and carry out operations with currency values except cases envisaged by the legislation of the Azerbaijan Republic.
In the Azerbaijan Republic proprietary right for currency values alongside with proprietary right for other objects of property is protected by state.
2. In the Azerbaijan Republic procedure of conclusion of deals with noble metals and natural precious stones is determined jointly by the Cabinet of Ministers of the Azerbaijan Republic and National Bank of the Azerbaijan Republic.
Article 5. Formation of currency resources of the Azerbaijan Republic and their use
1. The territory of the Azerbaijan Republic is common currency area wherein monetary-credit and currency policy strengthening buying power of manat as of national currency is implemented.
2. Currency resources of the Azerbaijan Republic are centralised foreign currency and other currency values intended for protection of buying power of national currency, fulfilment of demands connected with economic needs and social development of the country, fulfilment of obligations on payment of external debt.
3. Currency resources of the Azerbaijan Republic consist of currency profit of the Republican budget and Stabilisation Fund.
Procedure of formation of currency resources of the Azerbaijan Republic is established by the President of the Azerbaijan Republic.
4. Stabilisation Fund is established with the objective of stabilisation of manat, and National Bank of the Azerbaijan Republic gives orders about its use.
Article 6. Formation of currency resources of the enterprises and organisations
Currency resources of legal entities - both residents and non-residents are formed at the expense of profits in hard currency obtained as a result of foreign-economic activity, purchase of currency in the domestic currency market and also currency obtained as currency credits and other forms not contradicting the legislation of the Azerbaijan Republic.
Article 7. Currency accounts of the residents
1. In the Azerbaijan Republic the residents may have foreign currency accounts in the authorised banks.
2. If not specified otherwise by National Bank of the Azerbaijan Republic the enterprises and organisations - residents must transfer foreign currency received by them into their accounts in authorised banks.
3. The residents have the right to open foreign currency accounts outside the Azerbaijan Republic in cases and on terms specified by National Bank of the Azerbaijan Republic.
4. National Bank of the Azerbaijan Republic establishes the procedure of opening foreign currency accounts of the residents in the authorised banks and carrying out operations with these accounts.
Article 8. Operations with currency carried out by residents legal entities in the Azerbaijan Republic
1. There are no restrictions on operations with currency carried out by the residents - legal entities.
2. Operations with currency connected with capital movement are carried out by the residents - legal entities in an order established by National Bank of the Azerbaijan Republic.
3. The residents, both legal entities and physical persons, within the limits of customs regulations, have the right to transfer, to bring and to remit currency values to the Azerbaijan Republic.
National Bank of the Azerbaijan Republic establishes the procedure of transfer and remittance to the Azerbaijan Republic and also transfer and remittance from the Azerbaijan Republic of foreign currency and securities in foreign currency belonging to the residents.
Procedure of taking out and transfer from the Azerbaijan Republic and also bringing in to the Azerbaijan Republic noble metals and natural precious stones by the residents - legal entities is established by the Cabinet of Ministers of the Azerbaijan Republic.
4. Procedure of use of profits in foreign currency obtained by legal entities of the Azerbaijan Republic with participation of foreign investments as a result of export of their own products is specified in the Law of the Azerbaijan Republic «About protection of foreign investments».
Article 9. Operations with currency of residents - physical persons in the Azerbaijan Republic
1. The residents - physical persons have the right to transfer, take out and remit from the Azerbaijan Republic currency values previously transferred, brought in and remitted to the Azerbaijan Republic, on condition of strict observance of the customs regulations in accordance with presented declaration.
2. Except cases specified in paragraph 1 of the present Article, procedure of taking out, transfer and remittance of foreign currency and other currency values from the Azerbaijan Republic by residents - physical persons is established jointly by National Bank of the Azerbaijan Republic and the Cabinet of Ministers of the Azerbaijan Republic.
3. Foreign currency of residents - physical persons including money received on the territory of the Azerbaijan Republic shall be transferred to their currency accounts in authorised banks without any restrictions.
Article 10. Accounts of non-residents in foreign and national currency
Non-residents may open foreign and national currency accounts in authorised banks.
National Bank of the Azerbaijan Republic establishes procedure of opening and use of these accounts.
Article 11. Currency operations of non-residents in the Azerbaijan Republic
1. On condition of strict observance of customs regulations non-residents have the right to transfer, to bring in and remit to the Azerbaijan Republic currency values.
2. Non-residents have the right to accomplish purchase-sale of foreign currency for national currency of the Azerbaijan Republic in an order specified by National Bank of the Azerbaijan Republic.
3. If currency values have been previously transferred, brought in or remitted to the Azerbaijan Republic or obtained in an order specified in paragraph 2 of the present Article or in other ways not contradicting the legislation of the Azerbaijan Republic then non-residents have the right to transfer, take out or remit said currency values from the Azerbaijan Republic without any restrictions.
4. Except cases specified in paragraph 3 of the present Article procedure of transfer, taking out and remittance of currency values by non-residents from the Azerbaijan Republic is established by National Bank and State Customs Committee of the Azerbaijan Republic.
Article 12. Functions of the Supreme Council of the Azerbaijan Republic in the sphere of currency settlement
The Supreme Council of the Azerbaijan Republic establishes general principles of currency policy, the limit of external state debt, amounts of credits given to foreign countries, currency plan being the constituent part of the Republican budget, issues legislative acts on currency settlement and control.
Article 13. National Bank of the Azerbaijan Republic as main body of currency settlement
1. National Bank of the Azerbaijan Republic is main body exercising currency settlement in the Azerbaijan Republic.
2. According to the present Law National Bank of the Azerbaijan Republic:
a) defines the sphere and procedure of circulation of foreign currency and securities in foreign currency in the Azerbaijan Republic;
b) takes legislative acts on control over operations with currency;
c) establishes the procedure of operations with foreign currency and securities in foreign currency to be accomplished by residents and non-residents and also procedure of operations with national currency and securities in national currency to be accomplished by non-residents in the Azerbaijan Republic;
d) establishes the procedure of the obligatory transfer, bringing in and remittance of foreign currency and securities in foreign currency belonging to residents to the Azerbaijan Republic and also cases and terms of opening foreign currency accounts by residents outside the Azerbaijan Republic;
e) etsablishes general procedure of giving out licenses for operations with currency to banks and other credit organisations and issues said licenses;
f) establishes uniform forms of accounting, reports, documentation and statistics on operations with currency and also procedure and term of their presentation;
g) prepares and publishes statistical information on operations with currency in the Azerbaijan Republic based on generally recognised accepted international standards;
h) implements other functions envisaged by the present Law and the Law of the Azerbaijan Republic «About National Bank of the Azerbaijan Republic».

Chapter III. Control over operations with currency
Article 14. Objectives and ways of control over operations with currency
1. The objective of control over the operations with currency is to provide strict observance of currency legislation when carrying out operations with currency.
2. Main ways of control over the operations with currency are the following:
a) to establish correspondence of accomplished operations with currency to existing legislation and existence of necessary licenses and permits;
b) to check how the residents fulfil their commitments concerning foreign currency before the state and also commitments as per the sale of currency in the currency market of the Azerbaijan Republic;
c) to check if payments in foreign currency are legal;
d) to check if accounts and reports concerning operations with currency, including operations of non-residents with national currency are complete and true.
Article 15. Bodies and agents of control over operations with currency
1. Control over operations with currency in the Azerbaijan Republic is carried out by the bodies of control over operations with currency and their agents.
2. National Bank of the Azerbaijan Republic and State Customs Committee of the Azerbaijan Republic are the bodies of control over operations with currency in the Azerbaijan Republic.
3. Authorised banks subordinate to the National Bank of the Azerbaijan Republic are the agents of control over operations with currency in the Azerbaijan Republic.
Article 16. Authority of bodies and agents of control over operations with currency
1. Bodies of control over operations with currency, within the limits of their authority, accept normative acts obligatory for implementation in the Azerbaijan Republic by all residents and non-residents.
2. Bodies and agents of control over operations with currency within the limits of their authority:
a) control the conformity of operations with currency carried out by residents and non-residents in the Azerbaijan Republic with existing legislation, provisions of licenses and permits and also observance of acts taken by the control bodies;
b) check operations with currency carried out by residents and non-residents;
c) establish forms and procedure of accounting, reports and documentation concerning operations with currency carried out by residents and non-residents.
Article 17. Rights and obligations of residents and non-residents
1. Residents and non-residents carrying out operations with currency in the Azerbaijan Republic and also non-residents carrying out operations with national currency and securities in national currency have the following rights:
a) to be informed about the results of inspections made by the bodies and agents of control over operations with currency;
b) to appeal against actions of the agents of currency control to respective bodies of control over operations with currency, and against bodies of currency control - in an order specified by the legislation of the Azerbaijan Republic;
c) to exercise other rights specified in the present Law and other legislative acts of the Azerbaijan Republic.
2. Residents and non-residents carrying out operations with foreign currency and also non-residents carrying out operations with national currency in the Azerbaijan Republic must:
a) supply abovesaid bodies and agents of control over operations with currency with information and documents necessary for implementation of their functions;
b) to advise the bodies and agents of control over operations with currency about the procedure and results of their inspections;
c) to give explanation in a written form about the reasons of refusal to sign the act of inspection if there are any disagreements concerning the facts specified in said acts of inspections carried out by the bodies and agents of control over operations with currency;
d) to carry out accounting and to prepare reports on operations with currency, to keep them at least 5 years;
e) to execute requirements (instructions) of the bodies of control over operations with currency with the objective of overcoming revealed violations;
f) to bear other obligations specified in the legislation of the Azerbaijan Republic.
Article 18. Responsibility for violations of the currency legislation
1. The residents including authorised banks and non-residents having violated provisions of the present Law are responsible as follows:
a) confiscation of profits obtained as a result of deals illegal under the present Law and of other illegal activity and transfer thereof to the Treasury;
b) the residents including authorised banks and non-residents, according to legislation of the Azerbaijan Republic, are responsible for absence of accounting on operations with currency or accomplishment of said operations with violations of the established order, for nonpresentation or untimely presentation of documents and information as per the paragraph 2 of Article 17 of the present Law to the bodies and agents of control over operations with currency.
2. The sanctions specified in the present Article are applied by the bodies of control over operations with currency, including at the agentsí presentation: concerning legal entities - unconditionally, concerning physical persons - through the law court.
3. For violation of currency legislation officials of the enterprises and organisations being residents and non-residents, including authorised banks, and also physical persons bear administrative, civil-legal and criminal responsibility in accordance with legislation of the Azerbaijan Republic.
Article 19. Rights and obligations of the officials of the bodies and agents of currency control
1. Officials of the bodies and agents of control over operations with currency, within the limits of authority of these organisations, have the following rights:
a) within the limits of their functions to check all documents, to demand necessary explanations and information concerning questions arising in the course of inspection, and also to confiscate the documents revealing violations in the sphere of currency legislation;
b) to suspend operations with accounts in the authorised banks whenever they were not given the documents and information specified in the present Article;
c) to terminate the action of licenses and permits giving the right for implementation of currency operations by the residents, including authorised banks, and non-residents or to deprive them of said licenses and permits;
d) any other rights envisaged by legislation of the Azerbaijan Republic.
2. Bodies and agents of control over operations with currency, their officials should keep confidential commercial information of residents and non-residents which became known to them in the course of implementation of their functions on control over operations with currency.
3. If the bodies and agents of control over operations with currency and their officials fail to fulfil their obligations on the required level, they might be called to account in an order specified in legislation of the Azerbaijan Republic.

 President of the Azerbaijan Republic
 Heydar ALIEV
 Baku, 21 October 1994
 No 910

 Decree of Milli Mejlis of the Azerbaijan Republic
About coming into effective of the Law of the Azerbaijan Republic «About currency settlement»
Milli Mejlis of the Azerbaijan Republic takes decision as follows:
1. The Law of the Azerbaijan Republic «About currency settlement» comes into effect from the date of its publishing.
2. The Cabinet of Ministers of the Azerbaijan Republic and National Bank of the Azerbaijan Republic must:
· within two months present to Milli Mejlis of the Azerbaijan Republic proposals on bringing the legislative acts and the Law of the Azerbaijan Republic «About currency settlement» into accord;
· bring their decrees and resolutions, and other normative acts into accord with the present Law;
· provide revision and liquidation of normative acts including instructions of the ministries, state committees and departments which contradict the present Law.
 Chairman of Supreme Council of the Azerbaijan Republic
 R. Guliev
 Baku, 21 October 1994
 No 911