CBA to apply new system for introduction of innovative products

The Board of Directors of the Central Bank of Azerbaijan (CBA) has approved the "Rule on the Application of the Special Regulatory Regime," Azernews reports, citing CBA.

CBA Chairman Taleh Kazimov signed a new decision in this regard.

According to the decision, specific requirements are outlined for innovative products and applicants seeking testing under the special regulatory regime.

These requirements include ensuring the product's novelty in the local market, its contribution to financial inclusion, safety, accessibility to users of financial services, readiness for real-mode testing, avoidance of potential systemic risks, prevention of money laundering and terrorist financing, conducting related risk analysis, determining measures to mitigate risks, safeguarding user data confidentiality and legal interests, and ensuring the civil integrity of the applicant's beneficial owners, individuals in management positions, and significant shareholders.

Additionally, participants presenting innovative products are exempt from licencing or permit requirements. CBA will notify participants three days before checking their activities and will accept applications one month before, with a decision made within 20 working days from receipt, extendable by another 20 working days if necessary. Applicants will be informed within three days of approval or refusal, and if approved, a contract will be concluded within 20 days.

The trial period under the contract cannot exceed 12 months, extendable for up to six months before its end, not exceeding a total of five years, applicable to participants active for at least six months in trial mode.

The Legal Department of CBA is tasked with submitting this decision to the Ministry of Justice for inclusion in the State Register of Legal Acts within three days.