In accordance with the law of the Azerbaijan Republic “On payment services and payment systems”, payment organizations and electronic money organizations operating in the country must obtain a license from the Central Bank of the Azerbaijan Republic.
As Day.Az reports, this is stated in the CBA statement.
It is noted that in accordance with Article 65.1 of this law, the Central Bank compiles a register of licensed payment organizations and electronic money organizations open to the public. Thus, the availability of a license of any person for the relevant type of activity can be checked in the list of organizations published on the official website of the Central Bank (
In accordance with Article 51.3 of the Law of the Azerbaijan Republic “On the Central Bank of the Azerbaijan Republic”, when the Central Bank discovers the fact of carrying out activities that require a license (permission) in the financial markets without an appropriate license (permission), it provides persons engaged in such activities with a notification requiring the immediate cessation of advertising or distribution of this activity and the service (product) provided in any other form. The Central Bank posts information about this on its official website and in the media, and also contacts the relevant government body (institution) to take measures specified by law.
In this regard, the CBA requests that if such illegal activities are identified, provide information about this to the Central Bank (Confidentiality of information about the person who provided this data is guaranteed by the Central Bank.
The “Instructions for informing the Central Bank about payment service providers operating illegally without obtaining a license” can be found at the link below:
Title: Navigating the Future of Payments in Azerbaijan: An Interview with Dr. Leyla Mammadova, Financial Regulation Expert
Setting: A sleek, modern office at the Time.news headquarters, with the vibrant city of Baku visible through the window.
Editor (Maxim): Good afternoon, Dr. Mammadova! Thank you for taking the time to join us today. The landscape of payment systems is evolving rapidly, especially here in Azerbaijan. What are your thoughts on the recent law that mandates licensing for payment organizations by the Central Bank of the Azerbaijan Republic?
Dr. Mammadova: Good afternoon, Maxim! It’s a pleasure to be here. This new law signifies a crucial step towards enhancing the transparency and security of our payment systems. By requiring licenses, the Central Bank can better regulate the activities of payment and electronic money organizations, ensuring they comply with international standards.
Maxim: That’s an interesting point! Could you elaborate on how this regulation might impact both businesses and consumers in Azerbaijan?
Dr. Mammadova: Absolutely. For businesses, obtaining a license can initially seem burdensome, but it ultimately creates a more level playing field. It assures stakeholders that they are dealing with legitimate operators. For consumers, this law bolsters trust in digital payment methods, as they can be confident that these organizations are vetted and monitored for compliance with financial regulations.
Maxim: Trust is indeed a critical factor. With digital payments becoming increasingly prevalent, how do you see this licensing requirement affecting the growth of e-commerce in Azerbaijan?
Dr. Mammadova: The licensing requirement will likely stimulate growth in the e-commerce sector. It encourages more established businesses to enter the digital space, knowing that the regulatory framework will support them. Additionally, as consumer confidence grows, we should see a rise in online transactions, which is a positive trend for our economy.
Maxim: That makes a lot of sense. However, what challenges do you foresee in implementing these regulations for the payment service providers?
Dr. Mammadova: One challenge is the capacity of the Central Bank to effectively process and evaluate the applications for licenses. There’s always a risk of slow bureaucracy that could hinder innovation. Smaller startups might find it particularly challenging to navigate the regulatory landscape, which could stifle entrepreneurial initiatives if not managed well.
Maxim: Innovation in financial technology has been a hot topic globally. What steps can the Central Bank take to implement these regulations while still encouraging innovation in the fintech sector?
Dr. Mammadova: The Central Bank should consider adopting a regulatory sandbox approach. This would allow fintech startups to test their services in a controlled environment before full-scale operations. It minimizes risks while providing the case studies needed to refine regulatory frameworks as the industry evolves.
Maxim: A sandbox sounds like a beneficial approach. What role do you think the public can play in shaping the future of payment systems in Azerbaijan?
Dr. Mammadova: Public awareness and education are paramount. As consumers become more informed about their rights and the available payment options, they can demand better services and accountability from payment providers. This feedback is invaluable for regulators and businesses alike.
Maxim: Those insights are incredibly valuable, Dr. Mammadova. To wrap up, what is your vision for the future of payment systems in Azerbaijan in the next five years?
Dr. Mammadova: I envision a robust, secure, and inclusive digital payment ecosystem. With effective regulations in place, coupled with technological advancements, I believe we will see greater accessibility to financial services for all segments of the population. This will not only drive economic growth but also enhance the quality of life for our citizens.
Maxim: Thank you so much for sharing your expertise with us, Dr. Mammadova. It’s clear that the future of payments in Azerbaijan is full of potential, and we’re excited to see how these developments unfold!
Dr. Mammadova: Thank you, Maxim! I’m looking forward to the positive changes on the horizon.
(The interview concludes with a warm handshake, an exchange of smiles, and the promise of further discussions as developments unfold in the dynamic landscape of Azerbaijan’s payment systems.)