The Cabinet of Ministers of the Republic of Azerbaijan has introduced significant amendments to the regulations governing the disclosure of information regarding commercial legal entities. The changes modify the "Rules for providing information on founders (participants) of commercial legal entities, their shares in the charter capital, and owners of securities to obliged entities," which was originally approved by a decree dated October 10, 2018.
According to Operative Information Center-OMM, Prime Minister Ali Asadov has signed the new decree to formalize these adjustments. Under the new regulations, the term "beneficiary owner" (the actual owner behind the entity) has been removed from the Rules and replaced with the term "founders of commercial legal entities" (the officially registered owners).
As a result of this legislative shift, financial institutions will no longer be provided with information specifically categorized under the "beneficiary owner" definition. Instead, the data provided will focus on the founders (participants) of commercial legal entities, their respective shares in the charter capital, and the owners of securities. This move aims to streamline the reporting process and align the terminology with the current administrative framework of the Republic of Azerbaijan.
In Azerbaijan, the Cabinet of Ministers serves as the highest executive body, responsible for implementing economic and social policies under the direction of the President. These regulatory updates are part of ongoing efforts to refine the legal environment for businesses in Baku and across the country, ensuring that financial oversight mechanisms remain consistent with national legislative standards and transparency requirements.
