BAKU, Azerbaijan, June 25. President of the Republic of Azerbaijan Ilham Aliyev has approved the country's law "On financial leasing".
The text of the law was published on the official website of the President of Azerbaijan.
The law defines the legal bases of financial leasing activity and the legal, organizational, and economic bases of regulation and control in this field in order to strengthen the role of financial leasing activity in development, promotion, and economic growth.
According to the law, new fines have been defined for violation of the legislation on financial lease.
Thus, due to failure to submit to the Central Bank of Azerbaijan (CBA), or incorrect submission of financial lease statements by individuals (excluding banks, local branches of foreign banks and non-bank credit organizations) to the CBA, officials will be fined from 1,000 manat ($590) to 1,500 manat ($882), and legal entities will be fined from 3,000 manat ($1,760) 5,000 manat ($2,940).
Within 9 months from the entry into force of the law, persons carrying out leasing activities in the country (including currently suspending leasing activities in accordance with normative legal acts) must adapt their activities to the requirements of this law and apply to the CBA to be included in the relevant register. During that period, persons who do not comply with the requirements of the law shouldn't conclude new financial lease agreements, should not allow the extension of existing leasing agreements, and should take measures in accordance with normative legal acts to remove the words "financial lease", "financial leasing", "leasing" or a combination of these words from the name of the company.
The law enters into force 6 months after its publication.
With another law approved by President Ilham Aliyev, a number of laws have been adapted to the law "On financial leasing".
