In cooperation with the Azerbaijani Bar Association and the Financial Monitoring Service, the Council of Europe organised a workshop for lawyers, with the aim to promote their clear understanding of anti-money laundering and countering the financing of terrorism (AML/CFT) compliance, in line with international standards and best practices. The event was held over two days, for two separate groups of lawyers on 1 and 2 February 2023 respectively. 

The workshop helped enhance the knowledge and capacities of lawyers to better assess and understand money laundering and terrorist financing risks, and put in place relevant mitigating measures adapted to their particular profession. The international Council of Europe expertise provided at the workshop allowed to highlight key risk indicators and factors, related to the nature and size of a lawyer’s practice, the types of clients, types of products and services provided, and their geographical scope, inter alia.

The fundamentals of client risk assessment, such as examining whether a client’s main business activities and sources of funds align with the background and wider profile of the client, were also explained and illustrated through practical examples. The workshop also helped clarify which services under the legal profession are vulnerable to money laundering, and the extent to which the practice is exposed to such risks. 

Furthermore, lawyers developed their understanding on how to effectively perform customer due diligence and better identify beneficial owners. The importance of embedding a risk-based approach into internal policies and controls was reiterated. 

Additionally, the event created an open forum for debate over the notion of legal professional privilege and the complex relationship between the legal profession and the fight against economic crime. Discussions covered the question of how lawyers should act as ‘gatekeepers’ to prevent and combat money laundering, while also adhering to the privilege against disclosure to protect the clients' fundamental human rights. 

The event was of great significance for lawyers to increase their awareness on their role and obligations in the fight against money laundering and terrorism financing, particularly in the context of the newly adopted AML/CFT Law of the Republic of Azerbaijan. It raised their awareness and promoted their understanding of the key AML/CFT principles and requirements set forth in the national legislation and international standards, thereby helping lawyers better fulfil compliance requirements for their profession. 

The collaboration between the Azerbaijani Bar Association, the Financial Monitoring Service and the Council of Europe will continue, to further support the expansion of AML/CFT awareness, knowledge and practice among lawyers in Azerbaijan.  

This activity was organised within the framework of the project “Strengthening anti-money laundering and asset recovery in Azerbaijan”, funded by the European Union and the Council of Europe and implemented by the Council of Europe in their Partnership for Good Governance II.