‘Approved’
Central Bank of the
Republic of Azerbaijan
Resolution № 25/4
18 December 2013

Regulations on compilation and submission of reports on financial operations and neutral operations of residents of the Republic of Azerbaijan with non-residents

1. General provisions

1.1. These Regulations have been developed in accordance with Article 63 of the Law of the Republic of Azerbaijan on the Central Bank of the Republic of Azerbaijan, Article 46.1 of the Law of the Republic of Azerbaijan on Banks, Article 13 of the Law of the Republic of Azerbaijan on Currency Regulation, and Resolution #25 of the Cabinet of Ministers of the Republic of Azerbaijan dated 8 February 1995 on ‘Compilation of forecast balance of payments of the Republic of Azerbaijan’ and regulate compilation and submission of reports on financial operations and neutral operations with non-residents.
1.2. The report on financial operations and neutral operations of residents of the Republic of Azerbaijan with non-residents provides for financial operations of banks, local branches of foreign banks, the national operator of postal communication (hereinafter – statistic units) with non-residents at the expense of funds of legal entities and individuals, as well as statistic units’ own funds and neutral operations. These Regulations are applied to reports directly submitted to the Central Bank of the Republic of Azerbaijan (hereinafter – the Central Bank) on financial operations of public authorities and resident legal entities with non-residents and neutral operations.
1.3. The Central Bank uses data submitted with respect to compilation of the forecast balance of payments only in a consolidated manner.
1.4. The balance of payments is a statistic reporting system that includes total financial operations of country residents with non-residents over a particular period. Objectives of this report, also the status of residency and non-residency used for neutral operations are understood as follows:
1.4.1. institutional unit’s residency status is determined not with the country of establishment (citizenship for individuals), but with its selection of any country’s economic area as the center of its economic interests, close connection with this area, and continuous operation in that area (for individuals – residing) over one year. Institutional units that fail to meet these conditions are considered non-residents;
1.4.2. Foreign diplomatic corps and other official representative offices located in the Republic of Azerbaijan, as well as international oganziations, their representative offices and branches, foreign students residing in the Republic of Azerbaijan are considered nonresidents.

2. Content and compilation of the report

2.1. The report 1-TB (Annex №1) includes financial operations of residents with nonresidents and neutral operations in terms of currency (including manat) (in thousand units).
2.2. Financial operations in the report 1-TB are recorded in terms of credit (proceeds) and debit (payments) based upon classification of standard components of indicators of the balance of payments under the requirements of the International Monetary Fund on group and operation types (Annex №4).
2.3. The report includes the number and the code of a country the non-resident belongs to on an operation type and code. At that if maturity of assets and liabilities is one year and below, it is recorded as short-term, while if over one year – long term.
2.4. Country, currency and code (under the classification of the United Nations) is automatically indicated in an encoded manner.
2.5. Payments for import of goods (debit transfers) are calculated and recorded on transferred amounts based upon payment documents presented to a statistic unit by customers over a month.
2.5.1. After the amount of paid funds and the payment date are inserted to a cargo customs declaration, that confirms import of goods from non-residents, the statistic unit includes requisites of those declarations to the annex to the 1-TB report (Annex №2).
2.5.2. Total amount of customers’ similar payments equal to total amount of import operations in the 1-TB report.
2.5.3. Amounts are written in full face value in the annex to the 1-TB report.
2.6. Financial transactions with non-residents including the flow of funds of statistical units in foreign bank accounts and accounts of non-residents (both banks and other entities) in statistical units are included to the report.
2.6-1. Information on neutral operations of residents and non-residents is annexed with the 1-TB report (Annex №3).
2.7. Financial operations of residents (both statistic units and other entities) with nonresidents through their accounts with foreign banks are included to the report.
2.8. Financial operations are recorded on the day, the funds are credited to and debited from a resident’s bank account.
2.9. Operations amounting to below USD 20.000 (twenty thousand) or in equivalent another foreign currency conducted over the period with the same foreign country on the same operation type in the same currency may be recorded on one row (e.g. total amount received from residents of Germany for goods exported from the Republic of Azerbaijan are grouped and recorded in the same row). At that, column 9 of the 1-TB report shows the numver of conducted operations. Operations amounting to over USD 200.000 (two hundered thousand) or in equivalent another foreign currency are recorded in column 8 of the 1-TB report, indicating the legal entity’s name or, if individual, relevance of the operation to an individual not mentioning the name.
2.10. Data both on cash and cashless payments are recorded in the 1-TB report.
2.11. The following operations are considered neutral for and not included to the balance of payments and inserted and submitted to the annex to the 1-TB report (Annex №3) under Item 2.1 herein:
2.11.1. operations between the same statistic unit’s correspondent accounts with non-resident banks;
2.11.2. operations between correspondent accounts of different statistic units with nonresident banks;
2.11.3. withdrawal of cash foreign currency from statistic unit’s correspondent accounts with n/resident banks, its bringing to the Republic of Azerbaijan in cash or taking cash currency out of the Republic of Azerbaijan and its crediting to correspondent accounts with n/resident banks;
2.11.4. operations on transfer of funds to accounts of the resident, who is serviced at a statistic unit, with non-resident banks or transfer of funds from resident’s accounts with non-resdient banks to the account serviced at a statistic unit;
2.11.5. operations on full or partial returning of funds of statistic units and other residents transferred from or to the Republic of Azerbaijan for whatever reason;
2.11.6. exchange operations of the statistic unit itself or the resident it services thorugh correposndent accounts of the very statistic unit with non-resident banks;
2.11.7. other operations not implied for compilation of the balance of payments (forex or other similar operations through correspondent accounts of the statistic unit itself or the resident or nonresident banks it services);
2.11.8. operations between non-residents via a correspondent account of the statistic unit it is serviced by.
2.11-1. Neutral operations are classified on types of operations under the recommendations of the IMF (Annex №5) and grouped as follows when classifying operations:
2.11-1.1. type 1 and 2 operations – on operations specified in subitems 2.11.1- 2.11.2 and
2.11.4- 2.11.7 herein;
2.11-1.2. type 3 and 4 operations – on operations specified in subitem 2.11.8 herein;
2.11-1.3. type 5 and 6 operations – on operations specified in subitem 2.11.3 herein.
2.12. Statisic unit’s credit or deposit operations in settlements with non-residents in the 1-TB report should comply with debit or credit turnover of relevant accounts in statistic unit’s consolidated accounting balance (excluding interaccount operations, interaccount correction operations, all accounting entry amounts on exchange rate differences).
2.13. Where letters of credit or advance payments are used in settlements with nonresidents, the flow of funds is recorded on the day the operations are conducted and included to the relevant reported period of the 1TB report.

3. Submission of the report

3.1. Monthly report on financial operations of residents of the Republic of Azerbaijan with non-residents and neutral operations should be consolidated by a statistic unit across all units and submitted to the Central Bank electronically within 10 (ten) business days following the reported period.
3.2. The report is approved with electronic signatures of statistic unit’s head, member, chief accountant or his/her substitute, or the head of the structural unit responsible for delivery of the report.