Procedure of opening and operation of Azerbaijan local currency
1.1 The present Regulations have been developed in line with Articles 1, 10, 15, 16 and 17 of the Law of the Azerbaijan Republic “On currency regulation” dated 24.10.94;
1.2 Based on the Law “On currency regulation” persons recognised as non-residents in the Azerbaijan Republic may open bank accounts in authorised banks of the Azerbaijan Republic in currency of the Azerbaijan Republic (manat) in an order specified in the present Instruction of National Bank;
1.3 The present Regulations establish regime of manat accounts belonging to non-residents in authorised banks;
1.4 According to legislation of the Azerbaijan Republic regime of opening and operations with manat accounts of non-residents of the Azerbaijan Republic by authorised banks could be changed only by National Bank of the Azerbaijan Republic;
1.5 Non-residents — legal entities may open manat accounts in authorised banks of the Azerbaijan Republic only if they have their branches or representations on the territory of the Azerbaijan Republic;
Whenever there are no branches or representations on the territory of the Azerbaijan Republic, banks — non-residents may open correspondent accounts in manats in authorised banks of the Azerbaijan Republic;
1.6 Non-residents may open manat accounts intended for representations (except foreign diplomatic, trade and other official representations) in authorised banks of the Azerbaijan Republic with presentation of documents listed in the second part of the present Regulations;
1.7 Subject to the present Regulations, non-residents having opened manat accounts in authorised banks of the Azerbaijan Republic, according to legislation of the Azerbaijan Republic, without any limitations, may convert manat funds accumulated in their manat accounts in authorised banks as a result of their activity on the territory of the Azerbaijan Republic (except enlisted credits) at Baku Interbank Currency Exchange;
1.8 In accordance with regulations of National Bank of the Azerbaijan Republic on implementation of non-cash settlements non-residents may carry out non-cash settlements through manat accounts within the limits of money remaining in the account.
II. Procedure of opening of manat accounts by authorised banks for legal entities — non-residents
2.1 Manat accounts for legal entities — non-residents are opened after presentation to authorised bank of the following documents:
2.1.1 Copies of constituent documents, By-Laws ratified in the Embassies (Consulates) of the Azerbaijan Republic abroad, for banks — licences for implementation of banking activity (or other document permitting banking activity), other documents establishing legal status of non-resident in accordance with legislation of the country of residence location;
2.1.2 Representations of non-residents must present the first copy or a copy (ratified with a notary) of the document confirming registration in the Ministry of Foreign Economic Relations, branches — in the Ministry of Finances of the Azerbaijan Republic;
2.1.3 To carry out operations with bank accounts non-resident (branch or representation) should present specimens of signatures of authorised persons, seal (if any);
2.1.4 Certificate of Registration as a taxpayer in State Tax Inspection Body;
2.1.5 Permit of the central bank of foreign country for opening of the manat account if this is envisaged by international agreements with participation of the Azerbaijan Republic;
2.1.6 Application of the constitutor — non-resident;
2.1.7 Legal entity — non-resident has the right to order only one current account in manats. The first copies of the documents must be presented to the bank where the first manat account is opened. When opening other accounts the reference from the bank with the first manat account should be presented. Said reference must confirm the absence of account in this or other bank and registration of the enterprise in Tax Inspection;
2.2 Translation of the documents listed in the present section into Azerbaijanian must be approved either by the notary or Embassy (Consulate) of the Azerbaijan Republic in foreign country.
3.1 Money from the following sources may be placed into manat accounts of non-residents in authorised banks:
3.1.1 Money paid by residents for commodities imported to the territory of the Azerbaijan Republic and also money paid for work accomplished by non-resident and services rendered on the territory of the Azerbaijan Republic;
3.1.2 Money obtained as a result of sale of foreign currency at the domestic currency market in an order established by National Bank of the Azerbaijan Republic;
3.1.3 Sums of penalties paid by residents in favour of the owners of bank accounts for violation of contractual agreements;
3.1.4 Income of non-commercial character from residents;
3.1.5 Receipt of premiums — from voluntary and obligatory insurance;
3.1.6 Sums returned by residents because of change or violation of contractual terms;
3.1.7 Return of money formerly being on deposit account, and also sums obtained as a result of sale of other liabilities;
3.1.8 Percents paid against the balance on the account and allocated deposits;
3.1.9 Sums of consular fees paid by diplomatic representations of foreign countries.
3.2 Money from manat accounts, according to instructions of non-residents, may be used as follows:
3.2.1 For export of products outside the Azerbaijan Republic and also for payments on behalf of residents covering cost of accomplished work and rendered services;
3.2.2 For payments related to placement of money on bank deposits and other liabilities;
3.2.3 For payment of penalties resulted from agreements concluded with residents;
3.2.4 For transfers of non-commercial character in favour of residents;
3.2.5 For payment of taxes, duties and other obligatory payments, and also social insurance;
3.2.6 For payment of voluntary and obligatory insurance premiums;
3.2.7 For reimbursement of current expenditures related to maintenance of representations and branches;
3.2.8 For payment of commission fee to the bank servicing the account.
3.3 National Bank of the Republic may give cash to the residents from manat accounts of non-residents in an established order for payment of wages and similar sums, travelling allowances and current expenditures (petty cash) on condition of observance of cash limit. Cash limit in manats is established for non-residents by servicing banks. Authorised banks carry out control over observance of National Bank' Regulations on operations with cash by non-residents.
4.1 To open manat accounts physical persons — non-residents must present passport (or similar documents) and entry visa to authorised bank.
4.1 Regime of manat accounts opened for physical persons — non-residents in authorised banks is similar to regime of manat accounts of physical persons-residents.
5.1 Manat account of non-residents (including correspondent accounts of banks-non- residents in manats) are opened and operated on passive balance account No 603 “Manat accounts of foreign companies”.
According to the present regulations incoming sums are registered on credit account, and expenditures — on debit account.
5.2 For each owner of bank account analytical accounting is done.
With analytical and synthetic accounting (control) calculations are done in manats.
6.1 According to provisions of the present Regulations authorised banks, as agents on control over operations with foreign currency, carry out control over operations with manat accounts of non-residents.
6.2 Bodies of control over operations with foreign currency and authorised banks within the limits of their authority may request from the owners of bank accounts the documents necessary for control of conformity of operations with bank accounts to legislation of the Azerbaijan Republic. Required documents should be presented to said body of control over operations with foreign currency or authorised bank within 5 banking days. For delay in presentation of said documents to the body of control over operations with foreign currency or authorised bank non-resident — the owner of account will be responsible according to the legislation of the Azerbaijan Republic.
The Chairman of Board of Directors
of National Bank of the Azerbaijan Republic
E.S. Rustamov
9 August, 1995
No 04-28/411
