Azerbaijan has implemented new restrictions on banking operations involving foreign financial sources, with amendments signed by President Ilham Aliyev targeting unregistered foreign financial entities, Trend reported on July 31.

The new measures appear designed to strengthen financial monitoring and prevent potential misuse of banking systems by unregistered foreign entities operating within Azerbaijan's financial sector.

The changes are reflected in amendments to laws "On non-governmental organisations (public associations and foundations)" and "On combating the legalisation of property obtained by crime and the financing of terrorism" approved by the Azerbaijani president.

According to the amendments, banking functionalities and ancillary operations are prohibited from execution under contractual frameworks for service provision or work performance, particularly when financed by unregistered foreign financial entities.

Engaging in service delivery or executing tasks under unregistered agreements for service provision or task execution funded by external financial resources will result in corresponding administrative accountability under the new regulations.

The amendments also prohibit acquiring financial assets or other material resources in relation to such unregistered arrangements with foreign financial sources.