Statement by the Minister of Foreign Affairs of the Republic of Azerbaijan HE Mr. E.Mammadyarov at the commemoration of the 20 Anniversary of the European Commission for Democracy through Law (Venice Commission) 5 june 2010

Committee of Ministers

The Committee of Ministers is the Council of Europe's decision-making body. It comprises the Foreign Affairs Ministers of all the member states, or their permanent diplomatic representatives in Strasbourg. It is both a governmental body, where national approaches to problems facing European society can be discussed on an equal footing, and a collective forum, where Europe-wide responses to such challenges are formulated. In collaboration with the Parliamentary Assembly, it is the guardian of the Council's fundamental values, and monitors member states' compliance with their undertakings.

• Documents

European Court of Human Rights

• General Information

The Convention for the Protection of Human Rights and Fundamental Freedoms was drawn up within the Council of Europe. It was opened for signature in Rome on 4 November 1950 and entered into force in September 1953.

The European Court of Human Rights set up under the Convention as amended by Protocol No. 11 is composed of a number of judges equal to that of the Contracting States. There is no restriction on the number of judges of the same nationality.

Judges are elected by the Parliamentary Assembly of the Council of Europe for a term of six years. The terms of office of one half of the judges elected at the first election expired after three years, so as to ensure that the terms of office of one half of the judges are renewed every three years.

Judges sit on the Court in their individual capacity and do not represent any State. They cannot engage in any activity which is incompatible with their independence or impartiality or with the demands of full-time office. Their terms of office expire when they reach the age of seventy.

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Commissioner for Human Rights
The Office of the Commissioner for Human Rights was established in 1999 as an independent institution within the Council of Europe. In accordance with his mandate, and without excluding the possibility of complementary actions, the Commissioner focuses his activity on four main areas. These are the promotion of the education in and awareness of human rights, the encouragement for the establishment of national human rights structures where they do not exist and facilitate their activities where they do exist, the identification of short-comings in the law and practice with regards to human rights and, lastly, the promotion of their effective respect and full enjoyment in all the member States of the Council of Europe.

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Partial Agreements in which Azerbaijan participates 

• Venice Commission

The European Commission for Democracy through Law, better known as the Venice Commission, is the Council of Europe's advisory body on constitutional matters. Established in 1990, the commission has played a leading role in the adoption of constitutions that conform to the standards of Europe's constitutional heritage.
Initially conceived as a tool for emergency constitutional engineering, the commission has become an internationally recognised independent legal think-tank.
It contributes to the dissemination of the European constitutional heritage, based on the continent's fundamental legal values while continuing to provide “constitutional first-aid” to individual states. The Venice Commission also plays a unique and unrivalled role in crisis management and conflict prevention through constitution building and advice.
All Council of Europe member states are members of the Venice Commission; in addition, Kyrgyzstan joined the commission in 2004 and Chile in 2005. Belarus is associate member, while Argentina, Canada, the Holy See, Israel, Japan, Kazakhstan, the Republic of Korea, Mexico, the United States and Uruguay are observers. South Africa has a special co-operation status similar to that of the observers.

The European Commission and OSCE/ODIHR participate in the plenary sessions of the Commission.

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3.ECONOMY AND BUSINESS

Parliamentary Assembly of the Council of Europe

Parliamentary Delegation of the Republic of Azerbaijan to PACE

Azerbaijan
6 Representatives / 6 Substitutes
Chairperson
Mr	SEYIDOV, Samad	Yeni Azerbaijan Party
Members
Mr	ABBASOV, Aydin	Independent
Mr	ABDULLAYEV, Akram	Yeni Azerbaijan Party
Mme	AKHUNDOVA, Elmira	Independent
Ms	GULIYEVA, Aynur	Musavat Party
Ms	HAJIYEVA, Gultakin	Independent
Mr	HUSEYNOV, Ali	Yeni Azerbaijan Party
Mr	HUSEYNOV, Rafael	Civil Solidarity Party
Mr	MIRZAZADA, Aydin	Yeni Azerbaijan Party
Ms	PASHAYEVA, Ganira	Independent

Permanent Secretariat	Strasbourg - Session
Mr Ruslan ISMAYILOV	Office: 5077/79
Delegation Secretary	Tel: 5137; 4618
	Fax: 4823
Milli Mejlis
Tel: +99412 439 86 23 (direct) / 97 50
Fax: +99412 493 49 43
Email: international@meclis.gov.az

Milli Mejlis	Tel: +99412 439 97 50
Parliamentary Ave. 1	Fax: +99412 493 49 43
AZ - 1152 Baku

RECOMMENDATION 1251 (1994)1 on the conflict in Nagorno-Karabakh

1.The Assembly notes that the Nagorno-Karabakh conflict broke out in 1988 and that it has already resulted in almost 20 000 deaths and more than one million refugees.

2.Its Committee on Relations with European Non-Member Countries has organised a series of hearings since 1992 which delegations from the Armenian and Azerbaijani Parliaments, the "leadership of Nagorno-Karabakh" and the "Azeri interested party of Nagorno-Karabakh" attended.

3.The Assembly notes with satisfaction that the ceasefire which came into force on 12 May 1994 has been relatively well complied with, and hopes that it will be followed up as soon as possible with a peace agreement signed by all the interested parties.

4.It welcomes the efforts of the CSCE's Minsk Group, the United Nations Security Council, the Government of the Russian Federation and the Interparliamentary Assembly of the CIS to encourage the warring parties to sign a peace agreement, as well as the agreement signed on 26 July 1994 by the Ministers of Defence of Armenia and Azerbaijan and the commander of the army of Nagorno-Karabakh, in which they affirm their commitment to observe the ceasefire and their eagerness to accelerate the signing of a political agreement.

5.The Assembly consequently recommends that the Committee of Ministers:
i.call on the governments of Council of Europe member states to make the necessary resources available to the CSCE's Minsk Group so that it can achieve its objectives, particularly the deployment of international observers in the war zone;
ii.renew political dialogue with the authorities of Armenia and Azerbaijan;
iii.as soon as the conditions are met, open its co-operation programmes to Armenia and Azerbaijan and, if these parties so wish, place experts at their disposal who could help draw up a political status for Nagorno-Karabakh.

1. Text adopted by the Standing Committee, acting on behalf of the Assembly, on 10 November 1994.

See Doc. 7182, report of the Committee on Relations with European Non-Member Countries, rapporteurs: MM. Pfuhl and Solé Tura.

RESOLUTION 1047 (1994)1 on the conflict in Nagorno-Karabakh

1.The Assembly notes with satisfaction that the ceasefire in Nagorno-Karabakh, which came into force on 12 May 1994, has been relatively well complied with and hopes that it will be followed up as soon as possible by a peace agreement between the warring parties.

2.This conflict, which broke out in 1988, has already resulted in almost 20 000 deaths and more than one million refugees.

3.The Assembly notes with satisfaction the efforts of the CSCE's Minsk Group, the Government of the Russian Federation, the United Nations Security Council, the Interparliamentary Assembly of the CIS and its own Committee on Relations with European Non-Member Countries to encourage the warring parties to sign a peace agreement.

4.It welcomes the agreement signed on 26 July 1994 by the Ministers of Defence of Armenia and Azerbaijan and the commander of the army of Nagorno-Karabakh, in which they affirm their commitment to observe the ceasefire and their eagerness to accelerate the signing of a political agreement, and calls urgently on all the warring parties to refrain from any hostile act which might jeopardise the fragile ceasefire that has been in force since 12 May 1994.

5.It declares its readiness to help promote the conclusion of a peace agreement to the best of its abilities, particularly by encouraging dialogue between parliamentarians from the parties concerned.

6.Finally, it calls on the warring parties to organise the return home of refugees on an urgent basis and to respect minority rights as advocated in its Recommendation 1201, and urgently calls on Azerbaijan and Turkey to immediately end the blockade of their means of communication with Armenia.

ECOMMENDATION 1263 (1995)1 on the humanitarian situation of the refugees and displaced persons in Armenia and Azerbaijan

1.The Assembly, referring to its Resolution 1059 (1995) on the humanitarian situation of the refugees and displaced persons in Armenia and Azerbaijan, recommends that the Committee of Ministers:

i.consider as a matter of urgency the critical situation arising from the sheer inadequacy of international assistance to the victims of the cruel conflict over Nagorno-Karabakh, and in particular to those driven from their homes;

ii.following its Recommendation 1247 (1994) on enlargement of the Council of Europe, invite the Council of Europe's Social Development Fund and its member states to enable refugees and displaced persons in Armenia, Azerbaijan and Georgia to benefit from financing by the fund, through its emergency account, possibly in co-ordination with United Nations and other international institutions involved;

iii.invite the governments of all member states:

a.to accept that international assistance through United Nations agencies, the International Committee of the Red Cross, the International Federation of Red Cross and Red Crescent Societies and non-governmental organisations will be required in the Caucasus for many years to come, and as a result to respond generously to their future appeals;

b.to offer the required expertise and manpower for de-mining the area in and around Karabakh;

c.to consider the creation of a unified United Nations agency for the Caucasus along the lines of UNRWA in Palestine and the establishment of a regional headquarters in Tbilisi, or of a similar co-ordinating mechanism;

d.to set up political dialogue with the authorities of Armenia, Azerbaijan and Georgia by confirming the offers of Council of Europe assistance, expertise and co-operation particularly in the areas of human rights, the introduction of parliamentary democracy, and, where appropriate, protection of minority rights and cultural identity.

RESOLUTION 1059 (1995)1 on the humanitarian situation of the refugees and displaced persons in Armenia and Azerbaijan

1.The Assembly deplores that the Nagorno-Karabakh conflict, which broke out in 1988, has resulted in untold human suffering, leaving thousands dead, tens of thousands wounded and more than one million refugees and displaced persons in Armenia and Azerbaijan.

2.The last figure includes hundreds of thousands who were compelled to leave their homes following threats, reports of atrocities committed, or orders issued by the Soviet authorities before 1991.

3.Following the independence of Armenia and Azerbaijan in 1991, their economies have seriously deteriorated. The situation is aggravated by the effects of the conflict and of the economic blockades by neighbouring countries.

4.As a result, the populations of both countries have experienced a serious decrease in living standards, and are facing increasing hardships, including rising unemployment and severe shortages of water, fuel and energy. The United Nations estimates that over one million people in both countries are now living below poverty level.

5.The refugees in particular, and especially those living in inadequate tents in Azerbaijan, are facing extreme hardships through a lack of basic warmth, food and medical support.

6.United Nations programmes have been established in both countries since December 1992. However, their funding is far from adequate to meet the needs of the situation.

7.In addition, United Nations agencies are advising and assisting both governments on the transition to market economies, decentralisation, and the provision of databases for health and education programmes. However, these services, currently conducted from separate headquarters in the countries concerned, including Georgia, are hampered by certain obstacles to co-operation, and their provision may not represent the most efficient deployment of expertise, management, and resources over the long term.

8.The Assembly recalls its Recommendation 1251 (1994) welcoming the ceasefire which came into force on 12 May 1994, calling on all sides to refrain from any hostile act which might prejudice it, and offering to help promote a peace agreement to the best of its abilities, particularly by encouraging dialogue between the parliamentarians from the parties concerned.

9.The Assembly reiterates its calls on the warring parties to organise the earliest possible return home of those refugees who wish to do so, with compensation for those who wish to resettle elsewhere; to respect minority rights; and for an immediate end to the blockades of all means of transport and communication between them and those imposed by Russia and Turkey.

10.The Assembly urges:

i.the Armenian, Azeri, and Georgian Governments to co-operate to the fullest extent with United Nations agencies and non-governmental organisations in the provision of emergency relief and longer term programmes for health, education, rehabilitation, and development;

ii.the Georgian Government to accept the return and resettlement of the Meskhetian Turks, with United Nations assistance, and calls on the United Nations to give special emphasis to the situation of this particularly vulnerable group;

iii.the European Union, through its Humanitarian Office, to step up its aid to the vulnerable populations of the southern Caucasus.

11.Finally, the Assembly calls for greater international efforts to help re-establish peace and to improve the humanitarian situation in the Caucasus, and, to this end, encourages the governments and parliaments of member states to offer their assistance, expertise and co-operation to the region as it emerges from seventy years of isolation.

1. Text adopted by the Standing Committee, acting on behalf of the Assembly, on 15 March 1995. See Doc. 7250, report of the Committee on Migration, Refugees and Demography, rapporteur: Mr Atkinson; and Doc. 7266, opinion of the Committee on Relations with European Non-Member Countries, rapporteur: Mr Jeszenszky.

RESOLUTION 1119 (1997)1 on the conflicts in Transcaucasia

1. The Assembly considers that maintaining the cease-fires, in force in the Transcaucasian conflicts, particularly in Abkhazia and Nagorno-Karabakh since May 1994, should help to bring about political stabilisation in the zones of tension.

2. Following the various hearings held by its Committee on Relations with European Non-Member Countries, it hopes that rapid, decisive progress towards a political settlement of these conflicts will be made.

3. The three Transcaucasian countries – Armenia, Azerbaijan and Georgia – all hold special guest status and have applied for full membership of the Council of Europe. The Assembly considers that a genuine political will by all the parties to settle these conflicts would help to speed up the accession procedures.

4. The Assembly appeals to all parties directly or indirectly involved in these conflicts to participate constructively in the mediation work conducted on the ground, particularly by the United Nations, the Commonwealth of Independent States (CIS) and the Organisation for Security and Co-operation in Europe (OSCE).

5. Even though these two conflicts are different in nature, the Assembly stresses that their political settlement must be negotiated by all parties involved, drawing in particular on the following principles, which are based upon the 1975 Helsinki Final Act and the 1990 Paris Charter:

i. inviolability of borders; ii. guaranteed security for all peoples in the areas concerned, particularly through multinational peacekeeping forces;

iii. extensive autonomy status for Abkhazia and Nagorno-Karabakh to be negotiated by all the parties concerned; iv. right of return of refugees and displaced persons and their reintegration respecting human rights.

6. The Assembly considers that in the Transcaucasian countries, the Council of Europe should make a genuine contribution to establishing the rule of law, pluralist democracy, the protection of human rights and the creation of a social market economy. A. In connection with Abkhazia,

7. The Assembly is interested to note certain signs of rapprochement between the positions of Tbilisi and Sukhumi and hopes that a negotiated political settlement will soon be reached on the basis of the above-mentioned principles.

8. It hopes that the efforts of the parties concerned and also of the United Nations, the OSCE and the Russian Federation, will soon lead to an institutional balance acceptable to both Tbilisi and Sukhumi, so that the refugees can return under optimum security conditions and the populations of the region can return to peace and economic prosperity. B. With regard to Nagorno-Karabakh,

9. The Assembly welcomes the continued dialogue between Armenian and Azeri parliamentarians, particularly as part of the seminar on the conflicts in Transcaucasia organised by its Committee on Relations with European Non-Member Countries in Strasbourg on 26 January 1997, and welcomes in this connection the resumption of the activities of the OSCE Minsk Group on Nagorno-Karabakh, which it encourages to continue negotiations with a view to securing an early settlement of the conflict.

10. It appeals to all parties to the conflict to intensify direct negotiations with a view to achieving a political settlement to the conflict guaranteeing restitution of occupied territories and the return of refugees and displaced persons, satisfactory alternative status for Nagorno-Karabakh as well as its security.

11. Finally, it expresses the wish that in the long run the three Transcaucasian countries – Armenia, Azerbaijan and Georgia – envisage the creating of a community of Transcaucasian states and the setting up of a joint parliamentary assembly.

1. Assembly debate on 22 April 1997 (10th and 11th Sittings) (see Doc. 7793, report of the Committee on Relations with European Non-Member Countries, rapporteur: Mr Seitlinger). Text adopted by the Assembly on 22 April 1997 (11th Sitting).

Resolution 1416 (2005)

The conflict over the Nagorno-Karabakh region dealt with by the OSCE Minsk Conference

1. The Parliamentary Assembly regrets that, more than a decade after the armed hostilities started, the conflict over the Nagorno-Karabakh region remains unsolved. Hundreds of thousands of people are still displaced and live in miserable conditions. Considerable parts of the territory of Azerbaijan are still occupied by Armenian forces, and separatist forces are still in control of the Nagorno-Karabakh region.

2. The Assembly expresses its concern that the military action, and the widespread ethnic hostilities which preceded it, led to large-scale ethnic expulsion and the creation of mono-ethnic areas which resemble the terrible concept of ethnic cleansing. The Assembly reaffirms that independence and secession of a regional territory from a state may only be achieved through a lawful and peaceful process based on the democratic support of the inhabitants of such territory and not in the wake of an armed conflict leading to ethnic expulsion and the de facto annexation of such territory to another state. The Assembly reiterates that the occupation of foreign territory by a member state constitutes a grave violation of that state’s obligations as a member of the Council of Europe and reaffirms the right of displaced persons from the area of conflict to return to their homes safely and with dignity.

3.The Assembly recalls Resolutions 822 (1993), 853 (1993), 874 (1993) and 884 (1993) of the United Nations Security Council and urges the parties concerned to comply with them, in particular by refraining from any armed hostilities and by withdrawing military forces from any occupied territories. The Assembly also aligns itself with the demand expressed in Resolution 853 of the United Nations Security Council and thus urges all member states to refrain from the supply of any weapons and munitions which might lead to an intensification of the conflict or the continued occupation of territory.

4. The Assembly recalls that both Armenia and Azerbaijan committed themselves upon their accession to the Council of Europe in January 2001 to use only peaceful means for settling the conflict, by refraining from any threat of using force against their neighbours. At the same time, Armenia committed itself to use its considerable influence over Nagorno-Karabakh to foster a solution to the conflict. The Assembly urges both governments to comply with these commitments and refrain from using armed forces against each other and from propagating military action.

5. The Assembly recalls that the Council of Ministers of the Conference on Security and Co-operation in Europe (CSCE) agreed in Helsinki in March 1992 to hold a conference in Minsk in order to provide a forum for negotiations for a peaceful settlement of the conflict. Armenia, Azerbaijan, Belarus, the former Czech and Slovak Federal Republic, France, Germany, Italy, the Russian Federation, Sweden, Turkey and the United States of America agreed at that time to participate in this conference. The Assembly calls on these states to step up their efforts to achieve the peaceful resolution of the conflict and invites their national delegations to the Assembly to report annually to the Assembly on the action of their government in this respect. For this purpose, the Assembly asks its Bureau to create an ad hoc committee comprising, inter alia, the heads of these national delegations.

6. The Assembly pays tribute to the tireless efforts of the co-chairs of the Minsk Group and the Personal Representative of the OSCE Chairman-in-Office, in particular for having achieved a ceasefire in May 1994 and having constantly monitored the observance of this ceasefire since then. The Assembly calls on the OSCE Minsk Group co-chairs to take immediate steps to conduct speedy negotiations for the conclusion of a political agreement on the cessation of the armed conflict. The implementation of this agreement will eliminate major consequences of the conflict for all parties and permit the convening of the Minsk Conference. The Assembly calls on Armenia and Azerbaijan to make use of the OSCE Minsk Process and to put forward to each other, via the Minsk Group, their constructive proposals for the peaceful settlement of the conflict in accordance with the relevant norms and principles of international law.

7. The Assembly recalls that Armenia and Azerbaijan are signatory parties to the Charter of the United Nations and, in accordance with Article 93, paragraph 1 of the Charter, ipso facto parties to the statute of the International Court of Justice. Therefore, the Assembly suggests that if the negotiations under the auspices of the co-chairs of the Minsk Group fail, Armenia and Azerbaijan should consider using the International Court of Justice in accordance with Article 36, paragraph 1 of its statute.

8. The Assembly calls on Armenia and Azerbaijan to foster political reconciliation among themselves by stepping up bilateral inter-parliamentary co-operation within the Assembly as well as in other forums such as the meetings of the speakers of the parliaments of the Caucasian Four. It recommends that both delegations should meet during each part-session of the Assembly to review progress on such reconciliation.

9. The Assembly calls on the Government of Azerbaijan to establish contact, without preconditions, with the political representatives of both communities from the Nagorno-Karabakh region regarding the future status of the region. It is prepared to provide facilities for such contacts in Strasbourg, recalling that it did so in the form of a hearing on previous occasions with Armenian participation.

10. Recalling its Recommendation 1570 (2002) on the situation of refugees and displaced persons in Armenia, Azerbaijan and Georgia, the Assembly calls on all member and Observer states to provide humanitarian aid and assistance to the hundreds of thousands of people displaced as a consequence of the armed hostilities and the expulsion of ethnic Armenians from Azerbaijan and ethnic Azerbaijanis from Armenia.

11. The Assembly condemns any expression of hatred portrayed in the media of Armenia and Azerbaijan. The Assembly calls on Armenia and Azerbaijan to foster reconciliation and to restore confidence and mutual understanding among their peoples through schools, universities and the media. Without such reconciliation, hatred and mistrust will prevent stability in the region and may lead to new violence. Any sustainable settlement must be preceded by and embedded in such a reconciliation process.

12. The Assembly calls on the Secretary General of the Council of Europe to draw up an action plan for support to Armenia and Azerbaijan targeted at mutual reconciliation processes, and to take this resolution into account in deciding on action concerning Armenia and Azerbaijan.

13. The Assembly calls on the Congress of Local and Regional Authorities of the Council of Europe to assist locally elected representatives of Armenia and Azerbaijan in establishing mutual contacts and interregional co-operation.

14. The Assembly resolves to analyse the conflict-settlement mechanisms existing within the Council of Europe, in particular the European Convention for the Peaceful Settlement of Disputes, in order to provide its member states with better mechanisms for the peaceful settlement of bilateral conflicts as well as internal disputes involving local or regional territorial communities or authorities which may endanger human rights, stability and peace.

15. The Assembly resolves to continue monitoring on a regular basis the evolution of this conflict towards its peaceful resolution and decides to reconsider this issue at its first part-session in 2006.

1. Assembly debate on 25 January 2005 (2nd Sitting) (see Doc. 10364, report of the Political Affairs Committee, rapporteur: Mr Atkinson). Text adopted by the Assembly on 25 January 2005 (2nd Sitting).

Framework Convention for the Protection of National Minorities

 The Framework Convention for the Protection of National Minorities of 1994 entered into force on 1 February 1998. Thirty-eight States are currently Party¹ to it.

Although not the only instrument to be developed within the Council of Europe relevant to the protection of national minorities, the Framework Convention for the Protection of National Minorities is certainly the most comprehensive document in this area. Indeed, it is the first ever legally binding multilateral instrument devoted to the protection of national minorities in general.

The Framework Convention sets out principles to be respected as well as goals to be achieved by the Contracting Parties, in order to ensure the protection of persons belonging to national minorities, whilst fully respecting the principles of territorial integrity and political independence of States. The principles contained in the Framework Convention have to be implemented through national legislation and appropriate governmental policies. It is also envisaged that these provisions can be implemented through bilateral and multilateral treaties.

The main operative part of the Framework Convention is section II, containing specific principles on a wide range of issues, inter alia :

- non-discrimination;
- promotion of effective equality;
- promotion of the conditions regarding the preservation and development of the culture and preservation of religion, language and traditions;
- freedoms of assembly, association, expression, thought, conscience and religion;
- access to and use of media;
- linguistic freedoms:
- use of the minority language in private and in public as well as its use before administrative authorities;
- use of one's own name;
- display of information of a private nature;
- topographical names in the minority language;
- education:
- learning of and instruction in the minority language;
- freedom to set up educational institutions;
- transfrontier contacts;
- international and transfrontier co-operation;
- participation in economic, cultural and social life;
- participation in public life;
- prohibition of forced assimilation.

The monitoring mechanism of the Framework Convention is based on Articles 24 - 26 of the Framework Convention for the Protection of National Minorities and on the Committee of Ministers' Resolution (97) 10 as well as other relevant decisions. The evaluation of the adequacy of the implementation of the Framework Convention by the Parties is to be carried out by the Committee of Ministers, which is assisted by the Advisory Committee. The Advisory Committee is composed of 18 independent and impartial experts appointed by the Committee of Ministers.

The States Parties are required to submit a report containing full information on legislative and other measures taken to give effect to the principles of the Framework Convention within one year of the entry into force. These state reports are made public and examined by the Advisory Committee, which is to prepare an Opinion on the measures taken by each reporting State. Having received the Opinion of the Advisory Committee and the comment from the respective State, the Committee of Ministers is called on to adopt conclusions and, where appropriate, recommendations in respect of the State Party concerned.

The Advisory Committee has received 35 state reports and adopted 34 Opinions during the First Cycle. As a rule, the opinions of the Advisory Committee shall be made public at the same time as the conclusions and recommendations of the Committee of Ministers together with any comments the Contracting Party may have submitted in respect of the opinion delivered by the Advisory Committee. States may make the opinions of the Advisory Committee and the comments of the States concerned public at an earlier date.

With respect to various working methods designed over the first years of its operation, perhaps the most important step was the introduction of country-visits by the relevant working groups of the Advisory Committee as a customary element of the monitoring procedure.

The Advisory Committee was pleased to note that most of the countries concerned welcomed the Opinions of the Advisory Committee and provided constructive comments on them, in many cases indicating that the Opinion has already prompted increased action to address specific shortcomings in the implementation of the Framework Convention. The Opinions appear to have stimulated fresh rounds of interdepartmental discussions within governments and in some cases they have prompted an immediate dialogue with national minorities on the issues raised.

The Committee of Ministers has adopted Conclusions and Recommendations in respect of 33 countries.

It is imperative that these Opinions, together with the resolutions of the Committee of Ministers, are translated into the language(s) of the countries concerned. So far, a number of States have already done this, but there remains scope for improvement in this respect.

In all resolutions adopted so far on the implementation of the Framework Convention the Committee of Ministers has asked the country concerned to "continue the dialogue in progress" with the Advisory Committee and to keep the Advisory Committee regularly informed of the measures taken in response to the conclusions and recommendations of the Committee of Ministers.

In particular, a number of State Parties have taken the initiative to organise, in co-operation with the Council of Europe, so-called "follow-up seminars", bringing together governmental representatives, experts from the national administration, representatives from the civil society, as well as members of the Advisory Committee, to discuss the implementation of the first results of the monitoring of the Framework Convention in the country concerned.

Partial Agreements in which Azerbaijan participates

MONEYVAL

General Information

The Select Committee of Experts on the Evaluation of Anti-Money Laundering Measures - MONEYVAL (formerly PC-R-EV) was established in 1997. Money laundering, i.e. the process through which criminals give an apparently legitimate origin to proceeds of crime, is an expanding and increasingly international phenomenon. It may particularly affect economies which are undergoing transformation and which offer significant opportunities for foreign investment. The financial regulatory framework, both in banking and non-banking sectors, is often less stringent in these countries than in others, which make them vulnerable to money laundering operations. Given the diverse illegal activities, including money laundering, of organised crime groups in some of these countries and, in exceptional cases, their alleged infiltration into entire national economies, it seems that it is in their vital interest to create and maintain a credible financial system capable of detecting, preventing and controlling money laundering.

In addition, recent experience has shown that organised terrorist groups also misuse the world's financial system to fund their illegal operations, thus posing a serious risk to financial institutions of being used for hiding terrorist money. Measures aiming at the prevention and deterrence of money laundering therefore need to be extended to terrorist financing.

The establishment of an efficient anti-money laundering system is due in many countries to the enforcement of national and international anti-money laundering measures and their regular monitoring through international bodies, such as the Financial Action Task Force on Money Laundering (FATF)¹. The monitoring, which implies evaluating each other's performance in so-called "peer groups", greatly enhances the compatibility of national norms with international standards in the financial, law enforcement and judicial sectors.

Documents

FIRST DETAILED ASSESSMENT REPORT ON

AZERBAIJAN

REPORT ON THE STANDARDS FOR ANTI-MONEY

LAUNDERING AND COUNTERING TERRORIST

FINANCING

A. Introduction

1. This Report on the Observance of Standards and Codes (ROSC) for the FATF 40 Recommendations for Anti-Money Laundering and 8 Special Recommendations for Combating the Financing of Terrorism (FATF 40+8 Recommendations) was prepared by the MONEYVAL Secretariat on the basis of the Detailed Assessment report1 on Azerbaijan, which was adopted at the plenary meeting of the MONEYVAL Committee in Strasbourg, 10 December 2003. The report summarizes the level of observance of the FATF 40+8 Recommendations and provides recommendations to enhance observance.

B. Information and Methodology used for the Assessment

2. This assessment is based on a review of the AML/CFT legislation and regulations of Azerbaijan. Furthermore, the assessment team received from the Azerbaijani authorities information on the capacity and implementation of criminal law enforcement systems, and on supervisory and regulatory systems to deter money laundering and financing of terrorism.

The assessment team held discussions with officials and technical experts from a number of Azerbaijani department and agencies, as well as financial institution representatives from the private sector. The assessment is based on the information available at the time of the on-site visit in Baku, 26-30 May 2003.

C. Main Findings

3. The AML/CFT regime in Azerbaijan is very under-developed. There is not yet in place a Financial Intelligence Unit (FIU), and there is no general anti-money laundering law. There are no reporting obligations in cases of suspicion of money laundering or terrorist financing.

Likewise identification and record keeping requirements, other than in respect of general account opening by banks, are seriously deficient. As a consequence, Azerbaijan is noncompliant or materially non-compliant with regard to a very large number of the FATF 40 Recommendations and the 8 Special Recommendations. The criminalisation of money laundering is very limited, and the criminalisation of the financing of terrorism needs extending. At the time of the on-site visit there were no money laundering or terrorist financing investigations, prosecutions or convictions. On the positive side, the Azerbaijani authorities are taking the problem seriously, which has resulted in the creation of an Expert Committee by the Cabinet of Ministers. This Committee consists of members of all relevant state agencies, and has been set up to assess the existing AML/CFT framework and to prepare an outline of measures to be taken.

(i) Criminal Justice Measures and International Co-operation

Criminalisation of Money Laundering and Financing of Terrorism

4. Azerbaijan is a party to most international conventions relevant to AML/CFT. However, the UN 2000 Convention against Transnational Organised Crime (the Palermo Convention) had not been ratified at the time of the on-site visit. The Convention should be ratified as soon as possible. Money laundering is criminalised under Article 241 of the Criminal Code. It covers "the laundering of funds or other assets gained from illicit trafficking of narcotic drugs and psychotropic substances, namely the realisation of financial or other tranactions by using the funds or other assets gained from illicit trafficking of narcotic drugs and pyschotropic substances, as well as the use of such funds or other assets for the purposes of business or other economic activity" and carries a maximum penalty of 7 to 12 years, with or without the confiscation of assets. However, as noted, it is limited only to a range of predicate offences all associated with illegal trafficking in drugs and psychotropic substances. The law should extend the predicate offences for money laundering to all serious proceeds-generating offences, including corruption and those offences committed by organised crime, as well as offences of financing of terrorism. Article 214-1 of the Criminal Code, which was adopted on 17 May 2002, provides for the criminalisation of the financing of terrorism. The offence covers " intentionally directing of funds or other assets, partially or wholly, directly or indirectly, to the perpetration of terrorism as well as intentionally collecting funds or other assets for that purpose" with a penalty of imprisonment of between 8 and 12 years with the confiscation of property. The provision covers only terrorism as such, and not the financing of terrorist organisations.

Confiscation of Proceeds of Crime or Property used to Finance Terrorism

5. Confiscation can be applied only where it is explicitly stated in a specific offence, as in the case of (drugs) money laundering. In some offences, where confiscation is explicitly referred to in the offence, its use is only discretionary. Legal provisions setting out the principles for the use of the confiscation regime should be addressed. The evaluators consider that the confiscation regime should be mandatory in particular types of offences, including money laundering, and possibly drug trafficking and other major proceedsgenerating offences The Azerbaijani authorities should carefully review their legislation to satisfy themselves that it is generally capable of confiscating both proceeds (with the wide

meaning that is attached to the term by the Strasbourg Convention), property and instrumentalities. There is no comprehensive normative act providing a mechanism to implement the freezing, without delay, of assets deposited into a bank account. There should also be put in place a detailed and comprehensive regulatory mechanism to implement freezing or seizure of property that is the proceeds of, or used in, or intended or allocated for use in the financing of terrorism. The National Bank has, in practice, been able to freeze terrorist-related deposits. There is generally a lack of relevant statistics with regard to freezing, seizure and confiscation orders.

6. In order to reach a sufficient level of expertise in the field of asset tracing, freezing and seizure and investigation of money laundering and financing of terrorism cases, much more training is necessary for the relevant agencies, including training in modern financial investigative techniques.

The FIU and processes for receiving, analysing, and disseminating intelligence at the domestic and international levels

7. There is no FIU, or any other mechanism in place, which receives reports of cases of suspicious transactions or activities from the financial sector or other businesses. The evaluation team recommend the creation of an FIU as a matter of urgency. The proposed FIU should be adequately structured, funded and staffed, and provided with sufficient technical and other resources to fully perform its functions. The FIU should have access to relevant registers, and it should be authorised to disseminate financial information and other intelligence both to the national law enforcement authorities and to foreign FIU's.

Law enforcement and prosecution authorities, powers and duties

8. The Police are under the responsibility of the Ministry of Interior. There are special Sections e.g. on Drugs and on Organised Crime. The Ministry of National Security is responsible for the investigation of criminal cases on acts of terrorism. The investigations by police forces from both ministries are carried out under the supervision of the Office of the Public Prosecutor. The police have normal investigative powers, such as search and surveillance, when conducting investigations relating to money laundering or terrorist financing. As for further special investigative techniques, such as controlled deliveries, undercover operationsand the use of informers, these can be applied for in special circumstances, but are - according to the Azerbaijani authorities - believed to be more relevant in international cases than in domestic cases. For the production of bank records, the police always need a court order, i.e. the prosecutor will also have to be involved.

9. The Customs Service checks the flow of cash, the import and export of goods across the border and is in charge of investigations against smuggling and customs violations.

10. The Ministry of Tax is responsible for the investigation of cases concerning illegal and false entrepreneurship and of tax offences. The Ministry of Tax can furthermore be involved in 26 different types of cases, if the case was started on the basis of either illegal/false entrepreneurship or tax offences. Examples are certain cases of fraud, theft, counterfeiting of money and bribery. Where relevant, joint investigation teams between the Ministry of Tax and other law enforcement authorities, including the police, can be established.

11. Generally, the law enforcement authorities in Azerbaijan have sound investigative powers. Nonetheless, the Azerbaijani authorities produce very few concrete results in relation to AML/CFT. There have, as noted, been no investigations, prosecutions or convictions in relation to article 214-1 or 241 of the Criminal Code. The evaluation team recommends, that even within the limited scope of the money laundering offence under article 241 of the Criminal Code, there should be room for initiating specific money laundering investigations. In this regard, closer co-operation between the Customs Services, the police and the Prosecutors Office is needed.

International Co-operation

12. Azerbaijan has joined the UN Convention for the Suppression of the Financing of Terrorism, the Council of Europe Convention on Extradition (including additional protocols) and has signed the Council of Europe Convention on Mutual Legal Assistance in Criminal Matters. Furthermore, a number of bilateral agreements on various aspects of legal assistance are in place. The specific issue of co-operative investigations is tackled both in an agreement between Azerbaijan, Georgia and Turkey and in an agreement between the GUUAM states (Georgia, Ukraine, Uzbekistan, Azerbaijan and Moldova).

13. There is a specific Law on Extradition, which applies where there is no relevant bilateralagreement between Azerbaijan and a requesting state concerning the extradition of a charged person. Azerbaijani citizens cannot be extradited to a foreign state.

14. Requests for mutual legal assistance (excluding requests for extradition) in 2001 numbered 253, and in 2002, 144. All these requests were satisfied. In the same years, Azerbaijan received 22 and 17 requests for extradition. 11 and 7 of those requests were satisfied in 2001 and 2002 respectively. The reason for failure to satisfy the other extradition requests was because they related to Azerbaijani nationals. In spite of the positive statistics, Azerbaijan can only assist on coercive measures relating to money laundering cases, if the predicate crime abroad relates to the various drugs crimes enumerated in article 241. In the view of the evaluators, this is a serious obstacle to efficient international legal assistance in this field, and an early enactment of a broader based money laundering offence is recommended as a matter of urgency to remedy this.

(ii) Preventive measures for Financial Institutions

Prudentially-regulated sectors

General framework

15. The most serious general impediment to effective implementation of the FATF

Recommendations and other international standards is the lack of a general preventive law and the lack of a central authority to ensure the proper implementation of the law. The evaluators recommend that Azerbaijan urgently drafts the law on prevention of money laundering and terrorist financing. This law must - apart from defining the general AML/CFT obligations - provide for the establishing of a competent state authority (the FIU) to receive suspicious transaction reports.

Customer Identification

16. The client identification requirements for banks in relation to account opening are based on the regulation of the National Bank on Organising Internal Control and Internal Audit. It seems generally to be sound, though so-called "nameless accounts" are available as deposit accounts (though the evaluators were advised no transactions can be effected through them). As explained, they seemed more akin to numbered accounts, as they are only opened for previously identified account holders. None-the-less, the evaluators considered them a potential money laundering danger. The team was advised that a law was being drafted which provides that banks must close them within eighteen months. For securities firms there is a general requirement in the Rules on the Realisation of Broker Activity in the Securities Market for securities intermediaries to seek from their customers information about their identity. However, there is a lack of formal identification requirements in the insurance sector, which is a serious obstacle to prevention of this sector from misuse for the purposes of money laundering or financing of terrorism. It is recommended, as a matter of priority, that a clear customer identification regime should be put in place for the insurance sector.

Ongoing monitoring of accounts and transactions

17. No detailed obligations are set out in the National Bank Rules covering ongoing monitoring of accounts and transactions. The evaluators recommend that the Azerbaijani authorities provide directly in legislation that credit and financial institutions must perform ongoing monitoring of accounts and transactions for the purpose of preventing money laundering and financing of terrorism. The evaluators were not provided with information about the extent to which banks are able to recognise jurisdictions as non-cooperative in terms of money laundering prevention. The evaluators recommend that the National Bank consider providing all financial institutions in Azerbaijan with information about which countries and jurisdictions should be considered non-cooperative in an AML/CFT context, and to keep it updated.

Record-keeping

18. The requirements for the banking sector concerning record-keeping seem to be relatively comprehensive. However, in the insurance and securities sectors, currently there is a complete lack of formal requirements or obligations to record relevant information on customers and transactions. The evaluators recommend that Azerbaijan introduces as a matter of urgency formal record-keeping requirements in the insurance and securities sectors.

Suspicious transactions reporting

19. There is no formal reporting regime of suspicious transactions/activities. This is crucial to the effectiveness of the entire AML/CFT framework. The evaluators recommend that Azerbaijan, as a matter of the highest priority, should set up a system of mandatory reporting of suspicious transactions and activities. The reporting obligation should relate both to suspicions concerning money laundering and to suspicions concerning financing of terrorism.

Internal controls, compliance and audit

20. In accordance with the regulation of the National Bank on Organising Internal Control and Audit in Banks, banks must establish programmes which include internal control, procedures and policies, law compliance, employee training and an audit function of the internal system. However, the regulation is of a general character, and none of its provisions relate directly to AML/CFT matters. Furthermore, in the insurance and securities sectors, no screening procedures are in place for ensuring high standards when hiring staff. The evaluators also recommend including in a new comprehensive preventive law components relating to the internal control of AML/CFT procedures and training of staff. The evaluators furthermore recommend that the National Bank considers amending the Corporate Management Standards in order to include more specific requirements concerning prevention of money laundering and terrorism financing. Moreover, the evaluators recommend providing in the Law on Insurance and the Law on Securities that insurance companies and market intermediaries should be required to comply with standards for internal organisation and operational conduct.

Integrity standards

21. Applicants for banking licenses need to present to the National Bank the following documentation: Documents evidencing state registration as a company; the constituent instruments; the accounting balances, documents reflecting financial state of founders, accounts of profits and losses and audit statement; documentation relating to professional competence of candidates for leading positions and for the position of chief accountant, together with criminal records for the same persons. Furthermore, large shareholders (more than 10 % of the share capital) both in banks and in securities companies are checked by the respective supervisory bodies. No information was submitted to the evaluators on specific integrity standards in the insurance sector. The evaluators recommend providing in the legal acts regulating all financial sectors that all persons wishing to acquire large portions of shares (10 % or more) of credit or financial institutions, as well as those seeking to take management positions in these institutions must be adequately checked.

Enforcement powers and sanctions

22. The National Bank can exercise usual supervisory competences, including obtaining access to all information relating to the activities of the banks, including information on specific accounts. The powers of the National Bank to sanction the credit institutions in case of noncompliance with the legislation and the orders issued by the National Bank seem quite appropriate and wide-ranging. On the other hand, the evaluators recommend that the Azerbaijani authorities should ensure, that appropriate sanctions can be exercised by the supervisory bodies in the insurance and also the securities sectors, including the possibility of revocation of licenses.

Co-operation between supervisors and other competent authorities

23. The National Bank may submit information concerning evidence of criminal acts to law enforcement agencies and other appropriate authorities. The National Bank can also exchange information with foreign supervisory agencies. No information concerning how, in practice, the insurance and securities supervisory bodies can co-operate with other competent authorities, including foreign supervisors, was given to the evaluators.

Non-prudentially regulated sectors

Foreign exchange offices and money remitters

24. Licenses for foreign exchange services are issued by the National Bank and such operations can be carried out only by branches of commercial banks. Money remitters also must obtain a license from the National Bank in order to operate. The National Bank supervises both foreign exchange offices and money remitters. There is no money laundering prevention component in the programme of inspections. Changing money without a proper license constitutes a criminal offence.

Other businesses

25. In Azerbaijan there are no off shore companies, trusts, casinos or other gaming companies, other than one state-owned lottery. The evaluators recommend that the entire preventive regime, including customer identification, record keeping, training, internal reporting and suspicious transaction reporting should apply to all institutions and persons subject to the EC Directives 91/308/EEC and 2001/97/EC.

D. Summary Assessment of the FATF Recommendations

26. Azerbaijan still has a very long way to go before a sufficient level of compliance with the FATF 40 + 8 Recommendations is reached. Indeed, almost all aspects of the AML/CFT framework need additional attention, and in many areas the building of a new and eliable system is necessary and should be given the highest priority. One immediate priority should be the drafting and adoption of a general anti-money laundering act (covering also suspicions of terrorist financing), which should put in place including legal obligations concerning identification of clients, record-keeping, reporting of suspicions, training etc. Obligated parties under this law should be all intermediaries comprised by the two EU antimoney laundering directives. The second immediate priority should be the establishing, and making operational, of a Financial Intelligence Unit (FIU), which should be properly resourced and which should be able to exchange information, both with national law enforcement authorities and with foreign counterparts. Table 1 beneath summarizes recommended actions in areas relating to the FATF 40 + 8 Recommendations, and Table 2 contains other recommendations to further enhance the AML/CFT regime.

GRECO

General Information

The GRECO was conceived as a flexible and efficient follow-up mechanism, called to monitor, through a process of mutual evaluation and peer pressure, the observance of the Guiding Principles in the Fight against Corruption and the implementation of international legal instruments adopted in pursuance of the Programme of Action against Corruption. Full membership of the GRECO is reserved to those who participate fully in the mutual evaluation process and accept to be evaluated.

According to its Statute, the aim of the GRECO is to improve its members' capacity to fight corruption by monitoring the compliance of States with their undertakings in this field. In this way, it will contribute to identifying deficiencies and insufficiencies of national mechanisms against corruption, and to prompting the necessary legislative, institutional and practical reforms in order to better prevent and combat corruption.

GRECO is responsible, in particular, for monitoring observance of the Guiding Principles for the Fight against Corruption and implementation of the international legal instruments adopted in pursuit of the Programme of Action against Corruption (PAC). So far three such instruments have been adopted, the Criminal Law Convention on corruption (ETS n° 173), opened for signature on 27 January 1999, the Civil Law Convention on corruption (ETS n° 174), adopted in September 1999, opened for signature on 4 November 1999 and Recommendation R (2000) 10 on codes of conduct for public officials, adopted on 11 May 2000.

The Statute of GRECO defines a master-type procedure, which can be adapted to the different instruments under review. Any Member State of the Council of Europe or any non-Member State, having participated in the elaboration of this Agreement, may join the GRECO by so notifying the Secretary General of the Council of Europe. Moreover, any State which becomes Party to the Criminal or Penal Law Conventions or other Council of Europe legal instruments and which is not a member of GRECO, becomes one automatically and accepts its evaluation procedures.

The GRECO is an enlarged agreement providing for participation on an equal footing of both member States and certain non-member States having participated in the preparation of the Agreement. The opening of GRECO to non-Member States having participated in the elaboration of the Agreement was already established in Resolution (98) 7 and is given express recognition in the text of Resolution (99) 5 and in the wording of Article 4 of the Statute. Moreover, the Agreement aims at ensuring scrupulous observance of the principle of equality of rights and obligations among all members of the GRECO, whether or not they are members of the Council of Europe. The only condition imposed for full membership of GRECO is a willingness to participate without restrictions in the mutual evaluation procedures, which entails, in particular, agreeing to be evaluated by GRECO.

The Agreement establishing GRECO complies with Statutory Resolution (93) 28 on partial and enlarged agreements, adopted by the Committee of Ministers on 14 May 1993 at its 92^nd session, and with Resolution (96) 36 establishing the criteria for partial and enlarged agreements of the Council of Europe, adopted on 17 October 1996 at the 575^th meeting of the Ministers' Deputies. In accordance with Resolution (51) 62 on Partial Agreements, additional expenditure incurred by the Council of Europe in respect of any activity covered by the foregoing Partial Agreement is to be borne wholly by the member States participating in the activity and is entered in the budget of the GRECO Agreement.

The membership and functioning of GRECO are governed by its Statute and by its Rules of Procedure, adopted by GRECO at its first meeting (4-6 October 1999).

The Members States of GRECO appoint permanent representatives who participate in plenary meetings of GRECO and are entitled to vote. Other Council of Europe bodies may be granted to appoint representatives to participate in GRECO meetings, without a right to vote. Only GRECO sitting in plenary can adopt evaluation reports. GRECO elects its President, Vice-President and the members of its Bureau which has an important role to play in the organization of the evaluation procedures. GRECO may also decide to set up working parties. 

Mr Inam KARIMOV, Chief Adviser Department of Coordination of Law Enforcement Bodies Executive Office of the President of the Republic of Azerbaijan is the Head of Delegation of the Republic of Azerbaijan and Mr Kamran ALIYEV Senior Assistant to the Prosecutor General
is the member of this delegation.

Pompidou Group

General Information

The Co-operation Group to Combat Drug Abuse and Illicit Trafficking in Drugs (Pompidou Group) in an inter-governmental body formed in 1971 at the suggestion of the late French President Georges Pompidou.

Initially, this informal forum consisted of seven European countries - France, Belgium, Germany, Italy, Luxembourg, Netherlands, United Kingdom - looking to share their experience of combating drug abuse and drug trafficking. The cooperation was subsequently extended to include new countries and at present the Pompidou Group comprises 35 member states.

In 1980 the Group was incorporated into the institutional framework of the Council of Europe and today it is part of DG III, the Directorate General of Social Cohesion. Shortly after joining the Council of Europe, the Group embarked on one of the key features of its work: compiling and harmonising information so that trends in drug addiction could be closely monitored.

Since 1990, technical co-operation has been extended to countries of central and eastern Europe which are not members of the Pompidou Group. Furthermore, non-European countries, like Canada and the USA, have also been invited to take part in past activities.  

The Republic of Azerbaijan has acceded to the Pompidou Group in 2001. Azerbaijan is represented by Mr Araz Ramiz oglu ALIGULIYEV, Head of Drug-Abuse Clinic, Chief Specialist on Drug Abuse Issues, Ministry of Health.