As part of the implementation of the strategic objectives outlined in the Central Bank’s Financial Sector Development Strategy for 2024–2026, necessary measures are being taken to strengthen the institutional capacity of non-bank credit organizations (NBCOs) and enhance disclosure practices within the sector.
In accordance with the requirements of the Law of the Republic of Azerbaijan on Non-Bank Credit Organizations, the Management Board of the Central Bank approved the Minimum Requirements for External Audits in Non-Bank Credit Organizations by its decision dated 7 October 2025. The requirements entered into force on 22 November 2025.
The approved framework defines the criteria for selecting external auditors, requirements applicable to their activities, and the responsibilities of the Audit Committee in relation to the external audit process. It also establishes limitations, including the prohibition on the same external auditor conducting audit inspections of an NBCO for more than five consecutive years, as well as restrictions preventing audit personnel who have worked at the relevant NBCO within the previous three years from participating in the audit.
In addition, NBCOs are required to submit written information to the Central Bank by 15 December of each calendar year regarding the external auditor that will conduct the organization’s audit review, along with compliance with other established requirements.
These measures are expected to contribute to greater transparency, improved information accessibility, and the sustainable development of the NBCO sector.
The Central Bank will continue its initiatives aimed at strengthening institutional development and corporate governance within the NBCO sector, ensuring sound and sustainable operations, and expanding the application of internationally recognized best practices.
The full requirements can be accessed via the relevant link below.
https://e-qanun.az/framework/60879
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