The Phase 2 review rates Azerbaijan as overall largely compliant with the international standard. Azerbaijan’s legal framework generally ensures that ownership, accounting and banking information are available and can be obtained in line with the standard. However, the Phase 1 review of Azerbaijan in 2015 identified a need for improvement in certain aspects of legal and regulatory framework including availability of ownership information on legacy bearer shares, minor gaps in the requirement for maintaining accounting information, certain obstacles and lack of clarity on access powers of tax authorities etc. In practice, the regulatory and administrative mechanism of Azerbaijan ensure that all relevant entities and arrangements in Azerbaijan maintain and report ownership and accounting information as required by the standard. The report notes that Azerbaijan has a well-established Exchange of Information system, processes and procedures to manage the exchange of information requests. During the review period, Azerbaijan has provided information to all its treaty partners within the prescribed timelines. Nevertheless, the gaps in the legal framework have not been addressed by Azerbaijan. Therefore, the phase 2 report retains the Phase 1 review recommendations. Further, the Phase-2 review recommends monitoring effective implementation of newly introduced legal obligations on nominees and on joint stock companies. Azerbaijan welcomed the review and expressed its strong commitment to acting on the recommendations made in the report. For further information on the exchange of information practice of Azerbaijan and to read the full report click here.