Envoy: Azerbaijan, US can contribute to building safer financial system

The United States and Azerbaijan can work together to strengthen global financial security and improve sanctions compliance across major transit routes, the US diplomatic representative in Baku has said.

Speaking at a conference in Baku on sanctions compliance and financial risk management, US Chargé d’Affaires Amy Carlon stressed that Azerbaijan’s geographical position gives it a pivotal role in ensuring transparency in regional and international trade flows, Caliber.Az reports via local media.

She said Azerbaijan, as a key transport hub linking Europe and Asia, plays an increasingly important role in global commerce and supply chain integrity, particularly through the Trans-Caspian International Transport Route, also known as the Middle Corridor.

“Azerbaijan’s strategic position as an indispensable participant in the Trans-Caspian International Transport Route (Middle Corridor) makes it a growing player in global commerce and in ensuring the integrity of international supply chains,” Carlon said, adding that strict compliance with sanctions regimes is essential for maintaining the credibility of these routes.

She also highlighted that emerging connectivity projects, including TRIPP, would further strengthen regional transport links and enhance the importance of Azerbaijan as a logistics hub.

According to Carlon, the scale and speed of modern trade create risks that certain actors may attempt to exploit, including the movement of dual-use goods and other sensitive items. She emphasised the need for “vigilant oversight and robust compliance mechanisms” involving both governments and the private sector.

The US diplomat reiterated Washington’s commitment to deepening cooperation with Azerbaijan and other regional partners to improve financial transparency and prevent sanctions evasion.

“We understand that sanctions compliance poses significant challenges for the private sector, from rapidly changing regulatory requirements to increasingly sophisticated methods of sanctions evasion,” she said, noting that the conference aimed to provide practical tools to address these challenges.

Carlon concluded that stronger cooperation on compliance issues would help build a more transparent financial system and support the development of what she described as an emerging strategic partnership between the two countries.

By Vugar Khalilov