Foreign companies auditing banks in Azerbaijan’s occupied territories warned

# 14:17
6 February 2018

According to the Chamber, Financial Markets Supervisory Authority (FIMSA) applied to the Chamber of Auditors of Azerbaijan Republic about provision of audit services by GRANT Thornton CJSC Armenia" and "KPMG Armenia CJSC" to several Armenian banks (Artsakhbank, Ardshininvestbank and etc.) operating in the occupied territories of Azerbaijan, including Nagorno Karabakh.


Referring to the report of the Foreign Ministry "Illegal economic and other activities in the occupied territories of Azerbaijan", FIMSA asked Chamber of Auditors of Azerbaijan Republic take measures in this direction.


In connection with this, the Chamber of Auditors of Azerbaijan addressed the heads of heads of representatives and offices of foreign legal entities (foreign auditors) in Azerbaijan.


"By reminding the contradiction of such an activity in the occupied territories to the international legal norms, inadmissibility of violation of principles of Azerbaijan’s territorial integrity and sovereignty, we ask you to provide delivery of the appeal of warning to leadership of the international network, of which you are member, and members in other countries and inform Chamber of Auditors of Azerbaijan’, the statement said.      


KPMG Azerbaijan made a statement regarding alleged business activities in Nagorno-Karabakh:


‘In relation to information recently circulated in certain media (including social media) about alleged business activities in Nagorno-Karabakh, KPMG wishes to point out that KPMG has no – and has not had – any physical presence in Nagorno-Karabakh. Furthermore, in early 2016 KPMG in the CIS adopted and implemented policies, which restrict operations in conflict zones. Amongst others, the policies prohibit its various regional member firms to contract with entities in Nagorno-Karabakh and also prohibit KPMG persons’ work in and travel to Nagorno-Karabakh.


KPMG Azerbaijan is a member of the KPMG network of independent member firms. KPMG in the CIS affirms that it respects international law as well as the laws and regulations of all countries, in which it operates, and KPMG in the CIS is fully committed to observing the applicable legislation of the Republic of Azerbaijan’.


Despite stating KPMG has no any physical presence in Nagorno-Karabakh, the company has audited Artsakhbank, which operates in the occupied territories of Azerbaijan, in 2013 and this report was posted on the bank’s website.


Artsakhbank was audited by GRANT Thornton CJSC Armenia in 2014, 2015 and 2016.