The Law "On Financial Leasing": What's Changing in the Leasing Market? - FChain

The Law of the Republic of Azerbaijan “On Financial Leasing,” adopted in June 2026, together with the Decree of the President of the Republic of Azerbaijan on its implementation, has for the first time established a separate legal framework regulating the financial leasing (leasing) sector.

Under the new law, financial leasing activities will be carried out under the supervision of the Central Bank of the Republic of Azerbaijan. Legal entities engaged in this activity must be entered into the Central Bank’s registry, meet minimum capital and other prudential requirements, establish internal risk management and compliance systems, and comply with the requirements of credit registry and anti-money laundering legislation.

The law also more precisely defines the legal framework for financial leasing agreements, the rights and obligations of the parties, as well as the criteria for the application of financial leasing. Under the President’s Decree, the development and approval of the prudential requirements to be applied in this area has been entrusted to the Central Bank.

The new law will enter into force six months after its official publication, and operating leasing companies will be required to bring themselves into compliance with the new requirements within the established transition period.

Financial Chain Corporation provides professional legal support in connection with adapting to the new legislation on financial leasing activity, legal analysis, and the fulfillment of regulatory requirements.

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