On 20 June 2025, a Baku court sentenced seven journalists—six from corruption-focused Abzas Media and one from RFE/RL—to 7½-9 years on “currency-smuggling” and money-laundering charges. Rights groups say the verdict weaponises AML statutes to silence probes into President Ilham Aliyev’s financial networks just as Brussels deepens energy talks with Baku.
5 KEY POINTS
- Who Was Hit? Director Ulvi Hasanli, editor-in-chief Sevinc Vagifgizi, deputy director Mahammad Kekalov, reporters Elnara Gasimova & Nargiz Absalamova, freelancer Hafiz Babali, plus RFE/RL economist-reporter Farid Mehralizade.
- Sentences & Charges: 7 years 6 months to 9 years for alleged €40k “currency smuggling” and undefined “illegal entrepreneurship/tax evasion.”
- Trigger: Abzas Media’s investigations traced offshore assets tied to Aliyev’s family and SOCAR-linked gas deals.
- Pattern: At least 28 journalists jailed since Nov 2023 under identical financial-crime statutes—AML as a censorship tool.
- Geopolitical Backdrop: EU energy courtiers tolerate repression while negotiating Southern Gas Corridor expansions.
SHORT NARRATIVE
In a packed Grave Crimes Court, the seven defendants turned their backs to the bench, holding posters of stories exposing presidential graft. Minutes later the gavel fell: nine-, eight- and seven-year sentences for “smuggling” cash most never touched. Prosecutors leaned on a bundle of €40 000 allegedly found in Abzas Media’s office; defence lawyers called the raid a plant. The ruling caps an 18-month sweep that has gutted Azerbaijan’s remaining investigative outlets, muffling fresh leaks on the Aliyev clan’s offshore pipelines.
EXTENDED ANALYSIS
Legal & Regulatory
| Dimension | Observation | Relevance to FinCrime |
|---|---|---|
| Statutory Hook | Articles on currency smuggling (Art. 206) & money-laundering (Art. 193-1) invoked without presenting any cross-border flow evidence. | Sets precedent for criminalising investigative data collection as unlicensed “foreign exchange activity.” |
| Procedural Irregularities | Defence barred from calling expert witnesses; banking records sealed as “state secrets.” | Obstructs independent verification of transaction trails the journalists uncovered. |
| Sanctions & Magnitsky Risk | EU’s Global Human Rights Sanctions regime activated only once against Baku (2021). | New sentences strengthen the evidentiary basis for targeted designations. |
Operational Red Flags for Compliance Teams
- State-Aligned Laundering Nexus: The journalists’ last investigations mapped shell companies routing SOCAR earnings via Malta, Latvia and the UAE.
- AML Laws as Cudgel: Expect autocracies to mimic Azerbaijan—criminal enterprises flip AML statutes to criminalise scrutiny.
- Information Blackout Risk: Due-diligence data from Abzas Media archives may disappear; download and mirror immediately.
ACTIONABLE INSIGHT
Enhance ECDD on Azerbaijan-linked counterparties.
- Flag transactions involving SOCAR trading arms, state-backed construction firms, and Malta-/UAE-registered SPVs created 2020-24.
- Require proof-of-funds beyond notarised invoices; insist on underlying commercial contracts.
- Cross-reference with leaked Abzas datasets (mirror hash:
9e7f…a4c2).
CALL FOR INFORMATION
Have you seen suspicious wire transfers, crypto jumps, or shell formations tied to Azerbaijani politically exposed persons?
Share SAR abstracts, payment screenshots, or ICIJ-style leaks via our whistleblower platform, Whistle42.