Resolution No. 1368 of the United Nations Security Council dated September 12, 2001, calls on the international community to increase efforts to detect and suppress terrorism, including increasing the full implementation in national legislation of antiterrorist conventions and resolutions of the Security Council. Subsequent Security Council Resolution No. 1373 of September 28, 2001, calls on all states to prevent and stop the financing of terrorist organizations and groups through amendments and additions to national laws. These resolutions complemented the United Nations Convention on the Suppression of Terrorist Financing of December 9, 1999. The current article presents provisions of Article Two of this Convention. In response to these international mandates, the Azerbaijan Government has focused on disrupting the financing of terrorism by interrupting the flow of money for the maintenance of terrorist groups. The movement of financial resources from the country has become more tightly controlled, and banking laws have been revised to comply with international standards. This article lists the counterterrorism actions taken by Azerbaijan law enforcement and other state agencies from 2001 through 2005. This has included actions against six "charities" in Azerbaijan with connections to international terrorist structures. Further, this article offers recommendations to other states on countering the financing of terrorism, with attention to how to conduct financial investigations of nongovernmental organizations, charities, and international financial institutions. The article concludes with a refutation of claims that Turkish terrorists ("Grey Wolves") are operating in Azerbaijan. These accusations were made in an article by V.A. Karleba in the Krasnodar Legal Institute of the Ministry of Internal Affairs of Russia. 8 notes