Banking Regulations in Armenia: A Comprehensive Overview

Anti-Money Laundering (AML) and Know Your Customer (KYC)

In Armenia, banking regulations place a strong emphasis on preventing money laundering and terrorist financing through Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.

Key Features of AML/KYC Regulations

• Banks must implement AML/KYC procedures to prevent money laundering and terrorist financing.
• Transactions subject to mandatory reporting include:
  • Wire transactions above AMD20 million
  • Cash transactions above AMD5 million
• Suspicious transactions or business relationships may be suspended, reported to the regulator, and acted upon as per their instructions.

Depositor Protection

The Deposit Guarantee Fund of Armenia is responsible for managing funds and paying compensation in case of a “compensation event” (bank insolvency or bankruptcy).

Key Features of Depositor Protection

• Covered deposits include up to AMD16 million in Armenian dram-denominated deposits, with certain limitations for foreign currency-denominated deposits.
• Compensation is not provided in cases such as:
  • Managerial or shareholder relationships
  • Disclaimed ownership rights
  • Interest rates above 1.5 times the market rate

Bank Secrecy

Bank secrecy refers to customer information that becomes known to a bank during their business relationship.

Key Features of Bank Secrecy Regulations

• Disclosure of bank secrecy is prohibited, with possible civil liability, administrative penalties (AMD2-10 million), and criminal liability.
• Exceptions include:
  • Disclosure by customers
  • Consent from customers
  • Provision to the CBA/Fund in the course of supervision