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Armenia Strengthens Laws Against Money Laundering and Terrorism
Yerevan, Armenia - The Armenian government has taken a significant step to combat money laundering and terrorism by amending its laws to require banks to provide information on their customers to the tax authorities.
New Law Aims for Transparency and Accountability
According to the new law, banks will be required to provide information constituting bank secrecy to the tax authorities of the Republic of Armenia based on a decision adopted in accordance with the Civil Procedure Code and Criminal Procedure Code of Armenia. The move is aimed at ensuring that the country’s financial institutions are more transparent and accountable.
Increased Cooperation with Foreign Authorities
In addition, the Central Bank of Armenia will have the authority to share information constituting bank secrecy with foreign financial intelligence authorities, as well as with the relevant criminal prosecution authorities in cases where money laundering or terrorism is suspected.
Enhanced Information Exchange between Banks and Credit Organisations
The amendments also provide for the exchange of information between banks and credit organisations to ensure the safety of their activities and repayment of loans. The Central Bank will be entitled to obtain and study information on bank customers while executing its supervisory duties.
Strict Penalties for Breaches
The law also sets out strict penalties for those who breach its provisions, including fines and criminal liability. In addition, banks found guilty of breaching the law may be liable for full refund of damages caused to their customers as a result of infringements.
Effective Date and Next Steps
The amendments were approved by President L. Ter-Petrosyan on October 14, 1996, and will come into effect once the new Criminal Procedure Code is adopted.
Impact on Armenia’s Financial Sector
The move is seen as a significant step forward in Armenia’s efforts to combat money laundering and terrorism, and to strengthen its financial sector.
Key Takeaways
- Banks are required to provide information constituting bank secrecy to tax authorities.
- Central Bank has authority to share information with foreign authorities.
- Enhanced cooperation between banks and credit organisations.
- Strict penalties for breaches of the law.