New Regulations Eased Restrictions on Disclosure of Banking Secrets
Enhancing Transparency and Combating Financial Crimes
The Armenian government has amended its banking secrecy laws, aiming to increase transparency and combat financial crimes. The revised regulations, which came into effect on October 14, 1996, relax certain restrictions on the disclosure of information related to bank customers.
Changes to Banking Secrecy Laws
Under the new rules, banks are now allowed to share customer data with:
- Credit organizations
- The Central Bank
- Other financial institutions
to combat money laundering and terrorism financing. Additionally, banks may exchange information about their customers with each other or with credit organizations for the purpose of ensuring the safety of their activities and repayment of loans.
Stricter Penalties Introduced
The revised laws also introduce stricter penalties for individuals and organizations found guilty of violating banking secrecy. Those who fail to comply with the regulations face fines ranging from two thousand- to ten thousand-fold the minimum salary, as well as potential criminal liability.
Enhanced Cooperation between Law Enforcement and Financial Institutions
Banks are now required to report any planned or committed crimes that they become aware of to the relevant authorities. This move is aimed at enhancing cooperation between law enforcement agencies and financial institutions in the fight against financial crimes.
President’s Signature
The amendments to the banking secrecy laws were signed into effect by President L. Ter-Petrosyan on October 14, 1996. The changes are seen as a positive step towards increasing transparency and cooperation in the Armenian financial sector.
Key Provisions of the Revised Laws
- Banks may share customer data with credit organizations, the Central Bank, and other financial institutions to combat money laundering and terrorism financing.
- Banks may exchange information about their customers with each other or with credit organizations for the purpose of ensuring the safety of their activities and repayment of loans.
- Stricter penalties are introduced for individuals and organizations found guilty of violating banking secrecy.
- Banks are required to report any planned or committed crimes that they become aware of to the relevant authorities.
Reactions from Financial Sector
Industry insiders have welcomed the changes, citing them as a necessary step towards increasing transparency and cooperation in the Armenian financial sector. “These amendments will help us to better protect our customers’ interests and to combat financial crimes,” said one banking executive. “We believe that they will also enhance our reputation and increase investor confidence in our country.”
Next Steps
The Armenian government is expected to continue working towards further strengthening the country’s anti-money laundering and counter-terrorism financing regulations. The Central Bank has already begun implementing measures aimed at enhancing the supervision of banks and other financial institutions.
In the coming months, the government is likely to introduce additional reforms aimed at increasing transparency and cooperation in the financial sector. These changes are expected to have a positive impact on Armenia’s economy and reputation as a reliable and transparent financial center.