Financial Crime World

Armenia’s Progress in Combating Money Laundering and Terrorist Financing Earns Re-Ratings from FATF Guidelines Implementer

As a result of Armenia’s significant strides in strengthening its framework to tackle money laundering and terrorist financing since its mutual evaluation in December 2015, MONEYVAL has re-rated the country on two recommendations originally classified as “partially compliant”. The re-ratings reflect Armenia’s progress in addressing technical compliance deficiencies identified in the mutual evaluation report.

Progress in Strengthening AML/CFT Framework

Armenia has been undergoing a regular follow-up process following the adoption of its mutual evaluation report, which assessed the effectiveness of its anti-money laundering and counter-terrorist financing (AML/CFT) measures and their compliance with the Recommendations by the Financial Action Task Force (FATF). In line with MONEYVAL’s rules of procedure, the country has reported back to MONEYVAL on the progress it has made in strengthening its AML/CFT framework.

Re-Ratings Reflect Progress

The report analyses Armenia’s progress in addressing technical compliance deficiencies identified in the mutual evaluation report and also examines whether the country has implemented new measures to meet the requirements of FATF Recommendations that have changed since the 2015 mutual evaluation. To reflect this progress, MONEYVAL has re-rated Armenia on:

  • Recommendation 1 (Assessing Risks): Now classified as “largely compliant”
  • Recommendation 7 (Targeted Financial Sanctions related to Proliferation): Now classified as “largely compliant”
  • Recommendation 8 (Non-Profit Organisations): Now classified as “compliant”

Shortcomings Remain

However, MONEYVAL welcomed progress made on:

  • Recommendations 12 (Politically Exposed Persons)
  • Recommendation 28 (Regulation and Supervision of DNFBPs)
  • Recommendation 31 (Powers of Law Enforcement and Investigative Authorities)

but considered that shortcomings remain. Consequently, the ratings for these Recommendations remain “partially compliant”.

Unchanged Ratings

The ratings for:

  • Recommendation 5 (Criminalisation of the Financing of Terrorism): Remains “largely compliant”
  • Recommendations 18 (Internal Controls and Foreign Branches and Subsidiaries) and 21 (Tipping-off and Confidentiality): Remain “compliant”

Future Follow-up

MONEYVAL has decided that Armenia will continue to be in regular follow-up and will report back in two-and-a-half years on further progress made in strengthening its implementation of AML/CFT measures.