Armenia’s Efforts to Combat Terrorism Financing Receive Mixed Assessment from Global Financial Watchdog

Yerevan, Armenia - A recent assessment by the Financial Action Task Force (FATF) has highlighted both strengths and weaknesses in Armenia’s efforts to prevent terrorism financing. The country’s mutual evaluation reflects its implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) standards, showing a mixed picture.

Strengths and Weaknesses

While Armenia scored high marks for its laws and regulations related to terrorist financing, it fell short in several areas:

• National Cooperation and Coordination: Armenia struggled with issues related to cash couriers, non-profit organizations, and the transparency of beneficial ownership.
• Customer Due Diligence: The country’s financial institutions failed to adequately implement customer due diligence requirements.
• Regulation and Supervision of Financial Institutions: Armenia’s regulatory bodies need to improve their supervision of financial institutions.

Praises and Criticisms

The FATF assessment praised Armenia for:

• Criminalizing Money Laundering and Terrorist Financing: The country has implemented targeted financial sanctions against individuals and entities linked to terrorism.
• Implementing Financial Sanctions: Armenia has implemented effective financial sanctions against those involved in terrorist activities.

However, the report noted that Armenia needs to improve its ability to:

• Identify and Prosecute Suspicious Transactions: The country’s authorities struggle to detect and prosecute suspicious transactions.
• Enhance International Cooperation: Armenia needs to increase cooperation with other countries in sharing financial intelligence.

Armenia’s Response

Finance Minister Vache Gabrielyan has expressed commitment to addressing these shortfalls, stating: “We recognize the importance of effective AML/CFT measures in preventing terrorism financing. We are working diligently to address the FATF’s recommendations and ensure that our country is better equipped to combat this global threat.”

Future Plans

Armenian authorities have outlined plans to implement additional measures aimed at enhancing AML/CFT compliance, including:

• Strengthening Customer Due Diligence Requirements: Financial institutions will be required to improve their customer due diligence procedures.
• Improving Regulation of Non-Profit Organizations: The country’s regulatory bodies will work to ensure that non-profit organizations are properly regulated and supervised.
• Enhancing International Cooperation: Armenia will increase cooperation with other countries in sharing financial intelligence.

Conclusion

By addressing these weaknesses, Armenia can strengthen its position as a stable and secure financial hub in the region. A collaborative effort between government agencies, financial institutions, and civil society is essential to achieving effective AML/CFT measures. By working together, Armenia can build its reputation as a responsible player in the global financial system while ensuring the safety and security of its citizens.