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Armenia’s Banking Compliance Procedures: A Look at the Legal Framework

In 1996, Armenia’s National Assembly endorsed a set of laws aimed at regulating the country’s banking system. This marked the beginning of a new era for the nation’s financial sector.

Historical Developments

Since then, Armenia has been refining its banking regulations to ensure stability and reliability in the industry. In March 2004, changes were made to the Armenian Law on “Banks and Banking” to adopt the Basle Principles of Banking Supervision and improve prudential economic standards.

  • The same year, the Armenian Law on “Combating the Legalization of Proceeds from Crime and Financing Terrorism” was adopted, necessitating changes in banking laws.
  • Notaries, state registers, insurers, pawnshop organizers, and other parties under the law were required to report specified information to the Central Bank.

Recent Developments

In November 2004, three new laws were adopted:

  • “On Currency Regulation and Currency Control”
  • “Payment and Settlements Systems and Payment and Settlements Organizations”
  • “Guarantee of Remuneration of Bank Deposits of Individuals”

The latter law aimed to contribute to the reliability of the banking system, enhance household confidence, and defend depositor interests. It provided a comprehensive regulatory framework for the guarantee of remuneration of bank deposits of individuals.

Regulatory Framework

Armenia’s banking legislation is also governed by:

  • The Civil Code
  • Laws on “Funds Transfer by Payment Order”, “Joint Stock Companies”, and “Companies with Limited Liability”

The country’s Central Bank plays a crucial role in regulating and supervising the financial sector. Its decisions are not subject to appeal, unless otherwise specified by law.

Commitment to Banking Compliance

In recent years, Armenia has been working to improve its banking compliance procedures, ensuring that the nation’s financial institutions operate in accordance with international standards and best practices.

With its commitment to stability and reliability in the banking sector, Armenia is well on its way to becoming a trusted destination for investors and businesses alike.