Banking Regulations in Armenia

Know Your Customer (KYC) Requirements

In Armenia, banking regulations emphasize the importance of Know Your Customer (KYC) procedures to prevent money laundering and terrorist financing. Here are some key points:

• Banks must conduct KYC procedures for customers before establishing a business relationship.
• The procedures include verifying the customer’s identity and obtaining information about their business and intended purpose of the account.
• Banks must update and maintain customer data in accordance with regulatory requirements.

Suspicious Transactions Reporting

If a transaction is suspicious, a bank may suspend it and report it to the regulator. Here are some key points:

• The regulator will then instruct the bank on how to proceed.
• Suspicious transactions include those that may be related to money laundering or terrorist financing.

Depositor Protection Regime

In Armenia, depositors are protected by a deposit guarantee fund. Here are some key points:

• The Deposit Guarantee Fund of Armenia (Fund) is a non-commercial legal entity established by the Central Bank of Armenia (CBA).
• All banks in Armenia are required to contribute to the Fund.
• The Fund provides compensation to depositors if a bank is declared insolvent or bankrupt.

Bank Secrecy

In Armenia, bank secrecy refers to information belonging to a customer that becomes known to the bank during the course of their business relationship. Here are some key points:

• Disclosure of bank secrecy is generally prohibited and can result in civil, administrative, and criminal liability.
• However, there are certain exceptions where disclosure of bank secrecy is allowed, such as when the customer consents or when required by law.