Armenia’s Criminal Underbelly: A Limited but Persistent Threat

Despite its hybrid regime status and efforts to improve governance, Armenia remains plagued by limited criminal activity, largely due to a weak economy and lack of resources.

Leadership and Governance

Armenia’s political leadership remains heavily influenced by Russia, impacting governance, external relations, and security measures. The government has made efforts to improve its anti-money laundering legal framework and combat corruption, but AML risks remain within the Armenian banking system.

• Efforts have been made to cooperate with the EU on economic regulatory reforms, including promoting a digital economy to boost growth and generate jobs.
• About half of Armenia’s workers are employed in the informal sector, leaving them vulnerable to abuse and exploitation due to poor labor protections.

Civil Society and Social Protection

The Armenian government has implemented measures to support victims of modern slavery and human trafficking, but victim and witness support appears insufficient. Law enforcement officials often lack training and sensitivity to assist victims.

• Despite efforts to prevent human trafficking, no significant measures have been taken to monitor and prevent sex trafficking and forced labor.
• Civil society organizations dedicated to issues like policing and fighting organized crime are scarce and underfunded.
• The media landscape in Armenia is polarized, with recent incidents of physical violence against journalists highlighting the need for greater protection and independence from political influence.

Economic and Financial Environment

Armenia has strengthened its anti-money laundering legal framework and made progress in money-laundering risk and threat assessment. However, AML risks remain within the national banking system, which is used by Iranian and Russian criminal groups as well as Russian oligarchs affected by sanctions.

• The country’s economy remains vulnerable to abuse and exploitation, with half of its workers employed in the informal sector.
• The government has made efforts to reform the economy, but corruption and cronyism remain significant challenges.

Conclusion

Armenia’s criminal underbelly is a limited but persistent threat, largely due to the country’s weak economy and lack of resources. While the government has made efforts to improve governance and combat crime, more needs to be done to address the root causes of criminal activity.

• The country’s civil society organizations require greater funding and support to effectively tackle issues like policing and fighting organized crime.
• The media landscape must also be protected from political influence to ensure basic international standards are met.
• Only through sustained efforts can Armenia hope to overcome its criminal challenges and build a more stable, prosperous future for its citizens.