Financial Crime World

Financial Crime Reporting Guidelines in Armenia Need Improvement, Says Report

Armenia’s efforts to combat financial crime have been praised by international experts, but significant improvements are still needed to bring its reporting guidelines in line with global standards. According to a recent report, Armenia has implemented some technical requirements of the Financial Action Task Force (FATF) Recommendations, but there is still much work to be done.

Areas for Improvement

The report highlights several areas where Armenia needs to improve:

  • Risk Assessment and Application of Risk-Based Approach (R.1): Armenia’s risk assessment process needs to be strengthened, and a risk-based approach should be applied consistently.
  • National Cooperation and Coordination (R.2): Armenia’s national cooperation and coordination mechanisms need to be improved to ensure effective communication and collaboration among relevant authorities.
  • Confiscation and Provisional Measures (R.4): Armenia’s laws and regulations regarding confiscation and provisional measures need to be reviewed and updated to ensure they are effective in combating financial crime.
  • Targeted Financial Sanctions related to Terrorism and Terrorist Financing (R.6) and Proliferation (R.7): Armenia has made little progress in implementing targeted financial sanctions related to these areas, which is a significant gap in its reporting guidelines.

Progress Made

The report also notes that Armenia has made some progress in certain areas:

  • Customer Due Diligence (R.10): Armenia’s customer due diligence processes have been improved, but there are still gaps that need to be addressed.
  • Record Keeping (R.11): Armenia’s record keeping requirements for financial institutions have been strengthened.
  • Internal Controls and Foreign Branches and Subsidiaries (R.18): Armenia’s internal controls and foreign branches and subsidiaries have been improved.

Recommendations for Improvement

To improve its financial crime reporting guidelines, Armenia is advised to:

  • Strengthen its national cooperation and coordination mechanisms
  • Implement targeted financial sanctions related to terrorism and terrorist financing and proliferation
  • Prioritize improving customer due diligence processes
  • Ensure that all financial institutions are subject to robust internal controls

Conclusion

Overall, while Armenia has made some progress in implementing the FATF Recommendations, significant improvements are still needed to bring its reporting guidelines up to global standards. By addressing these areas for improvement, Armenia can strengthen its efforts to combat financial crime and ensure a safer and more stable financial system.