Financial Crime World

Title: New Milestones in Armenia’s Financial Regulation Compliance: An Overview

Armenia’s financial sector has undergone significant changes since the adoption of its founding banking laws in 1996. The following overview highlights key legislation that has shaped Armenia’s financial regulatory landscape.

Foundational Laws (1996-2002)

  • Armenian Laws on Central Bank, Banks and Banking, Bankruptcy of Banks, Credit Institutions, and Insurance Companies, and Banking Secrecy
    • Established framework for a robust banking system
    • Empowered Central Bank to ensure price stability and oversight of banking sector
    • Regulated banking activities, corporate structures, and economic standards

Key Amendments (2002-2004)

Central Bank’s Role Broadened

  • Central Bank gained authority to license and supervise credit institutions’ AML/CFT measures
  • Introduced regulatory framework for combatting illicit activities within the financial sector

Adoption of International Best Practices

  • Basel Principles of Banking Supervision adopted in March 2004
  • Prudential economic standards and inspection procedures updated
  • Public disclosure of non-diligent debtor information added

Transparency and Appeal Procedures

  • Significant changes to the Armenian Laws on Central Bank, Banks and Banking, and Banking Secrecy
  • Openness of the bankruptcy process ensured
  • Limitation on appealing Central Bank decisions removed
  • Grounds and procedures for appeals outlined

Combating Financial Crimes

  • Armenian Laws on Combating the Legalization of Proceeds from Crime and Financing of Terrorism adopted
  • Bolstered efforts to combat financial crimes and illegal activities within the banking sector

Today, the Armenian banking sector operates under a comprehensive legislative framework, which allows for:

  • Stable and reliable financial and banking sectors
  • Protection of depositors’ and investors’ interests

Milestones

  • 1996: Adoption of founding banking laws
  • 2002-2003: Central Bank’s role broadened, international best practices adopted
  • 2004: Transparency and appeal procedures formalized, financial crimes laws enacted

Central Bank Law

  • Established objectives, structure, and management
  • Ensured price stability and sector oversight

Banks and Banking Law

  • Regulated banking activities, corporate structures, and economic standards

Bankruptcy Law

  • Outlined insolvency and bankruptcy procedures
  • Defined roles and liabilities of depositors, creditors, and receivers

Banking Secrecy Law

  • Protected customer confidentiality
  • Stimulated investment in the banking sector

AML/CFT Law

  • Bolstered efforts against financial crimes and illegal activities

Currency Regulation and Control Law

  • Strengthened efforts to prevent illegal activities within the banking sector