Armenia Struggles to Combat Money Laundering, Experts Warn

Background

Yerevan, Armenia - As Armenia’s economy continues to grow, concerns are growing about the country’s ability to effectively combat money laundering. The Financial Action Task Force (FATF) has issued a report that highlights several areas where Armenia falls short in its efforts to prevent financial crimes.

FATF Report

According to the report, Armenia is largely compliant with international standards for assessing risk and applying a risk-based approach to combating money laundering. However, it is partially compliant when it comes to implementing measures to confiscate assets and impose provisional measures on those suspected of money laundering.

Progress Made

The report also notes that Armenia has made significant progress in recent years, particularly in the areas of national cooperation and coordination, as well as targeted financial sanctions related to terrorism and terrorist financing. The country has also demonstrated a commitment to transparency and beneficial ownership of legal persons and arrangements.

Areas for Improvement

However, experts warn that there are still several areas where Armenia needs to improve. For example:

Non-compliance with international standards for regulating and supervising non-profit organizations
Lack of measures to prevent the misuse of new technologies such as cryptocurrencies

Consequences of Inaction

Armenia’s struggle to combat money laundering is a significant concern for the country’s economy and financial system. Money laundering can have serious consequences, including:

Undermining trust in the financial system
Facilitating other criminal activities such as terrorism financing

Recommendations for Improvement

In order to improve its anti-money laundering efforts, Armenia needs to take immediate action to address these shortcomings. This includes:

Strengthening its regulatory framework
Improving cooperation with international partners
Increasing transparency and accountability

Conclusion

As the country continues to grow and develop, it is essential that Armenia prioritizes combating money laundering and terrorist financing. By doing so, the country can protect its economy and financial system, while also upholding its commitments to international standards and best practices.