Armenia’s Shifting Landscape: From Mafia-Style Groups to Criminal Networks

A Significant Shift in the Country’s Organized Crime Scene

Yerevan, Armenia - In a notable shift, reports indicate that the once-notorious mafia-style groups in Armenia have given way to criminal networks. While the country’s hybrid regime has made strides in improving state capacity and democratic governance, challenges persist.

The Evolution of Mafia-Style Groups

Experts say that while there is no evidence of mafia-style groups controlling significant territories in Armenian cities, reports suggest that an Armenian mafia, divided into separate clans or brotherhoods (akhperutyuns), still exert influence over parts of the capital Yerevan. However, membership has declined since 2018.

The Rise and Fall of Criminal Networks

Historically, professional criminals known as “thieves in law” have been active in Armenia, but their influence has waned since the early 2000s. These criminal networks remain limited due to a lack of resources and Armenia’s status as a transit country for illicit trade rather than a source or destination.

Involvement of the Private Sector

The private sector is also believed to be involved in criminal markets, with some tobacco companies producing counterfeit cigarettes. However, this activity has likely decreased since they lost market share in Russia.

Leadership and Governance

Armenia’s leadership remains influenced by Russia, reflecting on governance, external relations, and security measures. The country continues to improve its state capacity, with the EU supporting efforts to fight corruption. Progress has been made in transparency and accountability, but state-embedded corruption persists.

Reforms prioritizing rule of law and anti-corruption have improved public trust in institutions.
However, concerns about cronyism and influence remain due to the close relationship between oligarchs and political and business actors.

Criminal Justice and Security

Armenia’s criminal justice system faces challenges, including: + Lack of training for law enforcement officials + Insufficient support measures for victims of modern slavery

The country has strengthened its anti-money laundering legal framework, but AML risks remain within the Armenian banking system. The risk of money laundering and terrorist financing is considered high.

Economic and Financial Environment

Armenia has made progress in economic regulatory reforms, including promoting a digital economy to drive growth and job creation. However: + About half of workers are employed in the informal sector, possibly subjected to abuse and/or exploitation due to poor enforcement of labor protections. + The country’s banking system is used by Iranian and Russian criminal groups, as well as Russian oligarchs under sanctions.

While Armenia has a robust framework for supporting victims of modern slavery: + Victim support measures are insufficient. + Law enforcement officials lack training and sensitivity in assisting victims, particularly those in remote areas with limited access to justice.

Despite some efforts at awareness campaigns, no significant measures have been taken to monitor and prevent sex trafficking and forced labor.
The media landscape is polarized, with incidents of physical violence against journalists undermining basic international media freedom standards.