Title: “Armenia’s Central Bank Enforces Tight Regulations on Financial Institutions Amid Global Trends”

Subtitle: An In-depth Look into the Role of Concern Dialog in Ensuring Compliance with Financial Regulations in Armenia

Last Updated: December 12, 2023

Armenia’s financial industry has undergone significant growth and transformation in recent years, necessitating stricter adherence to local and international regulations by financial institutions. Concern Dialog, a leading law firm based in Yerevan, offers valuable insights into the financial regulatory landscape in Armenia.

About Concern Dialog

• Founded in 1998
• Full-service law firm
• Expertise in regulatory issues, banking, finance, TMT, and litigation
• Involvement in key laws and regulations governing Armenia’s financial sector

Armenia’s Financial Regulatory Landscape

Primary Regulator: Central Bank of Armenia (CBA)

• Oversight of bank registration, licensing, and supervision
• Authority to approve bank consolidations

Banking Licenses

• Define banking activities as accepting deposits and using funds for lending or investment
• Obtaining a banking license involves several steps: preliminary consent, registration, and issuance

Preliminary Consent

• Essential documents required: draft charter, business plan, founding agreement, shareholder information
• Additional requirements for foreign banks: regulatory consent, bank rating documents, regulatory compliance certificates, banking supervision compliance certification

CBA’s Assessment

• Can reject applications based on financial criteria, compliance with laws and regulations, and reputation of involved parties
• Requirements for successful applicants: minimum capital, office space, and compliance with CBA’s internal structure and operation system

Significant Shareholders

• Classified as significant if they hold 10% or more of voting shares or influence control indirectly
• The CBA closely scrutinizes their financial status and potential impact on bank operations and stability

Conclusion

• Robust financial regulations ensure stability and transparency in Armenian financial industry
• Global financial trends require continuous adaptation for financial institutions and regulatory authorities to secure competitive edge and maintain investor confidence
• Concern Dialog assists clients in navigating Armenia’s banking landscape and staying compliant with local and international financial regulations