Financial Crime World

Title: Armenian Central Bank Tightens Grip on Banking ComplianceAmid Global Regulatory Shifts

Subtitle: Expert Insights and Regulatory Updates from Concern Dialog Law Firm

Last Updated: December 12, 2023

Armenia’s financial landscape is witnessing significant shifts as the Central Bank of Armenia (CBA) strengthens its stance on banking compliance regulations. Below, we discuss the latest developments and insights from Concern Dialog, a top-tier law firm based in Yerevan.

Armenia’s Financial Regulatory Framework

  • Legislation: The banking sector in Armenia is governed by the Law of the Republic of Armenia (RA) On Banks and Banking.
  • Licensing & Regulation: The CBA issues regulations like Regulation 1 and Regulation 2 to cover aspects such as registration and licensing procedures and banking and prudential standards.

Obtaining a Banking License

  1. Application: Prospective banks must submit an application for preliminary consent, providing a draft charter and business plan.
  2. Documentation: Foreign banks seeking a branch require regulatory compliance certificates and bank rating documents.

CBA Control & Corporate Governance

  • Shareholders: Significant shareholders undergo CBA approval when acquiring shares beyond certain thresholds for transparency and financial stability.
  • Board Structure & Internal Audit: Banks must adhere to corporate governance requirements, which includes a well-structured board and a robust internal audit system.

Anti-Money Laundering (AML) & Combating Financing of Terrorism (CFT)

  • Strict Enforcement: Armenian banks must strictly comply with KYC rules and maintain internal policies for screening customers and transactions.

The Impact on Armenian Banking Sector & Confidence

  • Regulatory Environment: Strengthening compliance regulations aim to instill confidence in the Armenian banking sector and attract foreign investment.

About Concern Dialog

Founded in 1998, Concern Dialog is a full-service law firm based in Yerevan, Armenia. Offering consulting, transactional, and litigation services, the firm is renowned for its expertise in banking, competition, tax, and regulatory matters. Concern Dialog’s international partnerships with networks like TagLaw and Nextlaw enable them to offer worldwide services to clients.