Financial Crime World

Unifying Financial Regulation and Supervision in Armenia

Yerevan, Armenia - The Armenian government has taken a significant step towards streamlining the country’s financial regulation and supervision framework by signing a new law. This move is expected to improve the efficiency and effectiveness of financial market regulation in Armenia.

Key Provisions of the Law

  • The Central Bank will take over regulatory and supervisory functions from the Securities Commission, effective January 1, 2006.
  • The Central Bank will regulate and supervise insurance service providers, pawnshops, and cumulative pension insurance providers.
  • The bank will also inherit the Securities Commission’s powers in relation to self-regulating organizations, reporting issuers, and other authorities in the securities market.

Transition Period

  • A seamless transition period has been provided, with the Central Bank assuming all rights and liabilities of the Securities Commission as of January 1, 2006.
  • The Securities Commission will cease to exist as a separate entity, with its functions and powers transferred to the Central Bank.

Continuation of Existing Legislation

  • Existing secondary legislative acts governing the activities of other financial market participants will continue until January 1, 2007.
  • The Central Bank will have the power to review and amend these acts as necessary to ensure smooth operation of the financial system.

Expert Insights

  • “This is an important step forward for Armenia’s financial sector,” said [Name], an economist at [Institution]. “The unification of regulatory powers will help to reduce administrative burdens and increase transparency, making it easier for businesses to operate in the country.”

Implementation and Effectiveness

  • The Central Bank has been authorized to deliver official explanations on issues arising out of the enforcement of this law and other relevant legislation.
  • The bank is required to undertake structural changes before January 1, 2006, to establish a unified financial system regulation and supervision framework.

Effective Date

  • The new law comes into effect on the 10th day following its official publication.