Title: Armenian Banking Sector Navigates Complex Regulatory Landscape

Overview

Armenia’s banking sector operates under a strict regulatory framework designed to ensure financial stability, consumer protection, and combat money laundering and terrorism financing. This article provides an overview of the key legislation that shapes Armenia’s banking industry.

Foundational Regulations

• The Central Bank of Armenia Act: Establishes the Central Bank of Armenia (CBA) and defines its roles and responsibilities.
• Civil Code: Includes provisions related to banking activities.
• Banking Law: Provides the conditions for the establishment and operation of banks, licenses, and registrations.

Specific Financial Matters

• Law on Bank Secrecy: Protects the confidentiality of banking information.
• Law on Attraction of Bank Deposits: Sets various rules for deposit taking and interest rates.

Prudential Standards, Conduct of Business, and Internal Control

• Resolution 4 “Minimum Requirements for Internal Control at Banks”: Outlines the internal control requirements.
• Regulation 2 “on Regulation of Banking, Prudential Standards for Banking”: Deals with banks’ management and supervision.

Consumer Protection and Anti-Money Laundering/Counter-Terrorism Financing Regulations

• Regulation 8/01 “On Explanations and Examples of the Calculation of the Actual Annual Interest Rate”: Sets clear rules for calculating annual percentage rates.

Enforcing the Regulatory Landscape

The Central Bank of Armenia (CBA) is dedicated to upholding these regulations. You can find the full text of these regulations online on its website at www.arlis.am. By adhering to this extensive regulatory landscape, Armenia’s banking sector aims to maintain a stable and secure financial environment while protecting consumers and combating illicit activities.