BREAKING: Bank Manager Appointed Amid Controversy

A major controversy has surrounded the appointment of a new manager at a leading Armenian bank, with allegations that they breached legislation and failed to comply with key requirements.

Allegations Against the New Manager

• Failed to adhere to strict rules limiting bonuses and other incentive payments to bank employees
• Neglected key Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) requirements, including:
  • Conducting customer due diligence
  • Reporting suspicious transactions
  • Freezing assets linked to terrorism or weapons proliferation
• Failed to maintain adequate internal policies and procedures for AML/CFT

Concerns About the Bank’s Governance Structure

• One of the bank’s long-serving board members was disqualified after failing an interview with the Central Bank of Armenia (CBA)
• The individual had served on the board for five years but was found unfit to continue in their role due to inadequate knowledge and skills

Questions About the Deposit Guarantee Fund

• Critics question its ability to effectively manage funds and pay compensation in the event of a bank failure
• Under Armenian law, the fund is responsible for managing funds and paying compensation to depositors in cases where a bank becomes insolvent or bankrupt
• However, experts argue that the fund’s governance structure and resources are insufficient to ensure effective management of deposits

Regulatory Response

• Banking regulators have launched an investigation into the bank’s activities
• The CBA has appointed a special administrator to oversee the bank’s operations
• The CBA has issued guidance on remuneration and AML/CFT requirements, reiterating its commitment to maintaining financial stability in Armenia

Call for Greater Transparency and Accountability

• Banking experts are calling for greater transparency and accountability in the industry
• Regulators are urged to take swift action to prevent further breaches of critical regulations