Financial Crime World

Here is the converted article in markdown format:

Banks Must Verify Documents, Provide Information on Heritage Rights

In a move to enhance transparency and accountability, the government has introduced new regulations requiring banks to verify documents verifying heritage rights and provide information on such rights to applicants or organizations.

Verification of Documents and Provision of Information

According to the law, upon receipt of the documents verifying heritage rights within five banking days, banks must:

  • Inform the applicants or organizations if the documents are insufficient, indicating the list of missing required documents
  • Provide complete information and all documents it possesses regarding the customer within ten banking days, if the documents are complete

Appeals and Refunds

The law also states that any refusal by the bank to disclose information and provide documents may be appealed before a court. In case of ungrounded refusal or failure to submit information and documents within the specified time period, applicants or organizations are entitled to:

  • Full refund of losses caused
  • Compensation for damages

Provision of Information Constituting Bank Secrecy

=====================================================

The law also regulates the provision of information constituting bank secrecy to various authorities. According to Article 13:

  • Banks shall provide information constituting bank secrecy on their customers to the tax authorities of the Republic of Armenia based on a decision adopted in accordance with the Civil Procedure Code and Criminal Procedure Code
  • The Central Bank may disclose information constituting bank secrecy based on an inquiry by the criminal prosecution authorities

Sharing of Information Constituting Bank Secrecy

=====================================================

Article 14 allows banks to exchange information with each other or with credit organizations defined by the Law on Credit Organizations, even if it constitutes bank secrecy. The Central Bank is also entitled to obtain and study such information while executing its supervisory duties.

Scope of Information to be Provided

==========================================

The law specifies that while disclosing information on a customer concerned in accordance with the procedure established in this Law:

  • The bank shall have no right to disclose any information on persons and organizations that are parties to agreements or other operations (transactions) of the customer, unless otherwise provided by this Law

Rejection of Requests for Providing Information Constituting Bank Secrecy

=====================================================================

The law obliges banks to reject provision of any information constituting bank secrecy if such a request does not comply with the provisions of this Law.

Crime Reporting Duty

=========================

Bank managers are obligated to report to the criminal prosecution authorities on:

  • Any premeditated crime or crime already having been committed that is definitely known to them
  • Bank employees shall also be obliged to report in writing to the bank managers or at least one of them on any premeditated crime or crime already having been committed

Liability for Breaching the Requirements of this Law

=====================================================

The law imposes liability on:

  • Persons and organizations found guilty of breaching Articles 7, 8, 10, 11, and 15
  • Such infringements shall entail a fine amounting from two thousand- to ten thousand-fold minimum salary and may carry criminal liability defined by law

Transitional Provisions

==========================

Until the new Criminal Procedure Code is adopted:

  • Information constituting bank secrecy shall be provided only in relation to a person accused for crime, and based on a prosecutor’s sanction of search warrant pursuant to the effective Criminal Procedure Code