Armenia’s Banks Ease Compliance Regulations for Non-Resident Companies

In recent times, Armenian banks have become increasingly accommodating of non-resident companies seeking to open bank accounts in Armenia. This trend can be attributed to the country’s favorable currency legislation and the flexibility of local banks in providing banking services.

Anti-Money Laundering and Terrorism Financing Regulations

Non-resident companies must undergo a more rigorous process than their Armenian counterparts due to anti-money laundering and terrorism financing regulations. To open an account, foreign companies must provide detailed information about their activities and real beneficiaries to the bank.

Requirements for Opening an Account

To facilitate the opening of an account, non-resident companies should have prior agreements with local organizations documented in contract form. A comprehensive package of company documents is also essential. Having a functioning website can streamline the process.

However, banks may show less interest in providing services if the account is opened solely for transactions involving foreign obligations. Banks prioritize clients who intend to deposit and maintain funds within their accounts rather than using them as a mere transit point for fund turnover.

Documents Required

The following documents are typically required:

• Founding documents, including:
  • Charter
  • State registration certificate
  • Commercial register extract
  • Notarized copies of founders’ passports
• Director’s passport copy and power of attorney
• Certificates indicating shareholder rights in respect to share capital (dependent on legal entity form)

Corporate Governance Structure

Corporate governance structures are under particular scrutiny, with complex structures potentially leading to refusal. Companies must be prepared to clearly explain their organizational structure, governing body powers, and legal forms.

Notarization and Legalization of Documents

All documents must be certified in the prescribed form, with notarization of foreign documents a mandatory requirement. International legalization (or Apostille) is typically necessary, although exceptions apply for specific countries such as Russia, Belarus, Bulgaria, and Georgia.

Account Opening Decision

After preliminary document review, banks will decide whether to open an account or not. The conditions of all banks are individual, and requirements for opening accounts may vary. Therefore, it is essential for non-resident companies to clarify bank-specific nuances directly with the financial institution.