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Compliance Measures for Banks in Armenia Take Center Stage
Armenia has made significant strides in regulating its banking system since the mid-1990s. This progress has been driven by key laws that govern central bank operations, banking activities, bankruptcy procedures, and secrecy.
Key Legislation
The Central Bank of Armenia Law sets out the objectives, authority, structure, and management of the country’s central bank. The law empowers the Central Bank to regulate monetary policy programs, stability, liquidity, solvency, and normal functioning of the banking sector.
- Central Bank Objectives: Regulate monetary policy programs, stability, liquidity, solvency, and normal functioning of the banking sector.
- Authority: Empower the Central Bank to perform its regulatory functions.
The Armenian Law on Banks and Banking regulates activities of Armenian banks, including registration, licensing, regulation, and termination of operations. It defines key terms such as “bank,” “banking activity,” and “bank deposit” and outlines corporate structure, management, financial activities, and prudential economic standards.
- Bank Registration: Regulate the registration process for Armenian banks.
- Licensing: Control the licensing of banking activities in Armenia.
- Regulation: Define key terms such as “bank,” “banking activity,” and “bank deposit.”
Bankruptcy Procedures
Bankruptcy procedures are governed by the Law on Bankruptcy of Banks, Credit Institutions and Insurance Companies. This law introduces important international principles in Armenia’s legislation.
- Temporary Administration: Ensure openness in the process of temporary administration.
- Insolvency Grounds: Clarify grounds for insolvency.
- Sale Mechanisms: Regulate sale mechanisms of banks.
Recent Developments
In recent years, compliance measures have gained importance with the adoption of key regulations such as Combating the legalization of Proceeds from crime and financing of Terrorism Law and Currency Regulation and Currency Control Law. These laws have introduced stricter requirements for financial institutions to prevent money laundering and ensure stable financial markets.
- Combating Money Laundering: Introduce stricter requirements for financial institutions to prevent money laundering.
- Currency Regulation: Regulate currency transactions to ensure stability in Armenia’s financial sectors.
Payment Systems and Depositor Protection
Armenia’s banking legislation has seen significant development since 2004. Key enactments include the Payment and Settlements Systems and Payment and Settlements Organizations Law, which regulates payment systems to guarantee stability in Armenia’s financial sectors. The Guarantee of Remuneration of Bank Deposits of Individuals Law has also been introduced to enhance household confidence and protect depositor interests.
- Payment Systems Regulation: Regulate payment systems to guarantee stability in Armenia’s financial sectors.
- Depositor Protection: Enhance household confidence and protect depositor interests.