Banking Sector Adheres to Stricter Regulations to Combat Money Laundering and Terror Financing

Armenia’s banking sector is taking a robust approach to detect and prevent money laundering and terrorist financing activities, ensuring a stable financial system.

Intensified Efforts Against Money Laundering and Terrorist Financing

As part of its initiative, the banking sector conducts thorough due diligence on all transactions and business relationships to identify potential risks. This includes:

• Conducting mandatory reporting on transactions subject to strict thresholds
• Suspicious transaction reporting for activities linked to criminal activity, terrorism, or terrorist organizations
• Suspend and notify authorities of suspicious transactions

Depositor Protection Remains a Top Priority

The Deposit Guarantee Fund of Armenia (DGF) provides coverage for deposits up to specific limits in the event of a bank’s insolvency or bankruptcy. These limits include:

• AMD16 million for Armenian dram-denominated accounts
• AMD7 million for foreign currency-denominated accounts

However, certain conditions apply, such as:

• The depositor being a manager or shareholder of the bank
• If the deposit is linked to illegal activities

Bank Secrecy Remains a Key Principle

Armenia’s banking sector takes seriously the principle of bank secrecy, which prohibits the disclosure of customer information without consent. Exceptions include:

• Written consent from the customer
• Regulatory body requirements

Violating bank secrecy rules can result in serious consequences, including civil and criminal penalties. As a result, banks are vigilant in maintaining confidentiality and only disclosing information on a need-to-know basis.

Conclusion

By implementing these measures, Armenia’s banking sector aims to maintain a safe and stable financial environment that protects depositors’ interests while combating money laundering and terrorist financing activities.