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Armenia’s Banking Sector Compliance Procedures Under Scrutiny

In a bid to ensure transparency and accountability, Armenia’s banking sector is subject to a multitude of legal acts regulating its provision of services. These regulations are aimed at safeguarding the interests of customers, preventing financial irregularities, and maintaining public trust.

Regulatory Framework

At the heart of these regulatory efforts lies a complex web of laws and regulations that govern various aspects of banking operations. The Civil Code of the Republic of Armenia provides a solid foundation for these rules, while specific laws such as “On Banks and Banking” and “On Financial System Ombudsman” set out detailed guidelines for banks to follow.

Combating Financial Crimes

Armenia has enacted a range of laws aimed at combating financial crimes, including money laundering and terrorism financing. The country’s central bank, the Central Bank of Armenia (CBA), plays a crucial role in implementing these regulations through its various resolutions and regulations.

Key Regulations

Some notable examples include:

  • CBA Regulation 8/01: Outlines the calculation of annual percentage rate of charge
  • CBA Regulation 8/02: Provides guidelines for calculating annual percentage yield of bank deposits
  • CBA Regulation on Publication of Information by Financial Organizations and Groups: Sets out minimum conditions and principles for internal rules governing the examination of customer complaints
  • Regulations 8/03 to 8/06: Emphasize the importance of business conduct, outlining rules for banks, credit companies, and branches of foreign banks operating in Armenia

Enhancing Transparency and Accountability

In recent years, the CBA has introduced new regulations aimed at enhancing transparency and accountability within the banking sector. For instance:

  • Regulation 5/15: Sets out guidelines for the operation of participants register of mandatory cumulative pension funds and activities of account operators

Implementation

The implementation of these regulations is crucial to maintaining public confidence in Armenia’s banking sector. As such, it is essential that financial institutions comply with these regulations to ensure the stability and integrity of the financial system.

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