Financial Crime World

Banks’ Responsibilities in Detecting and Preventing Financial Crime in Armenia

Recent Evaluation Highlights Importance of Banks in Combating Financial Crime

A recent evaluation conducted by the Financial Action Task Force (FATF) has emphasized the crucial role banks play in detecting and preventing financial crime in Armenia. The assessment evaluated the country’s progress in implementing anti-money laundering and combating the financing of terrorism (AML/CFT) measures.

Progress and Areas for Improvement

The evaluation found that Armenia has made significant strides in implementing AML/CFT requirements, with 24 out of 40 recommendations being fully or largely implemented. However, there are still areas where improvement is needed to prevent financial crime.

Key Areas for Improvement

  • Risk-Based Approaches: While Armenia’s banking sector has made progress in identifying high-risk customers, more needs to be done to ensure that these risks are effectively mitigated.
  • Cooperation and Coordination: National authorities must work together more closely to ensure that law enforcement agencies have the necessary resources and expertise to combat financial crime.

The evaluation also found that Armenia’s legal framework requires strengthening in several areas, including:

  • Definition of Money Laundering Offenses: The definition of money laundering offenses needs to be clarified and expanded.
  • Confiscation and Provisional Measures: The country’s confiscation and provisional measures laws need to be strengthened to effectively combat financial crime.
  • Targeted Financial Sanctions: Laws related to targeted financial sanctions for terrorism and terrorist financing require review and strengthening.

Collaboration is Key

To combat financial crime more effectively, banks must work closely with other stakeholders, including:

  • Law enforcement agencies
  • Regulatory bodies
  • International organizations

This collaboration includes sharing information and best practices to stay ahead of emerging threats and trends in financial crime.

Conclusion

Armenia’s banking sector has a critical role to play in preventing financial crime, and the country’s authorities must continue to prioritize AML/CFT efforts to ensure that the financial system remains safe and secure for all stakeholders.