Financial Institutions and Non-Financial Entities Urged to Implement Enhanced Risk Management Measures
Introduction
In a move aimed at combating money laundering and terrorism financing, financial institutions and non-financial entities in Armenia are being urged to regularly review and assess their risks associated with these illicit activities. The Armenian government has implemented new regulations requiring reporting entities to submit classified information and file reports on suspicious transactions or business relationships.
Enhanced Risk Management Measures
According to Article 4 of the Law, financial institutions and non-financial entities should identify and assess potential and existing risks related to money laundering and terrorism financing at least once a year. This includes reviewing new products, business practices, and technologies that may be vulnerable to these illicit activities.
- Reviewing new products, business practices, and technologies
- Identifying and assessing potential and existing risks
Reporting Requirements
Reporting entities are required to submit information on suspicious transactions or business relationships, as well as transactions subject to mandatory reporting. The types of transactions and thresholds for reporting vary depending on the type of entity.
- Financial institutions: report non-cash transactions above AMD 20 million and cash-related transactions above AMD 5 million
- Notaries, attorneys, sole practitioner lawyers and legal firms, sole practitioner accountants and accounting firms, auditing firms and auditors: report only in cases where doing so does not contradict confidentiality requirements
Confidentiality Requirements
Legally defined confidentiality requirements for non-financial institutions or entities apply only to information received from clients or other sources in performing their legally prescribed tasks.
- Confidentiality requirements do not apply to reporting entities that submit classified information
- Reporting entities are required to comply with confidentiality requirements when submitting reports
Government Efforts
The Armenian government has emphasized the importance of implementing effective risk management measures to prevent money laundering and terrorism financing. The government has implemented various measures, including:
- Creation of an Authorized Body responsible for receiving reports and conducting investigations
- Strengthening its anti-money laundering and counter-terrorism financing regime
Conclusion
Financial institutions and non-financial entities in Armenia are being urged to implement enhanced risk management measures to prevent money laundering and terrorism financing. By complying with these regulations, reporting entities can help safeguard the country’s financial system and reputation.
By taking a proactive approach to identifying and mitigating risks associated with money laundering and terrorism financing, financial institutions and non-financial entities can contribute to the stability and integrity of Armenia’s financial system.