Financial Crime World

Armenia’s Struggle Against Organized Crime: A Fragile Front

YEREVAN, ARMENIA - As Armenia continues its journey towards strengthening its economy and governance structures, a persistent challenge lurks in the shadows: organized crime. Despite being a transit country for illicit trade, Armenia’s criminal networks remain limited due to a lack of resources and space for lucrative illegal business.

The Armenian Mafia

The Armenian mafia, often divided into separate clans or brotherhoods known as ‘akhperutyuns’, has traditionally been active in the capital city Yerevan. However, reports suggest a decline in membership since 2018. Professional criminals who enjoy elite positions within organized crime groups, known as ’thieves in law’, have also been present but their influence has decreased since the early 2000s.

Challenges Facing Armenia’s Fight Against Organized Crime

  • Limited resources and space for lucrative illegal business: Armenia’s criminal networks struggle to establish significant territories in Armenian cities due to the country’s weak economy and limited resources.
  • Corruption and lack of transparency: Corruption and lack of transparency remain major concerns in Armenia’s judicial system, making it difficult to combat organized crime effectively.
  • Torture and ill-treatment in custody: Torture and ill-treatment in custody are common problems in Armenia.

Progress Made by Armenia

Despite these challenges, Armenia has made progress in combating organized crime. The government has implemented anti-corruption measures and collaborated with international organizations such as the EU and OSCE. Armenia has also started working closely with Europol to combat drug trafficking.

Ongoing Risks and Challenges

  • Economic and financial environment risks: Armenia still faces significant economic and financial environment risks, including money laundering and terrorist financing through its banking system.
  • Russian criminal groups and oligarchs: Russian criminal groups and oligarchs have been known to use Armenian banks in the wake of sanctions against Russia.
  • Civil society organizations: Civil society organizations dedicated to issues like policing and organized crime are scarce in Armenia, and those that exist lack funding and resources.
  • Media landscape: The media landscape is also polarized, with recent incidents of physical violence against journalists raising concerns over political influence and self-censoring.

Conclusion

In a country where about half of the workers are employed in the informal sector, possibly subjected to abuse and/or exploitation due to poor enforcement of relevant labor protections, it remains crucial for Armenia to continue its efforts at strengthening its economic system and improving its governance structures. Only then can the country hope to effectively combat organized crime and ensure a more stable future for its citizens.

Key Takeaways

  • Organized crime in Armenia is limited due to lack of resources and space for lucrative illegal business.
  • The Armenian mafia has traditionally been active in Yerevan, but reports suggest a decline in membership since 2018.
  • Professional criminals known as ’thieves in law’ have also been present but their influence has decreased since the early 2000s.
  • Corruption and lack of transparency remain major concerns in Armenia’s judicial system.
  • Torture and ill-treatment in custody are common problems in Armenia.
  • Armenia has made progress in combating organized crime through anti-corruption measures and international cooperation.
  • The country still faces significant economic and financial environment risks, including money laundering and terrorist financing.
  • Civil society organizations dedicated to issues like policing and organized crime are scarce in Armenia.
  • The media landscape is polarized, with recent incidents of physical violence against journalists raising concerns over political influence and self-censoring.