Financial Action Task Force (FATF) Guidelines in Armenia: A Review of Recent Developments

The Financial Action Task Force (FATF), a global standard-setting body, has been actively revising its guidelines to combat money laundering and terrorist financing. In recent years, FATF has made significant changes to its standards, and Armenia has been working to implement these recommendations.

Recent Revisions to FATF Guidelines

Revision of Recommendation 5: Foreign Terrorist Fighters

The revised recommendation clarifies that countries must criminalize the financing of travel for individuals who travel to other states for the purpose of perpetrating or planning terrorist acts. This change aims to strengthen Armenia’s efforts in combating terrorism.

Revision of Recommendation 8: Non-Profit Organizations (NPOs)

FATF has revised Recommendation 8 and its interpretive note to clarify the standards on NPOs. This change aims to bring Armenia’s implementation in line with international best practices and risk-based approaches, ensuring that the country’s financial institutions and DNFBPs are equipped to deal with the risks associated with NPOs.

Revision of Recommendation 15: Virtual Assets

FATF has been focusing on virtual assets, revising Recommendation 15 and adding a new interpretive note to set out the application of its standards to this area. This move aims to ensure that Armenia’s financial institutions and DNFBPs are equipped to deal with the increasing use of virtual assets.

Strengthening Asset Recovery Standards

Armenia has been working to strengthen its asset recovery standards, revising Recommendations 4, 30, 31, 38, and INR.4, INR.30, INR.38, and INR.40, as well as the Glossary definitions related to asset recovery.

Recent Revisions to FATF Guidelines

In recent months, FATF has made further revisions to its guidelines, including the revision of Recommendation 1 and Interpretive Note 1 to require countries to identify and assess risks of proliferation financing breaches and take action to mitigate these risks.

Impact on Armenia’s Efforts

The revised Guidelines are expected to have a significant impact on Armenia’s efforts to combat money laundering and terrorist financing. The country has been working to implement FATF’s recommendations, and the revisions will help ensure that its financial institutions and DNFBPs are equipped to deal with the evolving threats in this area.

Conclusion

As Armenia continues to work towards implementing FATF’s revised guidelines, it is essential for the country’s financial institutions and DNFBPs to remain vigilant and proactive in their efforts to combat money laundering and terrorist financing. The revisions will help strengthen Armenia’s ability to detect and prevent these illegal activities, ultimately contributing to a safer and more stable financial environment.