Financial Crime World

Strengthening Anti-Money Laundering and Combating Terrorism Financing Measures

New Regulations for Financial Institutions and Non-Financial Entities

In a bid to strengthen the fight against money laundering and terrorism financing, financial institutions and non-financial entities are required to regularly review their potential and existing risks of these illicit activities. This is according to new regulations introduced by the government, which aim to enhance the country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Risk Identification and Assessment

The regulations require financial institutions and non-financial entities to identify and assess money laundering and terrorism financing risks, including those related to:

  • The development of new products or business practices
  • The use of new or developing technologies

This is a critical step in preventing the misuse of these activities for criminal purposes.

Reporting Requirements

In addition, the regulations stipulate that financial institutions and non-financial entities must submit information on money laundering and terrorism financing to the relevant authorities, including:

  • Classified information
  • Notaries, attorneys, accountants, auditors, and other professionals are also required to submit this information, subject to certain confidentiality requirements

The regulations specify the types of transactions or business relationships that require reporting, including:

  • Suspicious transactions or business relationships
  • Transactions subject to mandatory reporting

Threshold Amounts

The threshold amounts for reporting these transactions vary depending on the type of entity and the transaction involved. For example:

  • Financial institutions: non-cash transactions above AMD 20 million; cash-related transactions above AMD 5 million
  • Notaries, organizers of casino games, and other professionals: transactions above AMD 20 million (except real estate transactions, which require reporting if the amount is above AMD 50 million)

Exemptions

The regulations also specify the types of transactions or business relationships that do not require reporting, including:

  • Certain financial transactions related to buying and selling of real estate
  • Managing client property
  • Providing legal advice

Conclusion

In conclusion, the new regulations aim to strengthen the country’s AML/CFT measures by requiring financial institutions and non-financial entities to implement enhanced measures to prevent money laundering and terrorism financing. The regulations also specify the types of transactions or business relationships that require reporting, in order to detect and prevent these illicit activities.