Financial Institutions’ Responsibilities in Preventing Financial Crime in Armenia: A Review of the Mutual Evaluation Report
Background
A recent report by the Financial Action Task Force (FATF) has highlighted the importance of financial institutions in preventing financial crime in Armenia. The report, which was published as part of Armenia’s mutual evaluation process with the FATF, provides a comprehensive assessment of the country’s implementation of anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.
Key Findings
- Financial institutions are partially compliant with several key recommendations, including those related to customer due diligence, record keeping, and internal controls.
- Armenia has made significant progress in implementing AML/CFT measures, but there are still areas that require improvement.
- Financial institutions have a critical role to play in preventing financial crime and should implement effective risk-based approaches to assess their customers’ risk profiles.
Areas for Improvement
Customer Due Diligence
Financial institutions have been found to be partially compliant with recommendations related to customer due diligence. To improve, financial institutions should:
- Implement effective customer due diligence measures
- Maintain accurate records of customer information
Risk Assessment and Mitigation
Financial institutions should take necessary measures to prevent suspicious transactions and report them to the relevant authorities.
International Cooperation
Armenia has been found to be largely compliant with recommendations related to mutual legal assistance, extradition, and other forms of international cooperation. However, international cooperation is essential in preventing financial crime.
Recommendations for Financial Institutions
- Implement effective customer due diligence measures and maintain accurate records
- Take necessary measures to prevent suspicious transactions and report them to the relevant authorities
- Implement effective risk-based approaches to assess customers’ risk profiles
Recommendations for the Armenian Government
- Continue to strengthen Armenia’s AML/CFT framework
- Provide adequate resources to financial regulatory bodies to ensure their effectiveness in preventing financial crime