Financial Crime World

Commission of Predicate Offences Hinders Convictions for Money Laundering

A recent report by a leading international organization has highlighted concerns that the commission of predicate offences poses an obstacle to obtaining convictions for stand-alone money laundering cases in Armenia.

Concerns and Recommendations

The report emphasized the need to raise awareness on the statutory requirements of Armenia’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) laws, as well as the importance of effective implementation and enforcement of these regulations.

Call for Strengthened Regulatory Framework

Experts are calling for a strengthened regulatory framework that ensures adequate powers for law enforcement authorities to access and compel production of information, transaction records, account files, and other documents or information covered by financial secrecy. Additionally, the report emphasized the need for increased transparency and cooperation between financial institutions, law enforcement agencies, and other competent authorities to effectively combat money laundering and terrorist financing.

Recommendations

The report made several recommendations to improve Armenia’s AML/CFT regime, including:

  • Strengthening customer due diligence measures by financial institutions
  • Enhancing ongoing monitoring procedures for business relationships with politically exposed persons (PEPs)
  • Improving the regulation of third parties and introduced businesses
  • Providing adequate powers for law enforcement authorities to access and compel production of information
  • Increasing transparency and cooperation between financial institutions, law enforcement agencies, and other competent authorities

Conclusion

The commission of predicate offences continues to hinder convictions for stand-alone money laundering cases in Armenia. To effectively combat money laundering and terrorist financing, it is essential that the country:

  • Strengthens its regulatory framework
  • Improves customer due diligence measures
  • Enhances ongoing monitoring procedures
  • Regulates third parties and introduced businesses
  • Provides adequate powers for law enforcement authorities
  • Increases transparency and cooperation between financial institutions, law enforcement agencies, and other competent authorities