Financial Crime World

Title: Armenian Banking System Navigates Complex Regulatory Landscape

Subtitle: A Deep Dive into Compliance Regulations for Banks in Armenia

Armenia’s financial sector, spearheaded by its banking system, continues to evolve, navigating the intricacies of a complex regulatory environment. In this article, we explore the key aspects of the Armenian banking landscape, focusing on the legislative framework, authorization processes, supervision mechanisms, and regulatory developments.

1. Defying Simplicity: The Regulatory Framework for Armenian Banks

  • Myriad of Laws and Regulations: The legislative framework for banking activities in Armenia includes a complex set of laws and regulations.
  • Primary Point of Reference: The Banking Law serves as the primary point of reference for banking activities in Armenia.
  • Registration, Licensing, and Corporate Governance: This law outlines the registration, licensing, and corporate governance structure for banks, as well as their day-to-day banking operations.
reference: Beglaryan, Adamyan, Mkrtumyan (2024). Armenia: Law & Practice. Chambers Global Practice Guides. Retrieved from https://www.chambers.com/guide/armenia/section/2/practice-area/banking-1.

2. Laying the Groundwork: Authorization & Licensing

  • Banking License: To engage in banking activities in Armenia, entities must secure a valid banking license from the Central Bank of Armenia (CBA).
  • Broad Range of Activities: A banking license enables licensees to perform a broad range of activities, including deposit-taking, loan issuance, financial consultation, and debt collection.
reference: Beglaryan, Adamyan, Mkrtumyan (2024). Armenia: Law & Practice. Chambers Global Practice Guides. Retrieved from https://www.chambers.com/guide/armenia/section/2/practice-area/banking-1.

3. Keeping a Watchful Eye: Supervision & Control

  • Primary Regulator: The Central Bank of Armenia (CBA) acts as the primary regulator in Armenia’s financial sector.
  • Supervisory Role: Its supervisory role encompasses various aspects such as corporate governance, risk management, internal control systems, and compliance with applicable laws and regulations.
reference: Beglaryan, Adamyan, Mkrtumyan (2024). Armenia: Law & Practice. Chambers Global Practice Guides. Retrieved from https://www.chambers.com/guide/armenia/section/2/practice-area/banking-1.

4. Staying Ahead of the Game: Regulatory Developments

  • AML and CTF Measures: The banking sector in Armenia is subject to ongoing regulatory developments, with an increasing focus on anti-money laundering (AML) and counter-terrorist financing (CTF) measures.
  • Depositor Protection Regimes: Efforts are being made towards enhancing depositor protection regimes in Armenia.

Guiding Banks through the Regulatory Environment

In this complex and ever-evolving landscape, it is crucial for banks to remain up-to-date with the latest regulatory developments and to effectively comply with the applicable laws and regulations. Concern Dialog, a leading Armenian law firm with extensive experience in banking and regulatory matters, is here to guide banks through this intricate regulatory environment.

reference: Concern Dialog (n.d.). About Us. Retrieved from https://www.dialog.am/en/about/.