Financial Crime World

Title: New Legal Framework to Combat Money Laundering and Terrorism Financing in Armenia

Introduction

The Republic of Armenia has taken significant strides towards strengthening its legal framework against money laundering and terrorism financing with the recent adoption of the Law on Combating Money Laundering and Terrorism Financing. Passed on May 26, 2008, this law aims to protect public safety, economic systems, and promote a secure financial environment in the country.

General Provisions

Purpose and Scope

Chapter 1, General Provisions, outlines the purpose and fundamental aspects of the newly introduced law:

This Law shall regulate the relationships pertaining to the fight against money laundering and terrorism financing…

This law establishes the framework for the authorized bodies, institutions, and entities involved in this fight, and sets the rules and conditions for cooperation among them, as well as the supervision and responsibility measures applied in the field of combating money laundering and terrorism financing.

Definitions

  • Money laundering: Defined under Article 190 of the Republican of Armenia Criminal Code.
  • Terrorism financing: Defined under Article 217.1 of the same criminal code.
  • Reporting entities: Banks, credit organizations, and various other institutions and entities involved in specific transactions and services.

Reporting Entities and Requirements

Reporting entities are required to comply with the necessary regulations stated in the law. These entities include:

  • Banks
  • Credit organizations
  • Other institutions and entities involved in specific transactions and services

The subsequent articles detail the following provisions:

  1. Reporting requirements: Guidelines for reporting suspicious transactions and business relationships.
  2. Classification of information: The level of confidentiality for different types of information.
  3. Suspicious transactions or business relationships: Recognition and reporting processes.
  4. Other provisions: Additional rules and regulations to effectively enforce the law.

Conclusion

The definitions of key terms set the foundation for combating illicit financial activities in Armenia. This new law will help establish a stronger legal framework to protect public safety and economic systems, promoting a more secure financial environment in the country.