Money Laundering and Terrorism Financing Risks: New Reporting Requirements Implemented
In an effort to combat the growing threat of money laundering and terrorism financing, Armenia has introduced new reporting requirements for various entities. The amendments, which took effect on March 1, 2018, aim to enhance transparency and prevent illicit activities.
Who Must Report?
The revised regulations require certain entities to submit information on suspicious transactions or business relationships to the Authorized Body prior to launching new products or business practices, or when using new or developing technologies. The following entities are included in this requirement:
- Notaries
- Attorneys and legal firms
- Sole practitioner lawyers and legal firms
- Sole practitioner accountants and accounting firms
- Auditing firms and auditors
Reporting Requirements
The reporting requirements apply in the following scenarios:
Financial Institutions
- Non-cash transactions above AMD 20 million must be reported
- Cash-related transactions above AMD 5 million must be reported
Notaries, Organizers of Casino, Games of Chance, Lotteries, and Trust Management/Company Registration Services
- Transactions above AMD 20 million (except for real estate transactions) or AMD 50 million (for real estate transactions) must be reported
- Entities providing trust management and company registration services must report when acting as a formation agent, director, partner, or providing accommodation to legal persons
What Must Be Reported?
The reports must include the following information:
- Type of transaction
- Amount involved
- Any suspicious activities
Confidentiality
Reporting entities, their employees, and representatives are prohibited from informing the person or entity about the fact that a report has been filed.
Determination of Reporting Requirements
The Authorized Body will determine which types of transactions and thresholds require reporting, as well as cases where reporting obligations can be released.
Purpose of the Measures
These measures aim to strengthen Armenia’s efforts in combating money laundering and terrorism financing, and ensure compliance with international standards.