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Regulations and Laws on Money Laundering and Terrorism Financing in Armenia
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The Republic of Armenia has implemented various regulations and laws to combat money laundering (ML) and terrorism financing (TF). Here’s an overview of some key requirements and guidelines.
Identifying Beneficial Owners
Overview of the Requirement
According to the Law on Combating Money Laundering and Terrorism Financing, reporting entities are required to identify beneficial owners. This includes cases with an indefinitely long chain of legal entities.
FATF Recommendations and Guidance
The Financial Action Task Force (FATF) recommends that if it’s impossible to identify natural persons through ownership interests or control, the identity of the senior managing official can be used as a proxy.
Implementation in Armenia
In Armenia, reporting entities must adhere to these guidelines when identifying beneficial owners. This includes:
- Identifying natural persons and their roles in the company structure
- Verifying identification documents for natural persons
- Using individual identification numbers for legal persons
Information in Payment Orders
Overview of the Requirement
The Law on Combating Money Laundering and Terrorism Financing mandates that financial institutions include specific information in payment orders accompanying wire transfers. This requirement is based on FATF Recommendation 16.
Key Requirements
When including information in payment orders, reporting entities must provide:
- Details of identification documents for natural persons
- Individual identification numbers for legal persons
Reporting Obligation and Customer Due Diligence
Overview of the Requirement
The Regulation on Minimum Requirements to Reporting Entities in the Field of Preventing Money Laundering and Terrorism Financing requires enhanced customer due diligence measures for non-face-to-face business transactions or relationships, which are identified as high-risk ML/TF criteria.
Implementation in Armenia
Reporting entities must adhere to these guidelines when conducting customer due diligence. This includes:
- Conducting enhanced background checks on customers
- Verifying the identity and authenticity of customers
- Monitoring customer activity for suspicious behavior