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White-Collar Crimes Examples in Armenia: Key Offences, Laws and Regulations

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The Republic of Armenia has a robust legislative framework to combat white-collar crimes, with several key offences and laws in place to prevent and prosecute financial misconduct. In this article, we will delve into the specific laws and regulations governing companies and their directors and officers, as well as the lead prosecuting authorities and courts that hear cases related to financial crime.

Governing Laws and Regulations

In Armenia, the following are the key financial crime offences applicable to companies and their directors and officers:

  • Fraud (Article 163 of the Criminal Code): Intentionally deceiving others for personal gain.
  • Money Laundering (Article 165 of the Criminal Code): Concealing or disguising the origin, nature, or destination of illicit funds.
  • False Accounting (Article 166 of the Criminal Code): Falsifying financial records to deceive stakeholders.
  • Tax Evasion (Article 174 of the Tax Code): Avoiding payment of taxes owed.
  • Market Abuse (Regulation on Securities Market): Engaging in activities that distort market prices or undermine investor confidence.
  • Corruption (Article 314 of the Criminal Code): Soliciting or accepting bribes to influence decisions or actions.
  • Sanctions (Law on Economic Sanctions): Imposing penalties for violating economic sanctions.

Corporate Liability

In Armenia, corporates can be held criminally liable for their actions. The liability is determined based on the company’s organizational structure and the level of control exercised by its directors and officers.

Prosecuting Authorities

The lead prosecuting authorities in Armenia are:

  • Investigative Committee: Conducts investigations and gathers evidence.
  • Prosecutor General’s Office: Oversees prosecutions and decides whether to bring charges.

These agencies have the power to conduct raids, seize documents and evidence, and interview suspects.

Courts

In Armenia, financial crime cases are heard by the Court of Cassation, with trials typically conducted without a jury.

Investigation Powers

The authorities have the following powers to initiate an investigation:

  • Raids: Authorized search and seizure.
  • Compulsory document production: Companies and individuals must provide relevant documents upon request.
  • Evidence taking: Authorities can collect evidence from witnesses and suspects.

Interview Rights

Individuals being interviewed by the authorities have the right to:

  • Be represented by a lawyer.
  • Remain silent.
  • Request pre-interview disclosure of the purpose and scope of the investigation.
  • Have the interview recorded or transcribed.

Extraterritorial Effect

Armenian laws governing financial crime can apply extraterritorially, covering conduct of nationals and companies operating overseas.

Cooperation with Foreign Authorities

The Armenian authorities cooperate with foreign counterparts through international agreements and treaties.

Communications between a lawyer and client are protected by legal professional privilege in Armenia.

Privacy and Data Protection

Individuals have the right to privacy and data protection, which is respected during financial crime investigations.

Successor Liability

Armenia has a doctrine of successor liability, where companies may be held liable for actions committed before they were established or acquired.

Evidential Standard

The evidential standard required to secure conviction in Armenia is “beyond reasonable doubt”.

Statute of Limitations

There are no statute of limitations for criminal matters in Armenia, except in cases where a victim’s rights have expired.

Deferred Prosecution Agreements

Armenia has a mechanism for deferred prosecution agreements (DPAs), which can be used to resolve financial crime issues short of prosecution.

Plea Bargaining

Plea bargaining is not commonly practiced in Armenian courts.

Voluntary Disclosure

There are no requirements or benefits for corporate voluntary disclosure in Armenia.