AML CFT Law Eng Armenia

REPUBLIC OF ARMENIA LAW
ON COMBATING MONEY LAUNDERING AND TERRORISM FINANCING
(Adopted on May 26, 2008)
1. The purpose of this Law shall be protecting the public safety, the economic and financial
systems of the Republic of Armenia from the risks related to money laundering and
terrorism financing, through the establishment of a legislative framework to counter money
laundering and terrorism financing.
CHAPTER 1
GENERAL PROVISIONS
ARTICLE 1: SUBJECT OF LAW

1. This Law shall regulate the relationships pertaining to the fight against money laundering
and terrorism financing, establish the framework of the authorized bodies, institutions, and
entities involved in the fight against money laundering and terrorism financing, the rules and
conditions for the cooperation thereof, as well as the issues related to the supervision
exercised and responsibility measures applied in the field of combating money laundering
and terrorism financing. This Law shall also regulate the relations pertaining to the freezing
of property of the persons related to the proliferation of weapons of mass destruction.
(Article 1 has been amended by HO-55-N from March 01, 2018)
ARTICLE 2: LEGAL REGULATION OF FIGHT AGAINST MONEY LAUNDERING AND TERRORISM

FINANCING
1. The fight against money laundering and terrorism financing shall be regulated by the
international treaties of the Republic of Armenia, the Constitution of the Republic of
Armenia, this Law, other laws of the Republic of Armenia, as well as, in the cases provided
for under this Law, other legal statutes.
ARTICLE 3: BASIC DEFINITIONS USED IN LAW

1. In the meaning of this Law:
1) Property shall be the property defined under Part 4 of Article 103.1 of the Republic of
Armenia Criminal Code;
2) Money laundering shall be the action defined under Article 190 of the Republic of
3) Terrorism financing shall be the action defined under Article 217.1 of the Republic of
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3.1) Financing of proliferation of weapons of mass destruction shall be the provision of
property or financial services for the purpose of committing the actions stipulated
under Articles 386 and Part 2 of Article 387 of the Republic of Armenia Criminal Code
4) Reporting entities shall be:
a. banks;
b. credit organizations;
c. entities engaged in foreign currency broker-dealer trade transactions, foreign
currency exchange;
d. entities engaged in money (currency) transfer services;
e. entities providing investment services, as defined under the Republic of Armenia
Law on the Securities Market, except for the managers of corporate investment
funds with respect to their activities of managing investment funds;
f. the Central Depositary, as defined under the Republic of Armenia Law on the
Securities Market;
g. insurance (including reinsurance) companies and entities providing intermediary
insurance (including reinsurance) services;
h. corporate investment funds, as well as non-public contractual investment funds,
which do not have a manager licensed by the Central Bank of the Republic of
Armenia;
i. pawnshops;
j. entities engaged in realtor activities;
k. notaries;
l. attorneys, as well as sole practitioner lawyers and legal firms;
m. sole practitioner accountants and accounting firms;
n. auditing firms and auditors;
o. dealers in precious metals;
p. dealers in precious stones;
q. dealers in works of art;
r. organizers of auctions;
s. organizers of casino, games of chance, including online games of chance, and
lotteries;
t. entities providing trust management and company registration services;
u. credit bureaus, to which this Law shall apply only to the extent of the obligation to
report on suspicious transactions or business relationships as provided for under
Articles 6-8, the obligation to register as provided for under Part 5 of Article 9, and
the responsibility established under Clauses 2, 4, 5 and 6, Part 4 of Article 30;
v. the authorized body in charge of maintaining the integrated state cadastre of real
estate, to which this Law shall apply only to the extent of the obligation to report as
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provided for under Articles 6-8, the obligation to register as provided for under Part
5 of Article 9, and the responsibility established under Part 9 of Article 30;
w. the state authority in charge of registering legal persons (the State Registry), to
which this Law shall apply only to the extent of the obligation to report as provided
for under Articles 6-8 in the cases specified under Part 4 of Article 6, as well as the
obligations as provided for under Parts 1 and 5 of Article 9, and the responsibility
established under Part 9 of Article 30;
5) Financial institutions shall be the reporting entities defined under Sub-Clauses “a” to
“i”, Clause 4 of this Part;
6) Non-financial institutions or entities shall be the reporting entities defined under Sub-
Clauses “j” to “t”, Clause 4 of this Part;
Articles 4, 23 and 25 of this Law shall apply only to those non-financial institutions or
entities, which have more than 10 employees;
7) Authorized Body shall be the Central Bank of the Republic of Armenia;
8) Supervisory authority shall be the relevant body authorized to license (appoint,
qualify, or otherwise permit the activities) and to supervise the reporting entity;
9) Transaction shall be a deal between the reporting entity and the customer or the
authorized person, as well as between the customer or the authorized person and
another person, which is concluded through the reporting entity or is a subject of
review (monitoring) by the reporting entity. Any action resulting in the emergence,
alteration or termination of rights and obligations based on of or issuing from a specific
transaction may also be considered as a transaction.
10) Occasional transaction shall be a transaction, which does not result in an obligation to
provide services on regular basis, and (or) does not imply the establishment of a
business relationship;
11) Linked occasional transactions shall be occasional transactions with the same party
having similar nature and occurring within 24 hours;
12) Business relationship shall be the services provided by the reporting entity to the
customer on regular basis, which are not limited to one or several occasional
transactions. A business relationship does not include those activities of the reporting
entity, which are conducted by the reporting entity for its own needs and are different
from the activities stipulated by the law for the given type of reporting entity;
13) Customer shall be the person establishing or making use of an established business
relationship with the reporting entity, as well as the person which offers the reporting
entity to conduct, or conducts, an occasional transaction;
14) Beneficial owner shall be the natural person, on behalf or for the benefit of whom the
customer in reality acts; and (or) who in reality controls the customer or the person on
behalf or for the benefit of whom the transaction or the business relationship is
conducted; and (or) who owns the customer, which is a legal person; or the person on
behalf or for the benefit of whom the transaction or the business relationship is
conducted. With respect to legal persons, the beneficial owner shall also be the natural
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person who exercises actual (real) control over the legal person or the transaction or
the business relationship, and (or) for the benefit of whom the transaction or the
business relationship is conducted. The beneficial owner of a legal person may also be
the natural person, who:
a. Holds, with voting power, 20 or more percent of the voting shares (stocks, equity
interests, hereinafter: shares) of the legal person involved (except for the listed
issuers (public companies) as defined by the Republic of Armenia Law on the
Securities Market), or has the capacity to predetermine its decisions by virtue of his
shareholding or due to a contract concluded with the legal person; or
b. Is a member of the executive and (or) governance body of the legal person
involved; or
c. Acts in concert with the legal person involved, on basis of common economic
interests;
15) Authorized person shall be the person authorized, by the order and on behalf of the
customer, to conduct a transaction or to take certain legal or factual actions in a
business relationship, including the authorization to represent the customer through a
power of attorney or in any other manner stipulated by the law;
16) Legal person shall be an organization or establishment with legal personality under the
Republic of Armenia law and (or) foreign law, as well as a legal formation without legal
personality under foreign law;
17) Customer business profile shall be the totality of information (notions) of the reporting
entity concerning the nature, impact, and significance of a customer’s activities; the
existing and expected dynamics, volumes, and areas of business relationships and
occasional transactions; the existence, identity, and interrelations of authorized
persons and beneficial owners; as well as other facts and circumstances regarding the
customer’s activities;
18) Other party to transaction shall be the other participant in the transaction conducted
by the customer, who provides (transfers) or to whom is channeled the property
deriving from the transaction;
19) Customer due diligence shall be a process whereby the reporting entity applies the
risk-based approach to obtain and analyze information (including documents)
concerning the identity and business profile of the customer, with a view to gain
appropriate knowledge about the customer, which shall include:
a. Identifying and verifying the identity of the customer (including that of the
authorized person and the beneficial owner),
b. Understanding the purpose and intended nature of the transaction or business
relationship;
c. Performing ongoing due diligence of the business relationship;
20) Risk shall be a circumstance indicating the threat and likelihood of money laundering
and terrorism financing, which may be defined in terms of countries or geographic
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locations, types of customers, types of transactions or business relationships, types of
services, or in terms of other parameters;
21) High-risk criterion shall be a criterion established by this Law, the legal statutes of the
Authorized Body, as well as the internal legal statutes of the reporting entity, which
indicates a high likelihood of money laundering or terrorism financing; such criteria
shall include politically exposed persons, their family members or persons otherwise
associated with them (father, mother, grandmother, grandfather, sister, brother,
children, spouse’s parents), who are potential or existing customers or beneficial
owners; persons (including financial institutions), which are domiciled or reside in or
are from non-compliant countries or territories; all complex or unusual large
transactions, or unusual patterns of transactions or business relationships, which have
no apparent economic or other lawful purpose. At that, in cases stipulated by the
Authorized Body, the existence of a high risk criterion in a transaction or business
relationship may be determined by combination of the established criteria;
22) Enhanced customer due diligence shall be a process involving advanced application of
customer due diligence by the reporting agency, whereby, in addition to the
established due diligence measures, it is also necessary to, at minimum:
a. Obtain senior management approval to establish a business relationship with the
customer, to continue the business relationship, as well as when the customer or
the beneficial owner is subsequently found to be characterized by high-risk criteria,
or when the transaction or the business relationship is found to comprise such
criteria;
b. Take necessary measures to establish the source of funds and wealth of the
customer;
c. Examine, as far as possible, the background and purpose of the transaction or
business relationship;
d. Conduct enhanced ongoing monitoring of relationships with politically exposed
persons;
23) Low-risk criterion shall be a criterion established by this Law or the legal statutes of the
Authorized Body, which indicates a low likelihood of money laundering or terrorism
financing; such criteria shall include financial institutions effectively supervised for
compliance with the requirements to combat money laundering and terrorism
financing, government bodies, local self-government bodies, state-owned non
commercial organizations, public administration institutions, except for the bodies or
organizations domiciled in non-compliant countries or territories. At that, in cases
stipulated by the Authorized Body, the existence of a low risk criterion in a transaction
or business relationship may be determined by combination of the established criteria;
24) Simplified customer due diligence shall be a process involving limited application of
customer due diligence by the reporting agency, whereby the following information is
gathered in the course of identification and verification of identity:
a. For a natural person – forename, surname, and identification document data;
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b. For a legal person – company name and individual identification number (state
registration, individual record number etc);
c. For a government body and a local self-government body – full official name;
25) Politically exposed person shall be an individual, who is a former or present high-level
public official entrusted with prominent public, political, or social functions in a foreign
country or territory. At that, the definition of politically exposed persons shall not
cover the individuals having been entrusted middle and low ranking public functions. In
particular, the following shall be politically exposed persons:
a. Heads of State, Heads of Government, Ministers and Deputy Ministers;
b. Members of the Parliament;
c. Members of the Supreme Court, Constitutional Court, or any other high-level court,
whose decisions are not subject to appeal except for the cases of appellation under
special circumstances;
d. Members of the Auditors’ Court or members of the Board of the Central Bank;
e. Ambassadors, chargés d’affaires, and high-level military officers;
f. Prominent members of political parties;
g. Members of administrative, managerial, or supervisory bodies of state-owned
organizations;
26) Non-compliant country or territory shall be a foreign country or territory that,
according to the lists published by the Authorized Body, is in non-compliance or
inadequate compliance with the international requirements on combating money
laundering and terrorism financing;
27) Core of vital interests shall be the domicile of a person’s family or economic interests.
Family or economic interests may be domiciled in the place of the dwelling house
(apartment) of the person, the place of residence of the person and (or) his family, the
place of his (his family’s) main personal or family property, or the place of conduct of
his main economic (professional) activity;
28) Senior management shall be a body or employee of the reporting entity authorized to
make decisions and take action on behalf of the reporting entity on matters relating to
the prevention of money laundering, terrorism financing and proliferation financing;
29) Internal monitoring unit shall be a division or employee of the reporting entity
performing the function of preventing money laundering, terrorism financing and
proliferation financing as provided for under this Law and the legal statutes of the
Authorized Body, except for the divisions or employees as determined by the
Authorized Body, as well as a reporting entity, which acts as a sole functionary. In the
cases and manner determined by the Authorized Body, the functions of the internal
monitoring unit of the reporting entity may be delegated to a specialized professional
entity;
30) Suspicious transaction or business relationship shall be a transaction or business
relationship, including the attempted transaction or business relationship whereby it is
suspected or there are reasonable grounds to suspect that the property involved is the
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proceeds of a criminal activity or is related to terrorism, terrorist acts, terrorist
organizations or individual terrorists, or to those who finance terrorism, or was used in
or is intended to be used for terrorism, or by terrorist organizations or individual
terrorists, or by those who finance terrorism;
31) Criterion for suspicious transaction or business relationship shall be a situation or
signal alerting to the possibility of money laundering or terrorism financing, as defined
by the legal statutes of the Authorized Body, as well as the internal legal statutes of the
reporting entity;
32) Typology shall be a possible scheme articulating the logic and sequence of actions and
(or) steps aimed at money laundering and terrorism financing, as defined by the legal
statutes of the Authorized Body, as well as the internal legal statutes of the reporting
entity;
33) Terrorism-related person shall be any individual terrorist, including the persons
suspected in, accused in, or convicted for committed or attempted terrorism (including
accomplices of any type), or any terrorist organization, the persons associated with
them, any other person acting in their name, on their behalf, or under their direction,
or directly or indirectly owned or controlled by them, which have been included in the
lists published by or in accordance with the United Nations Security Council
resolutions, or by the Authorized Body;
33.1) Proliferation-related person shall be any person that has been included in the lists
published by or in accordance with the United Nations Security Council resolutions
establishing targeted financial sanctions with regard to proliferation of weapons of
mass destruction and (or) the financing thereof
34) Suspension of transaction or business relationship shall be imposing a provisional
prohibition on the factual and legal movement of the property involved in a suspicious
transaction and (or) business relationship;
35) Refusal of transaction or business relationship shall be non-performing of the actions
stipulated for conduction of a transaction or establishment of a business relationship;
36) Termination of transaction or business relationship shall be disrupting conduction of a
transaction or implementation of a business relationship;
37) Freezing of property shall be imposing, for an indefinite term, a prohibition on the
factual and (or) legal movement of the property directly or indirectly owned or
controlled by terrorism-related persons or proliferation-related; this includes
prohibition on direct or indirect possession, use, or disposal of the property, as well as
on establishment of any business relationship (including provision of financial services)
or conduction of occasional transactions;
38) Securities shall be the securities defined by the Republic of Armenia Civil Code,
including bonds, cheques (cheque books), bills of exchange (payment notes), shares,
bills of lading, bank records (bank books, bank certificates), warehouse certificates and
other securities as defined by other laws;
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39) Shell bank shall be a bank that, while founded, registered, licensed or otherwise
incorporated in a certain country, has no mind and management, physical presence or
factual activities on its territory, and is unaffiliated with a regulated group of financial
institutions subject to effective consolidated supervision;
40) Payable-through account shall be a correspondent account opened with a financial
institution and used directly by the customers of the respondent financial institution to
transact business on their own behalf;
41) Financial group shall be a group comprising a legal person, which exercises control and
coordinates functions over the members of the group (including the branches and (or)
representations that are subject to anti-money laundering and counter terrorism
financing policies and procedures at the group level) involved in activities specified
under Sub-Clauses “a”, “e”, “f”, or ”g”, Clause 4, Part 1 of Article 3 of this Law, for the
application of effective consolidated supervision at the group level;
42) Lists published by or in accordance with the United Nations Security Council
resolutions shall be the lists of terrorism-related or proliferation-related persons
published by or in accordance with the United Nations Security Council resolutions.
(Article 3 has been amended and changed by HO-55-N from March 01, 2018)
CHAPTER 2
PREVENTION OF MONEY LAUNDERING AND TERRORISM FINANCING
ARTICLE 4: APPLICATION OF RISK-BASED APPROACH BY REPORTING ENTITIES

1. Financial institutions and non-financial institutions and entities should identify and assess
their potential and existing money laundering and terrorism financing risks, and should have
policies, controls, and procedures enabling them to effectively manage and mitigate
identified risks.
2. When assessing money laundering and terrorism financing risk, financial institutions and
non-financial institutions and entities should consider all relevant risk factors before
determining the level of overall risk and the appropriate level of mitigation to be applied;
subsequently, they may differentiate the extent of applied measures, depending on the type
and the level of risk.
3. Financial institutions and non-financial institutions and entities should regularly, but at least
once in a year, review their potential and existing money laundering and terrorism financing
risks.
4. Among other money laundering and terrorism financing risks, financial institutions and non-
financial institutions or entities should identify and assess those potential and existing risks,
which may arise in relation to the development of new products and new business practices,
as well as to the use of new or developing technologies.
5. Financial institutions and non-financial institutions or entities should identify and assess
money laundering and terrorism financing risks, as stipulated under Part 4 of this Article,
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prior to the launch of new products or business practices, or the use of new or developing
technologies.
ARTICLE 5: SUBMISSION OF CLASSIFIED INFORMATION

1. Reporting entities shall be obligated to submit to the Authorized Body information on
money laundering and terrorism financing as defined by this Law and the legal statutes
adopted on the basis thereof, including classified information as defined by the law.
2. Notaries, attorneys, as well as sole practitioner lawyers and legal firms, sole practitioner
accountants and accounting firms, auditing firms and auditors shall submit to the
Authorized Body the information defined by this Law only in the cases when doing so does
not contradict to the confidentiality requirements as established by the laws regulating
their activities. Legally defined confidentiality requirements for non-financial institutions or
entities shall be applicable only to the information received from the client or from other
sources in performing their legally prescribed task of defending or representing the client in
judicial, administrative, arbitration or mediation proceedings, as well as of providing legal
advice, except for the cases when the client receives advice for money laundering or
terrorism financing purposes.
ARTICLE 6: TRANSACTION OR BUSINESS RELATIONSHIP SUBJECT TO REPORTING

1. Reporting entities shall file reports with the Authorized Body on suspicious transactions or
business relationships and (or) on transactions subject to mandatory reporting.
2. Reports on suspicious transactions or business relationships shall be filed by all reporting
entities, as per the types of transactions or business relationships determined for each
reporting entity, regardless of the amounts involved, except for the cases defined under
Clause 5, Part 4 of this Article.
3. Reports on transactions subject to mandatory reporting shall be filed by the following
reporting entities, as per certain types of transactions and thresholds, in particular:
1) For financial institutions – non-cash transactions at an amount above AMD 20 million,
as well as cash-related transactions at an amount above AMD 5 million;
2) For notaries, organizers of casino, games of chance, including online games of chance,
and lotteries, the state authority in charge of registering legal persons (the State
Registry), as well as the authorized body in charge of maintaining the integrated state
cadastre of real estate – transactions at an amount above AMD 20 million, except for
transactions of buying and selling real estate, which shall be reported if concluded at
an amount above AMD 50 million. Transactions defined under this Clause, when made
in cash, shall be reported if concluded at an amount above AMD 5 million.
4. Reporting requirement under Parts 2 and (or) 3 of this Article shall apply to the reporting
entities specified under Clauses 1-5 of this Part in the following cases:
1) For notaries, attorneys, as well as sole practitioner lawyers and legal firms, sole
practitioner accountants and accounting firms, auditing firms and auditors – only in
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connection with the preparation or implementation of the following types of
transactions or business relationships:
a. Buying and selling of real estate;
b. Managing of client property;
c. Management of bank and securities accounts;
d. Provision of property for the creation, operation, or management of legal persons;
e. Carrying out functions involving the creation, operation, or management of legal
persons, as well as the alienation (acquisition) of stocks (equity interests, shares
and the like) in the statutory (equity and the like) capital of legal persons, or the
alienation (acquisition) of issued stocks (equity interests, shares and the like) of
legal persons at nominal or market value;
2) For organizers of casino, games of chance, including online games of chance, and
lotteries – only when they:
a. Sell/ buy back casino tokens (lottery tickets);
b. Accept wagers;
c. Pay out or provide winnings;
d. Make financial transactions related to Sub-Clauses “a” to “c” of this Clause.
3) For entities providing trust management and company registration services – only
when they:
a. Act as a formation agent (representative) of legal persons in rendering company
registration services;
b. Act (arrange for another person to act) as a director (executive body) of a company,
a partner of a partnership, or perform similar functions of a legal person’s
management;
c. Provide accommodation (operational, correspondence, or administrative address)
to a legal person;
d. Act (arrange for another person to act) as a trust manager of an express trust or
perform the equivalent function for another form of legal arrangement;
e. Act (arrange for another person to act) as a nominee shareholder for another legal
person;
4) For the state authority in charge of registering legal persons (the State Registry) – only
with regard to the state registration of the alienation (acquisition) of stocks (equity
interests, shares and the like) in the statutory (equity and the like) capital of legal
persons, or of the formation of, or changes in, the statutory (equity and the like)
capital thereof;
5) For dealers in precious metals and dealers in precious stones – only with regard to cash
transactions at an amount above AMD 5 million.
5. Reporting entities, their employees, and representatives shall be prohibited from informing
the person, on whom a report or other information is being filed with the Authorized Body,
as well as other persons, about the fact of filing such report or other information.
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6. The Authorized Body shall determine, as per certain types of transactions and (or)
thresholds, the cases of releasing from the reporting obligation specified under Part 3 of this
Article.
ARTICLE 7: RECOGNITION OF SUSPICIOUS TRANSACTION OR BUSINESS RELATIONSHIP

1. Reporting entities should recognize a transaction or business relationship, including an
attempted transaction or business relationship, as suspicious and file with the Authorized
Body a report on suspicious transaction or business relationship as stipulated under Article 8
of this Law, if it is suspected or there are reasonable grounds to suspect that the property
involved is the proceeds of a criminal activity or is related to terrorism, terrorist acts,
terrorist organizations or individual terrorists, or to those who finance terrorism, or was
used in or is intended to be used for terrorism, or by terrorist organizations or individual
terrorists, or by those who finance terrorism.
2. Reporting entities should consider recognizing a transaction or business relationship as
suspicious and filing with the Authorized Body a report on suspicious transaction or business
relationship as stipulated under Article 8 of this Law, if the circumstances of the case under
consideration fully or partially match the criteria or typologies of suspicious transactions or
business relationships, or if it becomes clear for the reporting entity that, although there is
no suspicion arising from a specific criterion or typology of a suspicious transaction or
business relationship, the logic, pattern (dynamics) of implementation or other
characteristics of the performed or attempted transaction or business relationship provide
the grounds to assume that it may be carried out for the purpose of money laundering or
terrorism financing.
3. In the cases specified under Part 2 of this Article, if relevant consideration does not result in
recognizing a transaction or business relationship as suspicious and filing with the
Authorized Body a report on suspicious transaction or business relationship as stipulated
under Article 8 of this Law, the grounds for non-recognition of the transaction or business
relationship as suspicious, the respective conclusions, the process of conducted analysis and
its findings shall be documented and maintained in the manner and timeframe established
by this Law.
ARTICLE 8: CONTENT AND RULES FOR SUBMISSION OF REPORT ON TRANSACTION SUBJECT TO

MANDATORY REPORTING AND ON SUSPICIOUS TRANSACTION OR BUSINESS RELATIONSHIP
1. The report on a transaction subject to mandatory reporting and on a suspicious transaction
or business relationship shall contain the following:
1) Data on the customer, the authorized person, the other party to the transaction; and in
case of a suspicious transaction – also data on the beneficial owner, including:
a. For natural persons and sole practitioners – forename, surname, citizenship,
registration address (if available) and place of residence, year, month, and date of
birth, serial and numerical number of the identification document, and year,
month, and date of its issuance; and for sole practitioners – also the number of
registration certificate and the taxpayer identification number;
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b. For legal persons – company name, domicile, individual identification number
(state registration, individual record number etc) and, if available, the taxpayer
identification number;
c. In case of reporting by financial institutions – also the bank account number of the
customer;
2) Description of the subject of the transaction or business relationship;
3) Amount of the transaction;
4) Date of conducting the transaction or establishing the business relationship.
2. The report on suspicious transaction or business relationship shall also contain a description
of the suspicion and, if available, the criteria and (or) typology used for recognizing the
transaction or business relationship as suspicious, as well as an indication of whether the
transaction or business relationship has been suspended, refused, or terminated, or whether
the property of terrorism-related or proliferation-related persons has been frozen.
3. Submitted reports shall have an assigned sequential number and bear the signature of the
internal monitoring unit – in case of financial institutions and non-financial institutions or
entities, or of the responsible official – in case of reporting entities specified under Sub-
Clauses “u” to “w” of Clause 4, Part 1, Article 3 of this Law (hard copies should also bear the
seal, if available). The report shall indicate the registration number of the reporting entity
with the Authorized Body.
4. Where a government body or a local self-government body acts as the customer, the
authorized person, or the other party to the transaction or business relationship, the report
shall indicate only the full official name and the country of such body.
5. The Authorized Body shall establish the forms, rules, and timeframes of reporting for each
type of reporting entity, as well as exclusions from the information to be included in the
reports under this Article.
ARTICLE 9: PROCEDURES FOR STATE REGISTRATION OF LEGAL PERSONS, REGISTRATION OF

CHANGES, AND LICENSING OF FINANCIAL INSTITUTIONS, AS WELL AS OBLIGATION OF
REPORTING ENTITIES TO REGISTER
1. In case of registering a legal person, making changes in the statutory (equity and the like)
capital or in the composition of the founders, participants, members, shareholders, or
stockholders of the legal person, the founders (participants, members, shareholders,
stockholders etc.) shall be obligated to file a declaration on the beneficial owners of the legal
person with the state authority in charge of registering legal persons (the State Registry) in
the manner, form, and timeframes established by the Authorized Body. Upon request, the
state authority in charge of registering legal persons (the State Registry) shall provide the
Authorized Body with a copy of the mentioned declaration.
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2. Legal persons shall be subject to responsibility stipulated by the law for the failure to submit
the data on beneficial owners under Part 1 of this Article, and for submitting incorrect
(including false or unreliable) or incomplete data.
3. In the course of licensing (appointing, qualifying, or otherwise permitting the activities) a
financial institution, the supervisory authority shall be obligated to require information
(including documents), as determined by the Authorized Body, and to check veracity of such
information.
4. Within 15 days after licensing (appointing, qualifying, or otherwise permitting the activities)
a reporting entity or terminating its license (appointment, qualification, or otherwise
permission of the activities), the supervisory authority shall be obligated to notify the
Authorized Body on that matter.
5. Within 1 month after being licensed (appointed, qualified, or otherwise permitted to have
activities), reporting entities (except for financial institutions) shall be obligated to register
with the Authorized Body in the manner established by the Authorized Body.
6. Financial institutions shall be obligated to register with the Authorized Body in the manner
established by the Authorized Body.
CHAPTER 3
AUTHORIZED BODY
ARTICLE 10: AUTHORIZED BODY

1. The Authorized Body shall have the following powers:
1) Receive reports and other information (including documents) from reporting entities;
receive information (including documents) from state bodies;
2) Analyze the received reports and information (including documents);
3) Submit a notification to criminal prosecution authorities in the cases defined under
Article 13 of this Law;
4) Request and obtain from reporting entities other information (including documents)
relevant to the purposes of this Law, including classified information as defined by the
law, except for the cases specified under Part 2 of Article 5 of this Law;
5) Request from state bodies, including supervisory and criminal prosecution authorities,
information (including documents) relevant to the purposes of this Law, including
classified information as defined by the law;
6) Give assignments with a view to ensure the reporting entities’ proper implementation
of the obligations under this Law and the legal statutes adopted on the basis thereof
(in case of non-financial institutions or entities, which have supervisory authorities –
through such authorities), including assignments to recognize as suspicious, to
suspend, refuse or terminate or conduct enhanced due diligence of a transaction or
business relationship based on identification data, criteria, or typologies of suspicious
transactions or business relationships as provided by the Authorized Body;
7) Adopt legal statutes, as defined by this Law, in the field of combating money
laundering and terrorism financing, as well as approve guidelines expounding
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implementation procedures of such statutes, including those on the criteria and
typologies of suspicious transactions or business relationships;
8) Supervise the reporting entities in the cases and manner provided for under this Law;
assist supervision activities of other supervisory authorities, including the solicitation
to apply responsibility measures;
9) Determine the cases of and the periodicity for conducting internal audit by financial
institutions aimed at preventing money laundering and terrorism financing; require
conduction of external audit;
10) Apply responsibility measures defined under this Law and the Republic of Armenia
Code of Administrative Violations for the involvement in money laundering or
terrorism financing by legal persons, as well as by the reporting entities, for which
there is no legally defined supervisory authority or a legislative regulatory framework
for the supervisory authority to perform the functions assigned to it in the field of
combating money laundering and terrorism financing;
11) Suspend a suspicious transaction or business relationship; freeze the property of
terrorism-related or proliferation-related persons;
12) Develop, review, and publish the lists of terrorism-related persons as defined under
Part 2 of Article 28 of this Law;
13) Regularly provide the reporting entities with information (feedback) on the reports
submitted by the reporting entities, in the manner established by the Authorized Body;
14) Organize trainings in the field of combating money laundering and terrorism financing,
as well as award qualifications to the staff members of internal monitoring units of
financial institutions as defined under Part 2 of Article 24 of this Law;
15) Publish annual reports on its activities;
16) Raise public awareness on combating money laundering and terrorism financing;
17) Conclude agreements of cooperation with international structures and foreign
financial intelligence bodies as defined under Article 14 of this Law; exchange
information (including documents) relevant to the purposes of this Law, including
classified information as defined by the law;
18) Publish the lists of non-compliant countries or territories, based on data publicized by
international structures active in the field of combating money laundering and
terrorism financing and (or) by foreign countries, with the consent of the body
authorized in the area of foreign affairs of the Republic of Armenia;
19) Give assignments to reporting entities on taking relevant measures with regard to
persons (including financial institutions), which are domiciled or residing in or are from
non-compliant countries or territories;
20) Exercise other powers as provided for under this Law.
2. For the purposes of this Law, a responsible structural unit – the Financial Monitoring Center
– shall operate within the Authorized Body which, pursuant to its Charter approved by the
supreme management body of the Authorized Body and to other legal statutes, shall
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exercise the powers as provided for the Authorized Body under Part 1 of this Article, except
for the powers reserved for the supreme management body and the highest-level official of
the Authorized Body.
3. The supreme management body of the Authorized Body shall approve the statute, the
annual operations plan, and the budget of the Financial Monitoring Center, and shall
exercise the powers defined under Clause 9, Part 1 of this Article.
4. The power defined under Clause 7, Part 1 of this Article shall be exercised by the supreme
management body and the highest-level official of the Authorized Body in the manner
established by the legislation; and the power defined under Clauses 10 and 11, Part 1 of this
Article shall be exercised by the supreme management body of the Authorized Body.
5. The supreme management body of the Authorized Body shall appoint and dismiss the head
and the staff members of the Financial Monitoring Center.
6. The Financial Monitoring Center shall present reports on its activities to the supreme
management body of the Authorized Body at the periodicity and in the manner established
by that body.
7. The Financial Monitoring Center should ensure the conditions necessary for safekeeping the
information received, analyzed, and disseminated under this Law. Such information may
only be accessed by relevant bodies or persons, as defined by the law.
8. Staff members of the Financial Monitoring Center with access to received, analyzed, and
disseminated information shall maintain confidentiality of classified information as defined
by the law and the legal statutes of the Authorized Body, both in the course of performing
their duties and after termination thereof, as well as shall be subject to responsibility under
law for unauthorized disclosure of information. Such information may be used only for the
purposes of this Law.
ARTICLE 11: NORMATIVE LEGAL STATUTES ADOPTED BY AUTHORIZED BODY

1. For the purposes of this Law, normative legal statutes adopted by the Authorized Body may
establish the following in the field of combating money laundering and terrorism financing:
1) Minimum requirements with regard to the rules for performing the functions of the
management bodies of the reporting entity, including the internal monitoring unit;
2) Minimum requirements with regard to customer due diligence (including enhanced
and simplified due diligence) conducted by the reporting entity; to collecting,
recording, maintaining, and updating information (including documents);
3) Minimum requirements with regard to the periodicity and the cases of due diligence
conducted by the reporting entity for existing customers;
4) Rules for the approval and revision of internal legal statutes of the reporting entity;
minimum requirements with regard to internal legal statutes;
5) Cases and periodicity of conducting internal audit of the reporting entity, as well as
rules for commissioning external audit;
6) Cases for the reporting entity to submit the electronic version of the reports on
transactions subject to mandatory reporting and on suspicious transactions or business
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relationships; reporting forms, rules and timeframes – by types of reporting entities, as
well as exclusions from the information to be included in the reports under Article 8 of
this Law;
7) Rules of registration of the reporting entity with the Authorized Body;
8) Information (including documents) required by the supervisory authority in the process
of licensing (appointing, qualifying, or otherwise permitting the activities) a financial
institution;
9) Form, rules, and timeframes for filing the declaration on beneficial owners with the
state authority in charge of registering legal persons (the State Registry);
10) Criteria and rules for recognizing high and low risk of money laundering and terrorism
financing;
11) Content, forms, rules, and timeframes for filing information to the Authorized Body by
customs authorities in case of the import, export, or transit of currency and payment
instruments;
12) Minimum requirements with regard to the process of review (conduction of analysis)
by the reporting entity for recognizing transactions or business relationships as
suspicious;
13) Qualification rules and professional competence criteria for the staff members of the
internal monitoring unit of reporting entities; exclusions with regard to delegating the
functions of the internal monitoring unit to other units or employees of non-financial
institutions or entities, as well as the cases and manner for delegating the functions of
the internal monitoring unit to a specialized professional entity;
14) Rules for collection of statistical information from state bodies; forms and timeframes
for collection thereof;
15) Rules for considering petitions on delisting the persons included in the lists stipulated
under Part 2 of Article 28 of this Law; rules for unfreezing the property of terrorism-
related persons;
16) Minimum requirements with regard to the selection, training, and qualification of the
respective staff of reporting entities with competencies in the prevention of money
laundering and terrorism financing;
17) Rules and conditions for declaring transportation, delivery, import and export of bearer
securities through the customs border;
18) Other provisions, as determined by this Law.
2. Normative legal statutes regulating activities of non-financial institutions or entities shall be
agreed with the respective supervisory authorities.
ARTICLE 12: PROTECTION OF INFORMATION

1. The Authorized Body shall be prohibited to disclose any information received, analyzed or
disseminated by it, including the information on the persons having filed with the
Authorized Body a report on suspicious transaction or business relationship, or any other
information, and (or) having participated in the filing of such information, or having been
involved in the submission of a notification by the Authorized Body to criminal prosecution
authorities. This prohibition shall apply to the disclosure of information either verbally or in
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writing, by making it known to third parties through the mass media or through other
means, or allowing direct or indirect access of third parties to such information, except for
the cases stipulated by this Law.
2. The information received and maintained by the Authorized Body relevant to the purposes
of this Law, as well as other data accessible to the Authorized Body cannot be provided or
used for any purpose unrelated to the fight against money laundering and terrorism
financing. Notifications and other information submitted by the Authorized Body to criminal
prosecution authorities shall be considered as intelligence data and can be used only in the
manner established by the legislation.
CHAPTER 4
COOPERATION FOR PURPOSES OF LAW
ARTICLE 13: INTERACTION BETWEEN AUTHORIZED BODY AND OTHER BODIES

1. In order to effectively combat money laundering and terrorism financing, the Authorized
Body shall cooperate with other state bodies in the manner and within the framework
established by this Law, including cooperation with supervisory and criminal prosecution
authorities, by means of concluding bilateral agreements, or without doing so.
2. The Authorized Body shall cooperate with supervisory authorities in the manner established
under Article 29 of this Law, to ensure compliance of the reporting entities with the
requirements of this Law and the legal statutes adopted on the basis thereof.
3. The Authorized Body shall submit a notification to criminal prosecution authorities, when,
based on the analysis of a report filed by a reporting entity or of other information in the
manner established by this Law, it arrives at a conclusion on the presence of reasonable
suspicions of money laundering or terrorism financing. Along with the notification or,
subsequently, in addition to it the Authorized Body may on its own initiative submit to
criminal prosecution authorities further data related to the circumstances described in the
notification. The notification or the additionally submitted data may contain classified
information as defined by the law.
4. Upon the request of criminal prosecution authorities, the Authorized Body shall provide the
available information, including classified information as defined by the law, provided that
the request contains sufficient substantiation of a suspicion or a case of money laundering
or terrorism financing. Such information shall be provided within a 10-day period, unless a
different timeframe is specified in the request or, in the reasonable judgment of the
Authorized Body, a longer period is necessary for responding to the request.
5. Where information specified under Clauses 4 and 5, Part 1 of Article 10 of this Law is
requested, reporting entities, state bodies, including supervisory and criminal prosecution
authorities, should provide such information to the Authorized Body within a 10-day period,
unless a different timeframe is specified in the request or, in the reasonable judgment of the
state body, a longer period is necessary for responding to the request. Criminal prosecution
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authorities shall provide information constituting preliminary investigation secrecy, provided
that the request of the Authorized Body contains sufficient substantiation of a suspicion or a
case of money laundering or terrorism financing.
6. Criminal prosecution authorities shall inform the Authorized Body about the decisions taken
due to the review of notifications specified under Part 3 of this Article and information
specified under Part 4 of this Article, as well as about the decisions taken due to the
preliminary investigation when a criminal case is instigated, within a 10-day period after
taking such decisions.
7. Within 3 business days after being notified that the customs authority suspended
transportation of currency and (or) bearer securities through the customs border, the
Authorized Body shall be obligated to advice the customs authority on lifting the suspension,
or to submit a notification to law enforcement agencies. In case of submitting a notification,
the Authorized Body shall provide information substantiating the potential link between the
suspended currency and (or) bearer securities and money laundering or terrorism financing.
The Authorized Body shall without delay advice the customs authority on submitting the
notification.
8. State bodies involved in combating money laundering and terrorism financing should
summarize and, in the manner, form, and timeframes established by the Authorized Body,
submit to the Authorized Body regular statistics to include:
1) The number and description of criminal cases on money laundering and terrorism
financing, as well as on the offences predicate to money laundering as per the list
developed by the Authorized Body and agreed with the Republic of Armenia
Prosecutor’s Office;
2) The value of the property seized or arrested in the course of investigation of criminal
cases on money laundering and terrorism financing, on a case-by-case basis;
3) The number of criminal cases on money laundering and terrorism financing, criminal
prosecution of which has been terminated, as well as the grounds for such
termination;
4) The number and description of criminal cases on money laundering and terrorism
financing in judicial proceedings;
5) The number of court decisions (convictions and acquittals) regarding criminal cases on
money laundering and terrorism financing and on other related crimes; the penalties
imposed, as well as the value of confiscated and forfeited property;
6) Information on the requests received and sent within international legal assistance
regarding criminal cases on money laundering and terrorism financing;
7) Information on inspections of reporting entities that are not supervised by Authorized
Body, on their compliance with the legislation on combating money laundering and
terrorism financing, as well as on responsibility measures for non-compliance or
inadequate compliance with the legislation.
ARTICLE 14: INTERNATIONAL COOPERATION
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1. The Authorized Body and relevant state bodies shall cooperate with international structures
and relevant bodies of foreign countries (including foreign financial intelligence bodies)
involved in combating money laundering and terrorism financing within the framework of
international treaties or, in the absence of such treaties, in accordance with international
practice.
2. The Authorized Body shall, on its own initiative or upon request, exchange information
(including documents), including classified information as defined by the law, with foreign
financial intelligence bodies, which, based on bilateral agreements or commitments due to
membership in international structures, ensure an adequate level of confidentiality of the
information and use it exclusively for the purposes of combating money laundering and
terrorism financing.
3. The Authorized Body shall not be authorized to disclose to any third party the information
received within the framework of international cooperation, as well as to use it for criminal
prosecution, administrative, or judicial purposes, without the prior consent of the foreign
structure or body having provided such information.
4. For the purposes of this Article, the Authorized Body shall be authorized to conclude
agreements of cooperation with foreign financial intelligence bodies.
CHAPTER 5
CUSTOMER DUE DILIGENCE, RELATED RESPONSIBILITIES,
AND MAINTAINING INFORMATION
ARTICLE 15: LIMITATIONS WITH REGARD TO CERTAIN TYPES OF TRANSACTIONS AND ACTIVITIES
(The title has been amended by HO-55-N from March 01, 2018)
1. In the Republic of Armenia, it shall be prohibited to open, issue, provide, and service the
following:
1) Anonymous accounts or accounts in fictitious names;
2) Accounts with only numeric, alphabetic, or other conventional symbolic expression;
3) Bearer securities.
2. It shall be prohibited to establish and run a shell bank in the Republic of Armenia.
3. In the Republic of Armenia, in transactions of buying and selling real estate above 50 million
Armenian drams it shall be prohibited to make cash payments for the part of the transaction
exceeding that threshold, unless a threshold lower than 50 million Armenian drams is
established by law.
ARTICLE 16: CUSTOMER DUE DILIGENCE

1. Reporting entities may establish a business relationship or conduct an occasional transaction
with a customer only after obtaining identification information (including documents) on the
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customer as defined under Part 4 of this Article, and verifying the customer’s identity.
Reporting entities may verify the customer’s identity based on the identification
information, as provided for by this Law, also in the course of establishing the business
relationship or conducting the occasional transaction, or thereafter within a reasonable
timeframe not to exceed 7 days, provided that the risk is effectively managed, and that this
is essential not to interrupt the normal conduct of business relationships with the customer.
2. Reporting entities should undertake customer due diligence, when:
1) Establishing a business relationship;
2) Carrying out an occasional transaction (linked occasional transactions), including
domestic or international wire transfers, at an amount equal or above the 400-fold of
the minimal salary, unless stricter provisions are established by the legislation;
3) Doubts arise with regard to the veracity or adequacy of previously obtained customer
identification data (including documents);
4) Suspicions arise with regard to money laundering or terrorism financing.
3. Reporting entities specified under Part 4 of Article 6 of this Law shall undertake customer
due diligence, as defined by this Article, in the cases provided for under Part 4 of Article 6 of
this Law. At that, organizers of casino, games of chance, including online games of chance,
and lotteries shall undertake it in connection with any transaction (linked occasional
transactions) referred to in the same part and exceeding AMD 1 million (except when there
are suspicions with regard to money laundering or terrorism financing, in which case
customer due diligence shall be undertaken irrespectively of the amount involved), whereas
entities engaged in realtor activities shall undertake it in connection with transactions or
business relationships related to buying and selling real estate, unless stricter provisions are
established by the legislation.
4. Reporting entities shall identify the customers and verify their identity using reliable and
valid documents issued by competent state authorities, and other relevant data. At that:
1) For natural persons or sole practitioners, information obtained on the basis of the
identification document or other official documents without failure bearing a
photograph of the person shall at least contain the forename and surname, citizenship,
registration address (if available) of the person, year, month, and date of birth, serial
and numerical number of the identification document, and year, month, and date of its
issuance; and for sole practitioners – also the number of registration certificate and the
taxpayer identification number, as well as other data defined by the law. Reporting
entities shall establish the customer’s place of residence, as well.
2) For legal persons, information obtained on the basis of the state registration document
or other official documents shall at least contain the company name, domicile,
individual identification number (state registration, individual record number etc) of
the legal person, forename and surname of the chief executive officer and, if available,
the taxpayer identification number, as well as other data defined by the law.
3) For government bodies or local self-government bodies, the obtained information shall
at least contain the full official name and the country of the government body or local
self-government body.
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5. Reporting entities should determine whether the customer is acting on behalf and (or) for
the benefit of another person. Reporting entities should:
1) Establish any authorized person and, as applicable, identify the authorized person,
verify his identity and his authority to act on behalf of the customer, in accordance
with Parts 1 to 4 and Part 8 of this Article
2) Establish any beneficial owner and, as applicable, identify the beneficial owner and
verify his identity, in accordance with Parts 1 to 4 and Part 8 of this Article.
6. In establishing the beneficial owner of a customer that is a legal person, reporting entities
should obtain complete information on the ownership and control structure of that legal
person (except for the listed issuers (public companies) as defined by the Republic of
Armenia Law on the Securities Market).
7. Reporting entities should establish the business profile of the customer, as well as the
purpose and intended nature of the transaction or business relationship.
8. When taking the measures specified under Sub-Clauses “a” and “b”, Clause 19, Part 1 of
Article 3 of this Law, reporting entities may rely on information obtained through customer
due diligence undertaken by another financial institution or non-financial institution or
entity, provided that the following conditions are met:
1) The ultimate responsibility for customer due diligence should remain with the
reporting entity;
2) The reporting entity should immediately obtain from the other financial institution or
non-financial institution or entity the information specified under Parts 1 to 7 of this
Article;
3) The reporting entity should take adequate steps to satisfy itself that the other
financial institution or non-financial institution or entity:
a. Is authorized and has the capacity to provide, immediately upon request, the
information obtained through customer due diligence, including the copies of
documents;
b. Is subject to proper regulation and supervision in terms of combating money
laundering and terrorism financing, as well as has effective procedures to conduct
customer due diligence and to maintain relevant information, as provided for
under this Law and the legal statutes adopted on the basis thereof;
c. Is not domiciled or residing in, or is not from a non-compliant country or territory.
9. Reporting entities may refrain from pursuing the customer due diligence process, except for
the identification and verification of identity, in cases where they form suspicions about
money laundering or terrorism financing and reasonably believe that performing the
customer due diligence process would tip-off the customer. In such cases, the reporting
entities shall file a report on a suspicious transaction or business relationship, as stipulated
in Article 8 of this Law, with the Authorized Body.
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ARTICLE 17: ONGOING DUE DILIGENCE OF BUSINESS RELATIONSHIP
1. Reporting entities should conduct ongoing due diligence throughout the whole course of the
business relationship. Ongoing due diligence of the business relationship shall include the
scrutiny of the transactions with the customer to ascertain the veracity of the information
regarding the customer, its business and risk profile, the consistency of that information
with the activities of the customer and, where necessary, also the source of funds and
wealth of the customer.
2. At a periodicity determined by their own, reporting entities should update the data collected
within customer due diligence (including enhanced and simplified due diligence) to ensure
that it is up to date and relevant. The periodicity determined for updating data obtained
through identification and verification of identity of customers should be at least once in a
year.
ARTICLE 18: MEASURES STEMMING FROM PECULIARITIES OF RISK-BASED DUE DILIGENCE OF

CUSTOMER
1. In conducting customer due diligence, reporting entities should introduce risk management
procedures to enable detection and assessment of potential and existing risks, and to take
measures proportionate to the risk.
2. In the presence of high risk criteria or an assignment for conducting enhanced due diligence
received in accordance with Clause 6 of Part 1 of Article 10 of this Law, reporting entities
should conduct enhanced customer due diligence. Enhanced due diligence shall be
conducted also when a criteria of high risk is detected or comes forth in the course of the
transaction or business relationship.
3. Reporting entities should develop and implement policies and procedures to counter the
risks associated with non-face to face transactions or business relationships, including the
procedures of identification and verification of identity. These policies and procedures
should be applied whenever business relationships are established and ongoing due
diligence of business relationships is conducted.
4. If the customer is a foreign legal person, or a foreign natural person, or a person without
legal personality under foreign law, reporting entities shall also be obligated to establish and
record the core of vital interests of that person.
5. In the presence of low risk criteria, reporting entities may conduct simplified due diligence.
Simplified due diligence shall not be permitted in the presence of high risk criteria of money
laundering or terrorism financing, or in the case of a suspicious transaction or business
relationship.
6. Reporting entities shall be obligated to conduct due diligence also with respect to existing
customers, at appropriate periodicity and in relevant cases, on basis of materiality and risk
pertinent to such customers.
ARTICLE 19: CORRESPONDENT OR OTHER SIMILAR RELATIONS WITH FOREIGN FINANCIAL

INSTITUTIONS
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1. In the course of correspondent or other similar relations with foreign financial institutions, in
addition to the requirements defined by this Law with regard to customer due diligence,
financial institutions should also undertake the following:
1) Gather sufficient information about the respondent institution to understand fully the
nature of the respondent‘s business and, based on publicly available and other reliable
information, determine the reputation of the respondent institution and the quality of
its supervision, including whether it has been or is subject to a criminal investigation or
other proceeding related to money laundering or terrorism financing.
2) Assess the respondent institution‘s procedures for combating money laundering and
terrorism financing to ascertain that they are adequate and effective;
3) Obtain the approval of the senior management before establishing a correspondent or
other similar relationship;
4) Document the respective responsibilities of each institution with regard to combating
money laundering and terrorism financing, if such responsibilities are not apparently
known;
5) Ascertain that, in connection with payable-through accounts, the respondent
institution:
a. Has conducted due diligence of customers having direct access to the accounts of
the financial institution and is able to provide upon request relevant data regarding
the due diligence of these customers;
b. Does not allow the use of its accounts by shell banks.
2. Financial institutions shall be prohibited from entering into or continuing correspondent or
other similar relations with shell banks.
ARTICLE 20: OBLIGATIONS RELATED TO WIRE TRANSFERS

1. Financial institutions ordering a wire transfer should obtain and maintain the following
information:
1) Forename and surname or company name of the originator and the beneficiary of the
transfer;
2) Account numbers of the originator and the beneficiary of the transfer (or, in the
absence thereof, the unique reference number accompanying the transfer);
3) With regard to the originator of the transfer, details of the identification document for
natural persons or individual identification number (state registration, individual
record number etc) for legal persons.
2. For all wire transfers, the ordering financial institution should include the information
specified under Part 1 of this Article in the payment order accompanying the transfer.
Where more than one wire transfers are bundled in a batch file, the ordering financial
institution may choose to include in each individual transfer only the originator information
as specified under Clause 2, Part 1 of this Article, provided that the batch file contains full
information required under Part 1 of this Article.
3. All intermediary financial institutions involved in the processing of wire transfers should
ensure that the information accompanying a wire transfer specified under Part 1 of this
Article is transmitted with the transfer. Where technical limitations prevent the intermediary
23
financial institution from transmitting the information accompanying a cross-border wire
transfer specified under Part 1 of this Article with the related domestic wire transfer, the
intermediary financial institution should maintain that information in the manner and
timeframes established by this Law.
4. Obligations under this Article shall not apply to:
1) Transfers and settlements between financial institutions on their own behalf;
2) Transactions carried out through the use of credit, debit or prepaid cards, provided
that the information on the card number is available in all messages (accompanying
correspondence) that flow from conducting and documenting (recording) the
transaction. Such exclusion shall apply to the transactions related to withdrawals
through an ATM machine, payments for goods and services; and it shall not apply to
the cases, when credit, debit or prepaid cards are used in a payment system for
effecting wire transfers.
5. Intermediary and beneficiary financial institutions should adopt effective risk-based policies
and procedures for identifying and taking relevant measures (including refusal or
suspension) with regard to the wire transfers that lack the information specified under Part
1 of this Article. In the case of a wire transfer lacking the information specified under Part 1
of this Article, a financial institution should consider terminating correspondent or other
similar relationships with the financial institutions involved in the given wire transfer.
ARTICLE 21: REQUIREMENTS WITH REGARD TO REPORTING ENTITY’S BRANCHES AND

REPRESENTATIONS OPERATING IN FOREIGN COUNTRIES AND TERRITORIES
1. Reporting entities shall be obligated to ensure that their subsidiaries, branches and
representations operating in foreign countries or territories, including those in non-
compliant countries and territories, observe the measures determined under this Law and
the legal statutes adopted on the basis thereof, if this Law and the legal statutes adopted on
the basis thereof establish stricter norms as compared with the laws and other legal statutes
of the country or territory, where the subsidiary, branch or representation is domiciled. If
the laws and other legal statutes of the country or territory, where the subsidiary, branch or
representation is domiciled, prohibit or do not enable implementing the requirements under
this Law and the legal statutes adopted on the basis thereof, then the subsidiary, branch or
representation should inform the reporting entity on that matter, and the reporting entity
should respectively inform the Authorized Body.
ARTICLE 22: MAINTAINING INFORMATION

1. Reporting entities should maintain the information (including documents) required under
this Law, including the information (documents) obtained in the course of customer due
diligence, regardless of the fact whether the transaction or business relationship is an
ongoing one or has been terminated, inclusive of:
1) Customer identification data, including the data on the account number and turnover,
as well as business correspondence data;
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2) All necessary records on transactions or business relationships, both domestic and
international (including the name, the registration address (if available) and the place
of residence (domicile) of the customer (and the other party to the transaction), the
nature, date, amount, and currency of transaction and, if available, type and number of
the account), which would be sufficient to permit full reconstruction of individual
transactions or business relationships;
3) Information on suspicious transactions or business relationships as specified under
Article 7 of this Law, as well as information concerning the process of review
(conducted analysis) and findings on transactions or business relationships not
recognized as suspicious;
4) Findings of the assessment of potential and existing money laundering and terrorism
financing risks specified under Article 4 of this Law;
5) Information specified under Article 20 of this Law;
6) Other information stipulated by this Law.
2. Information (including documents) specified under Part 1 of this Article should be
maintained for at least 5 years following the termination of the business relationship or
completion of the transaction, or for a longer period if required by the law.
3. Information (including documents) required under this Law and maintained by reporting
entities should be sufficient to enable submission of comprehensive and complete data on
customers, transactions, or business relationships whenever requested by the Authorized
Body or, in the cases established by the law, by criminal prosecution authorities.
4. Information (including documents) specified under this Article should be made accessible to
relevant supervisory and criminal prosecution authorities, as well as to auditors, on a timely
basis and in the manner established by the law.
CHAPTER 6
INTERNAL LEGAL STATUTES AND INTERNAL MONITORING UNIT
OF REPORTING ENTITY, CONDUCTION OF AUDIT
ARTICLE 23: INTERNAL LEGAL STATUTES OF REPORTING ENTITY

1. Reporting entities should have in place and apply internal legal statutes (policies, concept
papers, rules, regulations, procedures, instructions or other means) aimed at the prevention
of money laundering and terrorism financing, having regard to the size and nature of the
reporting entity’s activities, as well as the risks pertinent thereof. Financial groups should
have in place and apply group-wide internal legal statutes aimed at the prevention of money
laundering and terrorism financing. Internal legal statutes referred to in this Part should
establish, at minimum:
1) Procedures to enable customer due diligence (including enhanced and simplified due
diligence), and to maintain information;
2) List of required documents and other information to conduct customer due diligence
(including enhanced and simplified due diligence);
3) Rules and conditions for the conduction of internal audit to check compliance with the
procedures and requirements under this Law, the legal statutes adopted on the basis
25
thereof, and the internal legal statutes of the reporting entity, whenever conduction of
internal audit is required under the law;
4) Operational procedures of the Internal Monitoring Unit;
5) Procedures for collecting, recording, and maintaining information on customers,
transactions and business relationships;
6) Procedures for recognizing a transaction or business relationship as suspicious;
7) Procedures for the suspension of suspicious transactions or business relationships, for
the refusal or termination of transactions or business relationships, and for the
freezing of the property of terrorism-related and proliferation-related persons;
8) Procedures for reporting to the Authorized Body;
9) Requirements with regard to hiring, training, and professional development of the staff
members of the Internal Monitoring Unit and other employees in connection with the
obligations (including customer due diligence and reporting of suspicious transactions
or business relationships) defined by the legislation on combating money laundering
and terrorism financing and other legal statutes, as well as in connection with potential
and existing risks and typologies;
10) Adequate procedures to counter (manage) the potential and existing risks, which may
arise in relation to the development of new products and new business practices, to
the use of new or developing technologies, as well as to non-face to face transactions
or business relationships;
11) Procedures for effective risk management to establish the presence of high risk
criteria, including the circumstance whether the customer is a politically exposed
person, or a family member of or otherwise associated with such person;
12) Procedures for effective risk management in case of establishing a business
relationship or conducting an occasional transaction without a prior verification of
identity;
13) Procedures for cooperation between the Internal Monitoring Unit and the units or
employees involved in customer service;
14) Rules for implementing the requirements established by this Law in case of
correspondent or other similar relations with foreign financial institutions;
15) For financial groups – the procedures for sharing information within the group for the
purpose of combating money laundering and terrorism financing;
16) Procedures ensuring implementation of other requirements established by this Law
and the legal statutes of the Authorized Body.
2. Reporting entities shall provide a copy of each internal legal statute specified under Part 1 of
this Article to the Authorized Body within one week after their approval, as well as upon
making amendments or changes to them.
Upon the request of the Authorized Body, reporting entities shall be obligated to make
relevant changes or amendments to their internal legal statutes within a one-month period
and to submit them to the Authorized Body within the timeframe specified under the first
paragraph of this Part.
ARTICLE 24: INTERNAL MONITORING UNIT OF REPORTING ENTITY
26
1. Reporting entities shall be obligated to have an Internal Monitoring Unit.
2. Staff members of the Internal Monitoring Unit should have appropriate qualification
awarded on basis of qualification rules and professional competence criteria defined by the
Authorized Body.
3. The Internal Monitoring Unit shall make the final decision on recognizing a transaction or
business relationship as suspicious, on suspending, refusing, or terminating a transaction or
business relationship, and on freezing the property of terrorism-related or proliferation-
related persons; it shall also ensure submission of the reports to the Authorized Body as
defined by this Law, and implementation of other functions by the reporting entity as
established by this Law and the legal statutes adopted on the basis thereof.
4. The Internal Monitoring Unit should have direct and timely access to the information
(including documents) obtained and maintained by the reporting entity under this Law.
5. The Internal Monitoring Unit shall, on a regular basis but at least semi-annually, review the
compliance of the transactions conducted and business relationships established by the
reporting entity, as well as of the activities of its structural and territorial units and
employees with this Law and the legal statutes adopted on the basis thereof. The Internal
Monitoring Unit shall present a report to the competent body of the reporting entity
specified by the Authorized Body (in banks – to the Board) on the findings of the review, as
well as on other issues proposed by the Authorized Body.
6. In performing its functions under this Law and the legal statutes adopted on the basis
thereof, the Internal Monitoring Unit shall be independent and have the status of senior
management of the reporting entity.
7. The Internal Monitoring Unit should have the authority to immediately report to the
reporting entity’s competent body as determined by the Authorized Body (in banks – to the
Board) on the reporting entity’s problems with regard to money laundering and terrorism
financing, as well as to participate in its consideration of the issues related to the prevention
of money laundering and terrorism financing.
ARTICLE 25: CONDUCTION OF AUDIT BY REPORTING ENTITY

1. Reporting entities should conduct internal audit in the cases and at the periodicity
established by the Authorized Body, to ascertain adequate implementation of the
obligations and functions established by this Law.
2. In the manner established by the Authorized Body, upon the request of the Authorized Body
or by their own initiative, reporting entities shall commission external audit to ascertain
implementation of the legislation on combating money laundering and terrorism financing,
and its effectiveness.
CHAPTER 7
SUSPENSION OF SUSPICIOUS TRANSACTION OR BUSINESS RELATIONSHIP, REFUSAL OR
TERMINATION OF TRANSACTION OR BUSINESS RELATIONSHIP, AND FREEZING OF PROPERTY OF
TERRORISM-RELATED OR PROLIFERATION-RELATED PERSONS
27
ARTICLE 26: SUSPENSION OF SUSPICIOUS TRANSACTION OR BUSINESS RELATIONSHIP

1. In the presence of a suspicion of money laundering or terrorism financing, financial
institutions shall be authorized to suspend the transaction or business relationship for a
period up to 5 days, whereas in case of having received the assignment specified under
Clause 6, Part 1 of Article 10 of this Law they shall be obligated to suspend the transaction or
business relationship for 5 days and immediately file a report with the Authorized Body on a
suspicious transaction or business relationship as stipulated under Article 8 of this Law.
2. The Authorized Body shall be authorized to suspend transactions or business relationships
for a period up to 5 days based on filed reports, requests from foreign financial intelligence
bodies, analysis of information provided by supervisory and criminal prosecution authorities
or of other information. The decision of the Authorized Body to suspend a transaction or
business relationship should be implemented immediately upon its receipt by the financial
institution.
3. Within 5 days from the notice by the financial institution to the Authorized Body on the
suspension of a transaction or business relationship, or from the suspension of a transaction
or business relationship by the Authorized Body, the Authorized Body shall make a decision
either to extend the suspension for a period of another 5 days (in exceptional cases – 10
days) in order to establish the grounds for submitting a notification to criminal prosecution
authorities, or to repeal the decision on suspension. In the event that the decision of the
Authorized Body is not communicated to the financial institution within the period specified
under this Part, the decision on suspension shall be considered as repealed.
4. The decision of the financial institution or the Authorized Body on suspending a transaction
or business relationship may be repealed before the end of the suspension period only by
the Authorized Body upon its own initiative or upon the request of the financial institution,
when it is determined that the suspicion of money laundering or terrorism financing is
groundless.
ARTICLE 27: REFUSAL OR TERMINATION OF TRANSACTION OR BUSINESS RELATIONSHIP

1. Where the requirements defined under Parts 1 to 7 of Article 16 of this Law cannot be
implemented, or an assignment has been received on refusing a transaction or business
relationship as specified under Clause 6, Part 1 of Article 10 of this Law, the reporting entity
should refuse the transaction or business relationship and consider recognizing it as
suspicious under Article 7 of this Law.
2. Where, after having established a business relationship under Part 1 of Article 16 of this Law,
the requirements defined under Parts 1 to 7 of that Article cannot be implemented, or an
assignment has been received on terminating a transaction or business relationship as
specified under Clause 6, Part 1 of Article 10 of this Law, the reporting entity should
terminate the transaction or business relationship and consider recognizing it as suspicious
under Article 7 of this Law.
3. Ordering financial institutions should refuse any cross-border wire transfer equal or above
the 400-fold amount of the minimum salary, which lack the information specified under Part
28
1 of Article 20 of this Law, as well as any cross-border wire transfer below the 400-fold
amount of the minimum salary, which lack the information specified under Clauses 1 and 2,
Part 1 of Article 20 of this Law, and should consider recognizing them as suspicious under
Article 7 of this Law.
ARTICLE 28: FREEZING OF PROPERTY OF TERRORISM-RELATED OR PROLIFERATION-RELATED

PERSONS
1. The property owned or controlled, directly or indirectly, persons included in the lists
published by or in accordance with the United Nations Security Council resolutions, as well
as in the lists specified under Part 2 of this Article shall be subject to freezing by customs
authorities and reporting entities without delay and without prior notice to the persons
involved. The state bodies or persons, which have legally defined powers to restrict (arrest,
block, freeze, suspend) the possession, use and (or) disposal of the property stipulated in
this Part as well as in Part 1.1 of this Article, shall exercise their power in the manner
established by the law whenever they disclose such property.
1.1. It shall be prohibited to make any property, economic resources or financial or other related
services available, directly or indirectly, wholly or jointly, to or for the benefit of terrorism-
related or proliferation-related persons.
2. The Authorized Body, on its own initiative or upon the request of competent foreign bodies,
shall develop, review, and publish lists of terrorism-related persons. Posting such lists on the
website of the Authorized Body shall amount to their publication. In case of having
information on persons matching the definition of terrorism-related persons as defined
under Article 3 of this Law, the involved state bodies, including supervisory and criminal
prosecution authorities, as well as reporting entities shall provide to the Authorized Body
information on such persons for their inclusion into the lists specified under this Part.
3. Any person included in the lists published by the United Nations Security Council resolutions
may apply to the United Nations for delisting. Any person included in the lists of terrorism-
related persons published by the Authorized Body may apply to the Authorized Body for
delisting, and such application shall be considered in the manner established by the
Authorized Body
4. Freezing shall be revoked only by the Authorized Body, if the property has been frozen by
mistake, as well as when the criminal prosecution body arrests the frozen property. Freezing
of the property of the persons specified under Part 2 of this Article shall also be revoked
whenever it is established that the person with frozen property has been removed from the
list of terrorism-related persons.
5. A person shall be entitled to request from the Authorized Body access to frozen property to
pay for his family, medical, and other expenses as defined by the resolutions of the United
Nations Security Council. The decisions on such payments shall be made in accordance with
the United Nations Security Council resolutions, if the name of the person is included in the
lists published by the United Nations Security Council resolutions.
29
6. Upon freezing the property of terrorism-related or proliferation-related persons, the
reporting entity shall without delay proceed to recognize the transaction or business
relationship as suspicious, and to file a report on suspicious transaction or business
relationship under Article 8 of this Law. In case of freezing (arresting, blocking, or
suspending) the property of terrorism-related persons, the state bodies and persons
specified under Part 1 of this Article shall without delay notify the Authorized Body on that
matter.
7. In the event of receiving an inquiry from foreign financial intelligence bodies or other foreign
bodies on freezing property, the Authorized Body shall consider within the same day the
grounds for the freezing request. Upon establishing sufficiency of the grounds for the
freezing request, the Authorized Body shall make a decision, in the manner specified under
this Article, on the freezing of the property.
8. Within 5 days from being notified about the freezing, the Authorized Body shall submit a
notification to criminal prosecution authorities in the manner specified under Article 13 of
this Law, except for the cases when the Authorized Body makes a decision on unfreezing in
the manner established by the law.
9. For the purposes of this Article, the property of bona fide third parties, that is the persons
who, when passing the property to another person, did not know or could not have known
that it would be used or was intended for use in criminal purposes, including those of
terrorism or terrorism financing or proliferation or proliferation financing, as well as the
persons who, when acquiring the property, did not know or could not have known that it
was the proceeds of a criminal activity, shall not be subject to freezing.
CHAPTER 8
SUPERVISION OVER COMPLIANCE WITH REQUIREMENTS OF LAW AND LEGAL STATUTES
ADOPTED ON BASIS THEREOF; RESPONSIBILITY FOR NON-COMPLIANCE OR INADEQUATE
COMPLIANCE WITH SUCH REQUIREMENTS
ARTICLE 29: SUPERVISION OVER REPORTING ENTITIES AND NON-COMMERCIAL

ORGANIZATIONS
1. Supervision over reporting entities for their compliance with the requirements of this Law
and the legal statutes adopted on the basis thereof shall be exercised by relevant
supervisory authorities. The Authorized Body may exercise supervision – in the manner
established under Chapter 5.1 of the Republic of Armenia Law on the Central Bank of the
Republic of Armenia – over those types of reporting entities, for which there is no legally
defined supervisory authority or a legislative regulatory framework for the supervisory
authority to perform the functions assigned to it in the field of combating money laundering
and terrorism financing.
2. In the manner established by the law, as well as upon the request of the Authorized Body,
supervisory authorities shall conduct on-site inspections of reporting entities to review their
30
compliance with the requirements to prevent money laundering and terrorism financing,
and to assess the risks.
3. Bodies with supervision authority over non-commercial organizations shall, upon the
request of the Authorized Body, take measures to prevent the involvement or usage of non-
commercial organizations in money laundering or terrorism financing. Non-commercial
organizations shall be obligated to maintain, in the manner and timeframe established by
this Law:
1) Information (including documents) on domestic and international transactions in such
detail as to allow ascertaining whether the property involved in these transactions was
expended in accordance with the purposes of the organization;
2) Identification data of the members of management bodies, in accordance with Article
16 of this Law;
3) Foundation documents and decisions of management bodies;
4) Documents on financial and economic activities.
4. The Authorized Body and, in the cases stipulated by the law, also criminal prosecution
authorities may request information (including documents) related to money laundering or
terrorism financing from non-commercial organizations or from their supervisory
authorities.
ARTICLE 30: RESPONSIBILITY FOR NON-COMPLIANCE OR INADEQUATE COMPLIANCE WITH

REQUIREMENTS OF LAW OR LEGAL STATUTES ADOPTED ON BASIS THEREOF
1. Reporting entities or their employees (managers) cannot be subject to property
responsibility for duly performing their obligations under this Law, as well as to criminal,
administrative or other responsibility in case of duly performing their obligations stipulated
under Article 6 of this Law. The Authorized Body or its employees cannot be subject to
criminal, administrative or other responsibility in case of duly performing their obligations
under this Law.
2. Non-compliance or inadequate compliance with the requirements of this Law or the legal
statutes adopted on the basis thereof by financial institutions shall result in responsibility
measures, as established by the legislation regulating their activities, in the manner provided
for under such legislation.
3. Financial institutions operating within a legislative and regulatory framework, which does
not provide for any responsibility measures for non-compliance or inadequate compliance
with the requirements of this Law and the legal statutes adopted on the basis thereof, shall
be subject to responsibility measures specified under Part 4 of this Article for legal persons
that are non-financial institutions or entities.
statutes adopted on the basis thereof by legal persons that are non-financial institutions or
entities shall result in the application of the following responsibility measures:
1) Non-compliance or inadequate compliance with the requirements under Article 4 of
this Law shall result in a warning or a fine equal to the 200-fold amount of the
minimum salary;
31
2) Failure to file reports under Part 2 of Article 6 of this Law (including failure to recognize
a transaction or business relationship as suspicious in cases stipulated under Part 1,
Article 7 of this Law), or late filing shall result in a warning and an assignment to
eliminate the violation, or a fine equal to the 600-fold amount of the minimum salary;
3) Failure to file reports under Part 3 of Article 6 of this Law, or late filing, as well as
entering incorrect (including false or unreliable) or incomplete data in the reports, or
making structural alterations in the reporting forms shall result in a warning and an
assignment to eliminate the violation, or a fine equal to the 200-fold amount of the
minimum salary;
4) Non-compliance or inadequate compliance with the requirement under Part 5 of
Article 6 of this Law shall result in a warning or a fine equal to the 600-fold amount of
the minimum salary;
5) Non-compliance or inadequate compliance with the requirement under Part 3 of
Article 7 of this Law shall result in a warning or a fine equal to the 300-fold amount of
the minimum salary;
6) Non-compliance or inadequate compliance with the requirement under Parts 5 and 6
of Article 9 of the Law shall result in a warning or a fine equal to the 200-fold amount
of the minimum salary;
7) Non-compliance or inadequate compliance with the requirement under Clauses 4 and
6, Part 1 of Article 10 of this Law on providing information or executing assignments
shall result in a warning and an assignment to eliminate the violation, or a fine equal to
the 600-fold amount of the minimum salary;
this Law shall result in a warning and an assignment to eliminate the violation, or a fine
equal to the 600-fold amount of the minimum salary;
32
equal to the 2,000-fold amount of the minimum salary.
statutes adopted on the basis thereof by natural persons that are non-financial institutions
or entities shall result in responsibility established by the Republic of Armenia Code of
Administrative Violations.
6. Responsibility measures with regard to non-financial institutions or entities licensed
(appointed, qualified, or otherwise permitted to have activities) by a supervisory authority
shall be applied by the respective supervisory authority, in the manner established by the
law.
7. The Authorized Body shall apply responsibility measures in the manner established by the
law with regard to the types of reporting entities, for which there is no legally defined
supervisory authority or a legislative regulatory framework for the supervisory authority to
perform the functions assigned to it in the field of combating money laundering and
terrorism financing, as well as with regard to legal or natural persons that are not reporting
entities.
8. Unauthorized disclosure of classified information in the possession of the Authorized Body
as defined by this Law or the legal statutes adopted on the basis thereof, as well as of
information constituting commercial and official secrecy, by employees of the Authorized
Body shall result in responsibility established by the law.
statutes of the Authorized Body by the officials of state bodies shall result in responsibility
established by the Republic of Armenia Code of Administrative Violations.
ARTICLE 31: RESPONSIBILITY FOR LEGAL PERSONS INVOLVEMENT IN MONEY LAUNDERING OR

TERRORISM FINANCING
1. Involvement of legal persons (except for those that are reporting entities) in money
laundering shall result in a fine equal to the 2,000-fold amount of the minimum salary, and
may also result in bringing a suit to the court for dissolving the legal person in the manner
established by the law.
2. Involvement of legal persons that are reporting entities in money laundering shall result in a
fine equal to the 5,000-fold amount of the minimum salary, and may also result in revoking
33
or suspending or terminating the person’s license, or in bringing a suit to the court for
dissolving the legal person in the manner established by the law.
3. Involvement of legal persons (except for those that are reporting entities) in terrorism
financing shall result in a fine equal to the 10,000-fold amount of the minimum salary, as
well as in bringing a suit to the court for dissolving the legal person in the manner
established by the law.
4. Involvement of legal persons that are reporting entities in terrorism financing shall result in
a fine equal to the 20,000-fold amount of the minimum salary, as well as in revoking or
terminating the person’s license, or in bringing a suit to the court for dissolving the legal
person in the manner established by the law.
5. Involvement of legal persons in money laundering may arise when:
1) The action, or the failure to act, by any representative of the legal person for the
benefit or on behalf of the legal person results in a deed stipulated under Article 190 of
the Republic of Armenia Criminal Code, for which a conviction has been passed by the
court with regard to the said person; or
2) The representative of the legal person has not been subjected to criminal responsibility
due to circumstances not excluding criminal proceedings or criminal prosecution,
except for the cases of withdrawing or terminating criminal prosecution due to an
amnesty act or the person’s decease; or
3) In the reasonable judgment of the supreme management body of the Authorized Body,
money laundering has taken place due to the action, or the failure to act, on behalf of
the legal person by any representative of the legal person.
6. Involvement of legal persons in terrorism financing may arise when:
1) The action, or the failure to act, by any representative of the legal person on behalf of
the legal person results in a deed stipulated under Article 217.1 of the Republic of
Armenia Criminal Code, for which a conviction has been passed by the court with
regard to the said person; or
2) The representative of the legal person has not been subjected to criminal responsibility
due to circumstances not excluding criminal proceedings or criminal prosecution,
except for the cases of withdrawing or terminating criminal prosecution due to an
amnesty act or the person’s decease; or
3) In the reasonable judgment of the supreme management body of the Authorized Body,
terrorist financing has taken place due to the action, or the failure to act, on behalf of
the legal person by any representative of the legal person.
7. When substantiating involvement of a legal person in money laundering and terrorism
financing, the supreme management body of the Authorized Body may ground its decision
on the circumstance that the action, or the failure to act, by the representative of the legal
person fully or partially matches with the typologies.
8. Responsibility measures defined under this Article shall be applied to legal persons
registered or operating in the territory of the Republic of Armenia.
9. Responsibility measures defined under this Article shall be applied by the Authorized Body,
in the manner established by the law. At that, in the cases stipulated under Clause 3 of Part
34
5 and Clause 3 of Part 6 of this Article, responsibility measures defined under this Article
shall be applied by the supreme management body of the Authorized Body.
10. Within 5 days from initiating the proceedings to apply responsibility measures defined under
this Article to non-financial institutions, the Authorized Body shall notify the relevant
supervisory authority on that matter.
11. In the cases stipulated under Clause 1 of Part 5 and Clause 1 of Part 6 of this Article,
responsibility measures defined under this Article may be applied to the legal person within
one year from passing the relevant conviction by the court with regard to the representative
of the legal person.
12. When criminal responsibility has not been imposed due to an amnesty act or the person’s
decease, the Authorized Body may apply responsibility measures defined under this Article
within one year from the moment it came to know or might have known about the
emergence of such circumstances.
13. In the cases of legal persons’ involvement in money laundering and terrorism financing other
than those stipulated under Parts 11 and 12 of this Article, responsibility measures defined
under this Article may be applied within ten years from the commission of money laundering
and terrorism financing.
CHAPTER 9
TRANSITIONAL PROVISIONS
ARTICLE 32: TRANSITIONAL PROVISIONS

2. This Law shall enter into force on the 90th day after its official publication.
3. In connection with sole practitioner lawyers and legal firms, sole practitioner accountants
and accounting firms, dealers in precious metals, dealers in precious stones, dealers in works
of art, organizers of auctions, and entities providing trust management and company
registration services, the registration requirement under Part 5 of Article 9 of this Law shall
take effect only upon establishing the requirements for the licensing (appointment,
qualification, or otherwise permission of the activities) in the manner established by the law,
and for exercising relevant supervision.
S. SARGSYAN
PRESIDENT
REPUBLIC OF ARMENIA
35

AML CFT Law Eng Armenia

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REPUBLIC OF ARMENIA LAW

ON COMBATING MONEY LAUNDERING AND TERRORISM FINANCING

(Adopted on May 26, 2008)

ARTICLE 1: SUBJECT OF LAW

ARTICLE 2: LEGAL REGULATION OF FIGHT AGAINST MONEY LAUNDERING AND TERRORISM

ARTICLE 3: BASIC DEFINITIONS USED IN LAW

ARTICLE 4: APPLICATION OF RISK-BASED APPROACH BY REPORTING ENTITIES

(Article 4 has been amended by HO-55-N from March 01, 2018)

ARTICLE 5: SUBMISSION OF CLASSIFIED INFORMATION

ARTICLE 6: TRANSACTION OR BUSINESS RELATIONSHIP SUBJECT TO REPORTING

ARTICLE 7: RECOGNITION OF SUSPICIOUS TRANSACTION OR BUSINESS RELATIONSHIP

ARTICLE 8: CONTENT AND RULES FOR SUBMISSION OF REPORT ON TRANSACTION SUBJECT TO

(Article 8 has been amended by HO-55-N from March 01, 2018)

ARTICLE 9: PROCEDURES FOR STATE REGISTRATION OF LEGAL PERSONS, REGISTRATION OF

ARTICLE 10: AUTHORIZED BODY

ARTICLE 11: NORMATIVE LEGAL STATUTES ADOPTED BY AUTHORIZED BODY

ARTICLE 12: PROTECTION OF INFORMATION

ARTICLE 13: INTERACTION BETWEEN AUTHORIZED BODY AND OTHER BODIES

ARTICLE 14: INTERNATIONAL COOPERATION

ARTICLE 16: CUSTOMER DUE DILIGENCE

(Article 16 has been amended by HO-55-N from March 01, 2018)

ARTICLE 18: MEASURES STEMMING FROM PECULIARITIES OF RISK-BASED DUE DILIGENCE OF

ARTICLE 19: CORRESPONDENT OR OTHER SIMILAR RELATIONS WITH FOREIGN FINANCIAL

ARTICLE 20: OBLIGATIONS RELATED TO WIRE TRANSFERS

ARTICLE 21: REQUIREMENTS WITH REGARD TO REPORTING ENTITY’S BRANCHES AND

ARTICLE 22: MAINTAINING INFORMATION

ARTICLE 23: INTERNAL LEGAL STATUTES OF REPORTING ENTITY

ARTICLE 24: INTERNAL MONITORING UNIT OF REPORTING ENTITY

(Article 24 has been amended by HO-55-N from March 01, 2018)

ARTICLE 25: CONDUCTION OF AUDIT BY REPORTING ENTITY

ARTICLE 26: SUSPENSION OF SUSPICIOUS TRANSACTION OR BUSINESS RELATIONSHIP

ARTICLE 27: REFUSAL OR TERMINATION OF TRANSACTION OR BUSINESS RELATIONSHIP

ARTICLE 28: FREEZING OF PROPERTY OF TERRORISM-RELATED OR PROLIFERATION-RELATED

ARTICLE 29: SUPERVISION OVER REPORTING ENTITIES AND NON-COMMERCIAL

ARTICLE 30: RESPONSIBILITY FOR NON-COMPLIANCE OR INADEQUATE COMPLIANCE WITH

ARTICLE 31: RESPONSIBILITY FOR LEGAL PERSONS INVOLVEMENT IN MONEY LAUNDERING OR

ARTICLE 32: TRANSITIONAL PROVISIONS

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