Starting August 8, amendments to the Law on Combating Money Laundering and Terrorism Financing (HO-261-N) will come into force. The Central Bank of Armenia states that the changes aim to align legislation with the recommendations of the Financial Action Task Force (FATF) and clarify the scope of obligations for reporting entities.
Significantly, the amended law expands registration obligations for reporting entities. These now include individual entrepreneurs and legal entities providing legal services, accountants (both individuals and firms), dealers of precious metals and stones, and those offering company formation and management services. These entities must register with the Financial Monitoring Center within six months after the law takes effect. Registration is governed by Central Bank Council decision No. 280-N, dated October 7, 2014.
The law now also applies to all non-financial legal entities in Armenia, regardless of staff size, by extending the obligations defined in Articles 4 and 23 of the law.
Provisions related to internal legal acts of reporting entities have also been updated. Revised internal regulations, based on the new requirements, must be submitted to the Financial Monitoring Center within two months of the law’s enactment.
Additionally, new obligations are introduced for trustees and managers of similar legal structures who reside in Armenia or manage assets located in Armenia. The procedure for their registration will be defined by a new sub-legislative act to be adopted within six months after the law takes effect.
Among other changes, the law also updates procedures for customer due diligence, enhanced due diligence, money transfers, rejection or termination of transactions or business relationships, and penalties for non-compliance, according to the Central Bank's explanation.
