As a result of Armenia’s progress in strengthening its framework to tackle money laundering and terrorist financing since its mutual evaluation in December 2015, MONEYVAL – the permanent monitoring body of the Council of Europe – has re-rated the country on two recommendations originally rated as “partially compliant”.
Armenia has been in a regular follow-up process, following the adoption of its mutual evaluation report, which assessed the effectiveness of Armenia’s anti-money laundering and counter-terrorist financing (AML/CFT) measures and their compliance with the Recommendations by the Financial Action Task Force (FATF). In line with MONEYVAL’s rules of procedure, the country has reported back to MONEYVAL on the progress it has made to strengthen its AML/CFT framework.
This report analyses Armenia’s progress in addressing the technical compliance deficiencies identified in the mutual evaluation report. It also looks at whether Armenia has implemented new measures to meet the requirements of FATF Recommendations that have changed since the country’s 2015 mutual evaluation.
To reflect this progress, MONEYVAL has re-rated Armenia on Recommendations 1 (assessing risks) and 7 (targeted financial sanctions related to proliferation), These Recommendations are now re-rated as “largely compliant”. Recommendation 8 (non-profit organisations) has been re-rated as “compliant”.
MONEYVAL welcomed progress made on Recommendations 12 (politically exposed persons), 28 (regulation and supervision of DNFBPs) and 31 (powers of law enforcement and investigative authorities), but considered that shortcomings (which are more than just minor ones) remain. Consequently, the ratings for these Recommendations remain “partially compliant”. The ratings for Recommendation 5 (criminalisation of the financing of terrorism, originally rated as “largely compliant”) and Recommendations 18 (internal controls and foreign branches and subsidiaries) and 21 (tipping-off and confidentiality), both originally rated as “compliant”, the requirements of which changed since Armenia’s evaluation in 2015, remain unchanged.
MONEYVAL decided that Armenia will remain in regular follow-up and will continue to report back in two-and-a-half years to MONEYVAL on further progress to strengthen its implementation of AML/CFT measures.