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Identifier
Created
Classification
Origin
04YEREVAN2798
2004-12-28 12:45:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Yerevan
Cable title:  

NA ADOPTS NEW ANTI-MONEY LAUNDERING LAW

Tags:   AM  EFIN  KCRM  KSEP  PTER  SNAR 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
						UNCLAS YEREVAN 002798 

SIPDIS

SENSITIVE

DEPT FOR EUR/CACEN, INL (JCAMPBELL AND CMESHESKE)
JUSTICE FOR OIA AND AFMLS TREASURY FOR FINCEN, OTA

E.O. 12958: N/A
TAGS: EFIN, KCRM, KSEP, PTER, SNAR, AM
SUBJECT: NA ADOPTS NEW ANTI-MONEY LAUNDERING LAW

REF: YEREVAN 2604

UNCLAS YEREVAN 002798

SIPDIS

SENSITIVE

DEPT FOR EUR/CACEN, INL (JCAMPBELL AND CMESHESKE)
JUSTICE FOR OIA AND AFMLS TREASURY FOR FINCEN, OTA

E.O. 12958: N/A
TAGS: EFIN, KCRM, KSEP, PTER, SNAR, AM
SUBJECT: NA ADOPTS NEW ANTI-MONEY LAUNDERING LAW

REF: YEREVAN 2604

1. (U) Sensitive But Unclassified. Please protect
accordingly.

--------------
SUMMARY
--------------

2. (U) The Armenian National Assembly (NA) adopted the Law
on Fighting Legalization of Illegally Received Income and
Terrorist Financing. The new law calls on the Central Bank
of Armenia to coordinate anti-money laundering and terrorist
financing activities in Armenia and defines the legal
grounds for fighting illegal financial transactions,
identifying and reporting on involved entities and creating
a Financial Intelligence Unit (FIU). The Central Bank is
responsible for developing the law's regulatory and
enforcement framework. The GOAM notes that adopting the law
places Armenia in compliance with international anti-money
laundering and terrorist financing initiatives including the
Money Val Committee of the Council of Europe and the
Financial Action Task Force (FATF). End Summary

--------------
NATIONAL ASSEMBLY ADOPTS THE LAW
--------------

3. (U) The Armenian National Assembly (NA) voted to adopt
the Law on Fighting Legalization of Illegally Received
Income and Terrorist Financing on December 14 and submitted
it to President Kocharian for signature on December 22. The
law will take effect roughly two months after the president
signs it. The Central Bank of Armenia (CBA) drafted the law
as part of an Anti-Money Laundering and Terrorism Financing
package to fulfill Armenia's obligation under the
International Convention on the Suppression of the Financing
of Terrorism, UN Security Council Resolution No. 1373
(2001). (Note: The National Assembly ratified the
convention early this year. End Note.) In addition to the
new law, the CBA's comprehensive package includes amendments
to 12 existing laws and the Criminal Code, affecting
banking, credit and non-profit organizations, insurance, and
gaming.

--------------
CBA SETS THE LEGAL FRAMEWORK
--------------

4. (U) The new law assigns the Central Bank of Armenia as
the single authorized body to coordinate anti-money
laundering and to battle terrorist financing activities in
the country. The CBA is working to develop a series of
implementing regulations (aiming to have them take effect by
June 2005) and plans to set up a Financial Intelligence Unit
(FIU) by March 2005. The implementing regulations include
the charter regulating CBA activities and define the mandate
of the CBA, FIU, other reporting entities and the
relationships among them.

--------------
LAW DEFINES A "DUBIOUS TRANSACTION"
--------------

5. (U) The new law lays out criteria that trigger a
reporting requirement under suspicion of money
laundering/terrorist financing. Financial institutions must
report any non real-estate transaction of more than 20
million dram (about USD 40,000), real-estate transactions of
more than 50 million dram (about USD 100,000) as well as any
money transfer of more than 5 million dram (about USD
10,000). The law also requires state registration
authorities to report any business purchase exceeding 30
million dram (USD 60,000) in a sole proprietorship company
and 40 million dram (about USD 80,000) for other types of
companies.

--------------
COMMENT
--------------

6. (SBU) This legislation brings Armenia into technical
compliance with its obligations under the International
Convention on the Suppression of the Financing of Terrorism,
UN Security Council Resolution No. 1373 (2001); the
effectiveness of the implementing regulations have yet to be
seen.
EVANS