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Armenian Banks Prohibited From Participating In Western Union

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  • Armenian Banks Prohibited From Participating In Western Union

    ARMENIAN BANKS PROHIBITED FROM PARTICIPATING IN WESTERN UNION

    ARKA
    Aug 25, 2008

    YEREVAN, August 25. /ARKA/. On Monday, the board of the Central Bank
    of Armenia prohibited the banks operating in Armenia from participating
    in Western Union international payment system.

    The press office of the Central Bank of Armenia told ARKA News Agency
    that the board had instructed banks to void their contracts with
    Western Union.

    The Central Bank did that to curb banks' risks, since Western Union
    sometimes violates terms of contracts signed with commercial banks
    operating in Armenia.

    In particular, Western Union has stopped serving clients in some
    branches of the banks. These moves can strike at the banks' activity
    and financial stability and create unpredictable situation in money
    transfer sector.

    The Central Bank also thinks that things can affect also Armenia's
    economic, financial and real sectors.

    The CBA made s similar decision yet in February 2006. The then decision
    was prompted by discrepancies in WU regulations and the fear that
    they can create risks and jeopardize financial stability in Armenia.

    The decision was expected to take force on March 15, 2006, but banks
    obtained the Central Bank's permission on March 14 and Western Union
    started cooperating with Armenian banks under test conditions in 1995
    and functioning officially in 1996.

    Armenian commercial banks participate not only in SWIFT traditional
    system, but also in 17 other international systems - Western Union,
    Money Gram, Anelik, Unistream, Express Post, Interexpress, Contact,
    Leader, Migom, Private Money Transfer, STB Express, Faster, Blizko,
    Zhivie Dengi etc.

    Besides, non-banking organizations HayPost (ArmPost), TelCel, Depi
    Tun, Elver, Parvana, Tandem Payments and Mega Pantera take part in
    the systems. ($1 - AMD 301.14)
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