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Armenia's central bank obligates all banks and financial institutions
to scrutinize their transactions - CBA statement
news.am
August 21, 2012 | 17:39
YEREVAN.- The Central Bank of Armenia issued a statement on Tuesday in
response to an article titled `Iran looks to Armenia to skirt bank
sanctions' published by Reuters agency. The statement reads as
follows:
`The banks in the Republic of Armenia, operating under the supervision
of the Central Bank of Armenia, are subject to the laws of the
Republic of Armenia, the regulations of the Central Bank of Armenia,
and the banks' internal rules. One of the supervisory tiers of the
Central Bank of Armenia is the provision of the adequate
implementation of financial sanctions imposed on certain countries
under relevant decisions of international organizations, such as the
UN Security Council Resolutions.
The decisions and relevant financial sanctions, imposed by the
European Union and the United States of America in relation to nuclear
proliferation programs of certain countries, are also under the
attention of the Central Bank of Armenia, in order to avoid any
possible involvement in or assistance to such programs by any bank in
the Republic of Armenia. The Central Bank of Armenia obligates all
banks and financial institutions in the Republic of Armenia to
scrutinize their transactions, in order to avoid any possible
involvement in transactions considered unacceptable by the
international community. Moreover, pursuant to the policy adopted by
the Board of the Central Bank of Armenia, individuals and companies
from higher-risk countries are neither allowed to establish a
financial institution in the Republic of Armenia nor to acquire any
participation in the equity of acting financial institutions.
`Mellat Bank' CJSC has been operating in the Republic of Armenia since
1996; its clientele is primarily composed of small and medium
enterprises involved in the foreign trade between the Islamic Republic
of Iran and the Republic of Armenia, as well as of tourists and
students. The bank's activities and assets have dramatically decreased
during the past 3-4 years; in the period from December 31, 2010 to
July 1, 2012, the banks' assets have decreased by more than 50%,
dropping from 88 million US dollars to only 40 million US dollars.
`Mellat Bank' CJSC holds no correspondent accounts either in the
European Union and the United States of America or in the Republic of
Armenia.
The banks in the Republic of Armenia, including `ACBA-Credit Agricole
Bank' CJSC, hold no correspondent accounts with banks and financial
institutions in the Islamic Republic of Iran. The banks in the
Republic of Armenia are strictly bound to customer due diligence
rules, in order to avoid any direct or indirect financing of
individuals and companies related to nuclear proliferation programs.
The Central Bank of Armenia will follow its supervision over the
behavior and transactions of all financial institutions and their
customers in the Republic of Armenia, in order to safeguard its
financial system from any destabilizing effects.'
to scrutinize their transactions - CBA statement
news.am
August 21, 2012 | 17:39
YEREVAN.- The Central Bank of Armenia issued a statement on Tuesday in
response to an article titled `Iran looks to Armenia to skirt bank
sanctions' published by Reuters agency. The statement reads as
follows:
`The banks in the Republic of Armenia, operating under the supervision
of the Central Bank of Armenia, are subject to the laws of the
Republic of Armenia, the regulations of the Central Bank of Armenia,
and the banks' internal rules. One of the supervisory tiers of the
Central Bank of Armenia is the provision of the adequate
implementation of financial sanctions imposed on certain countries
under relevant decisions of international organizations, such as the
UN Security Council Resolutions.
The decisions and relevant financial sanctions, imposed by the
European Union and the United States of America in relation to nuclear
proliferation programs of certain countries, are also under the
attention of the Central Bank of Armenia, in order to avoid any
possible involvement in or assistance to such programs by any bank in
the Republic of Armenia. The Central Bank of Armenia obligates all
banks and financial institutions in the Republic of Armenia to
scrutinize their transactions, in order to avoid any possible
involvement in transactions considered unacceptable by the
international community. Moreover, pursuant to the policy adopted by
the Board of the Central Bank of Armenia, individuals and companies
from higher-risk countries are neither allowed to establish a
financial institution in the Republic of Armenia nor to acquire any
participation in the equity of acting financial institutions.
`Mellat Bank' CJSC has been operating in the Republic of Armenia since
1996; its clientele is primarily composed of small and medium
enterprises involved in the foreign trade between the Islamic Republic
of Iran and the Republic of Armenia, as well as of tourists and
students. The bank's activities and assets have dramatically decreased
during the past 3-4 years; in the period from December 31, 2010 to
July 1, 2012, the banks' assets have decreased by more than 50%,
dropping from 88 million US dollars to only 40 million US dollars.
`Mellat Bank' CJSC holds no correspondent accounts either in the
European Union and the United States of America or in the Republic of
Armenia.
The banks in the Republic of Armenia, including `ACBA-Credit Agricole
Bank' CJSC, hold no correspondent accounts with banks and financial
institutions in the Islamic Republic of Iran. The banks in the
Republic of Armenia are strictly bound to customer due diligence
rules, in order to avoid any direct or indirect financing of
individuals and companies related to nuclear proliferation programs.
The Central Bank of Armenia will follow its supervision over the
behavior and transactions of all financial institutions and their
customers in the Republic of Armenia, in order to safeguard its
financial system from any destabilizing effects.'