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CBA: no reason for Iranian bank's Armenian subsidiary closure
August 22, 2012 - 14:44 AMT
PanARMENIAN.Net - Central Bank of Armenia (CBA) deems possible closure
of Iranian Mellat Bank's Armenian subsidiary pointless, head of CBA
Financial Monitoring Center said.
As Daniel Azatyan told a press conference commenting on Reuters
article, Mellat Bank's financial performance pointed to no reasons for
terminating the institution's activity.
`Mellat Bank CJSC was quite active during the initial phase of its
activities, particularly In terms of development of Iranian-Armenian
ties. However, significant drop in the bank's assets has recently been
recorded,' the expert said, adding that both U.S. and EU urge their
banks against conduction of any transactions with Iranian financial
institutions.
`Though CBA imposed no restrictions on transactions with Mellat Bank's
Armenian subsidiary, the country's commercial banks were forced to
halt cooperation with it to conduct transactions with foreign
partners,' he said, adding that currently Mellat Bank cooperates with
Tehran-based parent bank.
Dwelling on ACBA-CREDIT AGRICOLE BANK's activity, Mr. Azatyan noted
that Armenian commercial banks conducted no international transactions
with foreign banks for the past 4-5 years.
`ACBA-CREDIT AGRICOLE BANK possessed correspondent account neither in
Mellat Bank, not in any other Iranian bank,' the expert said.
The Central Bank of Armenia (CBA) earlier issued a response to Reuters
article, claiming Iran expands presence in Armenian banking system, in
answer to international sanctions.
`The banks in the Republic of Armenia, operating under the supervision
of the Central Bank of Armenia (CBA), are subject to RA laws, CBA
regulations and internal rules. One of CBA's supervisory tiers 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.
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 USD 88 million to only USD 40 million. `Mellat Bank'
CJSC holds no correspondent accounts either in the EU and the U.S. or
in 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,'
CBA's report reads.
From: Baghdasarian
August 22, 2012 - 14:44 AMT
PanARMENIAN.Net - Central Bank of Armenia (CBA) deems possible closure
of Iranian Mellat Bank's Armenian subsidiary pointless, head of CBA
Financial Monitoring Center said.
As Daniel Azatyan told a press conference commenting on Reuters
article, Mellat Bank's financial performance pointed to no reasons for
terminating the institution's activity.
`Mellat Bank CJSC was quite active during the initial phase of its
activities, particularly In terms of development of Iranian-Armenian
ties. However, significant drop in the bank's assets has recently been
recorded,' the expert said, adding that both U.S. and EU urge their
banks against conduction of any transactions with Iranian financial
institutions.
`Though CBA imposed no restrictions on transactions with Mellat Bank's
Armenian subsidiary, the country's commercial banks were forced to
halt cooperation with it to conduct transactions with foreign
partners,' he said, adding that currently Mellat Bank cooperates with
Tehran-based parent bank.
Dwelling on ACBA-CREDIT AGRICOLE BANK's activity, Mr. Azatyan noted
that Armenian commercial banks conducted no international transactions
with foreign banks for the past 4-5 years.
`ACBA-CREDIT AGRICOLE BANK possessed correspondent account neither in
Mellat Bank, not in any other Iranian bank,' the expert said.
The Central Bank of Armenia (CBA) earlier issued a response to Reuters
article, claiming Iran expands presence in Armenian banking system, in
answer to international sanctions.
`The banks in the Republic of Armenia, operating under the supervision
of the Central Bank of Armenia (CBA), are subject to RA laws, CBA
regulations and internal rules. One of CBA's supervisory tiers 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.
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 USD 88 million to only USD 40 million. `Mellat Bank'
CJSC holds no correspondent accounts either in the EU and the U.S. or
in 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,'
CBA's report reads.
From: Baghdasarian