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SELECTIVE DISCLOSURE: ARMENIA'S CENTRAL BANK CONCEALS DATA ON OFFSHORE TRANSFERS
Kristine Aghalaryan
00:05, December 15, 2014
Armenia's Central Bank (CB) claims thatsome data regarding money
flows to and from offshore financial centers is protected from public
disclosure under the law.
We say 'some', because the CB is being selective when it comes to
which information can be disclosed and what cannot.
When Hetq contacted the CB, requesting that it provide figures of
cash inflows and outflows to and from the British Virgin Islands,
Cyprus, Lichtenstein, Luxembourg, Panama, the Cayman Islands, the
Seychelles and other offshore centers since 2007, it only did so for
'natural persons'.
And even in this case, the CB confessed that it had no data for
certain countries (see asterisk) prior to 2012.
Based on this incomplete data, the largest inflows to Armenia came from
Cyprus and Switzerland - each registering more than US$370 million. The
largest outflows from Armenia also went to the same two countries -
$77 million and $143 million respectively.
Inflows to Armenia - Outflows from Armenia Natural Persons (USD
millions)
When Hetq again requested that the CB provide data regarding cash
flows made by 'legal entities', it refused to do so citing Article 12
of the RA Law on Combatting Money Laundering and Terrorism Financing,
claiming that any such information is protected.
The Authorized Body shall be prohibited to publicize or otherwise
provide any information (except for the information provided to
criminal investigation or other authorities in the manner established
by law) disclosing or facilitating disclosure of any person having
reported on a suspicious transaction (business relationship) and
(or) having participated in its reporting to the Authorized Body or
in sending a statement to criminal investigation authorities by the
Authorized Body.
According to data from Armenia's National Statistical Service, legal
entities based in Cyprus, the British Virgin Islands and Luxembourg
are investing the most money in Armenia.
Overseas Investment in Armenia (AMD thousands)
We must point out that Article 8 of Armenia's Law on the Freedom
of Information specifies the following limitations regarding the
disclosure of information: contains state, official, bank or trade
secret; infringes the privacy of a person and his family, including the
privacy of correspondence, telephone conversations, post, telegraph
and other transmissions; contains pre-investigation data not subject
to publicity; discloses data that require accessibility limitation,
conditioned by professional activity (medical, notary, attorney
secrets); infringes copy right and associated rights.
There is nothing in the law prohibiting the public disclosure of
information regarding financial inflows and outflows. What, then,
is the Central Bank hiding?
Moreover, why does the Central Bank see fit to provide data regarding
'natural persons' but balk when it comes to legal entities?
This is nothing less than selective public disclosure and merely leads
us to believe that the Central Bank may indeed have something to hide.
http://hetq.am/eng/news/57768/selective-disclosure-armenias-central-bank-conceals-data-on-offshore-transfers.html
Kristine Aghalaryan
00:05, December 15, 2014
Armenia's Central Bank (CB) claims thatsome data regarding money
flows to and from offshore financial centers is protected from public
disclosure under the law.
We say 'some', because the CB is being selective when it comes to
which information can be disclosed and what cannot.
When Hetq contacted the CB, requesting that it provide figures of
cash inflows and outflows to and from the British Virgin Islands,
Cyprus, Lichtenstein, Luxembourg, Panama, the Cayman Islands, the
Seychelles and other offshore centers since 2007, it only did so for
'natural persons'.
And even in this case, the CB confessed that it had no data for
certain countries (see asterisk) prior to 2012.
Based on this incomplete data, the largest inflows to Armenia came from
Cyprus and Switzerland - each registering more than US$370 million. The
largest outflows from Armenia also went to the same two countries -
$77 million and $143 million respectively.
Inflows to Armenia - Outflows from Armenia Natural Persons (USD
millions)
When Hetq again requested that the CB provide data regarding cash
flows made by 'legal entities', it refused to do so citing Article 12
of the RA Law on Combatting Money Laundering and Terrorism Financing,
claiming that any such information is protected.
The Authorized Body shall be prohibited to publicize or otherwise
provide any information (except for the information provided to
criminal investigation or other authorities in the manner established
by law) disclosing or facilitating disclosure of any person having
reported on a suspicious transaction (business relationship) and
(or) having participated in its reporting to the Authorized Body or
in sending a statement to criminal investigation authorities by the
Authorized Body.
According to data from Armenia's National Statistical Service, legal
entities based in Cyprus, the British Virgin Islands and Luxembourg
are investing the most money in Armenia.
Overseas Investment in Armenia (AMD thousands)
We must point out that Article 8 of Armenia's Law on the Freedom
of Information specifies the following limitations regarding the
disclosure of information: contains state, official, bank or trade
secret; infringes the privacy of a person and his family, including the
privacy of correspondence, telephone conversations, post, telegraph
and other transmissions; contains pre-investigation data not subject
to publicity; discloses data that require accessibility limitation,
conditioned by professional activity (medical, notary, attorney
secrets); infringes copy right and associated rights.
There is nothing in the law prohibiting the public disclosure of
information regarding financial inflows and outflows. What, then,
is the Central Bank hiding?
Moreover, why does the Central Bank see fit to provide data regarding
'natural persons' but balk when it comes to legal entities?
This is nothing less than selective public disclosure and merely leads
us to believe that the Central Bank may indeed have something to hide.
http://hetq.am/eng/news/57768/selective-disclosure-armenias-central-bank-conceals-data-on-offshore-transfers.html