Armenia Country Summary
Sanctions
Medium Concern
FATF AML Deficient List
Lower Concern
Terrorism
Lower Concern
Corruption
Medium Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Lower Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Armenia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Armenia was undertaken in 2019. According to that Evaluation, Armenia was deemed Compliant for 19 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 6 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
Armenia, as a UN member, must adhere to sanctions imposed by the United Nations, which are designed to maintain international peace and security without armed force. The UN Security Council has established 31 sanctions regimes since 1966, addressing various threats through measures like economic sanctions and arms embargoes, while considering the rights of those affected.
As of October 2023, there are 15 ongoing sanctions regimes focusing on political conflict resolution and counter-terrorism, administered by a sanctions committee. The UK has also implemented an arms embargo related to the Nagorno-Karabakh region, assessing export applications on a case-by-case basis to prevent diversion to military forces.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 47 |
| World Bank: Control of Corruption Percentile Rank | 57 |
The Armenian government has made strides in combating corruption since the 2021 parliamentary elections, implementing a new anti-corruption strategy and establishing various institutions such as the Corruption Prevention Commission and the Anti-Corruption Committee. Despite these efforts, civil society remains critical of the pace of reform, and corruption continues to pose challenges for U.S. investment, particularly in sectors lacking transparency. While Armenia's Corruption Perception Index score improved in 2023, concerns about the effectiveness and independence of anti-corruption institutions persist, alongside issues of political influence and the interconnectedness of political and economic spheres.
Economy
Armenia's economy has shown resilience and growth, with a GDP increase of 8.7 percent in 2023, driven by sectors such as trade, construction, and information technology. The country has attracted significant foreign direct investment, particularly from U.S. companies in energy, mining, and technology, although challenges remain, including a small market size, geographic isolation, and issues related to the rule of law and corruption.
Armenia has a relatively open investment climate, with few restrictions on foreign ownership and a legal framework designed to attract investment, particularly in sectors like energy, mining, and information technology. However, challenges such as a small market size, geographic isolation, and weaknesses in the rule of law and judiciary persist, impacting investor confidence. Despite these obstacles, net foreign direct investment inflows have exceeded the global average, indicating a growing interest in Armenia as an investment destination.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings