Armenia Country Summary
Sanctions
Limited - OSCE - Weapons
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
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. The UN Security Council has established 31 sanctions regimes since 1966, including economic sanctions and targeted measures like arms embargoes and travel bans. As of October 2023, there are 15 ongoing sanctions regimes focusing on political conflict resolution, nuclear non-proliferation, and counter-terrorism.
In February 1992, an OSCE embargo on arms deliveries to the Nagorno-Karabakh area was enacted and remains in effect. The UK has also refined its arms embargo to cover military goods that could be used in the Nagorno-Karabakh region or along the Azerbaijan-Armenia border, assessing export applications on a case-by-case basis.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 47 |
| World Bank: Control of Corruption Percentile Rank | 56 |
The Armenian government has made strides in combating corruption since the 2021 parliamentary elections, implementing a new anti-corruption strategy and establishing various institutions, including the Corruption Prevention Commission and the Anti-Corruption Committee. Despite these efforts, civil society remains critical of the pace and effectiveness of reforms, particularly regarding the independence of judicial and law enforcement bodies. Corruption continues to pose challenges for U.S. investment, especially in sectors like health and law enforcement, where transparency issues and perceived corruption among judges persist.
Economy
Armenia's economy has shown resilience, with GDP growth exceeding expectations at 8.7 percent in 2023, driven by sectors such as trade, construction, and information technology. Despite a favorable legal framework and government policies aimed at attracting foreign investment, challenges persist, including a small market size, geographic isolation, and weaknesses in the rule of law. Nevertheless, net foreign direct investment inflows have been robust, reaching 5 percent of GDP in 2022.
Armenia has a relatively open investment climate, welcoming foreign investment with few restrictions on ownership and straightforward business registration processes. Despite this, challenges such as a small market size, geographic isolation, and weaknesses in the judiciary and rule of law persist, which can deter potential investors. Nevertheless, net foreign direct investment inflows have exceeded the global average, indicating a growing interest in Armenia's economic opportunities.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
