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 to maintain international peace and security. The UN Security Council has established 31 sanctions regimes since 1966, which include various measures such as economic sanctions and arms embargoes, with a focus on the rights of those targeted. Currently, there are 15 ongoing sanctions regimes aimed at political conflict resolution, nuclear non-proliferation, and counter-terrorism, managed by sanctions committees.
In February 1992, the OSCE imposed an arms embargo on the Nagorno-Karabakh area, which remains in effect. The UK has refined its arms embargo to cover military goods that could be used in the region, assessing export applications on a case-by-case basis to ensure compliance with strategic export control criteria.
Bribery & Corruption
| 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, establishing various anti-corruption institutions and adopting a new strategy for 2023-2026. Despite these efforts, civil society expresses dissatisfaction with the pace of reforms, and corruption continues to pose challenges for U.S. investment, particularly in sectors like justice and law enforcement. While Armenia's Corruption Perception Index improved in 2023, concerns about cronyism, the effectiveness of anti-corruption bodies, and the influence of powerful officials on private enterprises remain significant.
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 the U.S. in energy and mining, despite facing challenges like a small market size and issues related to the rule of law and corruption. Overall, Armenia's investment climate is improving, supported by government reforms and international agreements, although concerns about judicial independence and bureaucratic inefficiencies remain.
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. Despite these advantages, challenges such as a small market size, geographic isolation, and weaknesses in the rule of law and judiciary persist, which can deter potential investors. Recent years have seen net foreign direct investment inflows exceed 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
