MONEYVAL, the Council of Europe’s monitoring body tasked with assessing compliance with the principal international standards to counter money laundering and the financing of terrorism and the effectiveness of their implementation, reports that the main sources of money laundering in Armenia are corruption, tax crimes, fraud and embezzlement, drug trafficking, and cybercrime.

In October 2025, a MONEYVAL evaluation team visited Armenia and assessed the effectiveness of the measures taken by Armenia to combat money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.

The monitoring body, in its latest report on Armenia published today, highlighted the existence of a robust system of targeted financial sanctions in Armenia, but also called for improvements in money laundering prosecutions and asset recovery.

Key threats to Armenia

According to the report, Armenian state authorities have a good understanding of domestic risks.

The main sources of money laundering in Armenia are corruption, tax crimes, fraud and embezzlement, drug trafficking, and cybercrime.

MONEYVAL calls for a deeper analysis of threats from abroad, as well as risks related to the cryptocurrency and real estate markets.

Anti-corruption and international cooperation

The report commends the Financial Monitoring Center of Armenia (FMCA) for developing human and technical resources and providing quality data to law enforcement.

The report, however, says that both the volume and quality of suspicious transaction reports submitted by the private sector need to be improved.

MONEYVAL also calls on Armenian law enforcement agencies to pay more attention to money laundering aspects during criminal investigations.

Confiscation of assets of illegal origin

MONEYVAL also addresses the system of confiscation of assets of illegal origin (civil confiscation).

Experts not that the introduction of this system has increased the state’s capabilities, but the overall results do not yet allow us to say that the return of criminal assets has become a clear and stable policy objective in Armenia.

MONEYVAL calls for a comprehensive review of the asset recovery system at all stages of the recovery process,” the report says.

Identification of beneficial owners

The report also addresses the system for declaring and identifying beneficial owners of companies registered in the Republic of Armenia.

According to the committee, Armenia uses a multi-faceted approach to collect beneficial ownership information, but further measures are needed to improve transparency. The report stresses the importance of completing the beneficial ownership register and verifying that its information is accurate and up to date.

Counter-Terrorism

Although, according to the report, there have been no criminal prosecutions or convictions in Armenia for terrorist financing, the legal and institutional framework is well-established.

Armenia’s system for implementing financial sanctions related to the financing of terrorism and the proliferation of weapons of mass destruction was assessed as positive and dependable.

As a result of the assessment, Armenia received a roadmap of key recommendations to be implemented within three years.

Based on the performance and technical compliance ratings, Armenia was included in the enhanced follow-up process and is required to report to MONEYVAL on the progress made.

Photo: Central Bank Facebook page; MONEYVAL team visit to Armenia, October 2025

Samson Martirosyan; Brussels