LEGAL UPDATE
March 2025
PART I. TAX SECTOR
1. On making amendments and supplements to the Tax Code of the Republic of Armenia regarding bad debts receivable.
2. On making amendments and additions to the provisions on non-compliance with the monetary rules for the use of cash registers
in the Tax Code of the Republic of Armenia.
3. On making amendments to the Tax Code of the Republic of Armenia regarding the real estate tax base and late payment of tax.
PART II. INFORMATION TECHNOLOGY SECTOR
1. On Amendments to Order No. 872 of the Minister of Economy of the Republic of Armenia of September 19, 2013.
2. On Amendments to Order No. 873 of the Minister of Economy of the Republic of Armenia of September 19, 2013.
3. Draft on establishing the procedures for providing state support to the high-tech sector.
PART III. ECONOMIC SECTOR
1. On making amendments and supplements to the Resolution of the Government of the Republic
of Armenia dated March 26, 2020 “On approving targeted programs for the modernization of the
economy” No. 355-l.
2. On approving the national version of the technical, economic and social information "Individual
consumption by purpose classifier" of the Republic of Armenia and repealing the Order of the
Minister of Economy of the Republic of Armenia No. 876 of September 19, 2013.
PART IV. WORKING SECTOR
1. On Amendments and Supplements to the Law "On Funded Pensions".
PART V. PROCUREMENT SECTOR
1. On making amendments and additions to the provisions on the organization of the procurement
process and conclusion of contracts in the Resolution of the Government of the Republic of
Armenia No. 526-N of May 4, 2017.
2. Draft on Amendments and Supplements to the Law "On Procurement".
PART VI. BANKING SECTOR
1. On making amendments and supplements to the Decision No. 114-N of the Board of the Central
Bank of the Republic of Armenia of March 25, 2003 on the definition of a financial organization,
removal from the register of a registered manager, and termination of participation.
2. On making amendments and supplements to the decisions of the Board of the Central Bank of the Republic of Armenia No.
16-N of January 15, 2008 and the Board of the Central Bank of the Republic of Armenia No. 15-N of January 15, 2008.
3. On Amendments and Supplements to Decision No. 17 of the Board of the Central Bank of the Republic of Armenia of January 15, 2008.
4. On Amendments and Supplements to Decision No. 14 of the Board of the Central Bank of the Republic of Armenia of January 15, 2008.
5. On Amendments and Supplements to the Decision No. 285 of the Board of the Central Bank of the Republic of Armenia of October 25, 2011.
PART I. TAX SECTOR
(This section of legal updates includes legal updates related to the tax sector for March 2025)
1. On making amendments and supplements to the Tax Code of the Republic of Armenia regarding bad debts receivable
Name of the legislative act
On Amendments and Supplements to the Tax Code of the Republic of Armenia
Law HO-19-N
https://www.arlis.am/documentview.aspx?docid=203083
Change Status:
The law came into force on March 3, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
With the adoption of this Law, a change has been made to the "Tax Code".
What the amendments concern:
The change took place in the provisions of the Tax Code related to "Other Deductions", in particular, it is now provided that for the purpose of determining the tax base of a resident profit taxpayer and a non-resident profit taxpayer conducting activities in the Republic of Armenia through a permanent establishment, the amount of receivables for the purpose of making deductions from gross income has been set at exceeding 300 thousand drams, instead of the previous 100 thousand drams. That is, the receivable is considered uncollectible from the date of entry into legal force or from the date of entry into force of a payment order issued by a court, or from the date of entry into force of a legally binding judgment, or from the date of entry into force of an order issued by a notary requesting the collection of the receivable amount, or from the date of entry into force of a judgment issued by an arbitration tribunal examining the request for the collection of the receivable amount (except for a judgment on the forgiveness of the receivable amount or not demanding it on any grounds). This law shall enter into force on March 3, 2025 and shall apply to obligations arising after January 1, 2025.
To amend Article 123, Part 1, Clause 2 of the Tax Code of the Republic of Armenia of October 4, 2016:
Old version.
For the purposes of this clause, a receivable with a total amount exceeding 100 thousand drams is considered uncollectible from the date of entry into legal force of a judicial act (judgment, decision or order, with the exception of a judgment, decision or order made on forgiving the amount of the receivable or not demanding it on any grounds) on satisfying or rejecting the claim for the
collection of the receivable.
New version.
For the purposes of this clause, a receivable with a total amount exceeding 300 thousand drams is considered uncollectible from the date of entry into force of a judicial act (decision, ruling or order, except for a judgment, ruling or order on forgiving the amount of the receivable or not demanding it on any grounds) on satisfying or rejecting the claim for the seizure of the receivable, or from the date of entry into force of a payment order issued by a court, or from the date of entry into force of a judgment that has entered into force of a judgment that has entered into force, or from the date of entry into force of an order issued by a notary on the demand for the seizure of the receivable, or from the date of entry into force of a judgment issued by an arbitration tribunal that examined the claim for the seizure of the receivable (except for a judgment on forgiving the amount of the receivable or not demanding it on any grounds).
2. On making amendments and additions to the provisions on non-compliance with the monetary rules for the use of cash registers in the Tax Code of the Republic of Armenia
Name of the legislative act:
Law HO-21-N on Amendments and Supplements to the Tax Code of the Republic of Armenia
Change Status:
The law came into force on March 3, 2025.
https://www.arlis.am/documentview.aspx?docid=203087
Which legislative act was amended by the adoption of the above-mentioned act:
With the adoption of this Law, a change has been made to the "Tax Code"
What do the changes concern?
The amendment to the law specifically relates to the Tax Code's provisions on the use of cash registers and/or non-compliance with the rules for cash settlements through cash registers and/or making amendments to the relevant provisions. In particular, Article 416 has been supplemented with Parts 6 and 7, which provide that in case of printing an incorrect AET AA code or an incorrect work or service code on a cash register receipt, when all other rules established for the use of a cash register are observed, a warning shall be applied. Also, in case of committing this violation again within one year following the recording of the violation by the thematic tax inspection act, a fine of 50 thousand drams shall be levied from the taxpayer. Article 2 of this Article has been supplemented and hereinafter: For each violation of the rules for the use of cash registers, the organization, individual entrepreneur or notary shall be fined in the amount of 200 thousand drams and 0.5 percent of the turnover recorded by all cash registers of the given taxpayer during the previous quarter, but not more than 10 million drams, with the exception of the cases specified in Articles 4, The cases specified in parts 6 and 7;
Article 416 of the Code shall be supplemented with Parts 6 and 7 with the following content:
Article 416. Failure to comply with the rules for the use of cash registers and (or) cash settlements through cash registers:
Old version.
New version.
6. In case of printing an incorrect AEG AA code or an incorrect work or service code on a cash register receipt, when all other rules established for the use of the cash register are observed, a warning is issued. 7. In case of repeated commission of the violation specified in Part 6 of this Article within one year following the date of recording the thematic tax audit act, a fine in the amount of 50 thousand drams shall be levied from the taxpayer. For the purposes of this Part, the violation shall be deemed to have been committed again within one year after the date of the thematic tax audit act, until the date of the draft of the next thematic tax audit act, when the violation specified in Part 6 of this Article is committed.
In Part 2 of Article 416, the words “except for the case specified in Part 4 of this Article” shall be replaced with the words “except for the cases specified in Parts 4, 6 and 7 of this Article”
Old version.
For each violation of the rules for the use of cash registers (except for the cases specified in Part 4 of this Article), an organization, individual entrepreneur or notary shall be fined 200 thousand drams and 0.5 percent of the turnover recorded by all cash registers of the taxpayer in the previous quarter, but not more than 10 million drams.
New version.
For each violation of the rules for the use of cash registers (except for the cases specified in parts 4, 6 and 7 of this article), an organization, individual entrepreneur or notary shall be fined 200 thousand drams and 0.5 percent of the turnover recorded by all cash registers of the taxpayer in the previous quarter, but not more than 10 million drams.
3. On making amendments to the Tax Code of the Republic of Armenia regarding the real estate tax base and late payment of tax
Name of the legislative act
Law HO-20-N on Amendments and Supplements to the Tax Code of the Republic of Armenia
https://www.arlis.am/documentview.aspx?docid=203084
Change status:
This Law shall enter into force on March 14, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:՝
With the adoption of this Law, a change has been made to the "Tax Code"
What the changes are about:
The amendment to the Law took place in the Tax Code's legal provisions on the real estate tax base and on the delay in payment of tax beyond the established deadlines. In particular, the amendment provides that after the tax year of the cadastral assessment, the real estate tax base may be adjusted in comparison with the accounting data available in the cadastral body until the next tax year of the cadastral assessment of real estate, inclusive, as a result of correcting errors made during state registration. Moreover, no penalties shall be calculated for the additional amounts of the relevant real estate tax resulting from the adjustment of the real estate tax base under this part, starting from January 1, 2021 up to and including the month of these amendments, if the tax obligations for that real estate tax have been fully fulfilled within the deadlines specified by the Code. The law shall enter into force one month after the date of official publication and shall apply to legal relations arising from January 1, 2021. After the entry into force of this law, additional tax liabilities on real estate tax arising on the grounds specified in Article 1 of this law prior to the entry into force of this law shall be recalculated based on the regulations specified in this law.
Article 228 of the Tax Code of the Republic of Armenia of October 4, 2016 (hereinafter referred to as the Code) shall be supplemented with the following content, part 5.1:
Old version.
New version.
5.1. After the tax year of the cadastral assessment, the real estate tax base may be adjusted in the period up to and including the next cadastral assessment tax year, based on the comparison of the registration data available in the cadastral body (including those received from the competent body conducting the current registration), as a result of correcting errors made during state registration within the meaning of the Law "On State Registration of Rights to Property" as a result of changing the SECTOR of the building or land plot or the coefficients in the formulas calculated by the law establishing the procedure for cadastral assessment approximated to the market value of real estate and the valuation procedures of Appendix 2, which is an integral part of the Code. The adjusted real estate tax base shall be taken as the basis for determining the tax base from January 1, 2021 up to and including the next cadastral assessment tax year specified in Part 3 of this Article.
Article 401 of the Code shall be supplemented with a Part 4 with the following content:
Old version.
New version.
4. Penalties shall not be calculated for additional amounts of the relevant real estate tax resulting from the adjustment of the real estate tax base on the grounds specified in Part 5.1 of Article 228 of the Code, starting from January 1, 2021 up to and including the month of the said changes, if the tax obligations for that real estate tax have been fully fulfilled within the time limits specified in the Code.
PART II. INFORMATION TECHNOLOGY SECTOR
(This section of legal updates includes legal updates related to the information technology sector for March 2025)
1. On Amendments to Order No. 872 of the Minister of Economy of the Republic of Armenia of September 19, 2013
Name of the legislative act:
Order No. 675-N on Amendments to Order No. 872 of the Minister of Economy of the Republic of Armenia of September 19, 2013
https://www.arlis.am/documentview.aspx?docid=203835
Change Status:
The amendment to the Order entered into force on March 16, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:՝
The change occurred in Order No. 872 "On approving the "Classifier of Occupations, Specializations and Positions of Employees" of the Republic of Armenia for Technical, Economic and Social Information and on repealing Order No. 26 of the Minister of Economy of the Republic of Armenia dated January 25, 2011"
What do the changes concern?
According to the amendment, the Order "On approving the "Classifier of Professionals, Specializations and Positions of Employees" of the Technical, Economic and Social Information of the Republic of Armenia and repealing the Order of the Minister of Economy of the Republic of Armenia No. 26 of January 25, 2011" was amended by adding point 36 at the end of Part 3 of the "Classifier of Professionals, Specializations and Positions of Employees" of the Classifiers of Professionals, Specializations and Positions of Employees, in accordance with the Appendix.
2. On Amendments to Order No. 873 of the Minister of Economy of the Republic of Armenia of
September 19, 2013
Name of the legislative act :
Order No. 676-N of the Minister of Economy of the Republic of Armenia on Amendments to Order No. 873-N of September 19, 2013
https://www.arlis.am/documentview.aspx?docid=203836
Change status :
The amendment to the Order entered into force on March 16, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
The change occurred in Order No. 873 "On approving the "Classifier of Occupations" of the Republic of Armenia's Technical, Economic and Social Information and repealing Order No. 632 of the Minister of Economy of the Republic of Armenia of July 31, 2009".
What do the project changes concern?
According to the amendment, additions were made to Order N 676-N: a new Section 5 was added to PART 2 of the Appendix in accordance with Appendix N 1.
In Section 2 of PART 3 of the Appendix, a new “Subgroup 25. Specialists in the ICT sector” has been added to the main group 2 “Specialists: Highly qualified”, in accordance with Appendix N 2.
In the preface of Section 2 of Part 3 of the Appendix, after the words "preparation of scientific documents and reports", the words "improvement of information systems technologies, equipment, software and related research" are added, and in the preface of the same section, subparagraph 5 is added with the following wording: "5) Subgroup 25. Specialists in the SECTOR of ICT".
3. Draft on establishing the procedures for providing state support to the high-tech sector
Name of the legislative act :
Draft law on establishing the procedures for providing state support to the high-tech sector
https://www.e-draft.am/projects/8384/about
Change status :
The draft was discussed on the unified website for publishing draft legal acts from 05.03.2025 to 20.03.2025.
What do the project changes concern?
The adoption of the draft decision is conditioned by the adoption of the package of laws "On State Support to the High Technology Sector" HO-498-N of December 4, 2024, "On Amendments and Supplements to the Tax Code of the Republic of Armenia" HO-499-N of December 4, 2024, "On Amendments to the Law "On Amendments to the Tax Code of the Republic of Armenia" HO-500-N of December 4, 2024, and "On Amendments to the Code of the Republic of Armenia on Administrative Offenses" HO-501-N of December 4, 2024.
For the provision of state support defined in Article 5 of the Law "On State Support for the High-Tech Sector", the same law stipulates that by-laws will be established the procedures for state support for the high-tech sector, by which economic entities will have the opportunity to apply for and receive state support. The draft provides for the procedures, conditions and deadlines for the provision of state support, appeal and other relations..
Based on Part 10 of Article 5 of the Law "On State Support for the High Technology Sector", the Government of the Republic of Armenia decides:
Define:
1) The procedure for providing state support for labor migrants to economic entities in the high-tech sector, in accordance with Appendix N 1.
2) the procedure for providing state support to high-tech business entities for attracting new employees, in accordance with Appendix N 2.
3) the procedure for providing state support for the training and retraining of personnel to economic entities in the high-tech sector, in accordance with Appendix N 3.
4) the procedure for providing state support to a labor migrant who is an employee of an economic entity in the high-tech sector, in accordance with Appendix No. 4.
Define that:
1) Organizations and individual entrepreneurs whose SECTOR of activity corresponds to or includes the types of economic activity defined in the Appendix to the Decision of the Government of the Republic of Armenia of February 13, 2025 N 142-N are eligible to apply for state support, and at least 90 percent of the sales turnover from all types of activity declared by the latter in the tax calculations of value added tax and (or) turnover tax during the requested period must be formed from the sum of the types of activity in the high-tech sector defined in the Appendix during the reporting period for the provision of state support.
2) Starting from January 1, 2025, during the period for which state support is requested, economic entities applying for state support must not have made any changes to their reports submitted to the tax authority regarding the classifiers of economic activities.
The list of professional activities is defined in the appendix approved by the RA Government Resolution No. 2025-N. This decision shall enter into force on the day following its official publication, except for subparagraph 4 of paragraph 1 of this decision, which shall enter into force on January 1, 2026. This decision applies to relationships arising after January 1, 2025, with the exception of subparagraphs 1 and 4 of paragraph 1 of this decision, the effect of which also applies to relationships arising after March 1, 2022 with persons performing professional work with the status of labor migrants, as defined in subparagraph 1 of paragraph 3 of Appendix N 1 and Appendix N 4.:
PART III. ECONOMIC SECTOR
(This section of legal updates includes legal updates related to the economic sector for March 2025)
1. On making amendments and supplements to the Resolution of the Government of the Republic of Armenia dated March 26, 2020 “On approving targeted programs for the modernization of the economy” No. 355-l
Name of the legislative act:
Resolution No. 308-L "On Amendments and Supplements to the Resolution No. 355-L of the Government of the Republic of Armenia of March 26, 2020"
https://www.arlis.am/documentview.aspx/?docid=204466
Change Status:
This Decision entered into force on March 21, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of the decision, a change was made to the decision "On approval of target programs for the modernization of the economy" N 355-L.
What do the changes concern?
As a result of the decision, a change was made to the decision "On approval of target programs for the modernization of the economy" N 355-L and a new appendix 3 was added: on approving the target program for subsidizing (supporting) interest rates on loans attracted as a working capital for the processing of certain goods of the Republic of Armenia origin that are subject to export restrictions.
To make the following amendments and additions to the Resolution of the Government of the Republic of Armenia No. 355-L of March 26, 2020 "On Approval of Targeted Programs for the Modernization of the Economy": to add the following content to paragraph 3.1:
"3.1. To approve the target program for subsidizing (supporting) interest rates on loans attracted as a working capital for the processing of certain goods of Armenian origin that are subject to export restrictions from the Republic of Armenia, in accordance with Appendix No. 3."
to supplement point 3.1 with the following content:
3.1. To approve the target program for subsidizing (supporting) interest rates on loans attracted as a working capital for the processing of certain goods of Armenian origin that are subject to export restrictions from the Republic of Armenia, in accordance with Appendix No. 3.".
Appendix No. 3
The Government of the Republic of Armenia for 2020
Resolution No. 355-L of March 26
TARGETED PROGRAM FOR SUBSIDIZATION (ASSISTANCE) OF INTEREST RATES ON LOANS ATTRACTED AS A CIRCULATING MEANS FOR THE PROCESSING OF CERTAIN GOODS OF ORIGIN IN THE REPUBLIC OF ARMENIA SUBJECT TO EXPORT RESTRICTIONS FROM THE REPUBLIC OF ARMENIA
1. PURPOSE OF THE TARGET PROGRAM
1. The purpose of this targeted program is to subsidize interest rates on loans attracted as a working capital for the processing of certain goods of Armenian origin, which will contribute to the extension of the production chain in the Republic of Armenia, deeper processing of local raw materials, ensuring the continuity of production, increasing production volumes and economic growth.
2. THE FRAMEWORK OF ECONOMIC MANAGERS
2. For the purposes of this target program, an economic operator is considered a commercial organization or individual entrepreneur registered and operating in the territory of the Republic of Armenia.
3. FORM OF ASSISTANCE
3. Support is provided to economic operators in the form of interest rate subsidies for targeted loans (including loans provided within the framework of programs with International Development Organizations approved by the Resolution of the Government of the Republic of Armenia No. 619-N of June 8, 2017) received from banks or credit organizations operating and licensed in the territory of the Republic of Armenia (hereinafter referred to as the financial organization). Moreover, the risk of loan repayment is fully borne by the financial organization, with the exception of loans provided within the framework of programs with International Development Organizations approved by the Resolution of the Government of the Republic of Armenia No. 619-N of June 8, 2017, in which case the risk of loan repayment is borne by the financial organization or the international development organization or both together.
4. PURPOSE OF LOANS TO BE OBTAINED UNDER THE ASSISTANCE INSTRUMENT
4. The support is applicable to loans that are provided as a working capital to economic operators for the purpose of purchasing iron and non-alloy steel in ingots or other primary forms (TAI AA 7206), semi-finished products of iron or non-alloy steel (TAI AA 7207), other steel in alloyed ingots or other primary forms; semi-finished products of other alloyed steel (TAI AA 7224), refined copper and unwrought copper alloys (TAI AA 7403), unwrought aluminum (TAI AA 7601), aluminum powders and flakes (TAI AA 7603) originating in the Republic of Armenia (hereinafter referred to as the product) for processing.
5. MAIN REQUIREMENTS FOR LOANS TO BE PROVIDED UNDER THE ASSISTANCE INSTRUMENT AND LOAN PROVIDING STRUCTURES
5. Loans provided using the support instrument must comply with the following requirements:
1) currency: in drams.
2) Term: 1 year.
3) the procedure for using credit funds: only through non-cash and bank transfers and on the basis of a contract for the purchase (supply) of goods;
4) The loan amount is the amount of money required for the purchase of a product manufactured by a local manufacturer for processing (including VAT).
5) The loan amount cannot exceed 2 billion Armenian drams.
6) No commission fees, penalties/penalties for early repayment or other payments are applied during the provision and servicing of the loan, except in cases where financing is provided through loans provided within the framework of programs with International Development Organizations approved by Resolution No. 619-N of the Government of the Republic of Armenia of June 8, 2017.
7) In case the borrower fails to purchase the product provided for in the loan agreement, the borrower shall be liable for the full interest payment, and in case the non-targeted use of the loan funds provided for in the loan agreement is revealed, the subsidy shall be terminated, and the entire amount subsidized until then shall be returned to the state budget. Moreover, the monitoring of the non-targeted use of loan funds shall be carried out by financial organizations.
6. In the event of the alienation of a product purchased for processing, the loan interest rate subsidy shall cease from the moment of alienation of that product, and the entire amount subsidized prior to that shall be returned to the state budget.
7. The annual interest rate subsidy on the loan starts from the date of loan disbursement and continues until December 31, 2025, based on the interest rates calculated on the loan.
8. Interest rate subsidies are implemented by the Ministry of Economy of the Republic of Armenia based on agreements signed with financial organizations.
6. DESCRIPTION OF THE CONTENT, SIZE AND FEATURES OF THE TOOL
9. An economic operator wishing to receive a loan within the framework of the targeted program, which meets the conditions provided for by the targeted program, may submit an application to a financial organization, in case of its satisfaction, in accordance with the conditions of the targeted program, a loan interest rate subsidy will be implemented in the amounts specified in point 10 of the targeted program.
10. The amount of subsidy for the interest rate of a loan to be provided to an economic operator under the support instrument within the framework of this target program is 10% of the loan interest rate in the case of purchasing goods of the Republic of Armenia origin for processing as defined by the target program.
11. The targeted program will operate with respect to loans taken after the day following the entry into force of Appendix No. 3 to this decision.
12. The period from the date of provision of loans under the targeted program after the target program enters into force until December 31, 2025 is accepted as the period of provision of assistance.
13. All economic operators that meet the conditions of the targeted program may participate in the targeted program, regardless of the fact of their participation in other targeted state support programs.
14. In order to receive financing within the framework of the target program, financial organizations shall submit a financing application to the Ministry of Economy of the Republic of Armenia after the end of each month by the 5th of the following month, in accordance with the form approved by the Minister of Economy of the Republic of Armenia.
15. Financing to financial organizations is carried out in accordance with the terms of the contract specified in paragraph 8.
16. Within the framework of the target program, financial organizations are obliged to provide the Ministry of Economy of the Republic of Armenia, within one month after the end of the reporting year, with a monitoring report on compliance with the conditions of the target program, which will also contain a conclusion in accordance with the International Standard for Assurance (other than Audit and Review) (ISAE) 3000 issued by the International Federation of Accountants, issued by an audit organization with an annual turnover of 400 million AMD or more, which must be registered in the register of auditors, expert accountants and audit organizations established by Part 1 of Article 22 of the Law "On Regulation and Public Oversight of Accounting and Auditing Activities".
17. The documents submitted by financial organizations to the Ministry of Economy of the Republic of Armenia within the framework of monitoring will be provided to the Chamber of Accounts within the framework of the annual audit, with the consent of the economic operator.
2. On approving the national version of the technical, economic and social information "Individual consumption by purpose classifier" of the Republic of Armenia and repealing the Order of the Minister of Economy of the Republic of Armenia No. 876 of September 19, 2013
Name of the legislative act:
Draft on defining the list of professional jobs in the high-tech sector
https://www.e-draft.am/projects/8364/about
Change status :
This Order entered into force on March 21, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the adoption of the Order, Order No. 876-N of the Minister of Economy of the Republic of Armenia of September 19, 2013 “On approving the Technical, Economic and Social Information of the Republic of Armenia “Individual Consumption by Purpose Classifier” and repealing Order No. 161-N of the Minister of Economy of the Republic of Armenia of February 21, 2012” was declared invalid;
What do the changes concern?
As a result of the adoption of the Order, the national version of the “Classifier of Individual Consumption by Purpose” of the technical, economic and social information of the Republic of Armenia was approved, in accordance with the Appendix , and from now on, the Order of the Minister of Economy of September 19, 2013 “On approving the “Classifier of Individual Consumption by Purpose” of the technical, economic and social information of the Republic of Armenia and repealing the Order of the Minister of Economy of the Republic of Armenia of February 21, 2012 N 161-N” N 876-N was repealed.
1 . Confirm National version of the "Individual Consumption by Purpose Classifier" of the Technical, Economic and Social Information of the Republic of Armenia, according to the appendix .
2 . Strength lost to recognize Armenia Republic Economics Minister 's 2013 September 19th "Armenia" Republic feasibility study and social information "Individual" consumption: according to goals classifier" to confirm and Armenia Republic "On the repeal of the Order of the Minister of Economy No. 161-N of February 21, 2012" is Order No. 876-N.
3 . This command execution control reserve Armenia Republic economy Minister, appropriate the SECTOR coordinator to the deputy.
Appendix
Minister of Economy of the Republic of Armenia
February 28, 2025
Order No. 701-N
"INDIVIDUAL CONSUMPTION BY PURPOSE CLASSIFICATION" NATIONAL VERSION
PART IV. WORKING SECTOR
(This section of legal updates includes legal updates related to the labor sector for March 2025)
1. On Amendments and Supplements to the Law "On Funded Pensions"
Name of the legislative act:
Law HO-31-N on Amendments and Supplements to the Law "On Funded Pensions"
https://www.arlis.am/documentview.aspx?docid=203918
Change status:
The law comes into force on March 20, 2025.
Which legislative act was amended by the adoption of the above act:՝
With the adoption of the law, a change was made to the RA Law "On Funded Pensions"
What do the changes concern?
The change occurred in the RA Law "On Funded Pensions", in particular, in the provisions on providing information on the pension account, in the requirements for the functions and activities of the Pension Fund Manager, in the provisions on not making a mandatory pension fund choice, as well as in the legal provisions on restrictions on the investment of mandatory pension fund assets.
In Article 12 of the Law HO-244-N of December 22, 2010 “On Funded Pensions” (hereinafter referred to as the Law), parts 2 and 2.1 shall be amended as follows:
Old version.
2. The information specified in Part 1 of this Article shall be submitted to the person for the first time in paper form at the address specified in the application for selection of a pension fund, unless he has chosen another option. For the second time and in the future, in order to receive the information specified in Part 1 of this Article in paper form, the person shall submit an application to the person maintaining the register of participants each time in accordance with the procedure specified in Part 7 of this Article.
2.1. If a person has chosen the electronic method to receive information from the participant registry manager in any application submitted to the participant registry manager, then for the first time and subsequently the information specified in Part 1 of this Article shall be submitted to the person at the e-mail address specified in any application submitted to the participant registry manager. If a person wishes to stop receiving the information specified in Part 1 of this Article, then he shall submit an application to the participant registry manager in accordance with the procedure established by Part 7 of this Article.
New version.
2. The information specified in Part 1 of this Article shall be provided to the person at the e-mail address specified in any application submitted to the Registrar of Participants. If the Registrar of Participants does not have the e-mail address provided by the person, the information specified in Part 1 of this Article shall not be provided.
2.1. If a person wishes to stop receiving the information specified in Part 1 of this Article, he/she shall submit an application to the person maintaining the register of participants in accordance with the procedure established in Part 7 of this Article.
In Article 24 of the Law, add the following part 1.1:
Article 24. Functions and requirements for the activities of the pension fund manager
Old version.
New version.
1.1. The manager of a mandatory pension fund, in addition to pension funds, has the right to manage other investment funds defined by the Law "On Investment Funds". Moreover, the prior consent of the Central Bank is required to manage a specialized investment fund (including non-public ones). The Central Bank may refuse to provide consent if the management of such an investment fund by the pension fund manager will impede the proper performance of its obligations towards the participants of the pension fund managed by it, as defined by law, other legal acts or the rules of that pension fund.
Article 34, Part 2 of the Law shall be amended as follows:
Article 34. Failure to select a mandatory pension fund
Old version.
2. If a person has not submitted an application for selection of a pension fund, the person keeping the register of participants shall, on behalf of the person, within 10 working days after the selection of the pension fund manager and the pension fund, send a notification to the person in paper form to the address of the place of residence in the Republic of Armenia available to the person keeping the register of participants or in electronic form (if available) (except for the case when the person has submitted an application provided for in Part 3 of Article 13 of this Law). Moreover, the notification provided for in the first sentence of this part shall contain the information specified in the regulatory legal act of the Central Bank.
New version.
2. If a person has not submitted an application for the selection of a pension fund, then the person maintaining the register of participants shall, on behalf of the person, within 10 working days after the selection of the pension fund manager and the pension fund, send a notification to the person to the e-mail address specified in any application submitted to the person maintaining the register of participants, except for the case when the person has submitted an application provided for in Part 3 of Article 13 of this Law. The notification shall contain the information specified in the regulatory legal act of the Central Bank. If the person maintaining the register of participants does not have the e-mail address provided by the person, then no notification shall be sent.
In Article 39 of the Law, Part 5 shall be amended as follows:
Article 39. Restrictions on investment of assets of mandatory pension funds
Old version.
5. The total volume of investments in securities issued or fully guaranteed by a foreign state or the central bank of that state may not exceed 40 percent of the assets of the given mandatory pension fund, moreover, the value of investments in one issue (tranche) may not exceed 20 percent of the fund's assets.
New version.
5. The total volume of investments in securities issued or fully guaranteed by foreign states or the central banks of those states may not exceed 40 percent of the assets of the given mandatory pension fund, moreover, the value of investments in one issue (tranche) may not exceed 20 percent of the fund's assets, unless otherwise provided for in Part 16 of this Article.
Fill in section 9.1 with the following content:
Old version.
New version.
9.1. Investments in financial instruments defined in Article 38, Part 3, Clause 6 of this Law and in securities issued by investment funds defined in Points 1 and 2 of Part 9 of this Article shall not exceed 10 percent of the assets of the given mandatory pension fund. The limit set in this Part shall not apply to securities defined in Part 24 of this Article, except in the case when they are not admitted to trading on a regulated market within 12 months following their issuance.
Section 16 should be amended as follows:
Old version.
New version.
16. Investments in one foreign country may not exceed 15 percent of the assets of a given mandatory pension fund. The procedure for determining the degree of participation of a specific country, as well as a higher limit for investments in certain foreign countries (but not more than 30 percent of the fund's assets), may be established by a joint decision of the Central Bank and the state authorized body for the financial sector of the Government of the Republic of Armenia, taking into account the rating of the given country or the level of development of its financial system.
PART V. PROCUREMENT SECTOR
(This section of legal updates includes legal updates related to the procurement sector for March 2025)
1. On making amendments and additions to the provisions on the organization of the procurement process and conclusion of contracts in the Resolution of the Government of the Republic of Armenia No. 526-N of May 4, 2017
Name of the legislative act:
Decision No. 277-N on Amendments and Supplements to Decision No. 526-N of the Government of the Republic of Armenia of May 4, 2017
https://www.arlis.am/documentview.aspx?docid=204094
Change status:
The decision has been in effect since March 14, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
As a result of the decision, a change was made to Decision No. 526-N "On approving the procedure for organizing the procurement process and repealing Decision No. 168-N of the Government of the Republic of Armenia of February 10, 2011"
What do the changes concern?
The change occurred in particular in the Resolution N 526-N "On approving the procedure for organizing the procurement process and repealing the Resolution N 168-N of the Government of the Republic of Armenia dated February 10, 2011". In particular, they relate to the organization of the procurement process, the addition of a list of purchases in cases of organizing the procurement process in the presence of a special or exclusive right, as well as the provisions on concluding a contract. The requirements of the Decree do not apply to procurement processes that have begun and not yet been completed before the entry into force of this Resolution, as well as to concluded and effective contracts.
To make the following amendments and additions to the procedure approved by subparagraph 1 of paragraph 1 of the Resolution of the Government of the Republic of Armenia No. 526-N of May 4, 2017 "On approving the procedure for organizing the procurement process and repealing the Resolution of the Government of the Republic of Armenia No. 168-N of February 10, 2011"; to supplement subparagraph 1 of paragraph 21 with the following content:
21. If the act establishing the responsible department does not provide for a shorter period, then within sixty working days following the date of origin of the purchase request, and in the case of purchases provided for in subparagraph 4 of paragraph 23 of this procedure, fuel, lubricants, agricultural products and air service services, within the periods specified by the head of the customer, the responsible department shall:
j. the qualification criteria presented to the participants, the documents required for their evaluation, the amount of contract security, if within the framework of the given procedure, by a reasoned decision of the responsible department, it is envisaged to apply qualification criteria. The requirements of this paragraph do not apply in the case of a procedure for conducting a purchase through an electronic auction,
The list provided for in subparagraph 4 of paragraph 23 shall be supplemented with paragraphs 42 and 43
with the following content:
When organizing the procurement procedure, in addition to the conditions provided for in Section 3 of the Law, it should be taken into account that the following procurements may be made on the basis of Article 23, Part 1, Clause 1 of the Law, based on the existence of a special or exclusive right:
42. Acquisition of services on the basis of civil law contracts with persons directly provided for by the documents serving as the basis for concluding the contract with the customer within the framework of the fulfillment of obligations assumed by the customer under a contract for the supply of goods, performance of works or provision of services
43. Procurement of services related to marketing and administrative processes for the needs of museums operating under the Ministry of Education, Science, Culture and Sports of the Republic of Armenia from the "Cultural Development" Foundation, as the main subject of activity provided for by its charter.
Paragraph "c" of subparagraph 1 of point 32 shall be amended as follows:
c. documents provided for in the invitation substantiating its compliance with the qualification criteria, and in the absence of qualification criteria, a certified statement by the tenderer, in the event of being recognized as a selected participant, within the period specified in Article 35 of the Law, on the obligation to submit a qualification guarantee. A qualification guarantee shall not be submitted if the selected participant or the organization producing the goods supplied by the latter as an official representative within the framework of the given procedure has, as of the date of opening the bids, a creditworthiness rating granted by reputable international organizations (Fitch, Moodys, Standard & Poor's) at least equal to the sovereign rating granted to the Republic of Armenia. If the purchase price of the goods, work or service to be purchased within the framework of the given procedure in the procurement bid:
- does not exceed eighty times the base unit of the procurement, the amount of the qualification guarantee is equal to fifteen percent of the purchase price, and in case of exceeding it, thirty percent,
- does not exceed twenty-five times the base unit of the procurement, the qualification guarantee is presented in the form of a unilaterally approved statement in the form of a penalty or cash,
- exceeds twenty-five times the base unit of the procurement, the qualification security is presented in the form of a bank guarantee or cash,
- is less than the price of the contract to be concluded, then the amount of the qualification guarantee is calculated against the price of the contract,
Sub-paragraph 26 of paragraph 32 shall be amended as follows:
26) The security provided for in paragraph "c" of sub-paragraph 1 of this point shall be returned to the person providing it within five working days following the full acceptance of the result of the contract performance by the customer, except in the case when the performance of the contract is in stages and the performance of each stage is not directly related to the final result to be obtained in accordance with the requirements set out in the contract. In the case of application of this paragraph, upon acceptance of the result of each stage by the customer, the amount of the security shall be reduced in proportion to the amount of that stage.
Moreover, if contracts for the purchase of goods, works and services are concluded on the basis of Part 6 of Article 15 of the Law, then the qualification security submitted for the part of the agreement (agreements) concluded for a given year within the framework of the available financial allocations is subject to return if the agreement (agreements) is properly executed by the executor in full and its result is fully accepted by the customer, if the execution of the contract (agreement) is not phased. In the event of a unilateral termination of the contract due to the executor's failure to execute the contract, the latter shall be charged in full for the unexecuted part of the contract.
Paragraph 32 shall be supplemented with the following subparagraph 29:
29) In case of occurrence of the grounds provided for in Article 6, Part 1, Clause 6 of the Law, the authorized body shall include the participant in the list of participants not entitled to participate in the procurement process, based on the reasoned decision of the head of the customer. The authorized body shall publish the reasoned decision of the head of the customer in the bulletin within five working days following the date of receipt of the decision. Moreover, the decision specified in this sub-clause shall be made by the head of the customer on the tenth day following the date of publication of the announcement (notification) on the declaration of the procurement procedure as not completed or on the date of publication of the announcement on the concluded contract or on the unilateral termination of the contract. On the day following the date of making the decision, it shall be provided in writing to the authorized body and the participant. The authorized body shall include the participant in the list of participants not entitled to participate in the procurement process on the fifth day following the fortieth day following the receipt of the decision, and in the event of the existence of an uncompleted court case initiated by the participant on the appeal of the decision as of the fortieth day following the receipt of the decision. in this case, on the fifth day following the date of entry into force of the final judicial act in the given case, if the possibility of enforcing the decision has not been eliminated as a result of the judicial investigation. If:
a. if, as of the deadline for submitting the decision to the authorized body provided for in this sub-clause, the participant or the person who concluded the contract has paid the application, contract and (or) qualification security amount, then the customer does not submit the reasoned decision to include the given participant in the list to the authorized body,
b. the payment of the application, contract and (or) qualification security amount by the participant or the person who concluded the contract was made after the deadline for submitting the decision to the authorized body, but no later than the expiration of the forty-day period established by the authorized body for including the participant in the list, and in the event of an uncompleted court case initiated by the participant on the appeal of the decision as of the fortieth day following receipt of the decision, no later than the entry into force of the final court act in the given court case, then the customer shall notify the authorized body in writing thereof, on the basis of which the participant is not included in the list.
2. Draft on Amendments and Supplements to the Law "On Procurement"
Name of the legislative act:
Draft Amendments and Supplements to the Law "On Procurement"
https://www.e-draft.am/projects/8413/about
Change status:
TThe draft law was discussed on the unified website for publishing draft legal acts from 11 . 03 . 2025 to 26.03.2025.
What do the changes concern?՝
The 2023-2026 Action Plan, approved by the RA Government's Resolution No. 1871-L dated 26.10.2023, stemming from the Anti-Corruption Strategy, envisages the introduction of a system that excludes the direct and indirect participation of high-ranking state officials, their family members, and persons affiliated with them in procurement processes. The principles of introducing the system have been included in the concept of amendments to the Procurement Law, which has been discussed with customers, business community, and representatives of civil society. The concept has also been approved by the RA Prime Minister.
Within the framework of the above, this project has been developed, which proposes:
- define the concepts of "conflict of interest" and "related person";
- The Government of the Republic of Armenia should be given the authority to define the levels of influence of officials on procurement processes and the SECTOR of restrictions on the participation of participants in the processes due to conflicts of interest. It is planned to have 5 levels:
- Organizations that have a conflict of interest with officials included in level 1 cannot participate in procurement processes. The Deputy Minister coordinating the functions of the authorized body provided for in the Law on Procurement is included in level 1.
· Organizations that have a conflict of interest with officials included in the 2nd level cannot participate in procurement processes organized by the given customer and commercial and non-commercial organizations entrusted to its management.
· Organizations that have a conflict of interest with officials included in the 3rd level cannot participate in procurement processes organized by the given client.
· Organizations that have a conflict of interest with officials included in the 4th level cannot participate in procurement processes organized to meet the needs of the unit under the coordination or organization of the given official.
· - In the case of officials included in the fifth level, the regulations provided for in Parts 6 and 7 of Article 33 of the Law on Procurement shall apply, according to which if an official is a member of the evaluation committee, the latter may not participate in the work of the committee if, during the activities of the committee, it is found out that the organization founded by the latter or in which they have a share (stock) or a person related to them by close kinship or affinal relationship (parent, spouse, child, brother, sister, grandmother, grandfather, grandson, as well as the spouse's parent, child, brother, sister, grandmother, grandfather, grandson) or an organization founded by that person or in which they have a share (stock) has submitted an application for participation in the given procedure. A member of the evaluation committee who has a conflict of interest in relation to the given procedure shall immediately withdraw himself. The members of the committee shall sign a declaration of the absence of a conflict of interest, which shall be published in the bulletin together with the decision to conclude a contract. Moreover, when the level of influence is not defined, the official shall be considered is included in the fifth level.
- prohibit companies affiliated with the specified persons (except for level 5) from participating in procurement processes;
- mandatory inclusion in procurement contracts of a condition stating that if, after signing the contract, cases of submission of false information by the participant are revealed or if the decision to recognize the participant as the winner does not comply with the legislation of the Republic of Armenia, such contracts are unilaterally terminated and the data is transferred to law enforcement agencies.
To supplement Part 1 of Article 2 of the Law HO-21-N of December 16, 2016 "On Procurement" (hereinafter referred to as the Law) with the following content:
25) conflict of interest - a situation when the private interests of an official or employee of the customer, including those involved in a civil law contract (hereinafter referred to as an official), affect or may affect the impartial and objective performance of the latter's duties established by an official or civil law contract. Private interest includes any privilege granted to him or to persons affiliated with him as provided for by this Law, as well as to persons or organizations with whom he or a person affiliated with him has business, political or other business or personal relations. Business relations include any relations that result or may result in the receipt of benefits for the participants in these relations or any of them. Political relations include relations arising from participation in a political party or business or other business or personal relations with other members of a given political party.
26) affiliated person: an official: a. spouse, child (including adopted child), parent (including adoptive parent), sister, brother of the person or their spouse;
b. persons with whom one has a close personal relationship, whether related or not, including persons living together, persons under actual care, persons with a common economic interest;
c. an organization in which, based on participation and/or a contract, an official or a person affiliated with him/her has the right, in accordance with the procedure prescribed by law, to directly or indirectly dispose (including through a purchase and sale, joint activity agreement, assignment, power of attorney or other transactions) of more than ten percent of the authorized capital or shares of the organization, to predetermine the decisions made by that organization, including the conditions for carrying out entrepreneurial activities and/or to give instructions that are subject to mandatory execution by that organization regarding its main activities..
Article 5, Part 1 of the Law, after point 12, shall be supplemented with the following point 12.1:
12.1) the levels of influence of officials on procurement processes and the SECTOR of restrictions on the participation of participants in the processes due to a conflict of interest. The affiliation of officials to the influence levels defined by this point is defined ex officio. In the event that the affiliation to the influence level is not defined, the official is considered to be included in the fifth level. The deputy minister coordinating the functions of the authorized body is necessarily included in the first level of influence. There are 5 levels of influence:
a. Organizations that have a conflict of interest with an official included in the first level cannot participate in procurement processes.
b. Organizations that have a conflict of interest with officials included in the second level cannot participate in procurement processes organized by the given customer and commercial and non-commercial organizations entrusted to its management. c. Organizations that have a conflict of interest with officials included in the third level cannot participate in procurement processes organized by the given client.
d. Organizations that have a conflict of interest with officials included in the fourth level cannot participate in procurement processes organized to meet the needs of the unit under the coordination or organization of the given official. e. In the case of officials included in the fifth level, the regulations provided for in Parts 6 and 7 of Article 33 of this Law shall apply.
Article 7, Part 4 of the Law shall be amended as follows:
Old version.
4. The simultaneous participation of affiliated persons and (or) organizations established by the same person (persons) or with more than fifty percent of their shares owned by the same person (persons) in the same procurement process is prohibited, except for:
1) organizations established by the state or communities;
2) cases of participation defined in Part 6 of Article 30 of this Law.
5. Legal entities with the participation of the customer participate in procurements on an equal basis with other participants, and the fact of the customer's participation in these organizations cannot lead to the establishment and application of any privileges or other favorable conditions for these persons.
New version.
4. It is prohibited to:
1) participation in the procurement process of a participant who has a conflict of interest with an official, with the exception of officials included in the fifth level provided for in Article 5, Part 1, Clause 12.1 of this Law;
2) simultaneous participation of affiliated participants and (or) organizations founded by the same person (persons) or with more than fifty percent of their shares owned by the same person (persons) in the same procurement process, except for:
a. organizations established by the state or communities;
b. cases of participation defined in Part 6 of Article 30 of this Law.
Article 36 of the Law shall be supplemented after Part 1 with the following Part 1.1:
1.1. The contracts stipulate that in the event that, as a result of the investigation, control or supervision of the implementation of the requirements of this Law or the examination of complaints in accordance with the procedure provided for by law, it is recorded that in the procurement process, before the conclusion of the contract, the contracting party has submitted false documents (information and data), or the decision to recognize the latter as a selected participant does not comply with the legislation of the Republic of Armenia, then after these grounds are revealed, the customer shall unilaterally terminate the contract, if the recorded violations, if known before the conclusion of the contract, would have served as a basis for not concluding the contract in accordance with the legislation of the Republic of Armenia on procurement. Moreover, the customer shall not bear the risk of losses or lost profits arising for the contracting party as a result of the unilateral termination of the contract, and the latter shall be obliged to compensate the customer for the losses incurred through its fault in the amount in respect of which the contract was terminated. In the event that the grounds provided for by this point are revealed, the structure that discovered it shall notify the law enforcement agencies, presenting the grounds to the latter and the participant who concluded the contract.
PART VI. BANKING SECTOR
(This section of legal updates includes legal updates related to the banking sector for March 2025)
1. On making amendments and supplements to the Decision No. 114-N of the Board of the Central Bank of the Republic of Armenia of March 25, 2003 on the definition of a financial organization, removal from the register of a registered manager, and termination of participation
Name of the legislative act:
Resolution No. 33-N on Amendments and Supplements to Resolution No. 114-N of the Board of the Central Bank of the Republic of Armenia of March 25, 2003
https://www.arlis.am/documentview.aspx?docid=204123
Change Status:
This Decision entered into force on March 14, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:՝
The change occurred in the "Guidelines for being a manager in a financial organization, removing a manager from registration or acquiring a significant participation, other participation, and terminating a significant participation" Resolution No. 114-N
What do the changes concern?
The amendment to the decision was made in particular in the “Guidelines for being a manager, removing a manager from registration or acquiring a significant participation, other participation, and terminating a significant participation in a financial organization” N 114-N Decision. In particular, hereinafter, for the purposes of this guideline, a credit organization, a payment and settlement organization, a branch of a foreign investment company, a branch of a foreign investment fund manager, a person managing a non-public investment fund, an insurance intermediary, a pawnshop, a person trading in foreign currency (exchange point) will also be considered a financial organization. A change has also been made in the provisions on removing a registered manager from registration and terminating an existing significant participation. The decision now clearly regulates the grounds for the Central Bank’s rejection of applications for persons to be a manager, acquire a significant participation or other participation in a financial organization.
In point 2 of the Appendix, after the word “fund manager”, add the words “, credit institution, payment and settlement institution, branch of a foreign investment company, branch of a foreign investment fund manager, person managing a non-public investment fund, insurance intermediary, pawnshop, person trading in foreign currency (exchange point)”
Old version.
For the purposes of this guideline, a financial organization is considered a bank, a branch of a foreign bank, an insurance company, a branch of a foreign insurance company, an investment company, a regulated market operator, a Central
Depository, and an investment fund manager.
New version.
For the purposes of this guideline, a financial organization is considered to be a bank, a branch of a foreign bank, an insurance company, a branch of a foreign insurance company, an investment company, a regulated market operator, a Central Depository, an investment fund manager, a credit organization, a payment and settlement organization, a branch of a foreign investment company, a branch of a foreign investment fund manager, a person managing a non- public investment fund, an insurance intermediary, a pawnshop, a person trading in foreign currency (exchange point).
Paragraph 3 of the Appendix shall be amended as follows:
Old version.
3. An application to become a director of a financial organization or to acquire a significant participation or other participation shall be rejected, the registered director shall be removed from registration, and the existing significant participation shall be terminated if the person or, in the case of a significant participation, a person affiliated with him/her has committed an act in the past which, in the opinion of the Central Bank of the Republic of Armenia (hereinafter referred to as the Central Bank), substantiated by these Guidelines, gives grounds to suspect that the given person, as a director of a financial organization, cannot properly manage the relevant SECTOR of activity of the financial organization, or the actions of the given person may lead to the bankruptcy of the financial organization, deterioration of its financial condition, or discrediting of its reputation and business reputation.
New version.
3. An application to become a director of a financial organization or to acquire a significant participation, other participation defined in Part 1 of Article 181 of the Law "On Banks and Banking Activities" (hereinafter referred to as "other participation") shall be rejected, the registered director shall be removed from registration, and the existing significant participation shall be terminated, if the person or a person affiliated with him/her has committed an act in the past which, in the opinion of the Central Bank of the Republic of Armenia (hereinafter referred to as "the Central Bank"), substantiated by these Guidelines, gives grounds to suspect that the given person cannot properly manage the relevant SECTOR of activity of the financial organization, or the actions of the given person may lead to the bankruptcy of the financial organization, deterioration of its financial condition, or discrediting of its reputation and business reputation.
After point 3 of the Annex, add point 3.1 with the following content:
Old version.
New version.
3.1. The Central Bank shall reject applications for
persons to be the head of a financial organization, to
acquire a significant stake or other participation in
the following:
1) who have an outstanding or unexpunged
conviction for an intentional crime committed in the
Republic of Armenia or other countries,
2) who are included in the lists of persons related to
terrorism or the proliferation of weapons of mass
destruction published by or pursuant to United
Nations Security Council resolutions. Moreover, the Central Bank may reject applications to become a manager, acquire a significant stake or other participation in a financial organization for persons with whom related persons have an outstanding or unexpunged conviction for an intentional crime in the Republic of Armenia or other countries.
Paragraph 5 of the Appendix shall be amended as follows:
Old version.
5. In the event of the existence of the grounds specified in point 4 of this Guide, issues related to acquiring a significant or other participation in a financial organization or registering a manager, as well as removing a registered manager from registration, terminating an existing significant participation are discussed at a meeting of the Board of the Central Bank of the Republic of Armenia and may serve as a basis for rejecting applications for acquiring a significant or other participation in a financial organization or registering a manager, as well as removing a registered manager from registration, terminating an existing significant participation.
New version.
"5 . Leader , significant In case of the presence of the grounds specified in point 3.1 of this Guideline, the registered manager in a financial organization shall be removed from the registration, or the existing significant participation shall be terminated. In case of the presence of the grounds specified in point 4 of this Guideline, the issues of acquiring a significant or other participation or registering a manager in a financial organization, as well as removing a registered manager from the registration, and terminating an existing significant participation shall be discussed at a session of the Board of the Central Bank of the Republic of Armenia and may serve as a basis for rejecting applications for acquiring a significant or other participation or registering a manager in a financial organization, as well as removing a registered manager from the registration, and terminating an existing significant participation.
2. On making amendments and supplements to the decisions of the Board of the Central Bank of the Republic of Armenia No. 16-N of January 15, 2008 and the Board of the Central Bank of the Republic of Armenia No. 15-N of January 15, 2008
Name of the legislative act:
Decision No. 36-N on Amendments and Supplements to Decisions No. 16-N of the Board of the Central Bank of the Republic of Armenia of January 15, 2008 and No. 15-N of the Board of the Central Bank of the Republic of Armenia of January 15, 2008
https://www.arlis.am/documentview.aspx?docid=204153
Change status:
This decision entered into force on March 14, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:՝
The decision amended Regulation No. 15-N on approving Regulation 4/05 on the "Qualification Procedure for Persons Providing Investment Services, Operators, Central Depositories and Individuals Providing Investment Services, Professional Compliance Criteria and Registration Procedure for Managers" and Regulation No. 16- N on approving Regulation 4/01 on "Registration and Licensing of Investment Companies, Registration of Branches and Representative Offices of Investment Companies and Foreign Investment Companies, Procedure for Obtaining Preliminary Consent for Significant Participation in the Authorized Capital of Investment Companies, Procedure, Form and Terms for Submission of Business Plans Submitted by Investment Companies, Notification of Provision of Investment Services by Banks" in the decision
What the changes are about:
The decision has amended the list of documents and information to be submitted for obtaining a preliminary consent to acquire a direct significant participation in the authorized capital of investment companies. In particular, in order to obtain a preliminary consent to acquire a direct significant participation in the authorized capital of a newly established or existing investment company, a legal entity shall, through the mediation of the relevant investment company, also submit to the Central Bank a certificate issued by the relevant bodies of the country of residence of the non-resident legal entity that the given person does not have an outstanding or unexpunged conviction for an intentional crime in accordance with the procedure established by law, and is not recognized as bankrupt. The list of documents for submitting an application to the Central Bank for obtaining a preliminary consent to acquire an indirect significant participation has also been amended. As well as another amendment, which concerns other provisions related to the consent to acquire a direct or indirect significant participation.
After subparagraph 1 of paragraph 88 of Regulation 4/01, add a new paragraph 1 with the following content : Sub-item
88. In order to obtain preliminary consent to acquire a direct qualifying holding in the authorized capital of a newly established or existing investment company, a legal entity shall submit the following documents to the Central Bank through the mediation of the relevant investment company:
1.1) a certificate issued by the relevant authorities of the country of residence of a non-resident legal entity that the person concerned has no outstanding or unexpunged conviction for an intentional crime in accordance with the procedure established by law, and has not been declared bankrupt;
After subparagraph 1 of paragraph 94 of Regulation 4/01, add a new paragraph 1 with the following content : Sub-item .
94. In order to obtain preliminary consent to acquire an indirect significant participation in the authorized capital of a newly established or existing investment company, a legal entity shall apply to the Central Bank through the mediation of the relevant investment company, submitting the following documents:
"1.1) a certificate issued by the relevant authorities of the country of residence of a non-resident legal entity that the person concerned does not have an outstanding or unexpunged conviction for an intentional crime in accordance with the procedure prescribed by law , and has not been declared bankrupt."
In paragraph 101 of Regulation 4/01, after the word "application:" add a new sentence with the following content:
"A direct qualifying holding is considered rejected if the application for an indirect qualifying holding acquired through it has been rejected."
3. On Amendments and Supplements to Decision No. 17 of the Board of the Central Bank of the Republic of Armenia of January 15, 2008
Name of the legislative act :
Decision No. 37-N on Amendments and Supplements to Decision No. 17 of the Board of the Central Bank of the Republic of Armenia of January 15, 2008
https://www.arlis.am/documentview.aspx?docid=204152
Change status :
This decision entered into force on March 14, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
The adoption of the decision has changed the "Regulation 5/01 on the registration and licensing of a regulated market operator, the procedure for obtaining preliminary consent for having a significant participation in the authorized capital of a regulated market operator, the procedure, form and terms for submitting a business plan" N 17-N in the decision
What do the changes concern?
The decision amended the legal provisions on obtaining prior consent for a direct significant participation in the authorized capital of an operator and on the documents and information to be submitted. In particular, in the event that a legal entity acquires a direct significant participation in the authorized capital of a newly established or existing operator or increases the voting rights in accordance with Article 54, Part 1 of the Law of the Republic of Armenia “On the Securities Market”, the list of documents to be submitted to the Central Bank through the operator’s mediation for obtaining prior consent prior to acquiring the given participation has been amended. From now on, a mandatory document to be submitted is also a certificate issued by the relevant bodies of the country of residence of a non-resident legal entity stating that the given person does not have an outstanding or unexpunged conviction for an intentional crime in accordance with the procedure prescribed by law, and is not recognized as bankrupt . The other amendment concerns the list of documents submitted by the Central Bank to the relevant operator in order to obtain a preliminary consent to acquire an indirect significant participation in the charter capital of a newly established or existing operator, in particular, a certificate issued by the relevant authorities of the country of residence of a non-resident legal entity that the given person does not have an outstanding or unexpunged conviction for an intentional crime in accordance with the procedure established by law, and is not recognized as bankrupt. As well as, as another amendment, it concerns other provisions of the agreement to acquire a direct or indirect significant participation;.
After subparagraph 1 of paragraph 33 of the Regulation, add the following content: 1. 1 . Sub-item .
33. In case of acquiring a direct significant participation in the charter capital of a newly established or existing operator or increasing the participation giving voting rights in accordance with Part 1 of Article 54 of the Law of the Republic of Armenia "On Securities Market", a legal entity shall submit the following documents to the Central Bank, through the operator's mediation, for obtaining prior consent prior to acquiring such participation:
"1.1) a certificate issued by the relevant authorities of the country of residence of a non-resident legal entity that the person concerned does not have an outstanding or unexpunged conviction for an intentional crime in accordance with the procedure prescribed by law, and has not been declared bankrupt . ";
After subparagraph 1 of paragraph 39 of the Regulation, add the following content: 1. 1 . Sub-item .
39. In order to obtain preliminary consent to acquire an indirect significant participation in the authorized capital of a newly established or existing operator, a legal entity shall apply to the Central Bank through the mediation of the relevant operator, submitting the following documents:
"1.1) a certificate issued by the relevant authorities of the country of residence of a non-resident legal entity that the person concerned does not have an outstanding or unexpunged conviction for an intentional crime in accordance with the procedure prescribed by law, and has not been declared bankrupt . "
In paragraph 48 of the Regulation, after the word "( application):" add a sentence with the following content:
"A direct qualifying holding shall be deemed to have been rejected if the application for an indirect qualifying holding acquired through it has been rejected . "
4. On Amendments and Supplements to Decision No. 14 of the Board of the Central Bank of the
Republic of Armenia of January 15, 2008
Suggestions/ Clarifications
We suggest to be consistent with the changes in the law, which later received its legal regulation in the Civil Code, so if you are interested or engaged in this field, you need to pay attention to the legal changes and developments.
Name of the legislative act :
No. 38-N on Amendments and Supplements to Decision No. 14 of the Board of the Central Bank of the Republic of Armenia of January 15, 2008
https://www.arlis.am/documentview.aspx?docid=204126
Which legislative act was amended by the adoption of the above-mentioned act:
The decision made a change to Regulation No. 14-N on the approval of Regulation 5/02 on the registration and licensing of a central depository, the procedure for obtaining preliminary consent for having a significant participation in the authorized capital of a central depository, the procedure, form and terms for submitting a business plan.
What do the changes concern?
The change took place in the Resolution No. 14-N on approving Regulation 5/02 on “Registration and Licensing of the Central Depository, the Procedure for Obtaining Preliminary Consent for Having a Significant Participation in the Authorized Capital of the Central Depository, the Procedure, Form and Terms of Submission of a Business Plan”, in particular, the legal provisions on obtaining preliminary consent for a direct significant participation in the authorized capital of the Central Depository and the documents and information to be submitted have been changed, in particular, in the case of a legal entity acquiring a direct significant participation in the authorized capital of a newly established or existing Central Depository or increasing the voting participation in accordance with Part 1 of Article 54 of the Law of the Republic of Armenia “On the Securities Market”, the following documents shall be submitted to the Central Bank for obtaining preliminary consent before acquiring the given participation. The legal provisions on documents and information to be submitted by persons acquiring an indirect significant participation in the authorized capital of the Central Depository have also been supplemented, in particular, the list of relevant documents to be submitted to the Central Bank in order to obtain preliminary consent to acquire an indirect significant participation in the authorized capital of a newly established or existing Central Depository, as well as other provisions of the consent to acquire a direct and indirect significant participation.
After subparagraph 1 of paragraph 33 of the Regulation, add the following subparagraph 1 :
33. In case of acquiring a direct significant participation in the authorized capital of a newly established or existing Central Depository or increasing the participation giving voting rights in accordance with Part 1 of Article 54 of the Law of the Republic of Armenia "On Securities Market", a legal entity shall submit the following documents to the Central Bank, through the mediation of the Central Depository, prior to acquiring the given participation, in order to obtain preliminary consent:
"1.1) a certificate issued by the relevant authorities of the country of residence of a non-resident legal entity that the person concerned does not have an outstanding or unexpunged conviction for an intentional crime in accordance with the procedure prescribed by law, and has not been declared bankrupt."
After subparagraph 1 of paragraph 39 of the Regulation, add the following content: 1. 1 . Sub-item .
39. In order to obtain preliminary consent to acquire an indirect significant participation in the authorized capital of a newly established or existing Central Depository, a legal entity shall apply to the Central Bank through the mediation of the relevant Central Depository, submitting the following documents:
"1.1) a certificate issued by the relevant authorities of the country of residence of a non-resident legal entity that the person concerned does not have an outstanding or unexpunged conviction for an intentional crime in accordance with the procedure prescribed by law, and has not been declared bankrupt."
In paragraph 48 of the Regulation, after the word “(application):”, add a new sentence with the following content:
"A direct qualifying holding shall be deemed to have been rejected if the application for an indirect qualifying holding acquired through it has been rejected."
5. On Amendments and Supplements to the Decision No. 285 of the Board of the Central Bank of the Republic of Armenia of October 25, 2011
Name of the legislative act :
Decision No. 42-N on Amendments and Supplements to Decision No. 285 of the Board of the Central Bank of the Republic of Armenia of October 25, 2011 https://www.arlis.am/documentview.aspx?docid=204136
Change status :
This decision entered into force on March 14, 2025.
Which legislative act was amended by the adoption of the above-mentioned act:
The adoption of the decision amended the "Regulation 17/01 on the approval of the "Order of Licensing, Registration of Branches, Qualification of Managers, Verification of Professional Conformity and Registration of Payment and Settlement Organizations", and repealed the decisions of the Board of the Central Bank of the Republic of Armenia No. 240 of May 24, 2005 and No. 241 of May 24, 2005 of the Board of the Central Bank of the Republic of Armenia" No. 285-N.
What do the changes concern?
The decision amended the “Regulation 17/01 on the approval of the “Order of Licensing, Registration of Branches, Qualification of Managers, Verification of Professional Compliance and Registration of Payment and Settlement Organizations” and repealed the decisions of the Board of the Central Bank of the Republic of Armenia No. 240 of May 24, 2005 and No. 241 of May 24, 2005”, in particular, the list of documents submitted to the Central Bank by the founders of the organization or a person authorized by them in order to obtain a license to provide payment and settlement services has been supplemented. Also, the Decision has been supplemented with a new clause, according to which, in case of changes in the information submitted to the Central Bank on the beneficial owners of the payment and settlement organization after receiving the license, the payment and settlement organization shall submit a certificate containing these changes to the Central Bank within 10 business days after the changes occur.
Clause 18 of the Regulation shall be supplemented with the following content after sub-clause 4.1, sub-clauses 4.2, 4.3 and 4.4:
18. To obtain a license to provide payment and settlement services, the founders of the organization or a person authorized by them shall submit the following documents to the Central Bank: 4.2) In the case of a non-resident legal entity holding 10% or more of the voting rights in a payment and settlement organization, also a certificate issued by the relevant body of its country of residence stating that the given person does not have an outstanding or unexpunged conviction for an intentional crime as prescribed by law,
4.3) a certificate on the beneficial owners of the payment and settlement organization, in accordance with Appendix 3.2 , 4.4) In the case of non-resident beneficial owners of a payment and settlement organization, also a certificate issued by the relevant authority of the country of residence that the person concerned has no outstanding or unexpunged conviction for an intentional crime as prescribed by law,
After point 79.3, the Regulation shall be supplemented with point 79.4 with the following content:
79.4. In case of changes in the information submitted to the Central Bank regarding the beneficial owners of the payment and settlement organization after obtaining a license, the payment and settlement organization shall submit a statement including such changes to the Central Bank within 10 business days after the changes occur, in accordance with Appendix 3.2 of this Regulation .