YEREVAN, August 24. /ARKA/. Key developments in Armenia’s financial market this week included new banking compliance requirements, measures against account fraud, and decisions related to capital market development. The government established new capital market development guidelines for 2026–2031, while the social agenda specified the funding parameters for the next stage of universal health insurance.
1. Banking Compliance: Sanctions Risk Management Requirements Come into Effect
In Armenia, new requirements for banks to manage the risk of circumventing international sanctions, which came into effect on August 12, according to the Central Bank’s “Minimum Conditions for Implementing Internal Control in Banks” regulation, stipulate risk-based procedures for identifying, assessing, suspending, or rejecting transactions with relevant risks. Banks must verify not only clients but also their counterparties, intermediaries, and other parties to transactions, and also consider the geography of transactions, the origin of goods and technologies, the currency, and the location of the transaction. For the banking sector, the new requirements may mean an expansion of formalized sanctions compliance procedures and the scope of information considered when conducting transactions. For corporate clients, this may increase the importance of transparency in transaction structures, counterparty chains, and the economic content of cross-border transactions.
2. Foreign Exchange Market: Dollar Remains in a Narrow Range
According to the Central Bank of Armenia, the average market exchange rate for the dollar fell from 365.50 drams on August 17 to 365.16 drams on August 21. Over the same period, the euro appreciated from 423.61 to 427.31 drams, and the Russian ruble appreciated from 4.3157 to 4.3711 drams.
The dollar changed little over the period under review—by approximately 0.1%, while the euro and ruble saw more significant changes.
3. Capital Markets: Government Sets New Benchmarks for 2026–2031
The Armenian government’s program for 2026–2031, approved on August 20, specifically calls for improving securities market legislation by attracting at least three key corporate issuers and at least two reputable intermediaries providing investment banking services.
The program also provides for improved mechanisms for co-financing companies’ securities issuance costs, obtaining international ratings, and providing professional consulting. A separate focus is on expanding access for local and foreign investors to Armenian securities through digital mechanisms for regular investments and remote access for foreign intermediaries to the exchange platform.
For the financial market, the document could establish an institutional framework for the development of corporate financing outside of traditional bank lending. For banks, investment companies, and asset managers, this could expand the role of intermediary and investment banking services in business financing.
4. AMX: New Corporate Bonds Listed
Solis CJSC listed dollar-denominated bonds with a total nominal value of $2 million on the Armenia Securities Exchange. The Abond main list includes 20,000 bonds with a par value of $100, an 8% coupon yield, and a maturity of 48 months. As AMX reported on August 17, the placement was handled by Ameriabank.
The listing could expand the segment of corporate debt instruments on the regulated market and provide investors with an instrument related to the renewable energy sector.
5. The Central Bank Warns of Fraudulent Schemes Using Bank Accounts
On August 17, the Central Bank of Armenia warned citizens about fraudulent schemes in which criminals offer to provide or transfer bank accounts, bank cards, or e-wallet details in exchange for a reward. The regulator noted that such accounts could be used to receive and transfer funds related to fraud and other illegal transactions. For the banking sector, such schemes remain part of the operational and compliance risks associated with identifying the actual participants in transactions and monitoring suspicious transactions. For clients, a warning from the Central Bank may mean maintaining full control over their bank details and not using their own accounts for transactions on behalf of unknown third parties.
6. Health Insurance: Draft Contributions for Employees with Salaries Under 200,000 AMD Presented
The Armenian Ministry of Health has presented to employers a draft mechanism for including employees with salaries under 200,000 AMD in the health insurance system. According to the draft, in 2027, such an employee will pay a monthly insurance premium of 2,000 AMD, the state will subsidize 4,400 AMD, and the employer will cover the remaining 4,400 AMD.
For businesses, the draft could specify the cost structure for insuring employees with incomes up to a certain threshold. For the insurance and financial sectors, expanding the system’s coverage could create regular financial flows involving citizens, employers, and the state.
Weekly Summary
Over the past week, the banking sector simultaneously faced expanded sanctions compliance requirements and increased regulatory focus on combating fraudulent schemes using accounts and payment instruments.
In the capital market, the primary focus remained on expanding corporate financing and developing exchange infrastructure, while the foreign exchange market saw limited movement in the dram against the dollar.
