Armenian banks to start blocking transfers of Russians due to sanctions

The Armenian authorities are tightening control over banking transactions of Russian clients, whose number in the country has increased dramatically after mass emigration and the suspension of international payment systems in Russia.

Armenian banks are "forced to tighten requirements" and, in particular, to refuse "transfers" in connection with the sanctions imposed on Russia by the West, the Central Bank of Armenia said on Friday.

Source: moscowtimes.eu

"Western commercial banks, especially the United States, are now reviewing their transaction control system in connection with sanctions against the Russian Federation, which have significantly tightened conditions for foreign transactions of all banks in the region, including Armenian banks," the statement quoted the regulator as saying.

The Central Bank of Armenia warns that the number of refusals to Russian clients may increase if commercial banks assess these transactions as risky.

In 2022, Russians transferred $3.6 billion to Armenia, four times more than a year earlier.

In total, individuals withdrew a record $63.7 billion to foreign accounts over the year. As a result, the amount of currency held abroad by Russian citizens exceeded the amount held domestically for the first time – $94 billion versus $57 billion.

Background. As a reminder, the Kremlin has threatened Armenia with "negative consequences" for joining the Rome Statute. If the country's parliament ratifies this decision, the Armenian authorities will be able to arrest war criminal Vladimir Putin.