Republic of Armenia Law on Combating Money Laundering and Terrorism Financing

This detailed assessment report focuses on antimoney laundering and combating the financing of terrorism (AML/CFT) for Armenia. The report reveals that Armenia’s financial system remains small and bank dominated. Total assets of the banking sector accounted for approximately 91 percent of the assets in the financial system. Most banks are domestically owned but there is a major foreign presence in the system. The nonbank financial sector plays a small role in financial intermediation.

Abstract

This detailed assessment report focuses on antimoney laundering and combating the financing of terrorism (AML/CFT) for Armenia. The report reveals that Armenia’s financial system remains small and bank dominated. Total assets of the banking sector accounted for approximately 91 percent of the assets in the financial system. Most banks are domestically owned but there is a major foreign presence in the system. The nonbank financial sector plays a small role in financial intermediation.

CHAPTER 1 GENERAL PROVISIONS

The purpose of this Law shall be protecting the rights, freedoms, and legitimate interests of the society and the State through the establishment of legal structures for countering money laundering and terrorism financing, as well as providing legal mechanisms for ensuring stability of the economic system of the Republic of Armenia.

ARTICLE 1: SUBJECT OF LAW

This Law shall regulate the relationships pertaining to combating money laundering and terrorism financing, define the system of bodies engaged in combating money laundering and terrorism financing, the procedures and conditions for cooperation between these bodies, as well as the issues related to the supervision and to the imposition of sanctions in activities against money laundering and terrorism financing.

ARTICLE 2: LEGAL REGULATION OF COMBATING MONEY LAUNDERING AND TERRORISM FINANCING

The fight against money laundering and terrorism financing shall be regulated by the international treaties of the Republic of Armenia, by this Law and other laws of the Republic of Armenia, as well as, in cases prescribed by this Law, by other legal acts.

ARTICLE 3: MAIN CONCEPTS USED IN LAW

The main concepts used in this Law shall be the following:

  • 1. Proceeds of crime – assets specified in Part 5, Article 190 of the Criminal Code of the Republic of Armenia;

  • 2. Money laundering (legalization of proceeds of crime) – deed specified in Article 190 of the Criminal Code of the Republic of Armenia;

  • 3. Terrorism financing – deed specified in Article 217.1 of the Criminal Code of the Republic of Armenia committed by natural or legal persons;

  • 4. Reporting entities:

    • a. banks;

    • b. credit organizations;

    • c. persons engaged in dealer-broker foreign currency trading, foreign currency trading;

    • d. licensed persons providing cash (money) transfers;

    • e. persons rendering investment services in accordance with the Republic of Armenia Law on Securities Market ;

    • f. central depositary for regulated market securities in accordance with the Republic of Armenia Law on Securities Market;

    • g. insurance (including reinsurance) companies and insurance (including reinsurance) brokers;

    • h. pawnshops;

    • i. realtors (real estate agents);

    • j. notaries;

    • k. attorneys, as well as independent lawyers and firms providing legal services;

    • l. independent accountants and accounting firms;

    • m. independent auditors and auditing firms;

    • n. dealers in precious metals;

    • o. dealers in precious stones;

    • p. dealers in artworks;

    • q. organizers of auctions;

    • r. persons and casinos organizing prize games and lotteries, including the persons organizing internet prize games;

    • s. trust and company service providers;

    • t. credit bureaus, to which this Law shall apply only in relation to the obligation to submit suspicious transaction reports prescribed by Part 1 (3) of Article 5 of the Law;

    • u. the Authorized Body responsible for maintaining the integrated state cadastre of real estate, to which this Law shall apply only in relation to the obligation to submit the reports prescribed by Articles 5-7 in the manner established by Part 2 of Article 5, as well as in relation to the obligation prescribed by Part 6 of Article 27 of the Law;

    • v. the state body performing registration of legal persons (the State Registry), to which this Law shall apply only in relation to the obligation to submit reports prescribed by Articles 5-7 in the manner established by Part 2 of Article 5, as well as in relation to Article 9, and the to the obligation prescribed by Part 6 of Article 27 of the Law;

  • 5. Financial institutions – reporting entities specified in Clause 4 (a-h) of this Part;

  • 6. Non-financial institutions or persons – reporting entities specified in Clause 4 (i-s) of this Part; at that, only Articles 4-8 in the manner established by Part 2 of Article 5; Part 1 (4, 6, and 8) of Article 10; Articles 12, 15, and 16 in the manner established by Part 12 of Article 15; as well as Articles 19, 20, 22, and 24-28 of this Law shall apply to non-financial institutions or persons. Article 21 and Part 2 of Article 23 of this Law shall apply to non-financial institutions and persons only if they have more than 10 employees;

  • 7. Supervisory bodies – authorized bodies issuing licenses to (appointing, conferring a qualification, or otherwise permitting the activities, and supervising) reporting entities;

  • 8. Transaction – a transaction concluded between a reporting entity and a customer or an authorized person, as well as between a customer or an authorized person and other persons through the reporting entity. Any action giving rise to rights and obligations based on or resulting from a certain deed may also be deemed as a transaction;

  • 9. Occasional transaction – a transaction, which does not give rise to obligations between the customer and the reporting entity to provide recurrent services (no business relationship is established);

  • 10. Business relationship – recurrent services provided to the customer, which are not limited to one or several occasional transactions. Business relationship with the reporting entity does not include those activities with the reporting entity, within which the reporting entity for its own needs carries out operations different from the ones legally designated for that particular type of reporting entities;

  • 11. Authorized Body – the Central Bank of the Republic of Armenia;

  • 12. Suspicious transaction or business relationship – a transaction or business relationship when, in cases established by this Law, the guidelines established by the Authorized Body, and the internal legal acts of reporting entities, or in other cases, it is suspected or there are sufficient grounds to suspect that the assets involved in the transaction or business relationship proceed from crime, or that such assets are linked to terrorism financing, as well as when the funds or other assets are linked to or intended for use by terrorist organizations or individual terrorists for the purpose of terrorism;

  • 13. Senior management – a body or employee of the reporting entity entitled to make decisions on behalf of the reporting entity on issues related to preventing money laundering and terrorism financing, or to participate in making such decisions;

  • 14. Customer – a person establishing or involved in business relationships with the reporting entity, as well as a person, who offers the reporting entity to conclude an occasional transaction or to render other services aimed at carrying out the transaction;

  • 15. Beneficial owner – a natural person who is not a party to the business relationship or transaction, and on whose behalf or for whose benefit the customer acts, and (or) who ultimately owns and (or) controls the customer or the person on whose behalf the transaction is being carried out. The beneficial owner of a legal person is the natural person, who exercises factual (real) control over the legal person or transaction (business relationship), and (or) for whose benefit the business relationship or transaction is being carried out. A natural person may be recognized as the beneficial owner of a legal person, if such natural person:

    • a. owns 20 percent or more of the voting stocks (equities, shares; hereinafter: stocks) of the given legal person; or, by force of his/her participation in or under the agreement concluded with the legal person, has the ability to predetermine its decisions;

    • b. is a member of the management and (or) governing body of the given legal person;

    • c. acts in agreement with given legal person, based on common economic interests;

  • 16. Authorized person – a person authorized to carry out a transaction or to undertake certain legal or factual actions in the course of business relationship upon the assignment and on behalf of the customer; including the person, who conducts representation by a power of attorney or by any other legal authorization of the customer; as well as the person who actually acts on behalf or upon the assignment of the customer, or undertakes factual actions at the expense or for the benefit of the customer without a power of attorney;

  • 17. Affiliated person – an affiliated person as defined by the legislation regulating activities of the given reporting entity; whereas, in the absence of such a definition, the persons stipulated by Article 8 of the Republic of Armenia Law on Banks and Banking;

  • 18. Business profile of a customer – a complete set of data (understanding) of the reporting entity about the sources of income, profile, influence and significance of the customer; the presence and expected dynamics, scope, and areas of relevant business relationships and occasional transactions; the presence, identity, and nature of affiliation of authorized persons and beneficial owners;

  • 19. Other party to the transaction – other participant of the transaction being carried out by the customer, who provides (transfers) the cash or other assets proceeding from the transaction, or to whom such cash or assets are addressed;

  • 20. Politically exposed person – an individual, who is or has been entrusted with prominent state, political, or public functions in a foreign country or territory, namely:

    • c.heads of the state or government, ministers or deputy ministers;

    • d.members of the parliament;

    • e.members of supreme courts, constitutional courts or other high rank judiciary, whose decisions are not subject to appeal, except for special circumstances;

    • f.members of audit courts or of the boards of central banks;

    • g.ambassadors, charges d’affaires and high rank officers of the armed forces;

    • h. outstanding members of political parties;

    • i. members of administration, management, or supervisory bodies of state-owned organizations;

  • 21. Center of vital interest – the location, where the family or economic interests of an individual are concentrated. The location of family or economic interests is the place, where the house (apartment) of the individual is located, where the individual and his/her family reside and his/her (family’s) main personal and family assets is maintained, or the place of performance of core economic (professional) activity;

  • 22. Internal compliance unit – a division or employee of a financial institution, or a professional performing the function of preventing money laundering and terrorism financing;

  • 23. Terrorism-related person – any individual or organization included in the list of individuals and organizations published by the UN Security Council or designated by the Authorized Body, as well as persons suspected, accused, or convicted for terrorism;

  • 24. Typology – possible schemes of money laundering and terrorism financing;

  • 25. High risk criterion – criteria established by this Law, by normative legal acts of the Authorized Body, as well as by internal legal acts of the reporting entities, which evidence the high likelihood of money laundering and terrorism financing, including the politically exposed persons and their affiliated persons, bearer securities, including bearer check books, and offshore territories;

  • 26. Low risk criterion – criteria established by this Law or normative legal acts of the Authorized Body, which evidence the low likelihood of money laundering and terrorism financing, including the financial institutions efficiently supervised in terms of combating money laundering and terrorism financing, state bodies or state-owned organizations;

  • 27. Suspension of business relationship or transaction – blocking for a certain time period, in the manner established by this Law, of the factual and legal movement of funds or other assets, which are the subject of a suspicious business relationship or transaction;

  • 28. Rejection of business relationship or transaction – non-implementation of actions, in the manner established by this Law and by other laws, intended for carrying out a suspicious business relationship or transaction;

  • 29. Freezing of funds – blocking for a certain time period, in the manner established by this Law, of the factual and legal movement of funds of the persons linked to terrorism;

  • 30. Shell bank – a bank which, while being registered in a state, does not have an actual place of presence and activity in the territory of that state and is unaffiliated with other operating financial institutions.

CHAPTER 2 PREVENTION OF MONEY LAUNDERING AND TERRORISM FINANCING

ARTICLE 4: OBLIGATION OF REPORTING ENTITY TO RECOGNIZE AND PREVENT SUSPICIOUS BUSINESS RELATIONSHIP OR TRANSACTION

  • 1. Reporting entities shall be obligated, in the manner established by law and internal legal acts, to undertake measures for identifying and preventing any suspicious business relationships and transactions carried out by their customer, as well as to perform other obligations prescribed by this Law.

  • 2. Reporting entities shall be obligated, in the manner established by law and internal legal acts, to submit to the Authorized Body information on money laundering and terrorism financing as specified in this Law and other legal acts adopted on basis of this Law, including the information constituting secrecy as prescribed by law.

  • 3. Notaries, attorneys, persons providing legal services, independent auditors and auditing firms, independent accountants and accounting firms shall submit to the Authorized Body the information specified in this Law only in cases not contradicting to the confidentiality requirements established under the legislation regulating their activities. Legally defined confidentiality requirements for non-financial institutions or persons shall be applicable only to the information disclosed to the aforementioned organizations or person in performing their legally provided authorities.

ARTICLE 5: TRANSACTIONS OR BUSINESS RELATIONSHIPS SUBJECT TO REPORTING

  • 1. Reporting entities shall file a report to the Authorized Body on any of the following transactions:

    • 1) Transactions above the threshold of 20 million drams, excluding the transactions stipulated by Clause 2 of this Part;

    • 2) Transactions related to real estate above the threshold of 50 million drams;

    • 3) Suspicious transactions or business relationships, regardless of the amount stipulated by this Part.

  • 2. For reporting entities, the obligation of submitting reports stipulated by Part 1 of this Article shall arise:

    • 1) For financial institutions – in the manner established by normative legal acts of the Authorized Body;

    • 2) For persons organizing prize games and lotteries, for casinos, as well as for realtors – in cases stipulated by Part 1 of this Article;

    • 3) For notaries, attorneys, as well as for persons providing legal services, independent auditors and auditing firms, independent accountants and accounting firms, and the authorized body responsible for maintaining the integrated state cadastre of real estate – only with regard to the following transactions prepared or carried out for their clients:

      • a. buying and selling of real estate;

      • b. managing of client money, securities, or other assets;

      • c. management of bank and securities accounts;

      • d. provision of funds or other assets for establishment, operation, or management of legal persons;

      • e. performing functions of establishment, operation, or management of legal persons, as well as alienation (acquisition) of contributions, shares and the like in the authorized capital (equity capital and the like) of legal persons, or alienation (acquisition) of stocks (equities, shares) of legal persons at a nominal or market value;

    • 4) For dealers in precious metals, dealers in precious stones; dealers in artworks, and organizers of auctions – only with regard to cash transactions with their clients;

    • 5) For credit bureaus – only with regard to suspicious transactions;

    • 6) For trust and company service providers – with regard to transactions, when they:

      • a.act as a formation agent (representative) of legal persons in rendering company registration services;

      • b. act (arrange for another person to act) as a director (executive body) of a company, a partner of a partnership, or perform similar functions of a legal person’s management;

      • c. provide accommodation (operational, correspondence or administrative address) to a legal person;

      • d. act (arrange for another person to act) as a trust manager of an express trust;

      • e. act (arrange for another person to act) as a nominee shareholder for another legal person;

    • 7) For the state body performing registration of legal persons (the State Registry) – only with regard to the state registration of alienation (acquisition) of stocks (contributions, shares and the like) in the authorized capital (equity capital and the like) of commercial entities, or registration of formation of or changes in the authorized capital (equity capital and the like) thereof.

  • 3. Attorneys, as well as for persons providing legal services, independent auditors and auditing firms, independent accountants and accounting firms shall submit reports on the transactions stipulated by Part 2 (3) of this Article only in the presence of suspicious transactions or business relationships.

  • 4. A reporting entity, its employees, and representatives shall be prohibited to inform the person on whom a report or other information has been submitted to the Authorized Body, as well as other persons, about the fact of submitting such report or information.

  • 5. The Authorized Body shall define the cases of releasing from the obligation to submit a report on transactions stipulated by Part 1 (1 and 2) of this Article.

ARTICLE 6: SUSPICIOUS BUSINESS RELATIONSHIP OR TRANSACTION

  • 1. In case of disclosing the grounds and criteria for suspicious transactions or business relationships, the given transaction or business relationship, including the attempted ones, should be recognized as suspicious by the reporting entity, and a respective report stipulated by Part 1 (3) of Article 5 of this Law should be immediately filed to the Authorized Body. This Law, the guidelines established by the Authorized Body, and the internal legal acts of reporting entities shall define the grounds and criteria for suspicious transactions or business relationships.

  • 2. Irrespective of Part 1 of this Article, a business relationship or transaction should be recognized as suspicious, if it is suspected or there are sufficient grounds to suspect that the business relationship or transaction involves funds or other assets, which are linked to or intended for use by terrorist organizations or individual terrorists for the purpose of terrorism.

  • 3. A business relationship or transaction may be recognized as suspicious if:

    • 1) A customer offers the reporting entity to conclude (endorse) or concludes (endorses) a transaction (business relationship) which, although complying with the requirements of laws and other legal acts, fail to enable the reporting entity to verify the identity of the customer or to obtain the information that the reporting entity is legally required to have for concluding or carrying out the given transaction (business relationship);

    • 2) Conditions of the transaction (business relationship) fail to comply with the business profile of the customer, with the conditions of similar transactions (business relationships) usually concluded in that particular area of business activity, or with the business practice;

    • 3) It becomes obvious for the reporting entity, that the proposed or concluded transaction (business relationship) apparently does not pursue any economic or lawful objective;

    • 4) According to the logic and flows (dynamics) of its execution, the transaction (business relationship) appears to be conforming with the typologies set forth pursuant to the international best practice and the guidelines established by the Authorized Body;

    • 5) It becomes obvious for the reporting entity, that the value of the proposed or concluded transaction (s) does not exceed the threshold for reporting as stipulated by Part 1 (1 and 2) of Article 5 and for identification as stipulated by Article 15 of this Law solely for the reason that the customer seeks to avoid being reported or identified by the reporting entity in relation to such transaction (s);

    • 6) For financial institutions – a natural person affiliated with a legal person transfers (provides) funds to another legal person on his behalf obviously for the purpose of performing contractual obligations between those legal persons, or with the aim of otherwise carrying out entrepreneurial activities between those legal persons.

  • 4. A reporting entity may submit a report to the Authorized Body on a suspicious transaction or business relationship also in cases, when the suspicion about such transaction or business relationship does not derive from the grounds and criteria for suspicious transactions stipulated by this Law, the guidelines established by the Authorized Body, and the internal legal acts of the reporting entity, but the logic and flows (dynamics) of its execution give the grounds to assume that it is being carried out for money laundering and terrorism financing purposes.

  • 5. Guidelines established by the Authorized Body may set forth grounds for recognizing a transaction or business relationship as suspicious other than those specified in Part 4 of this Article, as well as other criteria for identifying such grounds for suspicious transactions.

  • 6. Reporting entities may establish the grounds for a suspicious transaction or business relationship and the criteria for their identification in their internal legal acts.

  • 7. The transactions (business relationships) specified in Part 1 of Article 8 of this Law may be recognized as suspicious by reporting entities and reported to the Authorized Body.

ARTICLE 7: CONTENT OF REPORT AND RULED FOR ITS SUBMISSION

  • 1. A report shall contain:

    • 1) Data on the customer, the authorized person, the other party to the transaction and, in case of a suspicious transaction, also data on the beneficial owner, including:

      • a. for natural persons and private entrepreneurs – first and last names, place of residence, year, month and date of birth, citizenship, serial and successive number of the identification document, year, month and date of its issuance; whereas for private entrepreneurs – also number of the state registration certificate and taxpayer identification number;

      • b. for legal persons – name, location, number of the state registration certificate and, in case of reporting by the financial institution, also taxpayer identification number;

      • c. In case of reporting by financial institutions – also the number of the customer’s bank account;

    • 2) Description of the subject of transaction;

    • 3) Price (value) of the transaction;

    • 4) Date of concluding the transaction.

  • 2. The report on a suspicious business relationship or transaction shall also contain the ground, the criterion for recognizing the business relationship or transaction as suspicious, its description, as well as an indication on suspending, rejecting the transaction or business relationship, or freezing proceeds of the persons linked to terrorism.

  • 3. The reports stipulated by this Article should be submitted with an indication of their successive number, the signature of the responsible employee of the reporting entity (for hard copies, also sealed, if any). The report shall contain an indication of the reporting entity’s registration number at the Authorized Body.

  • 4. Where a government body or a local self-governance body acts as a customer, an authorized person, another party to a business relationship or transaction, the report shall indicate only the name of such body.

  • 5. Reports may be submitted in hard copy, while in cases stipulated by normative acts of the Authorized Body also (or) in electronic form.

  • 6. Normative legal acts of the Authorized Body shall establish the rules, timeframes, and forms for filing reports.

ARTICLE 8: ADDITIONAL SCRUTINY OF TRANSACTIONS (BUSINESS RELATIONSHIPS), INCLUDING IN CASES OF APPLYING NEW OR DEVELOPING TECHNOLOGIES

  • 1. Reporting entities shall be obligated to conduct additional scrutiny of all complex and unusually large transactions (business relationships), as well as of the ones involving unusual patterns with no apparent economic or other legitimate purpose.

  • 2. Reporting entities should maintain the data on transactions (business relationships) stipulated by Part 1 of this Law for at least 5 years after termination of the business relationship or execution of the transaction or, in cases prescribed by law, for a longer time period; they shall submit such data to the Authorized Body as requested by it, except for the cases stipulated by Part 3 of Article 4 of this Law.

  • 3. In their internal legal acts, financial institutions should provide for and apply relevant measures for counteracting money laundering or terrorism financing risks associated with new or developing technologies. When establishing business relations or conducting ongoing due diligence of their customers, financial institutions should, in the manner established by their internal legal acts, provide for preventive mechanisms to address all risks associated with non face-to-face business relationships or transactions.

ARTICLE 9: PROCEDURES DURING REGISTRATION OF LEGAL PERSONS AND LICENSING OF FINANCIAL INSTITUTIONS

  • 1. In case of registering legal persons, making changes in the authorized capital (equity capital and the like) or in composition of the founders, participants, members, shareholders, or stockholders of a legal person, the founders (participants, members, shareholders, stockholders and the like) shall be obligated to file a declaration on the beneficial owners of the legal person to the state body performing registration of legal persons in the manner, and form and within the timeframes established by normative legal acts of the Authorized Body. Upon request, the state body performing registration of legal persons shall provide the Authorized Body with a copy of the mentioned declaration.

  • 2. Legal persons shall bear legally defined responsibility for the failure to submit the data stipulated by Part 1 of this Article on beneficial owners, for incorrect (including false or inaccurate) or incomplete submission of such data.

  • 3. In the course of licensing (appointment, issuance of permission) of a financial institution, the licensing body shall be obligated to request information stipulated by normative legal acts of the Authorized Body and to check their veracity.

  • 4. Within 15 days after licensing (appointment, issuance of permission) or termination of license (appointment, issuance of permission) of a reporting entity, the licensing body shall be obligated to notify the Authorized Body on that. Within one month after licensing (appointment, issuance of permission), the reporting entity shall be obligated to get registered at the Authorized Body in the manner established by the Authorized Body.

CHAPTER 3 AUTHORIZED BODY

ARTICLE 10: AUTHORIZED BODY FOR COMBATING MONEY LAUNDERING AND TERRORISM FINANCING

  • 1. The Authorized Body shall have the following functions and authorities:

    • 1) Receive reports from reporting entities and information from state bodies and organizations;

    • 2) Analyze the received reports and information;

    • 3) Send a statement to criminal investigation authorities in cases stipulated by Article 13 of this Law;

    • 4) For the purposes of this Law, request other information from reporting entities, including information constituting secrecy as prescribed by law, except for the cases stipulated by Part 3 of Article 4 of this Law;

    • 5) For the purposes of this Law, request other information from state bodies, including supervisory and criminal investigation authorities, including information constituting secrecy as prescribed by law;

    • 6) When reporting entities submit inaccurate or incomplete reports, or fail to submit such reports in cases established by this Law, as well as when deficiencies are found in the internal legal acts of reporting entities, issue assignments for rectifying them;

    • 7) In the field of combating money laundering and terrorism financing, adopt legal acts, approve guidelines, and promulgate typologies as stipulated by this Law, in cooperation with reporting entities, supervisory and other bodies and organizations, where necessary;

    • 8) Provide reporting entities with data necessary for identification of persons or with typologies, based on which reporting entities shall be obligated to suspend the business relationships or transactions matching with such names (titles) or typologies, or to reject their execution;

    • 9) Contribute to the supervision over reporting entities in the manner and cases established by this Law;

    • 10) Define the cases and frequency for conduction of internal audit by financial institutions in the field of combating money laundering and terrorism financing; require conduction of external audit;

    • 11) Impose sanctions established by this Law for financial institutions and legal persons, as well as file a petition for imposing sanctions on reporting entities in cases established by this Law;

    • 12) Decide on suspending a suspicious transaction or business relationship, or freezing funds linked to terrorism;

    • 13) In the manner established by normative legal acts of the Authorized Body, regularly provide reporting entities with information (feedback) on the reports filed by them;

    • 14) Organize trainings in the field of combating money laundering and terrorism financing and coordinate the trainings organized by other bodies, as well as confer qualification on the staff of the internal compliance units of financial institutions based on Part 2 of Article 22;

    • 15) In the manner established by its legal acts, publicize annual reports on its activities stipulated by this Law;

    • 16) Raise public awareness on combating money laundering and terrorism financing;

    • 17) Conclude agreements of cooperation with international organizations and foreign financial intelligence units in the manner established by Article 14 of this Law; exchange information (including information constituting secrecy as prescribed by law);

    • 18) Perform other authorities and functions stipulated by this Law.

  • 2. For the purposes of this Law, a responsible structural unit – the Financial Monitoring Center – shall operate within the Authorized Body which, based on its Charter approved by the supreme management body of the Authorized Body and on other legal acts, shall perform the functions and authorities stipulated for the Authorized Body by Part 1 of this Article, except for those conferred on the supreme management body of the Authorized Body.

  • 3. The supreme management body of the Authorized Body shall approve the strategy, the annual program, and the budget of the Financial Monitoring Center, as well as, through its competent divisions, shall perform the functions and authorities stipulated by Part 1 (7, 9-11) of this Article.

  • 4. Authorities stipulated by Part 1 (12) of this Article shall be performed in the manner established by the supreme management body of the Authorized Body.

  • 5. The supreme management body of the Authorized Body shall appoint the head and the staff of the Financial Monitoring Center.

  • 6. The Financial Monitoring Center shall present reports on its activities to the supreme management body of the Authorized Body at the frequency and in the manner established by that body.

  • 7. In the course of the Financial Monitoring Center’s receiving and analyzing information for the purposes of this Law, only the staff of the Financial Monitoring Center shall have access to such information.

  • 8. The employees of the Financial Monitoring Center having access to the received and stored information shall maintain confidentiality of the information constituting secrecy as prescribed by law and by the legal acts of the Authorized Body, both in the course of performing their duties and after termination thereof, as well as shall bear legally defined responsibility for its unlawful disclosure. Such information can be used only for the purposes of this Law.

ARTICLE 11: NORMATIVE LEGAL ACTS AND GUIDELINES ADOPTED BY AUTHORIZED BODY

  • 1. The normative legal acts adopted by the Authorized Body shall establish:

    • 1) Minimal requirements with regard to the functions of the management bodies of financial institutions, including the internal compliance unit, and to the rules for performing such functions in the field of combating money laundering and terrorism financing;

    • 2) Minimal rules for customer identification, due diligence (including enhanced or simplified measures), recording, collecting, and updating of data;

    • 3) Minimal rules for recording and maintaining of documents (data) by financial institutions in the field of combating money laundering and terrorism financing;

    • 4) Rules for approving and amending the internal legal acts of financial institutions in the field of combating money laundering and terrorism financing; the minimal criteria with regard to such internal legal acts;

    • 5) Minimal rules for the audit of financial institutions’ activities in the field of combating money laundering and terrorism financing;

    • 6) Rules for submission and the standard form of the declaration on beneficial owners filed to the state body performing registration of legal persons;

    • 7) Criteria for high or low risk of money laundering and terrorism financing, and the rules for their determination;

    • 8) Forms, timeframes, and rules for filing above-threshold and suspicious transactions (business relationships) reports to the Authorized Body by reporting entities;

    • 9) Minimal rules for identifying suspicious transactions (business relationships) and for considering the relevance of reporting to the Authorized Body by financial institutions;

    • 10) Minimal rules for the selection, training, and qualification of competent staff of financial institutions in the field of combating money laundering and terrorism financing;

    • 11) Content, submission rules, forms, and timeframes for the collection of statistics maintained by state bodies; and

    • 12) Other issues stipulated by this Law.

  • 2. The Authorized Body shall also adopt and provide to reporting entities guidelines expounding the procedures for the implementation of this Law and the normative legal acts adopted on basis of this Law. The Authorized Body shall promulgate typologies, as well.

ARTICLE 12: PROTECTION OF INFORMATION RELATED TO SUSPICIOUS TRANSACTIONS

  • 1. The Authorized Body shall be prohibited to publicize or otherwise provide any information (except for the information provided to criminal investigation or other authorities in the manner established by law) disclosing or facilitating disclosure of any person having reported on a suspicious transaction (business relationship) and (or) having participated in its reporting to the Authorized Body or in sending a statement to criminal investigation authorities by the Authorized Body.

CHAPTER 4 COOPERATION FOR PURPOSES OF THIS LAW

ARTICLE 13: INTERRELATIONS BETWEEN AUTHORIZED BODY AND OTHER AUTHORITIES

  • 1. For the purpose of effectively combating money laundering and terrorism financing, the Authorized Body shall cooperate with other state bodies in the manner and within the frameworks established by this Law, including cooperation with supervisory and criminal investigation authorities, by means of or without concluding bilateral agreements.

  • 2. The Authorized Body shall cooperate with supervisory bodies in the manner established by Article 26 of this Law, for the purpose of ensuring compliance of reporting entities with the requirements of this Law and the legal acts adopted on basis of this Law.

  • 3. The Authorized Body shall send a statement to criminal investigation authorities, when it has reasonable suspicions of money laundering and terrorism financing based on the analysis of a report filed by a reporting entity in the manner established by this Law, or of other information. Along with the statement or later on, in addition to the statement, other materials evidencing the circumstances laid down in the statement may be presented to criminal investigation authority. The statement or the materials sent in addition to it may contain information constituting secrecy as prescribed by law.

  • 4. Upon the request of criminal investigation authorities, the Authorized Body shall provide the available information, including the information constituting secrecy as prescribed by law, provided that the request contains sufficient justification of a substantiated suspicion or case of money laundering or terrorism financing. Such information shall be provided within a 10-day period, unless a different timeframe is specified in the request or, in the substantiated opinion of the Authorized Body, a longer period is necessary for answering the request.

  • 5. Where the information stipulated by Part 1 (4 and 5) of Article 10 of this Law is requested, reporting entities, state bodies, including supervisory and law enforcement authorities, should provide such information to the Authorized Body within a 10-day period, unless a different timeframe is specified in the request or, in the substantiated opinion of the state body, a longer period is necessary for answering the request.

  • 6. Criminal investigation authorities shall notify the Authorized Body about the decisions taken as a result of considering the statement stipulated by Part 3 of this Article, as well as about the decisions taken as a result of preliminary investigation whenever a criminal case is initiated, within a 10-day period after taking such decisions.

  • 7. State bodies shall maintain and occasionally submit to the Authorized Body statistics in the field of combating money laundering and terrorism financing, in the manner, format, and timeframes established by the Authorized Body. Such statistics shall include:

    • 1) The number and description of the initiated cases of money laundering and terrorism financing, as well as those of other related crimes;

    • 2) The value of the assets arrested in the course of investigation of the initiated cases of money laundering and terrorism financing, on case-by-case basis;

    • 3) The number of the initiated cases of money laundering and terrorism financing, the criminal investigation of which has been terminated, as well as the grounds for such termination;

    • 4) The number and description of the cases of money laundering and terrorism financing, which are under judicial proceedings;

    • 5) The number of judgments (convictions and acquittals) on cases of money laundering and terrorism financing, including those on related crimes, executed punishments, as well as the value of confiscated assets;

    • 6) Sanctions imposed on reporting entities not licensed by the Authorized Body, for infringing the legislation on combating money laundering and terrorism financing.

ARTICLE 14: INTERNATIONAL COOPERATION

  • 1. The Authorized Body and state bodies shall cooperate with international organizations and respective bodies of foreign states (including foreign financial intelligence units) involved in combating money laundering and terrorism financing within the framework of international treaties and, in the absence of international treaties, in accordance with international practice.

  • 2. Upon its own initiative or in case of request, the Authorized Body shall, based on the principle of reciprocity, exchange information (including the information constituting secrecy as prescribed by law) with foreign financial intelligence units, which ensure adequate confidentiality of information under the obligations deriving from bilateral agreements or from membership in international structures, and shall use such information only for the purposes of combating money laundering and terrorism financing.

  • 3. The Authorized Body shall not be empowered to disclose the received information to any third party, as well as to use it for criminal prosecution, administrative, or judicial purposes without the prior consent of the foreign agency having provided the information.

  • 4. For the purposes of this Law, the Authorized Body shall be empowered to sign agreements of cooperation with foreign financial intelligence units.

CHAPTER 5 CUSTOMER DUE DILIGENCE

ARTICLE 15: CUSTOMER IDENTIFICATION

  • 1. Any business relationship with a customer may be established or an occasional transaction may be concluded only upon the receipt of the identification documents (information) by reporting entities as specified in Part 3 of this Article and upon checking their veracity. Reporting entities may obtain the identification information specified in this Law and check their veracity also in the course of establishing a business relationship or concluding an occasional transaction or thereafter within a reasonable timeframe, provided that the risk of money laundering or terrorism financing has been effectively prevented and that this is necessary in order not to impair the normal business relationships.

  • 2. Reporting entities should identify their customers and verify their identity, based on reliable documents or other information received from competent sources, when:

    • 1) Business relationships are being established;

    • 2) Occasional transaction is being carried out, including a domestic or cross-border wire transfer at a value above 400-fold of the minimal salary in drams or in foreign currency, unless stricter provisions are stipulated by other legal acts;

    • 3) Suspicions arise with regard to the veracity or adequacy of previously obtained customer identification data;

    • 4) Suspicions arise with regard to money laundering and (or) terrorism financing.

  • 3. When identifying the customers and verifying their identity:

    • 1) The information required for natural persons based on an identification document or another valid official document exceptionally with a photo and issued by a respective authorized state body shall at least include the first and last names of the person, the details of the identification document, the place of residence, the date and place of birth of the person, and for private entrepreneurs also the number of the state registration certificate and the taxpayer identification number, as well as other information stipulated by law;

    • 2) The information required for legal persons shall at least include the name, the location, the number of the state registration certificate and the taxpayer identification number of the legal person, as well as other information stipulated by law.

  • 4. Reporting entities shall undertake necessary measures to find out the existence of a beneficial owner and, if any, identify and verify his/ her identity pursuant to Part 3 of this Article.

  • 5. Where an authorized person acts on behalf of the customer, the reporting entity shall be obligated to identify such a person and verify his/her identity and his/her authority to represent the customer pursuant to Part 3 of this Article.

  • 6. In case of the presence of low risk criteria, reporting entities may perform simplified customer due diligence, when identifying the customer or the beneficial owner, or when verifying their identity.

  • 7. In case of the presence of high risk criteria, reporting entities should take measures adequate to the risks of money laundering and terrorism financing. Financial institutions should have risk management procedures laid down in its internal legal acts in order to determine whether the customer is a politically exposed person or a member of his/her family or a person affiliated to him/her, or whether there are other high risk criteria.

  • 8. In the presence of high risk criteria, financial institutions should perform enhanced customer due diligence. Where a politically exposed person is involved, the financial institution should also:

    • 1) Obtain the approval of senior management before establishing business relationships with a customer, for continuing business relationships with a customer; as well as in cases, when the customer or the beneficial owner is subsequently found to be or subsequently becomes a politically exposed person;

    • 2) Take reasonable measures to establish the source of income (wealth) and the source of funds of a customer or beneficial owner identified as a politically exposed person;

    • 3) Conduct enhanced ongoing monitoring on that relationship.

  • 9. If the customer or the other party to the transaction is a foreign legal person or a foreign natural person or an entity without the status of a legal person under foreign legislation, then financial institutions shall be obligated to identify and document also the center of these persons’ vital interests and the sources of income in the manner established by their internal legal acts.

  • 10. Through their internal legal acts, banks should establish the rules for opening and maintaining correspondent accounts of foreign banks, as well as the peculiarities of opening and maintaining their correspondent accounts with foreign banks in order to make sure that they have not established correspondent relationships with shell banks or with banks allowing shell banks to use their accounts. In case of cross-border correspondent relationships, banks should:

    • 1) Gather sufficient information, as specified in normative acts and by their internal legal acts, so as to understand fully the nature of respondent bank’s business and, from publicly available and other reliable information specified in their internal legal acts, to determine the business reputation of the respondent bank and the quality of its supervision, including whether it has been subject to a money laundering or terrorism financing criminal investigation or any other proceeding;

    • 2) In the manner established by their internal legal acts, assess the respondent bank’s internal procedures for combating money laundering and terrorism financing;

    • 3) Obtain approval from senior management before establishing new correspondent relationships;

    • 4) Document the respective functions of each correspondent bank;

    • 5) With respect to “payable-through accounts”, make sure that the respondent bank has verified the identify of the customers who have access to its accounts and continuously conducts their ongoing monitoring, and that upon request it is able to provide relevant customer identification data to the correspondent bank.

  • 11. The data obtained as a result of customer identification and verification by other reporting entities, specialized intermediaries, or persons empowered to represent third parties may serve as a basis for reporting entities in the course of customer identification and verification only in cases and in the manner established by internal legal acts of reporting entities.

  • 12. Customer due diligence rules stipulated by this Chapter shall apply to the following reporting entities in the cases stated below:

    • 1) For realtors (real estate agents) – only with regard to the transactions related to buying and selling of real estate for their clients;

    • 2) For notaries, attorneys, as well as for persons providing legal services, independent auditors and auditing firms, independent accountants and accounting firms, investment companies – only with regard to the following transactions prepared or carried out for their clients:

      • a. buying and selling of real estate;

      • b. managing of client money, securities, or other assets;

      • c. management of bank accounts;

      • d. provision of funds or other assets for establishment, operation, or management of legal persons;

      • e. performing functions of establishment, operation, or management of legal persons, as well as buying and selling of more than 75 percent of the stocks (contribution, shares and the like) in the authorized capital (equity capital and the like) of legal persons, or buying and selling of stocks (equities, shares) of legal persons at a nominal or market value above 20 million drams;

    • 3) For dealers in precious metals, dealers in precious stones; dealers in artworks, and organizers of auctions – only with regard to cash transactions with their clients above 5 million drams;

    • 4) For persons and casinos organizing prize games and lotteries– only with regard to the transactions carried out by their clients (purchasing of chips, making stakes, or winnings) above 1 million drams;

    • 5) For trust and company service providers – with regard to transactions, when they:

      • a. act as a formation agent (representative) of legal persons in rendering company registration services;

      • b. act (arrange for another person to act) as a director (executive body) of a company, a partner of a partnership, or perform similar functions of a legal person’s management;

      • c. provide accommodation (operational, correspondence or administrative address) to a legal person;

      • d. act (arrange for another person to act) as a trust manager of an express trust;

      • e. act (arrange for another person to act) as a nominee shareholder for another legal person.

ARTICLE 16: ONGOING CUSTOMER DUE DILIGENCE IN BUSINESS RELATIONSHIPS

  • 1. Reporting entities should conduct ongoing customer due diligent throughout the course of a business relationship. In the course of customer due diligence, reporting entities shall conduct monitoring of the transactions with the customer in order to ensure veracity of the information on the customer, his/her business and risk profile and, where necessary, of the source of his/her income.

  • 2. At a frequency determined by their own, reporting entities should update the data obtained due to customer identification in the business relationship.

ARTICLE 17: RESTRICTIONS ON ESTABLISHING BUSINESS RELATIONSHIPS OR CARRYING OUT OCCASIONAL TRANSACTIONS, PROHIBITION OF SHELL BANKING

  • 1. It shall be prohibited to open, service, or provide:

    • 1) Anonymous accounts or accounts in fictitious names, as well as other payment documents;

    • 2) Accounts solely expressed in numbers, letters or other conventional signs.

  • 2. Bearer securities, including bearer check books, shall be recognized as high risk criteria.

  • 3. It shall be prohibited to establish shell banks in the Republic of Armenia.

ARTICLE 18: OBLIGATIONS RELATED TO WIRE TRANSFERS

  • 1. When carrying out wire transfers, regardless of the fact of opening an account, financial institutions shall identify and verify the identity of the originators of such transfers in cases and the manner stipulated by Article 15 of this Law. In order to identify and verify the identity, the following information about the originator shall be requested and maintained:

    • 1) The name and surname;

    • 2) The account number (in its absence, the unique reference number accompanying the transfer);

    • 3) The details of the identification document.

  • 2. The information specified in Part 1 of this Article, including the account number of the originator (in its absence, the unique reference number accompanying the transfer) should be included in the payment order accompanying the transfer.

  • 3. Financial institutions should maintain the information specified in this Article and obtained due to identification, as well as the data on the account (in its absence, the unique reference number accompanying the transfer) and the business correspondence, in the manner and for the timeframe defined by Article 20 of this Law.

  • 4. Data related to customer identification and to the transaction (business relationship) should be provided to the Authorized Body upon its request.

  • 5. The obligations stipulated by this Article shall not apply to:

    • 1) Transfers carried out between financial institutions in their own name;

    • 2) Transactions carried out through the use of credit or debit cards, provided that when the terms of the transaction include information about the numbers of such cards.

  • 6. Reporting entities carrying out wire transfers should reject:

    • 1) Any request for a transfer, if the information specified in this Article is missing;

    • 2) The receipt of a transfer, if the wire transfer does not contain the information specified in Part 1 (1 and 2) of this Article.

  • 7. In cases specified in Part 6 of this Article, reporting entities may file a suspicious transaction report to the Authorized Body stipulated by Article 6 of this Law.

ARTICLE 19: CONDUCTION OF ENHANCED DUE DILIGENCE BY REPORTING ENTITIES, REQUIREMENTS FOR REPORTING ENTITIES' BRANCHES AND REPRESENTATION OFFICES OPERATING IN FOREIGN STATES AND TERRITORIES

  • 1. Reporting entities should conduct enhanced due diligence when establishing business relationships or carrying out transactions with persons (including financial institutions) residing (located) in foreign states or territories, where the international standards on combating money laundering and terrorism financing are not or are insufficiently applied.

  • 2. In agreement with the body authorized in the area of foreign affairs of the Republic of Armenia and based on the data publicized by international organizations engaged in combating money laundering and terrorism financing, the Authorized Body shall define and update the list of the states or territories specified in Part 1 of this Article.

  • 3. Reporting entities shall be obligated to instruct their branches and representative offices located in foreign states or territories (including in the states or territories specified in Part 1 of this Article) to apply the requirements of this Law and other legal acts adopted on basis of this Law, if the norms established by them are stricter than those established by the laws and other legal acts applicable in the country of location of such branches or representative offices. Where the laws and other legal acts of the country of location of a branch or representative office prohibit or do not make it possible to apply the requirements of this Law and other legal acts adopted on basis of this Law, the branch or representative office shall notify the reporting entity, and the reporting entity shall accordingly inform the Authorized Body.

ARTICLE 20: MAINTAINING RECORDS

  • 1. Reporting entities shall maintain records of at least the following information specified in this Law in the manner established by the normative legal acts of the Authorized Body:

    • 1) Customer identification data, including account files and flows on account, as well as data on business correspondence – for at least 5 years following completion of the business relationship or, in cases prescribed by law, for a longer period;

    • 2) Data on the main conditions of the transaction (business relationship), which would permit reconstruction of the real nature of the transaction (business relationship) – for at least 5 years following completion of the transaction (termination of business relationship) or, in cases prescribed by law, for a longer period.

  • 2. The information required by this Law and maintained by reporting entities should be sufficient for provision of comprehensive information about transactions (business relationships) requested by the Authorized Body or, in cases prescribed by law, by criminal investigation authorities.

CHAPTER 6 INTERNAL LEGAL ACTS OF FINANCIAL INSTITUTIONS AND INTERNAL COMPLIANCE UNIT

ARTICLE 21: INTERNAL LEGAL ACTS OF REPORTING ENTITIES

  • 1. Reporting entities should have in place internal legal acts (policy, rule, procedure, instruction, or regulation) aimed at prevention of money laundering and terrorism financing. The internal legal acts stipulated by this Part should at least lay down:

    • 1) The internal procedures to be carried out with the view of conducting customer due diligence and record-keeping;

    • 2) The list of the documents and other information necessary for customer due diligence and enhanced due diligence;

    • 3) The manner and conditions for conducting internal audit of the compliance with the procedures and requirements of the internal legal acts, in cases when conduction of internal audit is required by law;

    • 4) The internal procedure for the operations of the internal compliance unit;

    • 5) The procedures for collating, recording and maintaining information on suspicious and other transactions (business relationships);

    • 6) The internal procedures for suspending (rejecting to carry out) transactions (business relationships), freezing funds of the persons linked to terrorism;

    • 7) The requirements for recruiting, training, and professional development of the staff of internal compliance unit or other employees charged with functions stipulated by this Law, with regard to the legislation on combating money laundering and terrorism financing, to other legal acts (especially in respect of the obligations of customer due diligence and of reporting suspicious business relationships or transactions), as well as with regard to the present risks and typologies of money laundering and terrorism financing;

    • 8) The criteria for recognizing a business relationship or transaction as suspicious;

    • 9) The internal procedure for reporting to the Authorized Body;

    • 10) The internal procedures for ensuring compliance with other requirements established by this Law and the normative legal acts of the Authorized Body.

  • 2. Reporting entities shall provide a copy of each internal legal act specified in Part 1 of this Article to the Authorized Body within one week after their approval, as well as after making amendments and changes to them. By the request of the Authorized Body, reporting entities shall be obligated to make the respective changes and amendments to their internal legal acts.

ARTICLE 22: INTERNAL COMPLIANCE UNIT OF REPORTING ENTITIES

  • 1. Reporting entities shall be obligated to have in place an internal compliance unit or an employee dealing with prevention of money laundering and terrorism financing, or assign this function to respective persons engaged in such professional activities (hereinafter: the internal compliance unit).

  • 2. The staff of the internal compliance unit shall pass qualification in the manner and based on the professional relevance criteria established by the Authorized Body.

  • 3. The internal compliance unit shall ensure the submission of reports to the Authorized Body by the reporting entity in the manner established by this Law, as well as the performance of the reporting entity of other duties established by this Law.

  • 4. In the manner and at the frequency established by the internal legal acts of the reporting entity, but no less than once in every six months, the internal compliance unit shall review the compliance of transactions (business relationships) carried out by the reporting entity, as well as of actions of the structural and territorial divisions and employees with this Law, with other normative legal acts adopted on basis of this Law, and with the internal legal acts. The internal compliance unit shall report to the supreme management body of the reporting entity (for banks - to the board) about the findings of the review and about other issues raised by the Authorized Body.

  • 5. When performing the functions stipulated by this Law and the normative legal acts adopted on basis of this Law, the internal compliance unit shall be independent and should have a status of senior management of the reporting entity. The internal compliance unit shall be entitled to report directly to its supreme management (for banks - to the board) about the problems occurred by the reporting entity in preventing money laundering and terrorism financing.

ARTICLE 23: CONDUCTING AUDIT BY REPORTING ENTITIES

Reporting entities should conduct internal audit in cases and at the frequency established by the normative legal acts of the Authorized Body in order to check the proper performance of the duties stipulated by this Law.

  • 1. In the manner established by the Authorized Body, upon the request of the Authorized Body or by their own initiative, reporting entities shall order external audit to check the extent of implementation and effectiveness of legislation on combating money laundering and terrorism financing.

CHAPTER 7 SUSPENSION, REJECTION OF SUSPICIOUS BUSINESS RELATIONSHIPS OR TRANSACTIONS AND FREEZING OF PROCEEDS LINKED TO TERRORISM

ARTICLE 24: SUSPENSION, REJECTION OF SUSPICIOUS BUSINESS RELATIONSHIP OR TRANSACTION

  • 1. Financial institutions shall be entitled to suspend a business relationship or transaction for a period of up to 5 days, if there are any suspicions of money laundering, and shall be obligated to suspend for 5 days the business relationship or transaction in cases stipulated by Part 1 (8) of Article 10 of this Law or if there are any suspicions of terrorism financing, promptly filing a report on the suspicious transaction (business relationship) to the Authorized Body as specified in Articles 5-7 of this Law.

  • 2. A business relationship or transaction may be suspended for a period of up to 5 days upon the decision of the Authorized Body, based on the analysis of the reports filed to the Authorized Body, and (or) of information presented by supervisory bodies, and (or) of other information. The financial institution should promptly enforce the decision of the Authorized Body on suspending a transaction or business relationship upon its receipt.

  • 3. Within 5 days after receiving the notification from the financial institution about suspension of a transaction or business relationship, or after suspension of a transaction or business relationship by the Authorized Body, the Authorized Body shall decide on sending a statement to criminal investigation authorities in cases stipulated by Article 13 of this Law, or on prolonging the suspension for 5 days (in exceptional cases, for 10 days) in order to determine the grounds for sending a statement to criminal investigation authorities, or on revoking the decision on suspension. In case of failure to provide the decision of the Authorized Body to the financial institution within the timeframe specified in this Part, the decision on suspension shall be recognized as revoked.

  • 4. The decision of a financial institution or the Authorized Body on suspending a business relationship or transaction may be revoked prior to the completion of the suspension term only by the Authorized Body upon its own initiative or upon the request of the financial institution, if it has been determined that the suspicion of money laundering or terrorism financing is unjustified.

  • 5. Reporting entities shall be obligated to reject carrying out a business relationship or transaction, that is to refrain from endorsing or carrying not a business relationship or from concluding a transaction, or to terminate execution of a business relationship or transaction based on the decision of the Authorized Body or if they are unable to perform customer identification as a result of the actions undertaken pursuant to Article 15 of this Law, except for the cases prescribed by Part 1 of Article 15.

  • 6. In case of rejecting to carry out a business relationship or transaction, reporting entities should consider the relevance of filing a suspicious transaction report to the Authorized Body as stipulated by Article 6 of this Law.

  • 7. In the presence of any suspicions of money laundering, non-financial institutions may reject carrying out a business relationship or transaction, whereas in cases provided for by Part 8 (1) of Article 10 of this Law or in the presence of any suspicions of terrorism financing they shall be obligated to reject carrying out a business relationship or transaction and promptly file a suspicious transaction (business relationship) report to the Authorized Body as stipulated by Article 6 of this Law.

ARTICLE 25: FREEZING OF FUNDS OF PERSONS LINKED TO TERRORISM

  • 1. With the view of adhering to the resolutions of the UN Security Council and international treaties of the Republic of Armenia, the Authorized Body shall release the lists of the persons linked to terrorism and ensure immediate freezing of funds of the persons included in such lists, as well as of other persons linked to terrorism financing.

  • 2. In the context of this Law and of Article 217.1 of the Criminal Code of the Republic of Armenia, the organizations included in the lists of the persons linked to terrorism shall be deemed as terrorist organizations.

  • 3. The decision on freezing the funds of the persons linked to terrorism shall be taken by the reporting entity or the Authorized Body for a period of 5 days. Where the decision on freezing is taken by the reporting entity, a suspicious transaction (business relationship) report shall be promptly filed to the Authorized Body as stipulated by Articles 5-7 of this Law.

  • 4. The decision on freezing funds taken by the reporting entity may be revoked prior to the completion of its term only by the Authorized Body upon its own initiative or upon the request of the reporting entity.

  • 5. Within 5 days after receiving the notification about freezing, the Authorized Body shall decide on sending a statement to criminal investigation authorities in cases stipulated by Article 13 of this Law, or on revoking the decision on freezing. In case of the Authorized Body’s failure to take a decision within the specified timeframe, the decision on freezing shall be recognized as revoked.

  • 6. The term of freezing shall be deemed as prolonged for 10 days upon the receipt of the statement by criminal investigation authorities, and shall be deemed as revoked upon the completion of the prolonged term of freezing, if no actions have been taken to maintain the freezing in the manner established by law.

  • 7. A person shall be entitled to judicially claim from the Authorized Body that payments are made at the cost of his/ her frozen funds for his/her family, medical and other personal needs. A court decision on making such payments shall be issued in the manner established by the resolutions of the UN Security Council, if the name of the given person is included in the lists defined by the UN.

CHAPTER 8 SUPERVISION OF COMPLIANCE WITH REQUIREMENTS OF THIS LAW AND SANCTIONS IMPOSED FOR INFRINGING THE LEGISLATION

ARTICLE 26: SUPERVISION OF REPORTING ENTITIES AND NON-COMMERCIAL ORGANIZATIONS

  • 1. The supervision of the compliance of reporting entities with the requirements of this Law and other legal acts adopted on basis of this Law shall be exercised by supervisory bodies. Upon the request of the Authorized Body, supervisory bodies shall conduct on-site examinations of reporting entities based on the information on money laundering and terrorism financing.

  • 2. In the manner established by the Authorized Body, supervisory bodies shall inform the Authorized Body about the findings of examinations conducted in the field of combating money laundering and terrorism financing, as well as about the imposed sanctions.

  • 3. Upon the request of the Authorized Body, supervisory bodies designated under the legislation regulating the operations of non-commercial organizations shall undertake measures to prevent involvement or misuse of non-commercial organizations in terrorism financing. For this purpose, non-commercial organizations shall be obligated to maintain the following information for at least 5 years:

    • 1) Identification data of members of their management bodies pursuant to Article 15 of this Law;

    • 2) Foundation documents and decisions of management bodies;

    • 3) Documents related to financial-economic operations.

  • 4. The Authorized Body and, in cases stipulated by law, also other bodies may request information related to money laundering and terrorism financing from non-commercial organizations and from their supervisory bodies.

ARTICLE 27: RESPONSIBILITY FOR INFRINGING THIS LAW AND LEGAL ACTS ADOPTED ON BASIS OF THIS LAW

  • 1. Reporting entities or their employees (managers) may not be subject to criminal, administrative, civil or other responsibility for duly performing their duties stipulated by this Law.

  • 2. Infringement of the requirements of this Law and legal acts adopted on basis of this Law by financial institutions shall give rise to imposition of a sanction under the legislation regulating their activity, in the manner established by that legislation.

  • 3. Infringement of the requirements of this Law and legal acts adopted on basis of this Law by non-financial institutions, which are legal persons, shall give rise to imposition of the following sanctions:

    • 1) Failure to submit or late submission of the reports specified in Part 1 (1 and 2) of Article 5 of this Law, as well as entering inaccurate (including false or unreliable) data or incomplete completion of the reports specified in Paragraphs (a) - (c), making structural changes in the established format of the report shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 500-fold amount of the minimal salary;

    • 2) Failure to submit or late submission of the reports specified in Part 1 (3) of Article 5 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 1000-fold amount of the minimal salary;

    • 3) Failure to perform the duty specified in Part 3 of Article 5 of this Law shall give rise to imposition of a sanction in the form of a warning and (or) a penalty at 800-fold amount of the minimal salary;

    • 4) Failure to perform or improper performance of the duty specified in Part 1 (4 and 6) of Article 10 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 500-fold amount of the minimal salary;

    • 5) Failure to perform or improper performance of the duty specified in Article 15 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 800-fold amount of the minimal salary;

    • 6) Failure to perform or improper performance of the duty specified in Article 16 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 800-fold amount of the minimal salary;

    • 7) Failure to perform or improper performance of the duty specified in Article 19 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 800-fold amount of the minimal salary;

    • 8) Failure to perform or improper performance of the duty specified in Article 20 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 600-fold amount of the minimal salary;

    • 9) Failure to perform or improper performance of the duty specified in Article 21 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 200-fold amount of the minimal salary;

    • 10) Failure to perform or improper performance of the duty specified in Article 22 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 800-fold amount of the minimal salary;

    • 11) Failure to perform or improper performance of the duty specified in Article 23 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 500-fold amount of the minimal salary;

    • 12) Failure to perform or improper performance of duty specified in Article 24 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 700-fold amount of the minimal salary;

    • 13) Failure to perform or improper performance of the duty specified in Article 25 of this Law shall give rise to imposition of a sanction in the form of a warning and instruction to eliminate the violation and (or) a penalty at 2000-fold amount of the minimal salary.

  • 4. Infringement of the requirements of this Law and legal acts adopted on basis of this Law by non-financial institutions or individuals with a status of a natural person shall give rise to responsibility stipulated by the Code of Administrative Violations of the Republic of Armenia.

  • 5. Sanctions shall be imposed in the manner established by the Code of Administrative Violations of the Republic of Armenia on non-financial institutions or individuals by their supervisory body, which licenses (appoints) them, as long as it does not contradict the requirements of this Law.

  • 6. Sanctions shall be imposed in the manner established by the Code of Administrative Legal Violations of the Republic of Armenia on non-financial institutions or individuals by the Authorized Body, if such institutions or individuals are not licensed (appointed) by any supervisory body, as long as it does not contradict the requirements of this Law.

  • 7. Unlawful disclosure by employees of the Authorized Body of confidential information submitted to the Authorized Body pursuant this Law and legal acts adopted on basis of this Law, as well as unlawful disclosure of information constituting commercial or official secrecy shall give rise to responsibility established by law.

  • 8. Infringement of the requirements of this Law and legal acts adopted on basis of this Law by government officials shall give rise to responsibility established by the Code of Administrative Legal Violations of the Republic of Armenia.

ARTICLE 28: SANCTIONS APPLIED TO LEGAL PERSONS FOR INVOLVEMENT IN MONEY LAUNDERING AND TERRORISM FINANCING

  • 1. Involvement of a legal person (except for reporting entities) in money laundering shall give rise to imposition of penalty at the value of the received assets of crime as specified in Part 4, Article 55 of the Criminal Code of the Republic of Armenia, but not less than 2000-fold amount of the minimal salary, as well as an action may be filed to the court requesting liquidation of the legal person in the manner established by law.

  • 2. Involvement of a legal person, which is a reporting entity, in money laundering shall give rise to imposition of penalty at the value of the received assets of crime as specified in Part 4, Article 55 of the Criminal Code of the Republic of Armenia, but not less than 5000-fold amount of the minimal salary, as well as the license of such person may be revoked or suspended or terminated, or otherwise the activity of the reporting entity may be banned in the manner established by law.

  • 3. Involvement of a legal persons (except for reporting entities) in terrorism financing shall give rise to imposition of penalty at the value of the assets used for financing terrorism as specified in Part 5, Article 55 of the Criminal Code of the Republic of Armenia, but not less than 10000-fold amount of the minimal salary, as well as an action shall be filed to the court requesting liquidation of the legal person in the manner established by law.

  • 4. Involvement of a legal person, which is a reporting entity, in terrorism financing shall give rise to imposition of penalty at the value of the assets used for financing terrorism as specified in Part 5, Article 55 of the Criminal Code of the Republic of Armenia, but not less than 20000-fold amount of the minimal salary, as well as the license of such person shall be revoked, or otherwise the activity of the reporting entity shall be banned in the manner established by law.

  • 5. The sanctions stipulated by this Article shall be imposed on financial institutions by the Authorized Body in the manner established by the legislation regulating the activities of financial institutions.

  • 6. The sanctions stipulated by this Article for non-financial institutions or individuals and for legal persons shall be imposed by the respective supervisory body and, in the absence of such body, by the Authorized Body in the manner established by the Code of Administrative Violations, as long as it does not contradict the requirements of this Law.

CHAPTER 9 TRANSITIONAL PROVISIONS

ARTICLE 29: ENTERING INTO FORCE

  • 1. This Law shall enter into force from the 60th day of its official promulgation.

  • 2. With regard to independent lawyers and firms providing legal services, independent accountants and accounting firms, dealers in precious metals, dealers in precious stones, dealers in artworks, organizers of auctions, and trust and company service providers, the obligation to submit reports stipulated by Part 1 (1 and 2) of Article 5 of this Law shall rise only after establishing the requirements for their licensing (appointment, qualification, or otherwise permission and supervision of activities) in the manner established by law.

  • 3. The Republic of Armenia Law on Combating the Legalization of Proceeds of Crime and Terrorism Financing, dated December 14, 2004 shall be annulled upon this Law’s entry into force.

REPUBLIC OF ARMENIA CRIMINAL CODE

General Part Section 1. Criminal legislation

Chapter 1. Principles and objectives of criminal legislation

Article 1. Criminal legislation of the Republic of Armenia

The Criminal legislation of the Republic of Armenia consists of this Code. New laws which envisage criminal liability are incorporated into the Criminal Code of the Republic of Armenia.

2. The Criminal Code is based on the Constitution of the Republic of Armenia and international principles and norms.

Article 2. The objectives of the Criminal Code

1. The objectives of the Criminal Code are as follows: to protect the rights and the freedom of the human and citizens from criminal infringements, the rights of legal entities, property, the environment, public order and security, constitutional order, as well as to prevent the crime.

2. To implement these objectives, the Criminal Code stipulates the grounds for criminal liability and the principles of criminal legislation, and determines which dangerous acts are considered as criminal offences for the society and establishes the types of punishment and other penal and legal measures for committing these acts.

Article 3. The grounds for criminal liability

The only ground for the criminal liability is crime, i.e., committing an act which incorporates all elements of crime, envisaged by the criminal law.

Article 4. Principles of criminal legislation

The Criminal Code of the Republic of Armenia is based on the principles of legitimacy, equality before the law, inevitable liability, personal liability, liability in accordance with the offence, personalized liability, and the principles of humanism

Article 5. Principle of legitimacy

1. The criminal essence of the deed and the liability to the punishment, as well as other criminal and legal consequences are decided solely by the criminal law.

2. The application of criminal law by analogy is prohibited.

Article 6. Principle of equality before the law

The persons who committed a crime are equal before the law and are subject to criminal liability regardless of sex, race, color, language, religion, political or other beliefs, national or social origin, ethnic minority identity, birth, property, or other statuses.

Article 7. Principle of inevitability of liability

11. Each person who committed a crime is subject to the punishment envisaged by the Criminal law of RA or other legal and penal measures.

2. Exemption from criminal liability and punishment is possible only in the event of the grounds and conditions envisaged in the Criminal Code.

Article 8. Principle of personal liability

The individual is subject to criminal liability only for the offence committed personally.

Article 9. Principle of liability in accordance with the offence

1. The person is subject to criminal liability only for the socially dangerous action or inaction and its socially dangerous consequences, of which he was found guilty by a competent court.

2. Objective incrimination, i.e., criminal liability for infliction of damage without guilt, is prohibited.

Article 10. Principle of individuality of justice and liability

1. The punishment and other legal and penal measures applied to the person who committed an offence must be fair, appropriate to the gravity of the crime, to the circumstances in which it was committed, to the personality of the criminal; they must be necessary and sufficient to correct the criminal and to prevent new offences.

2. The repeated conviction of the person for the committal of the same crime is prohibited.

Article 11. Humanitarian principle

1. The Criminal Code serves to provide the physical, mental, financial, ecological, etc.security of man.

2. No one shall be subjected to torture or cruel, inhuman or humiliating treatment or punishment.

Chapter 2. Operation of the criminal law in time and space

Article 12. Operation of the criminal law in time

1. Each person who committed a crime is subject to the punishment envisaged by the Criminal law of RA or other legal and penal measures.

2. Exemption from criminal liability and punishment is possible only in the event of the grounds and conditions envisaged in the Criminal Code.

Article 13. Retroactive effect of criminal law

1. The law eliminating the criminality of the act, mitigating the punishment or improving the status of the criminal in any way, has retroactive effect, i.e., this law is extended to the persons who committed this act before this law had taken effect, including those persons who are serving the punishment or served the punishment, but have a record of conviction.

2. The law stipulating the criminality of the act, making the punishment more severe or worsening the status of the criminal in any other way, has no retroactive effect.

3. The law partially mitigating the punishment and, in the meantime, partially making the punishment more severe has retroactive effect only in respect to the part which mitigates the punishment.

Article 14. The effect of the criminal law with regard to persons who committed crime in the territory of the Republic of Armenia

1. The person who committed a crime in the territory of the Republic of Armenia is subject to liability under the Criminal Code of the Republic of Armenia.

2. The crime is considered committed in the territory of the Republic of Armenia when:

  • 1) it started, continued or finished in the territory of the Republic of Armenia;

  • 2) it was committed in complicity with the persons who committed crimes in other countries.

3. In case of crimes committed in the territory of the Republic of Armenia and other states, the person’s liability arises under the Criminal Code of the Republic of Armenia, if the person was subjected to criminal liability in the territory of the Republic of Armenia and unless an international treaty of the Republic of Armenia prescribes otherwise.

4. The person who committed a crime on board of a ship or flying aircraft bearing the flag or the identification of the Republic of Armenia is subject to criminal liability, regardless of their whereabouts, under the Criminal Code of the Republic of Armenia, unless otherwise stipulated in an international treaty of the Republic of Armenia. Also subject to liability under the Criminal Code of the Republic of Armenia, is the person who committed a crime on board of a military ship or aircraft of the Republic of Armenia, regardless of their location

5. The issue of the criminal liability of foreign diplomatic representatives and other persons enjoying diplomatic immunity, in the case of committal of crime by the latter in the territory of the Republic of Armenia, is resolved in accordance with the norms of international law.

Article 15. Effect of criminal law with regard to persons who committed crimes outside the territory of the Republic of Armenia

1. The citizens of the Republic of Armenia who committed crime outside the territory of the Republic of Armenia, as well as stateless persons permanently residing in the Republic of Armenia, are subject to criminal liability under the Criminal Code of the Republic of Armenia, if the act committed by them is recognized as a crime in the legislation of the state where the crime was committed, and if they were not convicted in another state. When convicting the above mentioned persons, the punishment cannot exceed the upper limit for punishment in the state where the crime was committed.

2. The citizens of the Republic of Armenia who committed crime outside the territory of the Republic of Armenia, as well as stateless persons permanently residing in the Republic of Armenia, are subject to criminal liability under Articles 384, 386-391, 393-397 of this Criminal Code, regardless whether the act is considered or not considered a crime in the state where the crime was committed.

3. Foreign citizens and stateless persons not permanently residing in the Republic of Armenia, who committed a crime outside the territory of the Republic of Armenia, are subject to criminal liability under the Criminal Code of the Republic of Armenia, if they committed:

  • 1) such crimes which are provided in an international treaty of the Republic of Armenia;

  • 2) such grave and particularly grave crimes which are directed against the interests of the Republic of Armenia or the rights and freedoms of the RA citizens.

4. The rules established in part 3 of this Article are applicable if the foreign citizens and stateless persons not permanently residing in the Republic of Armenia, have not been convicted for this crime in another state and are subjected to criminal liability in the territory of the Republic of Armenia.

Article 16. Extradition of persons who committed a crime

1. The citizens of the Republic of Armenia who committed a crime in another state are not extradited to that state.

2. In accordance with an international treaty of the Republic of Armenia, the foreign citizens and the stateless persons who committed a crime outside the territory of the Republic of Armenia and who find themselves in the Republic of Armenia, can be extradited to a foreign state, for criminal liability or to serve the punishment.

3. The persons specified in part 2 of this Article are not extradited to foreign states if there are serious reasons to believe that they can be subjected to torture there.

4. If the legislation of the country seeking extradition of persons who committed a crime envisages death penalty for the given crime, then the extradition of persons who committed a crime can be turned down, unless the party seeking extradition presents satisfying assurances to this country that the death penalty will not be executed.

5. In case of refusal to extradite the person who committed a crime, the prosecution for the crime committed in the territory of a foreign country is done in accordance with the legislation of the Republic of Armenia.

Article 17. Legal significance of a person’s conviction outside the RA

1. The court ruling in a foreign country can be taken into account, provided the RA citizen, foreign citizen or a stateless person was convicted for a crime committed outside the RA, and committed a repeated crime in the RA.

2. In accordance with part 1 of this article, recidivism, unserved punishment or other legal consequences of a foreign court ruling are taken into account when qualifying the new crime, assigning punishment, and exempting from criminal liability or punishment.

Section 2. Crime.

Chapter 3. The notion and types of crime

Article 18. The notion of crime

1. The willful committal of a socially dangerous act envisaged in this Code is considered a crime.

2. The act or inaction which may formally contain the features of an act envisaged in this Code, but which, however, does not present public danger because of its little significance, i.e. it did not cause or could not have caused significant damage to an individual or a legal entity, to the society or the state, is not considered a crime.

Article 19. Types of crime

1. Crimes are categorized, by nature and degree of social danger, as not very grave, medium gravity, grave and particularly grave.

2. The willful acts, for the committal of which this Code envisages maximal imprisonment of two years, or for which a punishment not related to imprisonment is envisaged, as well as acts committed through negligence, for which this Code envisages a punishment not exceeding three years of imprisonment, are considered not very grave crimes.

3. Medium-gravity crimes are those willful acts for which this Code envisages a maximal punishment not exceeding five years of imprisonment, and the acts committed through negligence, for which this Code envisages a maximal punishment not exceeding ten years of imprisonment.

4. Grave crimes are those willful acts for which this Code envisages a maximal punishment not exceeding ten years of imprisonment.

5. Particularly grave crimes are those willful acts for which this Code envisages a maximal imprisonment for more than ten years or for life.

Article 20. Aggregate of crimes

1. The following is considered an aggregate of crimes:

  • 1) committal of two or more crimes stipulated by different articles or different sections of the same article of this Code, for none of which the person has been convicted;

  • 2) a single act (inaction) which incorporates the features of crimes envisaged in two or more articles of this Code.

2. In case of aggregate of crimes, the person is liable for each crime, under the relevant article of this Code, or part of the article.

Article 21. Repeated crime

1. The committal of two or more offenses under the same article of the Special Part of this Code or part of the article is considered repeated crimes.

2. The repeatedness envisaged in part 1 of this Article is absent in the on-going crime which consists of two or more acts united by one general criminal intent.

3. The committal of a crime envisaged by two or more articles of this Code is considered repeated only for cases specified in the Special Part of this Code.

4. There is no repeatedness if the person was legally exempted from criminal liability for a past crime or the record of conviction for this crime was expunged.

Article 22. Recidivism

1. The committal of a willful crime by the person who had a criminal record in the past for a willful crime, is considered recidivism.

2. Recidivism is considered dangerous:

  • 1) in the case of a willfully committed crime, if the person had been previously sentenced to imprisonment for willful crime no less than twice;

  • 2) in the case of committal of a grave crime, if the person had been previously sentenced to imprisonment for the committal of a grave or particularly grave crime.

3. Repeated crime is considered particularly dangerous:

  • 1) in the case of committal of such a crime for which he is sentenced to imprisonment, if, in the past, the person had been sentenced to imprisonment no less than thrice, in any sequence, for willful medium-gravity crimes, for grave or particularly grave crimes;

  • 2) in the case of committal of a grave crime for which he is sentenced to imprisonment, if in the past the person had been sentenced to imprisonment twice for grave or particularly grave crimes.

  • 3) in the case of committal of a particularly grave crime by the person, if in the past the person had been convicted for a grave or particularly grave crime.

4. The crime for which the criminal record has been quashed by procedure established in this Code, as well as the crime committed before the age of 18, is not taken into account when determining recidivism.

Chapter 4. Persons subject to criminal liability

Article 23. General conditions of criminal liability

Only a sane physical person who at the time of crime committal has reached the age established in this Code is subject to criminal liability.

Article 24. The age at which a person is subject to criminal liability

1. The person who reached the age of 16 before the committal of the crime is subject to criminal liability.

2. The persons who reached the age of 14 before the committal of the crime are subject to criminal liability for murder (Articles 104-109), for inflicting willful severe or medium damage to health (Articles 112-116), for kidnapping people (Article 131), for rape (Article 138), for violent sexual actions (Article 139), for banditry (Article 179), for theft (Article 177), for robbery (Article 176), for extortion (Article 182), getting hold of a car or other means of transportation without the intention of appropriation (Article 183), for destruction or damage of property in aggravating circumstances (Article 185, parts 2 and 3), for theft or extortion of weapons, ammunition or explosives (Article 238), for theft or extortion of narcotic drugs or psychotropic substances (Article 269), for damaging the means of transportation or communication lines (Article 246), for hooliganism (Article 258).

3. If the person has reached the age envisaged in parts 1 or 2 of this Article, but due to retarded mental development was not able to understand the nature and significance of one’s actions or to control one’s actions, then he is not subject to criminal liability.

Article 25. Insanity

1. The person who was in the state of insanity when committing a socially dangerous crime is not liable to criminal liability, i.e., the person could not understand the dangerous nature of one’s actions (inaction) or control one’s actions as a result of chronic mental illness, temporary mental disorder, mental retardation or other mental disease.

2. Forced medical measures can be imposed by the court with respect to the person who committed socially dangerous actions in an insane state.

3. Also not subject to punishment, is the person who committed a crime in the state of insanity, however, had fallen mentally ill before sentencing by the court, which deprived him of the capability of understanding the actual nature and significance of his actions (inaction) or controlling them. Forced medical measures can be imposed by the court with respect to such a person, and after recovery this person can be subjected to punishment.

Article 26. Limited sanity

1. A sane person who, due to mental disorder, when committing the crime could not entirely understand the actual nature of one’s action (inaction) and its social danger, or control one’s actions, is subject to criminal liability.

2. Limited sanity is taken into account as a mitigating circumstance when imposing the punishment and can become the ground for the enforcement of medical measures, parallel to the punishment.

Article 27. Criminal liability of persons who committed crime in the state of intoxication

1. The person who committed a crime as a result of alcoholic, narcotic or other intoxication is not exempted from criminal liability.

2. When sentencing an alcoholic, a drug or poison addict, the court can also impose forced medical treatment, provided there is danger of the committal of a new crime due to this addiction.

Chapter 5 Guilt

Article 28. Types of guilt

1. The guilt is manifested willfully or through negligence.

2. An action committed through negligence is a crime if it is particularly envisaged in the Special Part of this Code.

Article 29. Committal of willful crime

1. A willful crime can be manifested in direct or indirect willfulness.

2. A crime is considered directly willful if the person understood the danger of his action (inaction) for the society, had foreseen the dangerous consequences for the society and desired the emergence of these consequences.

3. A crime is considered indirectly willful if the person understood the danger of his action (inaction) for the society, had foreseen the dangerous consequences for the society, did not desire the emergence of these consequences but knowingly allowed them to take place.

4. If the law does not link the criminal liability for the accomplished criminal act to the emergence of certain consequences, the crime is considered willfully committed, if the person who committed it understood the danger of his actions for the society and was willing to commit it.

5. For the aggravating circumstances of the willful crime, the person is subject to criminal liability, if the latter understood these circumstances.

Article 30. Committal of negligent crime

1. A crime committed through negligence can be manifested through self-confidence or carelessness.

2. A crime is considered committed through self-confidence, if the person had foreseen the possible dangerous nature of one’s action (inaction) for the society, but without sufficient grounds self-confidently hoped that these consequences will be prevented.

3. A crime is considered committed through carelessness, if the person had not foreseen the possible dangerous nature of one’s action (inaction) for the society, although in the given circumstances he was obliged and was able to foresee them.

Article 31. Inflicting damage without guilt

1. An act is considered to have been committed without guilt, if the person did not understand and, in the given circumstances, could not understand the social danger of one’s actions (inaction) or did not foresee the possible socially dangerous consequences thereof, and in the given circumstances was not obliged and could not foresee them.

2. Also, an act is considered to have been committed without guilt, if the person had foreseen the possible socially dangerous consequences of one’s action (inaction), did not wish the emergence thereof, but due to the incompatibility of one’s psychological and physiological properties with the extreme conditions or nervous and mental load, failed to prevent the emergence of these consequences.

Article 32. Liability for crimes with two types of guilt

If the law envisages a more strict liability for a willful crime which caused severe consequences through negligence, then the person is liable for these consequences only when one had foreseen the possible social danger of one’s action (inaction), however, without good reason, self-confidently hoped that these consequences will be prevented, or had not foreseen the possible consequences of his socially dangerous action (inaction), although in the given circumstances one was obliged to and could foresee them. Such a crime must be considered willfully committed.

Chapter 6. Completed and unfinished crime

Article 33. Completed and unfinished crime

1. A crime is considered completed, if the action incorporates all the elements of crime envisaged in this Code.

2. Attempts to commit a crime and the preparation for grave and particularly grave crimes are considered an unfinished crime.

3. The liability for attempts to commit a crime and the preparation for crime is under the same article of the Special Part of this Code as for complete crimes, referring to Articles 34 or 35 of this Code.

Article 34. Attempt to commit a crime

Attempt at a crime is the action (inaction) committed through direct willfulness immediately aimed at the committal of crime, if the crime was not finished for reasons beyond the person’s control.

Article 35. Preparation of crime

Preparation of a crime is the procurement of means or tools or their adaptation for committal of a direct willful crime, as well as willful creation of other conditions for committal of crime, if the crime was not finished for reasons beyond the person’s control.

Article 36. Voluntary refusal from a crime

1. Voluntary refusal is the termination by the person of preparation or termination of action (inaction) directly aimed at the committal of crime, when the person realized the possibility of completion of the crime.

2. The person who refused to complete the crime is not subject to criminal liability, unless his actually committed act contains other elements of crime.

3. If the organizer of the crime, the abettor or helper refuses voluntarily, they are not subject to criminal liability, provided this person informed the state bodies or through other means and prevented the completion of the crime by the perpetrator.

4. If the actions mentioned in part 3 of this Article did not prevent the committal of the crime by the perpetrator, then, when sentencing, these actions can serve as circumstances mitigating the liability and the sentence.

Chapter 7 Complicity

Article 37. The notion of complicity

Willful joint participation of two or more persons in a willful crime is considered complicity.

Article 38. Types of accomplices

1. The organizer, the abettor and the helper are considered the accomplices to the perpetrator.

2. The perpetrator is the person who immediately committed the crime or immediately participated in its committal with other persons (accomplices), as well as the one who committed the crime through the use of persons not subject to a criminal liability lawfully or the persons who committed a crime through negligence.

3. The organizer is the person who arranged or directed the committal of the crime, as well as, the one who created, organized or directed a group or a criminal association for committal of the crime.

4. The abettor is the person who abetted another person for the committal of a crime through persuasion, financial incentive, threat or other means.

5. The helper is the person who assisted to the crime through pieces of advice, instructions, information or provided means, tools, or eliminated obstacles, as well as, the person who had previously promised to harbor the criminal, to hide the means and tools of a crime, the traces of the crime or the items acquired through crime, as well as, also, the person who had previously promised to acquire or sell such items.

Article 39. The liability of accomplices

1. The co-perpetrators are subject to liability for the crime under the same article of the Special Part of this Code.

2. The organizer, the abettor and the perpetrator are subject to liability under the article which envisages the committed crime, referring to Article 38 of this Code, except for those cases when they were at the same time the co-perpetrators of the crime.

3. The person who is not a special subject of the crime in the article of the Special Part of this Code, who participated in the committal of the crime envisaged in this Article, can be liable for this crime only as an organizer, an abettor or helper.

4. In the case when the crime was not completed for reasons beyond control of the perpetrator, the other accomplices are liable for the preparation of the crime or for complicity in the attempt at the crime.

5. If the organizer, the abettor or the helper fail in their actions for reasons beyond their control, then these persons are liable for the preparation of the respective crime.

6. The accomplices are subject to liability only for those aggravating circumstances of the crime of which they were aware.

7. When subjecting the accomplices to liability, the nature and the degree of participation of each of them in the crime are taken into account.

(Article 38 amended 09.06 04 HO- 97-N law)

Article 40. Excess of performer

1. Excess of performer is committal of such a crime by a person that exceeds the willfulness of other accomplices.

2. Other accomplices are not liable for the excess of performer.

Article 41. Committal of crime by a group of individuals, by an organized group or by an organized crime

1. A crime is considered committed by a group of individuals without prior agreement, if the co-perpetrators who participated in the crime did not previously agree to commit the crime jointly.

2. A crime is considered committed by a group of individuals with prior agreement, if the co-perpetrators who participated in the crime, prior to the commencement of the crime, agreed to commit the crime jointly.

3. A crime is considered committed by an organized group, if it was committed by a stable group of persons who previously united to commit one or more crimes.

4. A crime is considered committed by an organized crime, if it was committed by an organized and consolidated group created to commit grave or particularly grave crimes, or by uniting to an organized group for the same purposes, as well as if it was committed by a member (members) of the organized crime to achieve its criminal purposes, as well as, committal of a crime by a person instructed by and not considered a member of the organized crime,

5. The person who created or directed an organized group, an organized crime, is subject to liability in cases envisaged in the appropriate articles of this Code: for the creation or direction of an organized group or an organized crime, as well as, for all crimes committed by them, if they were involved by his willfulness. Other persons involved in the organized crime are subject to liability for participation in this organization and for those crimes which they committed or prepared.

6. The persons mentioned in this Article incur liability without referral to Article 38 of the Special Part of this Code.

Chapter 8 Circumstances excluding the criminality of the act

Article 42. Necessary defense

1. The action committed in the state of necessary defense, is not considered a crime, i.e., when defending the life, health and the rights of the defender or other person, or defending the state interests from socially dangerous inclination, or from a real threat thereof, defending oneself by inflicting damage to the perpetrator of the inclination, provided the necessary defense was not exceeded.

2. When defending a person’s life from dangerous violence or real threat thereof, any damage can be inflicted, including death.

3. The person is entitled to the rights of necessary defense, regardless of the possibility to avoid the inclination or to appeal to other persons or state bodies, as well as, regardless of the person’s special training or official position.

4. Deliberate actions which obviously are inadequate with the nature and extent of the danger of the inclination for the self-defender are considered acts of excessive defense.

5. Use of weapon or any other means or objects for the purpose of defense from assault of an armed person or assault of a group of persons, as well as for the purpose of prevention of illegal and forced intrusion into an apartment or other building, is not considered an act of excessive defense, irrespective of the degree of damage incurred by the offender.

Article 43. Inflicting damage when capturing the perpetrator

1. The actions whereby damage was inflicted to the perpetrator when capturing him, in order to hand him over to the authorized bodies or to prevent him from committing new socially dangerous actions, are not considered a crime, provided the necessary measures have not been exceeded.

2. The measures necessary to capture the perpetrator are considered excessive, if there is an obvious imbalance between the capturing measures and the danger of the action and the perpetrator, as well as, the circumstances of capture, as a result of which damage which was not determined by the necessity of capturing was willfully inflicted on the person.

3. The act of excessive damage inflicted when capturing the perpetrator is a crime, if this is particularly envisaged in the Special Part of this Code.

4. Except for specially authorized parsons, the aggrieved person and other citizens also are entitled to capture the perpetrator of the crime.

Article 44. Urgent necessity

1. Inflicting damage to the interests protected by the criminal law in the state of urgent necessity, is not considered a crime, i.e., to eliminate the imminent danger to the life, health, rights and legal interests of the given person or persons, to the interests of the society or the state, if this danger could not be eliminated by other means and no limits of urgent necessity have been exceeded.

2. Willfully inflicted damage obviously disproportionate to the imminent danger, its degree and the considerations of elimination of the danger, when the legally protected interests suffered equal or greater damage compared to the prevented damage, is considered exceeding of urgent necessity.

Article 45. Physical or psychiatric enforcement

1. Inflicting damage to the interests protected by the criminal law by means of physical or psychiatric enforcement, is not considered a crime, if as a result of this enforcement the person could not control his actions (inaction).

2. The issue of criminal liability, when damage is inflicted to legally protected interests by means of physical or psychiatric enforcement, which do not deprive the person of the capability of controlling one’s actions, is resolved taking into account the propositions of Article 46 of this Code.

Article 46. Justified risk

1. Inflicting damage to the interests protected by criminal law is not considered a crime, when undertaking justified risk to achieve socially useful goals.

2. Risk is considered justified, if the mentioned goal could not be achieved without an action (or inaction) of risk, and when the risking person takes measures to prevent the danger to the interests protected by criminal law.

3. Risk is considered unjustified, if it obviously involves the death of third persons, or the threat of an ecological or public disaster.

Article 47. Execution of an order or instruction

1. Inflicting damage to the interests protected by criminal law, by the person who acted pursuant to compulsory, appropriately given order or instruction, is not considered a crime. The person who gave such illegal order or instruction is liable for that.

2. The person who committed a willful crime by obviously illegal order or instruction is liable on common grounds.

3. Refusal to execute an obviously illegal order or instruction is an exemption from criminal liability.

Section 3. Punishment

Chapter 9 Notion of punishment, its purposes and types

Article 48. The notion of punishment and its purposes

1. Punishment is a means of state enforcement assigned by court sentence on behalf of the state to the person who has been found guilty of the crime, and is expressed in deprivation or restriction of one’s rights and freedom, as envisaged by the law.

2. The purpose of punishment is applied to restore social justice, to correct the punished person, and to prevent crimes.

Article 49. Types of punishment

The types of punishment are:

  • 1) a fine;

  • 2) extinctions to hold certain posts or practice certain professions;

  • 3) public works;

  • 4) deprivation of special titles or military ranks, categories, degrees or qualification class;

  • 5) forfeit of property;

  • 6) (the 6th point lost the effect as of 01.06.06 HO-119-N law);

  • 7) arrest;

  • 8) service in disciplinary battalion;

  • 9) imprisonment for a certain term;

  • 10) life sentence.

Article 50. Basic and supplementary punishments

1. Public works, public work, arrest, service in disciplinary battalion, imprisonment for a certain term and life sentence are used only as basic punishments.

2. Fines and extinction to hold certain posts or practice certain professions are imposed both as basic and supplementary punishments.

3. Deprivation of special titles or military ranks, categories, degrees or qualification class, as well as confiscation of property is applied only as supplementary punishments.

4. Only one basic punishment can be assigned for one crime. One or more supplementary punishment can be added to the basic punishment in cases envisaged in the Special Part of this Code.

5. Fines, confiscation of property and extinction to hold certain posts or practice certain professions, as a supplementary punishment, can be assigned only in cases envisaged in the Special Part of this Code.

Article 51. Fines

1. A fine is a financial punishment imposed for trivial and average gravity crimes in the cases and within the limits foreseen by the Special Part of this Code, in the amount of 30 to 1000 minimal salaries (hereby minimal salary) as established by the law of the Republic of Armenia at the moment of fining.

2. The court determines the amount of the fine, taking into account the nature and gravity of the crime, as well as, the property status of the convicted person.

3. If the convicted person, due to a personal or financial situation, is incapable of immediately paying the fine in full, the court establishes a payment deadline, up to 1 year, or allows paying the fine on installments within the same period. This privilege is null and void, if the convicted person fails to pay the portions of the mentioned amount on time.

4. In case of impossibility to pay the fine, the court can substitute the fine or an unpaid part thereof with public works counting 5 hours of public works against minimal salary. If the fine or an unpaid part thereof is less than 270 hours, then 270 hours is applied and if it exceeds 2200 hours, then 2200 hours is applied.

(51st Article amended on 01.06.06 HO-119-N law)

Article 52. Deprivation of the right to hold certain posts or practice certain professions

1. Deprivation of the right to hold certain posts is extinction to hold certain positions in state and local self-government bodies, organizations, and the deprivation of practicing certain professions is extinction to hold certain occupations related to the nature of the crime.

2. Prohibition to hold certain posts or practice certain professions, as a basic punishment is established for the term of 2 to 7 years for willful crimes, and from 1 to 5 years, for crimes through negligence, and as a supplementary punishment, from 1 to 3 years.

3. Deprivation of the right to hold certain posts or to practice certain professions can be applied in cases when based on the nature of the crime committed by the offender during the period of his/her holding the post or practicing certain profession, the court does not find it possible to retain his/her right to hold certain posts or to practice certain professions.

4. Deprivation of the right to hold certain posts or to practice certain professions as a supplementary punishment to servicing in disciplinary battalion, arrest or imprisonment for a certain term, the term of the supplementary punishment is extended over the entire period of the basic punishment where the term of the supplementary punishment is counted after completion of the basic punishment. For the rest of the cases the term of the supplementary punishment is counted from the date when the court decision takes effect legally.

Article 53. Deprivation of special titles or military ranks, categories, degrees or qualification class

When convicting a person for the committal of grave or particularly grave crimes, the court, taking into account the features characteristic of the perpetrator, can deprive the latter from special titles or military ranks, categories, degrees or qualification class.

Article 54. Public works

1. Public work is an unpaid, socially useful, work assigned by the court and performed by the convict in the places decided by the authorized entity.

2. Public work can be assigned to persons committed trivial or average gravity crime and imprisoned for the term of maximum 2 years. The duration of assigned public works shall amount from 270 to 2200 hours.

3. Public work is assigned as an alternative punishment to imprisonment within 40 days after receiving an instruction to enforce the decision of the court, in cases of written application submitted by the convict, as well as in cases foreseen in the 4th part of 51th article of this Code. The court shall reject the application if the procedure of submitting the latter has not been followed.

4. Public work is not assigned to first or second degree disabled, persons under 16 at the time of sentencing, pension-age persons, pregnant women and drafted servicemen.

5. In case of ill-faith evasion from performing public work, the court replaces the unperformed part of the public work by arrest or imprisonment of a certain period, at the rate of one day of imprisonment for three hours of public work.

(54th article amended on 09.06.04. HO-97-N; 01.06.06 HO-119-N laws)

Article 55. Confiscation of property

1. Confiscation of property is the compelled and ultimate deprivation of the property or its part found to be owned by the defendant and its conversion into the state’s ownership.

2. The amount of property due to confiscation should be determined by the court, with regard to the damage caused by the offence and the size of criminally obtained property. The size of confiscation cannot exceed the size of the damage caused by the offence and/or the size of illicit proceeds.

3. Confiscation of property can be applied to grave or particularly grave offences committed with mercenary motives in cases stipulated by the Special Part of this Code, except cases defined by parts 4 and 5 of this article.

4. Confiscation is mandatory with regard to illicit property, i.e. the property derived or obtained, directly or indirectly, from legalization of illicit proceeds and commission of offences defined by article 190 of this Code, including income or other benefits from the use of that property, the instruments used or intended for use in the commission of those offences, and, if the illicit property has not been discovered, other property of corresponding value. The property should be confiscated regardless of whether it is owned or held by a defendant or by a third party.

5. Confiscation is mandatory with regard to property linked to terrorist financing, i.e. the property used or intended to be used for financing the actions defined by article 217 of this Code, including income or other benefits from the use of that property, the instruments used or intended for use in the commission of those offences, and, if the property linked to terrorist financing has not been discovered, other property of corresponding value. The property should be confiscated regardless of whether it is owned or held by a defendant or by a third party.

6. Confiscation shall not apply to the property needed by the defendant or his/her dependants, as defined by law, and also to the property of bona fide third parties as defined by parts 4 and 5 of this article.

7. For the purpose of this article, a bona fide third person shall mean a person who, at the moment of transfer of the property to other persons, did not know or could not know that it will be used or is intended to be used for illicit purposes, as well as a person who, at the moment of acquisition of the property, did not know or could not know that it will be used or is intended to be used for illicit purposes.

(55 th Article amended on 28.11.06 HO-206- N law)

Article 56. Correctional labor

(66tharticle has lost its effect on 01.06.06. HO-119- N law)

Article 57. Arrest

1. Arrest is keeping the convict in a correctional institution in custody in strict isolation from the society. Arrest can be applied for trivial and medium gravity crimes in cases envisaged in the Special Part of this Code for the term form15 days to 3 months and only in those cases in which arrest was not selected as a measure of restraint.

2. Persons under 16 years of age at the time of sentencing, pregnant women and persons caring for children less than 8 years of age are not put under arrest.

3. Servicemen serve their arrest in military houses of arrest.

(57th article amended on 01.06.06. HO -119-N law)

Article 58. Keeping in the disciplinary battalion

1. Keeping a conscripted serviceman in the disciplinary battalion, from 3 months to 3 years, can be assigned in cases of trivial and medium gravity crimes envisaged in the Special Part of this Code, as well as in those cases when the court taking into account the circumstances of the case and the personality of the convict, finds it expedient to replace a maximum of three-year imprisonment with the disciplinary battalion for the same term.

2. Replacement of imprisonment with the disciplinary battalion cannot be assigned in relation to persons who had been sentenced to imprisonment in the past.

(58th article amended on 01.06.06. HO-119- N, 28.11.07 HO-275-N laws)

Article 59. Imprisonment for a certain term

1. Imprisonment is isolation from the society in the form of keeping the convict in a correctional institution, in custody.

2. Imprisonment can last from 3 months to 15 years.

3. Imprisonment for a crime through negligence cannot exceed 10 years.

4. When assigning punishment by aggregate of crimes, in case of complete or partial summation of imprisonment terms, the maximal term cannot exceed 15 years, and by aggregate of sentences, 20 years.

Article 60. Life sentence

1. Life sentence is an isolation of the convict in a form of keeping him imprisoned in a corrective institution without time-limit, which in cases envisaged in this Code can be assigned for particularly grave crimes.

2. Persons under 18 years of age at the time of committal of the crime, and women pregnant at the time of committal of the crime or sentencing cannot be sentenced to life sentence.

Chapter 10. Assignment of punishment

Article 61. General principles of assigning punishment

1. A fair punishment is assigned in relation to the person found guilty in the committal of a crime which is determined within the limits of the appropriate article in the Special Part of this Code, taking into account the propositions of the General Part of this Code.

2. The type and degree of punishment is determined by the extent of social danger of the crime and its nature, by the characteristic features of the offender, including circumstances mitigating or aggravating the liability or the punishment.

3. The strictest punishment for the crime is assigned only when the less strict type cannot serve for the purposes of the punishment.

Article 62. Circumstances mitigating liability and punishment

1. Circumstances mitigating liability and punishment are as follows:

  • 1) committal of a trivial and medium-gravity crime, for the first time, by coincidental circumstances;

  • 2) being under age at the moment of committal of the crime;

  • 3) being pregnant when committing the crime or when assigning the punishment;

  • 4) caring for a child under 14 years of age by the convict at the moment of assigning the punishment;

  • 5) committal of crime as a consequence of result of hard living conditions or out of compassion;

  • 6) committal of crime in result of breach of proportionality of necessary defense, capturing a perpetrator, urgent necessity, justified risk or carrying out orders or instructions;

  • 7) illegal or immoral behavior of the aggrieved which determined the crime;

  • 8) committal of the crime under threat or enforcement, or under financial, service or other dependence;

  • 9) surrender, assistance in solving the crime, exposing other participants of the crime, in searching the illegally acquired property;

  • 10) offering medical or other assistance to the aggrieved immediately after the crime, voluntary compensation for the property and moral damage inflicted by the crime, or other actions aimed at the mitigation of the damage inflicted to the aggrieved.

2. When assigning a punishment, other circumstances, not mentioned in part 1 of this Article can be taken into account as mitigating ones.

3. If a circumstance mentioned in part 1 of this Article, is envisaged in the appropriate article of the Special Part of this Code as an element of a crime, then it cannot be repeatedly taken into account as a circumstance mitigating the liability and the punishment.

Article 63. Circumstances aggravating the liability and punishment

1. Circumstances aggravating the liability and punishment are as follows:

  • 1) repeated committal of crime; committing crime as a trade, occupation;

  • 2) causing severe consequences by the crime;

  • 3) committal of crime in a group of individuals, in an organized group or as a part of criminal association;

  • 4) particularly active role in the crime;

  • 5) involvement into the committal of the crime of persons who obviously suffer from mental disorder or who are intoxicated, as well as involvement of persons who are still under age for criminal liability;

  • 6) committal of crime by ethnic, racial or religious motives, for religious fanaticism, as revenge for other people’s legitimate actions;

  • 7) committal of crime to conceal another crime or in order to facilitate this crime;

  • 8) committal of crime against an obviously pregnant woman, against children, other insecure and helpless persons, or against persons dependent from the perpetrator;

  • 9) committal of crime against a person or one’s spouse, or close relative, which is related to the implementation of service or public duty by this person;

  • 10) committal of crime by a person whereby breaching the military or professional oath;

  • 11) committal of crime with particular cruelty, treating the aggrieved with humiliation or torture;

  • 12) committal of crime in a way that is dangerous for the society;

  • 13) committal of crime under martial law or emergency situation, in conditions of a natural or other civil disaster, as well as during mass disorder and turmoil;

  • 14) committal of crime under the influence of alcohol, narcotic drugs or other intoxicating substances;

2. Based on the nature of the crime, the court may consider the circumstances mentioned in points 10 and 14 of part 1 of this Article not aggravating.

3. When assigning the punishment the court cannot take into account other circumstances not mentioned in part 1 of this Article.

4. If the circumstance mentioned in part 1 of this Article, is envisaged in the appropriate article of the Special Part of this Code as an element of a crime, then it cannot be repeatedly taken into account as a circumstance aggravating the liability and the punishment.

Article 64. Assignment of a milder punishment than envisaged by law

1. If there are exceptional circumstances concerned with the motives of the crime and its purpose, the role of the perpetrator, and his behavior when committing the crime and thereafter, which essentially reduce the extent of a danger of the crime for the society, as well as, if a member of the group crime actively assists in solving the crime, a softer punishment can be assigned than the minimal envisaged punishment in the appropriate article of the Special Part of this Code, or a softer type of punishment, than envisaged in that article, or a compulsory supplementary punishment might be not applied.

2. Individual mitigating circumstances as well as a combination of such circumstances can be considered exceptional.

Article 65. Assignment of punishment for an unfinished crime

1. When assigning punishment for an unfinished crime, the nature of actions committed by the criminal and the degree of danger to the society, the degree of implementation of criminal intent and those circumstances as a result of which the crime was not finished, are taken into account.

2. The imprisonment for the preparation of a crime cannot exceed half of the maximal imprisonment term envisaged in the relevant article of the Special Part, or part thereof.

3. The imprisonment for the attempt at a crime cannot exceed three quarters of the maximal imprisonment term envisaged in the relevant article of the Special Part, or part thereof.

4. Life sentence is not assigned for the preparation of a crime or for the attempt to commit crime.

Article 66. Assignment of punishment by accumulation of crimes

1. When assigning cumulative punishment (basic and supplementary), separately for each crime, the court determines the final punishment by absorption of the less severe punishment by a more severe punishment, or by adding the assigned punishments in full or partially.

2. If the aggregate of crimes involves only minor gravity crimes, then the final punishment is assigned by absorbing the less severe punishment by a more severe punishment, or by complete or partial adding of punishments. Particularly, the added up final punishment cannot exceed the maximal punishment envisaged for the gravest committed crime.

3. If the aggregate of crimes involves only medium-gravity or trivial and medium-gravity crimes, then the final punishment is assigned by complete or partial summation of punishments. Particularly, the final punishment cannot exceed 10 years of imprisonment.

4. If the aggregate of crimes involves grave and particularly grave crimes, then the final punishment is assigned by complete or partial summation of punishments. The final punishment cannot exceed 15 years of imprisonment. If one of the accomplices is sentenced to life, then the final basic punishment is decided by absorption.

5. Under cumulative punishment, a supplementary punishment can be added to the assigned basic punishment for the aggregate of crimes. When summing up the supplementary punishments completely or partially, the final supplementary punishment cannot exceed the maximal term or degree established for this type of crime in the General Part of this Code.

6. The punishment is assigned under the provisions of this Article, if after sentencing it turns out that the convict is also guilty of another crime, committed before the first sentence. In this case the term of the final punishment is offset by the served part of the first sentence.

Article 67. Assignment of punishment by accumulation of sentences

1. If the convict commits another crime after sentencing, but before the expiry of the term of the sentence, the court adds the unserved part of the previously assigned punishment to the newly assigned punishment, in full or partially.

2. The final punishment by accumulation of sentences, provided it does not involve imprisonment, cannot exceed the maximal punishment of this type envisaged in the General Part of this Code.

3. The final imprisonment by accumulation of sentences cannot exceed 20 years.

4. The final punishment by accumulation of sentences must be greater than both the punishment for the newly committed crime, and the unserved part of the punishment assigned by the previous sentence.

5. When assigning a punishment by accumulation of sentences, the addition of supplementary punishments is done as prescribed in Article 66 of this Code.

6. If a new crime is committed by a life-server, the newly assigned punishment is absorbed by the life sentence.

Article 68. Determining the terms of punishment by summing them up

1. When adding up punishments and sentences under the cumulative system, in full or partially, one day of imprisonment is equal to:

  • 1) one day of arrest or keeping in the disciplinary battalion;

  • 2) (1st and 2nd p.of 68th article lost their effect on 01.06.06 HO -119- N law);

  • 3) 3 hours of public work.

2. Such punishments as fine, prohibition to hold certain posts and practice certain professions, deprivation of special titles or military ranks, categories, degrees, qualification class, confiscation of property, when added to the imprisonment, the disciplinary battalion and arrest, are executed separately.

(68th article amended on 01.06.06 HO -119- N law)

Article 69. Calculation of the punishment terms and offsetting punishment

1. The terms of such punishments as prohibition to hold certain posts and practice certain professions, correctional labor, keeping in the disciplinary battalion and imprisonment are calculated in months and years. The term of public work is counted in hours. The arrest term is counted in days and months.

2. When replacing or adding the punishments mentioned in part 1 of this Article, as well as offsetting the punishment, the terms can be calculated in days.

3. Before the sentence comes into legal force, the term served under arrest is offset from the assigned punishment in the form of imprisonment, arrest, the disciplinary battalion, counting 1 day as 1 day; and1 day as 6 hours in the case of public work,

4. Before the sentence comes into legal force, the term served under arrest or when serving the imprisonment assigned for the committal of crime in another country, based on Article 16 of this Code, in case of extradition of the person, 1 day is equal to 1 day.

5. When assigning a fine, a prohibition to hold certain posts and practice certain professions, the court mitigates the assigned punishment or exempts from punishment entirely, taking into account the time spent under arrest by the person who had been under arrest prior the proceedings.

6. The period of enforced medical treatment of the person who developed a mental disease after the committal of crime is offset from the term of the punishment.

(69th article amended 09.06.04 HO-97-N, 1.06.06 HO L-119-N laws)

Article 70. Conditional punishment

1. When assigning a punishment in the form of public work, arrest, imprisonment or keeping in the disciplinary battalion, the court comes to the conclusion that the correction of the convict is possible without serving the sentence, the court can decide not to apply this punishment conditionally.

2. When not applying the punishment conditionally, the court takes into account the features characterizing the personality of the perpetrator, liability, mitigating and aggravating circumstances.

3. When not applying the punishment conditionally, the court establishes a probation period, from 1 to 5 years.

4. When not applying imprisonment conditionally, supplementary punishments can be applied, except confiscation of property.

5. When deciding not to apply the punishment conditionally, the court can oblige the convict to carry out certain duties: not to change the place of permanent residence without notification of the body in charge of his supervision, to take a treatment course against alcohol, narcotic drugs, VD or toxic addiction, to support the family financially. By motion of a competent body supervising the convict’s behavior, or without, the court can also impose other duties on the convict which will promote his correction.

6. If during the probation period the convict willfully evades the implementation of the duties imposed by the court, by motion of the body in charge of supervision of his behavior, as well as, in case of committal of a negligent or trivial crime, the court resolves the issue of annulling the conditional punishment.

7. In the case of committal of a medium-gravity, grave or particularly grave crime by the convict during the probation period, the court can cancel the decision not to apply the punishment conditionally, and assign a punishment under the provisions of Article 67. The same rules are applied when assigning a punishment for a new negligent or medium-gravity crime, if the court cancels the decision not to apply the punishment conditionally.

(70th article amended on 09.06.04 HO-97-N, 01.06.06 HO-119-N, 15.11.06 HO-180-N laws)

Article 71. Procedure and conditions of punishment implementation

Procedure and conditions of punishment implementation are established by the law.

Section 4. Exemption from criminal liability and punishment

Chapter 11 Exemption from criminal liability

Article 72. Exemption from criminal liability in case of repentance

1. The person who committed a trivial or medium-gravity crime for the first time can be exempted from the criminal liability, if he, after the committal of the crime, surrendered, assisted in solving the crime of his own accord, compensated or mitigated the inflicted damage in some other way.

2. The person who committed another type of crime, in case of the circumstances mentioned in the first part of this Article, can be exempted from criminal liability only in cases especially envisaged in the article of the Special Part of this Code.

Article 73. Exemption from criminal liability in case of reconciliation with the aggrieved

The person who committed a trivial crime can be exempted from criminal liability, if he reconciles with the aggrieved, mitigates or compensates the inflicted damage in some other way.

Article 74. Exemption from criminal liability due to change of situation

The person who committed a trivial or medium-gravity crime for the first time can be exempted from the criminal liability, if it turns out that as a result of the change of the situation this person or the committed deed is no longer dangerous for the society.

Article 75. Exemption from criminal liability as a result of expiry of the statute of limitation

1. The person is exempted from the criminal liability, if the following periods of time have elapsed after the committal of the crime:

  • 1) 2 years, since the day of committal of a trivial crime;

  • 2) 5 years, since the day of committal of a medium-gravity crime;

  • 3) 10 years, since the day of committal of grave crime;

  • 4) 15 years, since the day of committal of particularly grave crime.

2. The prescription period is calculated from the day of committal to the moment when the sentence comes into legal force.

3. The prescription period is disrupted, if prior to the expiry of this period, the person commits a new medium gravity crime, grave crime or particularly grave crime. In this case the calculation of the prescription period begins from the moment of committal of the new crime.

4. The prescription period is suspended, if the person avoids investigation or trial. In this case the prescription period resumes from the moment of arrest or surrender. Particularly, the person cannot be subjected to criminal liability, if 10 years have elapsed since the day of committal of a trivial or medium-gravity crime, and 20 years have elapsed, since the grave or particularly grave crime, and the prescription period was not disrupted with new crimes.

5. The court decides the issue of application of the prescription period to a person who committed a crime punishable by a life sentence. If the court does not seem possible to exempt the person from criminal liability due to the expiry of the prescription period, the life sentence is not applied.

6. The concept of the prescription period is not applicable to persons who committed crimes against peace and human security envisaged in Articles 384, 386-391, 393-397 of this Code. Prescription periods are not applied to the persons, who committed crimes envisaged in the RA international agreements, provided the latter prohibit the application of the prescription period.

(75th article amended on 01.06.06 HO-103-Nlaw)

Chapter 12 Exemption from punishment

Article 76. Exemption from punishment on parole

1. The person sentenced to public work, correctional labor, imprisonment or disciplinary battalion can be released on parole with his consent, if the court finds that for his correction there is no need to serve the remaining part of the punishment. Also, the person can be completely or partially exempted from the supplementary punishment. When exempting from the punishment on parole, the court also takes into account the fact of mitigation of damage to the aggrieved by the convict.

2. When applying exemption from punishment on parole, the court can impose on the person the obligations envisaged in part 5 of Article 70 of this Code, which the person will carry out during the unserved part of the punishment.

3. Exemption from punishment on parole can be applied only if the convict has actually served:

  • 1) no less than one third of the punishment for a trivial or medium-gravity crime;

  • 2) no less than half of the punishment for a grave crime;

  • 3) no less than two thirds of the punishment for a particularly grave crime, except for the crimes envisaged in the 4th point of this part, also, of the punishment assigned to the person previously released on parole (if the parole was canceled on the grounds envisaged in part 6 of this Article).

  • 4) no less than three thirds of the punishment for the crimes envisaged by the third part of Article 138, by the third part of Article 139, by the third part of Article 175, by the second and third parts of Article 217, by the third part of Article 178, by the second and third parts of Article 221, by the first part of Article 222, by the third part of Article 266, by the third part of Article 269, by the first part of Article 299, by Article 305, by the second part of Article 384, by the second part of Article 387, by the second part of Article 388, by Article 389, by the first and third parts of Article 390, by the third part of Article 391 and by Articles 392, 393, 394,

4. The actual term of serving imprisonment and disciplinary battalion cannot be less than 3 months.

5. A life-server can be released on parole, if the court finds that the person does not need to serve the punishment any longer and has in fact served no less than 20 years of imprisonment.

6. If during the unserved period of the punishment:

  • 1) the convict willfully evades the obligations imposed on him by court when releasing him on parole, then, by motion made by the supervisory body; the court decides to terminate the release on parole and to implement the unserved part of the punishment.

  • 2) the convict commits a crime through negligence, and then the court decides the issue of retaining or cancelling the parole.

  • 3) the convict commits a willful crime, and then the court assigns a punishment based on the rules envisaged in Article 67 of this Code. If a crime through negligence has been committed, the same rules are used to assign punishment and the court cancels the parole.

7. If a life-server deliberately commits a new crime, which is punishable by imprisonment, the period mentioned in part 5 of this Article is suspended until the expiry of the term for the new punishment.

(76th Article amended on 05.11.03 HO-26-N, 09.06.04 HO-97-N, 01.06.06 HO-119-N, 25.05.06 HO-68 N, 28.11.07 HO-275-N laws)

Article 77. Replacement of the unserved part of the punishment with a softer punishment

1. The court can replace the unserved part of the imprisonment for a trivial or medium-gravity crime with a softer punishment, taking into account the behavior during the punishment and the mitigation of the inflicted damage. Also, the person can be completely or partially exempted from the supplementary punishment.

2. The unserved part of the punishment can be replaced with a softer punishment, after no less than one third of the punishment has been served by the convict.

3. When replacing the unserved part of the punishment with a softer punishment, the court can choose any softer punishment from the punishments mentioned in Article 48, within the limits envisaged for each punishment in this Code.

Article 78. Postponement or exemption from punishment of pregnant women or women with children under 3 years of age

1. Pregnant women or women with children under 3 years of age, except women imprisoned for grave and particularly grave crimes for more than 5 years, can be exempted from punishment or the punishment can be postponed by the court for the period when the woman is exempted from work, due to pregnancy, child-birth and child care until the child reaches the age of 3.

2. If in cases envisaged in part 1 of this article the convicted person rejects the child or sends the child to an orphanage or evades child-care and rearing, for which she received a written warning from the supervising body, then the court by motion of this body, can send the convict to serve the punishment assigned in the sentence.

3. When the child has turned 3 years old or in the event of death of the latter, the court, taking into account the convict’s behavior, can exempt her from punishment, or replace the punishment with a softer punishment, or send the convict to serve the unserved part of the punishment. In this case the court can deduct, completely or partially, the unserved part of the punishment from the total term.

4. If a new crime was committed by the convict within the period of exemption from punishment, then the court assigns a punishment to her by the rules envisaged in Article 67 of this Code.

Article 79. Exemption from punishment as a result of severe illness

1. If the person develops a mental disease during the period of serving the sentence, which deprived him from the ability to realize the nature and significance of his actions (inaction) or from governing his actions, then the court exempts him from serving punishment. The court can assign an enforced medical treatment of such a person, and when the person has recovered, he can be subjected to the punishment.

2. If the person develops another severe disease after committing the crime or after the issuance of the sentence, which prevents him from serving the sentence, the court can exempt him from serving the sentence, taking into account the gravity of the committed crime, the personality of the convict, the nature of the disease and other circumstances.

3. Persons defined by part one or part two of this article can be subject to criminal liability or punishment in case of recovery, if expiry dates set forth in articles 75 and 81 of this Code have not passed.

4. A serviceman is exempted from serving the punishment in the disciplinary battalion in the case of an illness as a result of which he is considered not eligible for military service.

Article 80. Exemption from punishment as result of extraordinary circumstances

A person convicted for trivial or medium-gravity crime can be exempted from punishment, if the further serving of the punishment can cause severe consequences for the convict or his family, as a result of fire, technological or natural disaster, the severe illness or death of the only capable member of the family, or other extraordinary circumstances.

(80th Article amended on 09.06.04 HO-97-N law)

Article 81. Exemption from punishment due to expiry of the accusatory court sentence

1. The person convicted for crime is exempted from serving the punishment, if after coming into legal force; the accusatory court sentence has not been carried out within the following deadlines:

  • 1) 2 years, in case of being convicted for trivial crime;

  • 2) 5 years, in case of being convicted for medium-gravity crime;

  • 3) 10 years, in case of being convicted for grave crime;

  • 4) 15 years, in case of being convicted for particularly grave crime.

2. The expiry period is terminated if prior to the expiry of this period, the person commits a new willful crime. In this case the calculation of the expiry period begins from the committal of a new crime.

3. The expiry period is terminated, if the convict evades from serving the punishment. In this case the expiry period is renewed from the moment of capturing of the person or his surrender. Also, an accusatory sentence cannot be implemented, if 10 years have elapsed since the sentence for the committal of the trivial or medium-gravity crime was adopted, and in the case of grave and particularly grave crime, 20 years have elapsed since the sentence, and the expiry period was not disrupted with a new crime.

4. The court decides the issue of application of the expiry date to the person who was convicted as a life-server. If the court does not find possible to apply the expiry date, then this punishment is replaced with an imprisonment for a certain term.

5. The expiry date is not applicable to the persons who committed crimes against peace and human security, envisaged in Articles 384, 386-391, 393-397 of this Code.

Chapter 13 Amnesty, pardon, criminal record

Article 82. Amnesty

The person who committed a crime can be exempted from criminal liability by an act of amnesty adopted by the legislature, and the convict can be completely or partially exempted from the basic, as well as, from the supplementary punishment, and the convict’s unserved part of the punishment can be replaced with a softer punishment, or the criminal record can be expunged.

Article 83. Pardon

The act of pardon can completely or partially exempt the convict from the basic, as well as, from the supplementary punishment, or the convict’s unserved part of the punishment can be replaced with a softer punishment, or the criminal record can be expunged.

Article 84. Criminal record

1. The person is regarded as one with a criminal record from the day when an accusatory sentence came into legal force until the day of quashing or expunging the criminal record.

2. According to this Code, the criminal record is taken into account in the case of recidivism or when assigning a punishment.

3. The persons who were convicted by court sentence without assigning a punishment or were exempted from serving the punishment by court sentence, or served the punishment for the deed criminality and punishability of which have been eliminated by the law, are considered as not having a criminal record.

4. The criminal record is quashed:

  • 1) In case of conditional punishment, after the expiry of the probation period after parole;

  • 2) in relation to persons sentenced to a punishment softer than imprisonment, 1 year after having served the assigned punishment;

  • 3) in relation to persons sentenced to imprisonment for trivial or medium-gravity crimes, 3 years after having served the assigned punishment;

  • 4) in relation to persons sentenced to imprisonment for grave crimes, 5 years after having served the assigned punishment;

  • 5) in relation to persons sentenced to imprisonment for particularly grave crimes, 8 years after having served the assigned punishment.

5. If the person has been exempted from serving the punishment on parole or the unserved part of the sentence was replaced with a softer punishment, then the quashing of the criminal record is counted from the moment of exempting from the basic and supplementary punishment.

6. If after having served the sentence the person has manifested an impeccable behavior, then at his request the court can quash the criminal record before the deadline term of quashing the criminal record, but not sooner than after half of that term has elapsed.

7. If the person commits a new crime before the quashing of the criminal record, then the deadline for criminal record quashing is disrupted. The deadline of criminal record quashing for the first crime is counted anew, after the actual serving of (basic and supplementary) punishment. In this case, the person is deemed convicted for both crimes before the expiry of the criminal record for the more grave crime.

8. Quashing the criminal record eliminates all legal consequences concerned with the criminal record. This norm does not impede preserving legal limitations for occupying the positions of judge, prosecutor, special investigation clerk, police, criminal execution, national security officer.

(84th Article amended on 09.06.04 HO-97-N, 28.11.07 HO-256-N laws)

Section 5 Peculiarities of criminal liability and punishment for minors

Chapter 14 Peculiarities of criminal liability and punishment for minors

Article 85. Criminal liability and punishment of minors

1. Minors are subject to criminal liability and punishment assigned to them in accordance with the propositions of this Code, taking into account the rules envisaged in this Section.

2. A punishment or enforced disciplinary measures can be assigned in relation to a minor who committed a crime.

Article 86. Types of punishment

The types of punishment assigned in relation to the minors are as follows:

  • 1) fine;

  • 2) public work;

  • 3) arrest;

  • 4) imprisonment for a certain period.

Article 87. Fine

1. Fines are used if the minor has individual income or in the case of such property, to which confiscation can be extended.

2. Fines are assigned in the amount from 10 to 500 minimal salaries established in the Republic of Armenia by the law, at the time of assigning the punishment.

Article 88. Arrest

Arrest, for the term from 15 days to 2 months, is assigned in relation to a minor who has reached the age of 16 years at the moment of sentence.

Article 89. Imprisonment.

1. (1st part of 89th Article lost its effect on 24.12.04 HO -67-N law)

2. Imprisonment in relation to minors is assigned:

  • 1) for a trivial crime, a term of maximum of 1 year; for a medium-gravity crime, a term up to 3 years;

  • 2) for a grave or particularly grave crime, committed less than 16 years of age, a term up to 7 years;

  • 3) for a grave or particularly grave crime, committed at the age of 16 to 18 years, a term up to 10 years.

    (89th Article amended on 24.12.04 HO-67-N law)

Article 90. Assigning the punishment

1. When assigning the punishment to a minor, his living and rearing conditions are taken into account, the degree of psychological development, health, other features of personality, as well as the influence of other persons.

2. Imprisonment by accumulation of crimes in relation to persons less than 16 years of age who committed medium-gravity, grave or particularly grave crimes cannot exceed 7 years.

3. Imprisonment by accumulation of crimes in relation to persons from 16 to 18 years of age who committed medium-gravity, grave or particularly grave crimes cannot exceed 10 years.

4. The final punishment assigned in the form of imprisonment by accumulation of sentences cannot exceed 12 years.

Article 91. Exemption from criminal liability by application of enforced disciplinary measures

1. The minor who committed for the first time a trivial or medium-gravity crime can be exempted from criminal liability by the court, if the court finds that his correction is possible by application of enforced disciplinary measures.

2. The court can assign the following enforced disciplinary measures in relation to the minor:

  • 1) warning;

  • 2) handing over the supervision to the parents, persons replacing the parents, local self-government bodies, or competent bodies supervising the convict’s behavior for up to 6 months;

  • 3) imposing the obligation to mitigate the inflicted damage, within a deadline established by the court;

  • 4) restriction of leisure time and establishment of special requirements to the behavior, for up to 6 months.

3. By motion of competent bodies supervising the convict’s behavior, the court can apply other forced disciplinary measures to the minor.

4. Several enforced disciplinary measures can be assigned in relation to the minor simultaneously.

5. If the minor regularly evades from the enforced disciplinary measures, by motion of the local body of self-government or competent bodies supervising the convict’s behavior, the documents are forwarded to the court, to resolve the issue of cancellation of the enforced disciplinary measure and subjecting the minor to a criminal liability.

6. When committing a new crime, the minor is not subject to a criminal liability for the previous crimes for which he was sentenced to enforced disciplinary measures.

Article 92. The essence of enforced disciplinary measures

1. Warning is an explanation to the minor about the damage inflicted by his act and about the consequences of repeated committal of crimes envisaged in this Code.

2. Handing over the supervision to the parents, persons replacing the parents, competent bodies supervising the convict’s behavior or local bodies of self-government is imposing the duty to exert disciplinary influence and monitor the minor’s behavior.

3. The duty to mitigate the inflicted damage is imposed taking into account the property status of the minor and the existence of appropriate working capacities.

4. Restriction of leisure time and establishment of special requirements to the behavior can envisage a prohibition of visiting certain places, and certain types of leisure, including the ban to drive mechanical means of transportation, staying out of home at certain time of the day, traveling without authorization of the local body of self-government. The minors can be also required to return to an educational institution or to be employed by motion of the local self-government body.

Article 93. Exemption from punishment by placement in special educational and disciplinary or medical and disciplinary institution

1. A minor who committed a trivial or medium-gravity crime can be exempted from punishment, if the court finds that the purpose of the punishment can be achieved by placing the minor in a specialized educational and disciplinary or medical and disciplinary institution.

2. Assignment to specialized educational and disciplinary or medical and disciplinary institution is done for the term of up to three years, but not more than needed to become major.

3. Staying in the institutions described in the first or the second part of this article can be terminated ahead of time, if by motion of the head of the specialized educational and disciplinary or medical and disciplinary institution, the court finds that the minor does not need any longer the application of this measure.

Article 94. Exemption from punishment on parole

Exemption from punishment on parole in relation to a minor who committed a crime and was sentenced to imprisonment for a crime committed at a minor age can be applied, if the convict actually has served:

  • 1) no less than one quarter of the punishment assigned for a trivial or medium-gravity crime;

  • 2) no less than one third of the punishment assigned for a grave crime;

  • 3) no less than half of the punishment assigned for a particularly grave crime.

    (94th Article amended on 09.06.04 HO-97-N, 24.12.04 HO-67-N laws)

Article 95. Exemption from criminal liability or punishment due to expiry of the prescription period

When exempting a person who committed a crime less than 18 years of age from criminal liability or punishment due to expiry of prescription period, the prescription periods envisaged in Articles 75 and 81 of this Code are reduced by half respectively.

Article 96. Quashing the criminal record

1. After having served a punishment not related to imprisonment, the criminal record of the person is considered quashed.

2. For persons under 18 who committed crime, the deadlines of criminal record quashing specified in Article 84 of this Code, are reduced, and are respectively equal to:

  • 1) 1 year, after having served an imprisonment for medium-gravity crime;

  • 2) 3 years, after having served an imprisonment for grave crime;

  • 3) 5 years, after having served an imprisonment for particularly grave crime.

Section 6 Measures of medical enforcement

Chapter 15 Measures of medical enforcement

Article 97. Grounds for application of medical enforcement measures

1. The court can apply medical enforcement measures in relation to the person who:

  • 1) committed the act envisaged in the article of the Special Part of this Code in an insane state.

  • 2) Who after the committal of the crime develops such a mental disorder which makes assignment or implementation of the punishment impossible.

  • 3) Who committed a crime in the state of limited sanity.

  • 4) Who committed a crime and has been recognized as one in need of treatment against alcohol or drug addiction.

2. Medical enforcement measures in relation to persons mentioned in part 1 of this Article are assigned only when the mental disorder is related to the danger of inflicting other essential damage or to the danger for other persons or themselves.

3. The procedure of application of medical enforcement measures is established in the Criminal executive Code of the Republic of Armenia and other laws.

4. The court can submit necessary documents to health-care bodies in relation to the persons mentioned in part 1 of this Article whose mental state is not dangerous, to solve the issue of treatment of these people or sending them to neurological institutions.

Article 98. Types of medical enforcement measures

1. The types of medical enforcement measures are:

  • 1) outpatient supervision by psychiatrist and enforced treatment;

  • 2) enforced treatment in general psychiatry hospitals;

  • 3) enforced treatment in special psychiatry hospitals;

2. In addition to the punishment the court can assign an outpatient supervision by psychiatrist and enforced treatment for those convicts who committed a crime in the state of mental disorder, not ruling out sanity, but who need treatment against alcohol, drugs or mental disorder, not ruling out sanity.

Article 99. Outpatient supervision by psychiatrist and enforced treatment

Outpatient supervision by psychiatrist and enforced treatment can be assigned if the person in his mental state does not need to be admitted to a psychiatry hospital.

Article 100. Enforced treatment in psychiatry hospital

1. Enforced treatment in psychiatry hospital can be assigned, if the state of mental disorder of the person requires treatment, care and such conditions of keeping and supervision, which can be implemented only in a psychiatry hospital.

2. Enforced treatment in general psychiatry hospitals can be assigned in relation to the person who, due to his mental state needs hospital treatment and supervision.

3. Enforced treatment in special psychiatry hospitals can be assigned in relation to the person whose mental state is dangerous for his own self and other persons, or requires permanent supervision.

Article 101. Assignment, change and termination of enforced medical measures

1. When assigning enforced medical measures, the court takes into account the mental disorder of the person, the nature of committed deed and the degree of danger for the society.

2. In case of the person’s recovery or change of his illness when there is no need in enforced medical measure, the court, based on the conclusion of the medical institution, makes a decision to terminate the application of these measures.

3. Based on the conclusion of the medical institution, the court can decide also to change the type of the enforced medical measure.

Article 102. Offsetting the period of application of enforced medical measures

In the case of treatment of a person whose mental disorder occurred after committing the crime, when assigning or restoring the serving of the punishment, the period of application of enforced medical measures in the psychiatry hospital is deducted from the term of punishment, counting one day in the psychiatry hospital as equal to one day of imprisonment.

Article 103. Enforced medical measures added to execution of punishment

1. In cases envisaged in part 2 of Article 98 of this Code, enforced medical measures are applied at the place of imprisonment, and in relation to convicts sentenced to other types of punishment, in outpatient psychiatry institutions.

2. Termination of application of enforced medical measures along with execution of punishment is done by the court, by motion of the body executing the punishment, based on the conclusion of a commission of psychiatrists.

Special Part Section 7 Crimes against man

Chapter 16 Crimes against life and health

Article 104. Murder

1. Murder is illegal willful deprivation of one’s life punished with imprisonment for 6 to 12 years.

2. Murder:

  • 1) of 2 or more persons,

  • 2) of the person of close relative of the latter, due to service and public duty of the person;

  • 3) combined with kidnapping or taking hostage;

  • 4) an obviously pregnant woman;

  • 5) with particular cruelty;

  • 6) committed in a way dangerous for the life of many people;

  • 7) by a group of people or by an organized crime;

  • 8) out of mercenary motives and combined with extortion and banditry;

  • 9) combined with terrorism;

  • 10) out of hooliganism;

  • 11) to conceal another crime or to facilitate committing of the latter;

  • 12) combined with rape or violent sexual actions;

  • 13) out of motives of national, race or religious hate or fanaticism;

  • 14) for the purpose of utilization of the parts of the body or tissues of the victim;

  • 15) by a person who previously committed a murder, except for the deeds envisaged in Articles 105-108 of this Code,

is punished with 8-15 years of imprisonment or for life.

Article 112. Infliction of willful heavy damage to health

1. Infliction of willful bodily damage to others, which is dangerous for life or caused loss of eye-sight, speech, hearing or any organ, loss of functions of the organ, or was manifested in irreversible ugliness on face, as well as caused other damage dangerous for life or caused disorder, accompanied with the stable loss of no less than one third of the capacity for work, or with complete loss of the professional capacity for work obvious for the perpetrator, or caused disruption of pregnancy, mental illness, drug or toxic addiction, is punished with imprisonment for the term of 3 to 7 years.

2. The same act, committed:

  • 1) against two or more persons;

  • 2) against the person or his relatives, concerned with this person in the line of duty or carrying out one’s social duty;

  • 3) against a kidnapped person or a hostage; (3rd point of 2nd part of Article 112 lost its effect on 09.06.04 HO-97-N law)

  • 4) with particular cruelty;

  • 5) by a means dangerous for other people’s life;

  • 6) by a group of persons, by an organized crime;

  • 7) with mercenary motives, as well as accompanied with extortion;

  • 8) accompanied with terrorism;

  • 9) with hooligan motives;

  • 10) to conceal another crime or facilitate its committal;

  • 11) accompanied with rape or violent sexual acts;

  • 12) with motives of national, racial or religious hatred or religious fanaticism;

  • 13) with the purpose of using the parts of the body or tissues of the aggrieved,

  • 14) if caused the death of the aggrieved by negligence,

is punished with imprisonment for the term of 5 to 10 years.

(112th Article amended on 09.06.04 HO-97- N law)

Article 113. Infliction of willful medium-gravity damage to health

1. Infliction of willful bodily injure or any other damage to health which is dangerous for life and did not cause consequences envisaged in Article 112 of this Code, but caused protracted health disorder or significant stable loss of no less than one third of the capacity to work, is punished with arrest for the term of 3 to 6 months or imprisonment for the term of up to 3 years.

2. The same act, if committed:

  • 1) in relation to 2 or more persons;

  • 2) in relation to the person or his relatives, concerned with this person in the line of duty or carrying out one’s social duty;

  • 3) by a group of persons or by an organized group;

  • 4) for mercenary purposes;

  • 5) with particular cruelty;

  • 6) with hooligan motives;

  • 7) with motives of national, racial or religious hatred or religious fanaticism,

is punished with imprisonment for the term of up to 5 years.

Article 117. Infliction of willful light damage to health

Infliction of a willful bodily injury or other damage to health which caused short-term health disorder or insignificant stable loss of the capacity to work is punished with a fine in the amount of 50 to 100 minimal salaries, or with arrest for up to 2 months.

(117th Article amended on 09.06.04 HO-97-N, 01.06.06 HO-119-N laws)

Article 122. Performing illegal abortion

1. Performing illegal abortion by a person with an appropriate higher medical education is punished with a fine in the amount of up to 100 minimal salaries or with arrest for the term of up to 1 month, or with deprivation of the right to hold certain posts and practice certain activities for the term of up to 3 years.

2. Performing illegal abortion by a person without an appropriate higher medical education is punished with a fine in the amount of up to 200 minimal salaries or with arrest for the term of 1 to 3 months, or with imprisonment for the term of up to 2 years.

3. Actions envisaged in part 1 or 2 of this article, if they caused the death of the aggrieved or grave damage to the health by negligence, or were performed by a person previously convicted for illegal abortion, are punished with imprisonment for the term of up to 5 years, deprivation of the right to hold certain posts and practice certain activities for the term of up to 3 years.

(122nd Article amended on 01.06.06 HO-119- N law)

Chapter 17 Crimes against human freedom, dignity and honor

Article 131. Kidnapping

  • 1. Explicit or hidden kidnapping by means of deception, abuses of confidence, threat or use of force are subject to imprisonment for the term of 2 to 5 years if crime characteristics envisaged by Article 218 of this Code are not manifested.

  • 2. The same action committed:

    • 1) by a group of persons with prior agreement;

    • 2) by using violence dangerous for life or health or threat of using violence;

    • 3) by using weapons or items used as weapons;

    • 4) against a minor;

    • 5) against an obviously pregnant woman;

    • 6) against two or more persons;

    • 7) with mercenary motives,

    • 8) by a person previously convicted for kidnapping,

      is punished with imprisonment for the term of 4 to 8 years.

  • 3. The deed envisaged in part 1 or 2 of this Article, if:

    • 1) performed by an organized group;

    • 2) by negligence caused the death of the aggrieved or other grave consequences, or inflicted grave damage to the health of the latter,

is punished with imprisonment for the term of 7 to 10 years.

Article 132. Recruitment, transportation, transfer, harboring, or receipt of persons for the purpose of exploitation

1. Recruitment, transportation, transfer, harboring, or receipt of persons for the purpose of exploitation, by means of the threat or use of force not dangerous for the life or health, or by other means of compulsion, kidnapping, using the vulnerability of the situation, or accessing the consent of the person holding control over the situation by means of providing or accepting payments or goods, are punished with imprisonment from 3 to 6 years.

2. Recruitment, transportation, transfer, harboring, or receipt of persons for the purpose of exploitation, which was commixed:

  • 1) against a person under the age of 18 years

  • 2) against a person who in a state of mental disorder is devoid of possibility to fully or partially recognize or control the nature and the meaning of own deeds, is punished with imprisonment for 7 to 10 years.

3. Action envisaged in parts 1 or 2 of this Article, which was performed:

  • 1) against two or more persons;

  • 2) by a group of individuals by prior agreement;

  • 3) through an abuse of position

  • 4) by threat of violence dangerous for the life or health or by its fulfillment

    is punished with imprisonment for 7 to 10 years.

4. Action envisaged in parts 1 or 2 of this Article,

  • 1) was performed by an organized group

  • 2) negligently caused the death or the grave consequences of the aggrieved,

    Is punished with imprisonment for 10 to 15 years.

5. According to this Article, retraction of other people into prostitution or other forms of sexual exploitation, compulsory labor or services, slavery or practices similar to slavery, servitude or the removal of human organs or plexuses, is manifested an exploitation of a human.

(132nd Article amended on 09.06.04 HO-97-N, 01.06.06 HO-103-N, 01.06.06 HO-119-N laws)

Article 132.1 Retraction of other people into prostitution or other forms of sexual exploitation, compulsory labor or services, forcing or keeping them in slavery or practices similar to slavery.

1. Retraction of other people into prostitution or other forms of sexual exploitation, compulsory labor or services, forcing or keeping them in slavery or practices similar to slavery with violence not dangerous for the life and health, or by threatening to apply such a violence, or by other means of compulsion, kidnapping, swindling, using the vulnerability of the situation, or accessing the consent of the person holding control over the situation by means of providing or accepting payments or goods, are punished with imprisonment from 5 to 10 years.

2. Same deed performed;

  • 1) against the minor;

  • 2) against a person who in a state of mental disorder is devoid of possibility to fully or partially recognize or control the nature and the meaning of own deeds;

  • 3) against two or more persons;

  • 4) by a group with a prior agreement;

  • 5) abuse of official position;

  • 6) with violence dangerous for the life or health or by threatening to apply such a violence,

    is punished with imprisonment for the term of 7 to 12 years.

3. Action envisaged in parts 1 or 2 of this Article,

  • 1) was performed by an organized group

  • 2) negligently caused the death or the grave consequences of the aggrieved,

    Is punished with imprisonment for the term of 12 to 15 years.

(132.1st Article supplemented on 01.06.06 HO-103- N law)

Article 133. Illegal deprivation of freedom

1. Illegal deprivation of freedom not concerned with kidnapping is punished with a fine from 100 to 200 minimal salaries, or with an arrest for the term of 1 to 3 months, or with imprisonment for up to 2 years.

2. The same action committed:

  • 1) by a group with prior agreement;

  • 2) by threat of violence dangerous for the life or health or by its fulfillment,

  • 1) by using weapons or items used as weapons;

  • 2) against a minor;

  • 3) against an obviously pregnant woman;

  • 4) against two or more persons;

  • 5) with mercenary motives,

is punished with imprisonment for 3 to 5 years.

3. Actions envisaged in parts 1 or 2 of this Article, if:

  • 3) done by an organized group;

  • 4) negligently caused the death or other grave consequences of the aggrieved

is punished with imprisonment for 4 to 8 years.

(133rd Article amended on 01.06.06 HO-119-N law)

Article 134. Illegal placing or keeping in a psychiatry hospital

1. Illegal placing or keeping a person in a psychiatry hospital is punished with imprisonment for up to 3 years.

2. The same action:

  • 1) committed for mercenary motives;

  • 2) committed by abuse of one’s official position;

  • 3) the death of the aggrieved was caused by negligence or other grave consequences, is punished with imprisonment for 4 to 7 years, with deprivation of the right to hold certain posts and practice certain activities for the term of up to 3 years, or without that.

Article 166. Involving a child into antisocial activity

1. Involvement, by a person who reached 18 years, of a child into regular use of alcoholic drinks, strong or other narcotic drugs not for medical purposes, into prostitution, vagrancy or beggary, into preparation or dissemination of pornography or pornographic materials, is punished with correctional labor for up to 1 year, or with arrest for the term of 1-2 months, or with imprisonment for the term of 5 years.

2. The same action which was committed by a parent, teacher or other person in charge of rearing the child, is punished with a fee fro 100 to 200 minimal salaries, or arrest for up to 2 months, or imprisonment for the term of up to 5 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years, or without that.

3. Actions envisaged in parts 1 and 2 of this Article, which:

  • 1) were committed against 2 or more persons;

  • 2) were accompanied with violence or threat of violence, are punished with imprisonment for the term of up to 6 years.

(166th Article amended on 01.06.06 HO-119-N law)

Article 168. Child trafficking

1. Child trafficking, if criminal characteristics envisaged in Articles 132 and 132.1 are absent, is punished with imprisonment for the term of 2 to 7 years.

2. Same deed committed:

  • 1) by the organized group;

  • 2) against two or more children;

  • 3) by a group with prior agreement;

  • 4) abuse of official position;

  • 5) by fake tutorship,

is punished with imprisonment for the term of 4 to 8 years.

(168th Article amended on 05.12.06 HO-256-N law)

Article 175. Banditry

1. Banditry, i.e. an assault for the purpose of capturing someone’s property, committed with violence dangerous for life or health, or with a threat to commit such violence, is punished with imprisonment for the term of 3 to 6 years, with or without confiscation of property.

2. Banditry committed:

  • 1) by a group with prior agreement;

  • 2) with a purpose to possess assets in large amount;

  • 3) by illegal entering an apartment, warehouse or facility;

  • 4) by using a weapon or other item as weapon,

  • 5) repeatedly, is punished with imprisonment for the term of 4 to 8 years, with confiscation of property.

3. Banditry committed

  • 1) in particularly large amount with the purpose of theft;

  • 2) by an organized group;

  • 3) inflicting grave damage to health,

  • 4) Action committed by a person with two or more convictions for crimes envisaged in Articles 175-182, 222, 234, 238, 269 of this Code,

is punished with imprisonment for the term of 6 to 10 years, with confiscation of property.

4. In this chapter, by petty amount is meant the amount (value) not exceeding 5 minimal salaries established at the moment of committing the crime.

In this chapter, by significant amount is meant the amount (value) not exceeding 5 to 500 minimal salaries established at the moment of committing of the crime.

In this chapter and in Article 216 of this Code, by large amount is meant the amount (value) not exceeding 500 to 3000 minimal salaries established at the moment of committing the crime.

In this chapter and in Article 216 of this Code, by particularly large amount is meant the amount (value) exceeding 3000 minimal salaries established at the moment of committal of the crime in the Republic of Armenia.

In this chapter, in envisaged cases, embezzlement is considered repeated, if it was committed by a person who committed a crime under Articles 175-182, 234, 238, 269 of this Code.

(175th Article amended on 09.06.04 HO-97-N, 14.12.04 HO-58-N laws)

Article 176. Robbery

1. Robbery, i.e. overt theft of somebody’s property, is punished with fine from 200 to 600 minimal salaries, or arrest for the term of 2 months, or with imprisonment for the term of up to 3 years.

2. Robbery committed:

  • 1) by a group with prior agreement;

  • 2) in large amount;

  • 3) by illegal entering an apartment, warehouse or facility,

  • 4) was accompanied by threat of violence dangerous for the life or health or by its fulfillment

  • 5) repeatedly

is punished with imprisonment for the term of 3 to 6 years.

3. Robbery committed

  • 1) in particularly large amount;

  • 2) by an organized group;

  • 3) (3rd point of 3rd part of 176rd Article lost its effect on 09.06.04 HO-97-N law)

  • 4) committed by a person with two or more convictions for crimes envisaged in Articles 175-182, 222, 234, 238, 269 of this Code,

is punished with imprisonment for the term of 4 to 8 years, with or without confiscation of property.

(176th Article amended on 09.06.04 HO-97-N, 01.06.06 HO-119- N laws)

Article 177. Theft

1. Theft, i.e. concealed stealing of somebody’s property in significant amounts, is punished with a fine in the amount of 100 to 400 minimal salaries, or arrest for the term of 1 to 2 months, or with imprisonment for the term of up to 2 years.

2. Theft committed:

  • 1) by a group with prior agreement;

  • 2) in large amounts,

  • 3) by illegal entering into an apartment, warehouse or facility,

  • 4) repeatedly,

5) (5th point of 2nd part of 177th Article lost its effect on 09.06.04 HO-97- N law)

is punished or with imprisonment for the term of 2 to 6.

3. Theft committed:

  • 1) in particularly large amount;

  • 2) by an organized group;

  • 3) committed by a person with two or more convictions for crimes envisaged in Articles 175-182, 222, 234, 238, 269 of this Code,

is punished with imprisonment for the term of 4 to 8 years, with or without confiscation of property.

4. Petty theft from the person’s clothes, bag or other handbags, is punished with a fine in the amount of 200 minimal salary, or with arrest for the term of up to 2 months.

(177th Article amended on 01.06.06 HO-119- N law)

Article 178. Swindling

1. Swindling, i.e. theft in significant amount or appropriation of somebody's property rights by cheating or abuse of confidence, is punished with a fine in the amount of 300 to 500 minimal salaries, or with arrest for the term of up to 2 months, or with imprisonment for the term of up to 2 years.

2. The same action committed

  • 1) by a group with prior agreement,

  • 2) in large amounts;

  • 3) repeatedly,

  • 4) (4th point of 2nd part of 178th Article lost its effect on 09.06.04 HO-97-N law)

  • 5) with the purpose of receiving bribe

Is punished with imprisonment for the term of 2 to 6 years.

3. Swindling committed:

  • 1) in particularly large amount;

  • 2) by an organized group,

  • 3) committed by a person with two or more convictions for crimes envisaged in Articles 175-182, 222, 234, 238, 269 of this Code,

is punished with imprisonment for the term of 4 to 8 years, with or without property confiscation.

(178th Article amended on 01.06.06 HO-119-N, 30.04.08 HO-49-N laws)

Article 179. Squandering or embezzlement

1. Squandering or embezzlement is theft of somebody’s property entrusted to the person in significant amount, punished with a fine in the amount of 300 to 500 minimal salaries, or with arrest for the term of up to 2 months, or with imprisonment for the term of up to 2 years.

2. The same deed convicted:

  • 1) with abuse of official position;

  • 2) committed by a group with prior agreement;

  • 3) in large amount;

  • 4) repeatedly;

  • 5) (5th point of 2nd part of 179th Article lost its effect on 09.06.04 HO-97-N, law)

is punished with a fine in the amount of 400 to 700 minimal salaries, or imprisonment for 2-4 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. Action envisaged in part 1 or 2 of this Article, committed:

  • 1) in particularly large amount;

  • 2) by an organized group,

  • 3) committed by a person with two or more convictions for crimes envisaged in Articles 175-182, 222, 234, 238, 269 of this Code,

is punished with imprisonment for the term of 4 to 8 years, with or without property confiscation.

(179th Article amended on 24.12.04. HO-67-N, 01.06.06. HO-119-N laws)

Article 180. Theft of particularly valuable items

1. Theft of items of particularly historical, artistic or cultural value or documents is punished with imprisonment for the term of 3 to 5 years,

2. The same deed committed:

  • 1) with prior agreement by a group;

  • 2) that negligently caused destruction, spoilage or loss of items or documents mentioned in part 1 of this Article;

  • 3) repeatedly

    is punished with imprisonment for the term of 5 to 8 years, with or without confiscation of property.

3. Acts envisaged in parts 1 or 2 of this Article,

  • 1) committed by banditry or extortion;

  • 2) by an organized group,

is punished with imprisonment for 7-12 years with confiscation of property.

(180th Article amended on 09.06.04 HO-97-N law)

Article 181. Theft committed by means of computer

1. Theft of somebody’s property in significant amount committed with the use of computer, is punished with a fine in the amount 100 to 300 minimal salaries, or with arrest for up to 2 months, or with imprisonment for up to 2 years and with or without a fine in the amount of up to 50 minimal salaries.

2. Same act committed:

  • 1) by a group with prior agreement,

  • 2) in large amount,

is punished with imprisonment for the term of 2-6 years.

3. The act envisaged in part 1 or 2 of this Article, committed:

  • 1) in particularly large amount;

  • 2) by an organized group,

is punished with imprisonment for the term of 4 to 8 years, with or without property confiscation.

(181st Article amended on 01.06.06 HO-119-N law)

Article 182. Extortion

1. Extortion, i.e. the threat to publicize defamatory information or information inflicting significant damage to the person’s or his relatives’ rights or legal interests, the threat to use violence against the person or his relatives, or to destroy (damage) the property owned or managed by the person, his relatives or other persons, with a demand to surrender the property rights, or other actions involving property, is punished with a fine of 100 to 200 minimal salaries,, or with arrest for the term of up to 3 months, or with imprisonment for the term of up to 4 years.

2. Extortion:

  • 1) committed against the person or his relatives with violence;

  • 2) by a group with prior agreement;

  • 3) committed repeatedly,

is punished with imprisonment for the term of 3 to 7 years, with or without property confiscation.

3. Extortion committed

  • 1) negligently causing death, or other grave consequences;

  • 2) in order to acquire a particularly large amount of property,

  • 3) by an organized group;

  • 4) by causing grave damage to one’s health,

  • 5) committed by a person with two or more convictions for crimes envisaged in Articles 175-182, 222, 234, 238, 269 of this Code,

is punished with imprisonment for the term of 6 to 10 years, with property confiscation.

(182nd Article amended on 09.06.04 HO-97-N, 01.06.06 HO-119-N laws)

Article 183. Illegal appropriation of a car or other means of transportation without the intention of theft

1. Illegal appropriation of a car or other means of transportation without the intention of theft, is punished with a fine of 100 to 200 minimal salaries, or with arrest for the term of 1 to 3 months, or with imprisonment for up to 1 year.

2. The same action:

  • 1) That caused large damage;

  • 2) by a group with prior agreement;

  • 3) with violence not dangerous for life or health, or with a threat of violence, is punished with imprisonment for the term of up to 5 years.

3. Actions envisaged in parts 1 or 2 of this Article, committed:

  • 1) That caused large damage;

  • 2) by an organized group;

  • 3) with violence dangerous for life or health, or with a threat of violence, is punished with imprisonment for the term of 5 to 8 years.

(183rd Article amended on 24.12.04 HO-67-N, 01.06.06 HO-119-N laws)

Article 184. Infliction of damage to property by deception or abuse of confidence

1. Infliction of large damage to the owner or other managers of property by deception or abuse of confidence, in the absence of elements of theft, is punished with a fine in the amount of 200 to 400 minimal salaries, or arrest for the term of up to 2 months, or with imprisonment for the term of up to 2 years.

2. The same action, which:

  • 1) inflicted particularly great damage;

  • 2) was committed by a group with prior agreement;

  • 3) was committed by abuse of official position, is punished with imprisonment for the term of up to 3 years.

3. Actions envisaged in parts 1 or 2 of this Article, committed by an organized group, are punished with imprisonment for the term of 2-5 years.

(184th Article amended on 01.06.06 HO-119- N law)

Article 185. Willful destruction or spoilage of property

1. Willful destruction or spoilage of somebody’s property, which caused significant damage, is punished with a fine in the amount of 50 to 100 minimal salaries, or with arrest for the term of up to 2 months, or with imprisonment for the term of up to 2 years.

2. Same action which:

  • 1) was committed by an arson, explosion or other publicly dangerous method;

  • 2) inflicted large damage;

  • 3) was committed, in relation to the person’s official or public duty, or, on the same grounds, was related to his close relative,

  • 4) was committed for motives of national, racial or religious hatred or religious fanaticism, is punished with imprisonment for the term of up to 4 years.

3. Actions envisaged in parts 1 or 2 of this Article, which:

  • 1) caused particularly large damage;

  • 2) negligently caused human death;

  • 3) caused destruction of items of historical, scientific or cultural value, is punished with imprisonment for the term of 2 to 6 years.

(185th Article amended on 01.06.06 HO-119- N law)

Article 186. Destruction or damage inflicted to property by negligence

1. Destruction or damage inflicted to somebody’s property by negligence, which caused a large loss, is punished with a fine in the amount of up to 200 minimal salaries, or correctional labor for up to 1 year.

2. The same action committed as a result of negligent handling of fire or other source of great danger, or caused particularly large damage, is punished with a fine in the amount of 200 to 400 minimal salaries, or with imprisonment for the term of up to 2 years.

3. (3rd part of 186th Article lost its effect on 24.12.04 HO- 67- N law)

(186th Article amended on 01.06.06 HO-119-N law)

Chapter 22 Crimes against economic activities

Article 187. Hindrance to legal entrepreneurial and other economic activity

1. Obviously ungrounded refusal or evasion from the registration or re-registration of an individual entrepreneur, commercial or non-commercial organization, or obviously ungrounded refusal or evasion from the issuance of a special permit (license) for the implementation of certain activities, obviously illegal restriction of legitimate rights and interests of an individual entrepreneur or legal entity, as well as, other obvious illegal interference into such activities, done by an official by abuse of official position, is punished with a fine in the amount of 200 to 500 minimal salaries, or deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

2. Illegal inspection assigned or conducted by an official, provided large loss was caused,

is punished with a fine in the amount of 300-500 minimal salaries, or deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The action envisaged in part 1 or 2 of this Article, which caused a large damage, is punished with deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with arrest for the term of 2 to 3 months, or with imprisonment for the term of up to 1 year.

4. By large amount this Article means the amount or value exceeding 3000 minimal salaries established at the moment of committing the crime, and particularly large amount, 4000 minimal salaries established at the moment of committing the crime.

(187th Article amended on 01.06.06 HO-119-N law)

Article 188. Illegal entrepreneurial activity

1. Entrepreneurial activities without state registration or without special permit (license), when such a special permit (license) is mandatory, accompanied with infliction of a large damage to the citizens, commercial organizations or to the state, is punished with a fine in the amount of 200 to 400 minimal salaries, or with an arrest for the term of 2 to 3 months.

2. The same act accompanied with infliction of a large damage to the citizens, commercial organizations or to the state:

is punished with a fine for the amount of 300 to 500 minimal salaries, or deprivation of the right to hold certain posts or practice certain activities for up to 3 years. or with imprisonment for the term of up to 2 years.

3. The same act accompanied with:

  • 1) infliction of a particularly large damage to the citizens, commercial organizations or to the state,

  • 2) committed by an organized group,

is punished with a fine in the amount of 800-1000 minimal salaries, or deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with imprisonment for the term of up to 3 years.

4. By significant loss, this Article means the amount of 500 to 1000 minimal salaries established at the moment the of committing the crime by large loss, 1000-2000 minimal salaries established at the moment committing the crime, by particularly large loss, over 2000 minimal salaries established at the moment of committing the crime.

(188th Article amended on 01.06.06 HO-119-N law)

Article 188.1. Exchange of foreign currency without license

  • 1. Exchange of foreign currency without a license performed in the amount of 200,000 ADM is punished with a fine of 600 to 800 minimal salaries or with an arrest fro 2 to 3 months.

  • 2. The same action performed by the group with prior agreement, or by the organized group, is punished with a fine of 800 to 1000 of minimal salaries, or with deprivation of the rights to hold certain positions or perform certain activities for up to 5 years, or with imprisonment for up to 3 years.

(188.1st Article supplemented on 25.12.06 HO-40-N law)

Article 189. False entrepreneurial activity

1. Establishment of a commercial enterprise without intention to conduct entrepreneurial or banking activity, aimed at obtaining loans, evading from taxes, obtaining other property benefits or hiding prohibited activities, which inflicted a large damage to the citizens, commercial enterprises or to the state,

is punished with a fine in the amount of 300 to 500 minimal salaries, or with imprisonment for the term of up to 4 years.

2 Submission of false documents without supplying goods or without providing services, compilation and submission of false documents on expenses or income, which caused large damage, is punished with a fine in the amount of 400-500 minimal salaries, or imprisonment for up to 3 years.

3. The act envisaged in part 2 of this Article, causing particularly large loss is punished with a fine in the amount of 500-1000 minimal salaries, or imprisonment from 2 to 5 years.

4. By large loss, in part 1 of this Article, is meant an amount (value) exceeding 200 minimal salaries established at the moment of committing the crime.

By large loss, in part 2 of this Article, is meant an amount (value) exceeding 500 minimal salaries established at the moment of commiting the crime.

By particularly large loss, in part 3 of this Article, is meant an amount (value) exceeding 1000 minimal salaries established at the moment of commiting the crime.

5. In case of committing the deeds, envisaged by Articles 189,193, 194, 205 and 206 of this Code for the first time, the person committed the latter is released of criminal liability if he reimburses the damage cased by the crime and fines and penalties thereof.

(189th Article amended on 01.06.06 HO-119-N, 15.06.06 HO-145-N laws)

Article 190. Legalization of illicit proceeds (money laundering)

1. The conversion or transfer of property, knowing that such property is proceeds of crime, for the purpose of concealing or disguising the illicit origin of the property or of assisting any person who is involved in the commission of the predicate offence to evade the legal consequences of his actions; or the concealment or disguise of the true nature, source, location, disposition, movement, rights with respect to, or ownership of, property, knowing that such property is proceeds of crime; or the acquisition, possession, use or disposition of property, knowing, at the time of receipt, that such property was proceeds of crime

is punishable with imprisonment for a maximum period of four years, plus confiscation of property defined by part 4, article 55 of this Code.

2. The same offence which:

  • a. involves large amounts;

  • b. is committed with a prior agreement between a group of people

is punishable with a four to eight years’ imprisonment, plus confiscation of property defined by part 4, article 55 of this Code.

3. The same offence under part 1 or 2 of this article which:

  • a. involves significantly large amounts;

  • b. is committed by an organized group of people;

  • c. is committed with the abuse of official functions

is punishable with a six to twelve years’ imprisonment, plus confiscation of property defined by part 4, article 55 of this Code.

4. For the purpose of this article “large amount” shall mean the amount (value) exceeding 5000-fold minimal salary set at the time when the offence was committed, and “significantly large amount” shall mean the amount (value) exceeding 10000-fold of the minimal salary set at the time when the offence was committed.

For the purpose of this article “illicit property” shall mean any type of property, including assets, securities and property rights, and, in cases stipulated by international treaties of the Republic of Armenia, other objects of civil rights derived or obtained, directly or indirectly, through commission of offences defined by articles 104, 112-113, 117, 122, 131-134, 166, 168, 175-224, 233-235, 238, 261-262, 266-270, 281, 284, 286-289, 291-292, 295, 297-298, 308-313, 329, 352, 375, 383, 388 and 389 of this Code.

(190th Article amended on 14.12.04 HO-16-N, 01.06.06 HO-119-N, 28.11.06 HO-206-N laws)

Article 191. Not purposeful spending of a loan

1. Not purposeful spending of a targeted loan provided by the state or international organization or under an international agreement, if this act caused large loss to persons, organizations or the state, is punished with a fine in the amount of 300 to 500 minimal salaries, or imprisonment for the term of 2 to 5 years.

2. For the purposes of this Article, by large loss is meant the amount (value) of damage to individuals exceeding 500 minimal salaries established at the moment of committing the crime, in case of damage done to persons, and the large amount of damage to organizations or the state, exceeding 2000 minimal salaries established at the moment of committing the crime.

(191st Article amended on 09.06.04 HO -97-N law)

Article 192. Illegal actions in bankruptcy

1. Concealing property or property rights, their amounts, information about their locations or information about property, handing the property to another person for management without legitimate reason, destruction of property or its alienation under obviously unfavorable conditions, as well as concealing, destruction, forging accounting and other settlement documentation concerning economic activities of the debtor, if this activity was committed by the head of the debtor organization or by its founders (participants) or by other persons who had the opportunity to give compulsory instructions or predetermine its decisions or by a debtor individual entrepreneur during bankruptcy or in anticipation of bankruptcy, if this caused a large damage,

is punished with a fine in the amount of 50-200 minimal salaries, or with imprisonment for the term of up to 1 year.

2. Paying off property debt to certain creditors by the head of the debtor organization or by its founders (participants) or by other persons who had the opportunity to give compulsory instructions or to predetermine the organization's decisions, or by a debtor individual entrepreneur, who knew about de facto insolvency of the debtor, if it was done by obviously damaging other creditors' interests, as well as the creditor's accepting such paying off, if the latter was aware of the prevalence given to him by the debtor in disfavor of other creditors, and if the debtor or the creditors incurred damage in a large amount,

is punished with a fine in the amount of 200-500 minimal salaries, or with imprisonment for the term of up to 2 year.

3. For the purpose of Articles 192, 193, 196, 197, 198 and 199 of this Code, by large loss is meant the amount (value) exceeding 200 minimal salaries established at the moment of committing the crime.

(192nd Article amended on 09.06.04 HO-97-N law)

Article 193. Deliberate bankruptcy

Deliberate bankruptcy, i.e. deliberate creation of insolvency features or increasing the extent of such features by the founders (participants) of the debtor organization or by other persons who had the opportunity to give compulsory instructions or to predetermine its decisions, including the head of the debtor, or by an individual entrepreneur, in favor of one’s own interests or the interests of other persons, which caused large damage to the debtor or the creditors:

is punished with a fine in the amount of 500 to 1000 minimal salaries, or with imprisonment for the term of up to 3 years.

(193rdArticle amended on 15.06.06 HO-145-N law)

Article 194. Fictitious bankruptcy

Fictitious bankruptcy, i.e. filing a statement of claim recognizing its own bankruptcy in the condition of absence of features of bankruptcy made by the founders (participants) of the debtor organization or by other persons who had the opportunity to give compulsory instructions or to predetermine its decisions, including the head of the debtor, or by an individual entrepreneur, in order to mislead the creditors and to get postponement, change of deadline, reduction, freezing or moratorium for satisfying their claims, as well as, for the purpose of not paying the debts, if this caused large damage to the debtor or the creditor,

is punished with a fine in the amount of 500 to 1000 minimal salaries, or with arrest from 1 to 3 months.

(194thArticle amended on 15.06.06 HO-145-N law)

Article 195. Illegal anti-competition activity

1. Establishment and maintaining of illegal artificially high or low monopolistic prices, as well as, restriction of competition by prior agreement or by coordinated actions, in order to divide the market by territorial principle, to restrict the penetration into the market, to force other economic subjects out of the market, to establish and maintain discriminative prices, is punished with a fine in the amount of 300 to 500 minimal salaries, or with arrest for the term of 2 to 3 months, or with imprisonment for the term of up to 2 years.

2. The same action committed:

  • 1) by violence or threat of violence;

  • 2) by damaging or destruction of somebody’s property, or by threat of damaging;

  • 3) by abuse of official position,

  • 4) by an organized group,

is punished with imprisonment for the term of 3 to 8 years, with or without property confiscation.

(195th Article amended on 01.06.06 HO-119-N law)

Article 196. Willful breach of procedure for public tenders

Willful breach of the procedure for public tenders which caused large damage to the owner of property, to the organizer of the sale or auction, to the buyer or other economic subject,

is punished with a fine in the amount of 300 to 500 minimal salaries, or with arrest for the term of 1 to 2 months, or with imprisonment for the term of up to 3 years.

(196th Article amended on 01.06.06 HO-119-N law)

Article 197. Illegal use of trade mark

Illegal use of somebody’s trade mark, service mark, name of firm, if this caused large damage, is punished with a fine in the amount of 300 to 500 minimal salaries, or correctional labor for up to 2 years, or with arrest for the term of up to 2 months.

(197th Article amended on 01.06.06 HO-119-N law)

Article 198. Fictitious advertising

1. Deliberate confusion of advertisement consumers by the advertiser, advertising producer or advertisement carrier, is punished with a fine in the amount of 200 to 400 minimal salaries or with an arrest for the term of up to 2 months.

2. The same action which:

  • 1) was committed by use of mass media;

  • 2) caused large damage, is punished with a fine in the amount of 300 to 500 minimal salaries, or with arrest for the term of 1 to 2 months, or with imprisonment for the term of up to 2 years.

Article 199. Illegal collection or divulging of commercial, insurance or banking secrets

1. Collection of commercial, insurance or banking secrets by means of theft of documents, bribing or threatening the persons, or their relatives, who know commercial or banking secrets, interception of means of communication, illegal penetration into a computer network or software system, by means of special equipment, as well as, by other illegal methods, for the purpose of their publicizing or use, is punished with a fine in the amount of 300 to 500 minimal salaries, or with imprisonment for the term of up to 3 years.

2. Illegal publicizing or use of insurance, commercial or banking secrets without the consent of the owner by the one who knows these secrets due to professional or official activity, done for mercenary or other personal motives which caused large damage to the commercial organization or individual entrepreneur, is punished with a fine in the amount of 400 to 600 minimal salaries, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years, or with imprisonment for the term of up to 3 years with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

(199th Article amended on 01.06.06 HO-119-N, 09.04.07 HO-180-N law)

Article 200. Commercial bribe

1. Provision of bribes to the administrative employee, arbiter of commercial or other organization including arbiters, auditors or lawyers performing in accordance with the law on arbitrate of foreign states, i.e. illegal promises, offers or provision of cash, rights on property, securities and any other favors to them or to other persons through them, made in person or through an intermediary to act (not act) in favor of the briber, is punished with a fine in the amount of 200 to 400 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 2 years, or correctional labor for up 2 year.

2. The same actions committed by a group with prior agreement or by an organized group, are punished with a fine in the amount of 300 to 500 minimal salaries, or with imprisonment for the term of 4 years.

3. Accepting illegally in person or through intermediary for one’s self or for other persons cash, property, rights on property, securities and any other favors by the administrative employee, arbiter of commercial or other organization including arbiters, auditors or lawyers performing in accordance with the law on arbitrate of foreign states, in order to act (not act) in favor of the briber, is punished with a fine in the amount of 200 to 400 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 3 years, or with imprisonment for the term of 3 years.

4. The action envisaged in part 3 of this Article, committed by extortion, is punished with a fine in the amount of 300 to 500 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with imprisonment for the term of 5 years.

5. The employee of a commercial or other organization, according to this Article, is a person who permanently, temporarily or with special authorization, performs managerial functions at the commercial organization, regardless of the form of ownership, as well as, in non-commercial organizations which are not state or local self-government bodies, state or local self-government institutions.

Persons guilty of crimes envisaged in this Article are exempted from punishment, if they voluntarily informed the body entitled to initiate a criminal case about the committed crime, and at the same time returned what they received or compensated its value.

(200th Article amended on 20.05.05 HO-119-N, 01.06.06 HO-119-N, 05.12.06 HO-256- N, 25.12.06- HO- 59-N laws)

Article 201. Bribing the participants and organizers of professional and commercial sports competitions or shows

1. Bribing the athletes, referees, coaches, team managers and other participants and organizers of professional competitions, as well as, the organizers and members of award commissions of commercial competitions or shows i.e. illegal promises, offers or provision of cash, property, rights on property, securities and any other favors, made to them in person or through an intermediary with the purpose of exerting influence on the results of these competitions, is punished with a fine in the amount of 200 to 500 minimal salaries, or correctional labor for 6 months to 1 year, or with arrest for the term of up to 2 months.

2. The same actions committed by a group with prior agreement or an organized group, are punished with imprisonment for the term of up to 5 years.

3. Illegal acceptance of funds or use of property rights by the athletes, referees, coaches, managers of teams and other participants and organizers of professional competitions, as well as, the organizers and members of award commissions of commercial competitions or shows, i.e. accepting illegally, in person or through intermediary for one’s self or for other persons cash, property, rights on property, securities and any other favors, is punished with a fine in the amount of 300 to 500 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 3 years, or with arrest for the term of 2 to 3 months, or with imprisonment for the term of 2 years.

(201st Article amended on 09.06.04 HO-97-N, 01.06.06 HO-119-N, 05.12.06 HO-256-N, laws)

Article 202. Manufacture, sale or storing counterfeited money or securities

1. Manufacturing, storing, or seling forged money or securities for the purpose of sale, is punished with imprisonment for the term of 3 to 8 years, with or without confiscation of property.

2. The same action committed:

  • 1) in large amounts;

  • 2) by a group with prior agreement, is punished with imprisonment for the term of 6 to 10 years, with or without property confiscation.

3. The action envisaged in part 1 or 2 of this Article, committed

  • 1) by an organized group,

  • 2) in particularly large amounts,

is punished with imprisonment for the term of 8 to 12 years, with or without property confiscation.

4. In this Article, large amount means the amount (value) exceeding 1000 minimal salaries established at the moment of committing the crime, particularly large amount means the amount (value) exceeding 3000 minimal salaries established at the moment of committing the crime.

Article 203. Manufacture and sale of forged payment documents

1. Manufacture for the purpose of sale or sale of payment documents or, documents which are not considered to be currency or securities, but serve as evidence of, establishing or granting property rights, is punished with imprisonment for the term of 2 to 5 years.

2. The same actions committed:

  • 1) in large amounts;

  • 2) by a group with prior agreement, is punished with imprisonment for the term of 3 to 6 years, with or without property confiscation.

3. The actions envisaged in parts 1 or 2 of this Article committed:

  • 1) in particularly large amounts;

  • 2) by an organized group, are punished with imprisonment for the term of 4 to 9 years, with or without property confiscation.

4. In this Article, large amount means the amount (value) exceeding 3000 minimal salaries established at the moment of committing the crime, particularly large amount means the amount (value) exceeding 5000 minimal salaries established at the moment of committing the crime.

(203rd Article amended on 09.06.04 HO-97- N, 01.06.06 HO-119- N law)

Article 204. Abuse of securities emission

1. Emission of securities without proper registration procedure and public dissemination of these securities, or the use of obviously false documents for the registration of securities, is punished with a fine in the amount of 200 to 400 minimal salaries.

2. Inclusion of obviously incorrect information into the announcement about the emission of securities, as well as, the approval of the emission announcement containing obviously incorrect information or of obviously incorrect results of emission, if this caused large damage, is punished with a fine in the amount of 300 to 500 minimal salaries, or correctional labor for up to 1 year, or with imprisonment for the term of up to 1 year.

3. In this Article, large amount means the amount (value) exceeding 1000 minimal salaries at the moment of committing the crime.

(204th Article amended on, 01.06.06 HO-119-N law)

Article 205. Evasion from taxes, duties or other mandatory payments

1. Evasion from taxes, duties or other mandatory payments, failing to submit the reports required by the law, by means of entering obviously false data into ledgers or taxation documentation, in large amount, is punished with a fine in the amount of 500 to 1000 minimal salaries, or with imprisonment of up to 2 years with or without deprivation of the right to hold certain posts or practice certain activities for up to 5 years.

2. The same act performed in particularly large amount is punished by imprisonment from 3 to 6 years with or without property confiscation.

By a large amount, this Article means the amounts not exceeding from 2000 to 15000 minimal salaries established at the moment of committing the crime, and by particularly large amount, the amount exceeding 15000 minimal salaries established at themoment of committing the crime.

(205th Article amended on 15.06.06 HO-145-N N law)

Article 206. Evasion from taxes by a citizen

1. Failure to submit a property and income declaration by a citizen, when mandatory, as well as, entering obviously distorted data on incomes and expenses into the declaration, which caused large loss of taxes, is punished with a fine in the amount of 100 to 500 minimal salaries, or with arrest for the term of up to 2 months.

2. In this Article, large amount means the amount (value) exceeding 200 minimal salaries.

(206th Article amended on 09.06.04 HO-97-N law)

Article 207. Manufacture and sale of fake wine, fake vodka or other fake alcohol beverages

1. Manufacture and sale of fake wine, fake vodka or other fake alcohol beverages, is punished with a fine in the amount of 500-1000 minimal salaries.

2. Same act, committed in large amounts, is punished with a fine in the amount of 700-1000 minimal salaries.

3. By a large amount, this Article means the value or income exceeding 2000 minimal salaries.

Article 208. Forgery and sale of excise stamps

1. Forgery and sale of excise stamps, is punished with a fine in the amount of 300-500 minimal salaries, or imprisonment for 1-3 years.

2. The same act committed in large amounts, is punished with a fine in the amount of 500-1000 minimal salaries, or imprisonment for 2-5 years.

3. By large amount this Article means the forgery or sale of over 500 excise stamps.

Article 209. Alienation of excise stamps or marking goods with illegally procured excise stamps

1. Alienation of properly acquired excise stamps or used excise stamps, if their number is 500-1000 pieces, is punished with a fine in the amount of 600-800 minimal salaries.

2. Same act, if the number of alienated excise stamps is over 1000, is punished with a fine in the amount of 800-1000 minimal salaries.

3. Marking goods with illegally procured excise stamps, if the total value of goods indicated with the seller is 200,000-500,000 AMD, if not indicated, then determined in prices established by law, is punished with a fine in the amount of 600-800 minimal salaries.

4. The same act, if the total value of goods indicated with the seller is over 500,000 AMD, if not indicated, then determined in prices established by law, is punished with a fine in the amount of 800-1000 minimal salaries.

Article 210. Selling goods subject to marking with excise stamps unmarked or not re-marked

1. Selling goods subject to marking with excise stamps unmarked or not re-marked, if the total value of these goods indicated with the seller is over 200,000-500,000 AMD, if not indicated, then determined in prices established by law, is punished with a fine in the amount of 600-800 minimal salaries.

2. The same act, if the total value goods indicated with the seller is over 500,000 AMD, if not indicated, then determined in prices established by law, is punished with a fine in the amount of 800-1000 minimal salaries.

Article 211. Breach of rules for marking with excise stamps

1. Sale of goods marked with previously used excise stamps or marked with excise stamps marked other than the ones required for this type of commodity, as well as marking vessels (boxes) with excise stamps envisaged for vessels of other volume, if the total value of these goods indicated with the seller is 200,000-500,000 AMD (if not indicated, then determined in prices established by law), is punished with a fine in the amount of 500-700 minimal salaries.

2. Same act, if the total value of these goods indicated with the seller is over 500,000 AMD (if not indicated, then determined in prices established by law), is punished with a fine in the amount of 600-800 minimal salaries.

Article 212. Deception of consumers

1. Cheating on weights, measures and in calculations, misleading consumers about the consumer properties or the quality of the commodity (service), or any other deception of the consumer, in organizations selling goods or services to the population or by individual entrepreneurs in the sphere of trade, which was committed in significant amount, is punished with a fine in the amount of 100 to 500 minimal salaries.

2. The same action committed:

  • 1) in large amounts;

  • 2) by a group with prior agreement, is punished with a fine in the amount of 300 to 500 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 3 years, or with arrest for the term of up to 2 months.

3. The actions envisaged in parts 1 or 2 of this Article which were committed by an organized group, are punished with imprisonment for the term of up to 2 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

4. In this Article, a significant amount means the amount (value) exceeding 50% to 50 minimal salaries established at the moment of committing the crime, a large amount means the amount (value) exceeding 50 minimal salaries established at the moment of committing the crime.

(212nd Article amended on 01.06.06 HO-119-N law)

Article 213. Usury

1. Usury is loaning money or property at an interest rate more than twice exceeding the one of the Central Bank of the Republic of Armenia, as well as making deals with individuals on extremely unfavorable conditions of which the other party took advantage, is punished with a fine in the amount of 300-500 minimal salaries or with imprisonment for up to 2 years.

2. The same act,

  • 1) as a result of which the aggrieved found oneself in a dire financial situation,

  • 2) committed as profession,

  • 3) committed using the minor age of the aggrieved or retarded mental development,

is punished with a fine in the amount of 400-600 minimal salaries, or with imprisonment for up to 4 years.

Article 214. Abuse of authority by the employees of commercial or other organizations

1. Abuse of administrative authority the by the employees of commercial or other organizations against the interests of their organization and in favor of themselves or other persons, if this inflicted damage to citizens or the rights and legal interests of the organization or the state, is punished with a fine in the amount of 200 to 400 minimal salaries, or correctional labor for 1-2 years, or with arrest for the term of 1-3 months, or with imprisonment for the term of up to 2 years.

2. The same action which caused grave consequences, is punished with a fine in the amount of 300 to 500 minimal salaries, or with arrest for the term of 2-3 months, or with imprisonment for the term of up to 4 years.

Article 215. Contraband

1. Contraband is transportation of goods, cultural or other items through the customs border of the Republic of Armenia bypassing customs supervision or concealing them, or by deceptive use of customs or other documents, if they were committed in large amounts, except goods and items envisaged in part 2 of this Article, is punished with imprisonment for the term of up to 6 years with property confiscation.

2. Contraband of narcotic drugs, neurological, strong, poisonous, poisoning, radioactive or explosive materials, weapons, explosive devices, ammunition, fire-arms (except smoothbore long barrel hunting guns and cartridges thereof), nuclear, chemical, biological or other mass destruction weapons, or dual-use materials, devices, or technologies which can also be used for the creation or use of mass destruction weapons or missile delivery systems thereof, strategic raw materials or cultural values for the transportation of which special rules are established, is punished with imprisonment for the term of 4 to 8 years, with property confiscation.

3. Actions envisaged in parts 1 or 2 of this Article committed:

  • 1) by an official abusing one’s official position;

  • 2) by a person exempted from certain types of customs control, or by a person authorized to transport certain goods or means of transportation, exempted from customs control,

  • 3) by using violence against a person in charge of customs control, is punished with imprisonment for the term of 6 to 10 years, with property confiscation.

4. Actions envisaged in parts 1 or 2 or 3 of this Article, which were committed by an organized group, is punished with imprisonment for the term of 8 to 12 years with property confiscation.

5. The action envisaged in part 1 of this Article is considered to be committed in large amount, if the value of transported goods or items exceeds the 1000 of minimal salaries established at the moment of committing the crime, except for the cases of transporting goods subject to marking or re-marking with excise stamps, without such stamps where by large amount is meant an amount exceeding 200 minimal salaries established at the moment of committing the crime.

6. For the purpose of this Article property means contraband items.

(215th Article amended on 0812.05 HO-4-N, 01.06.06 HO-119-N, 26.05.08 HO-6-N laws)

Article 216. Acquisition or sale of property obtained in an obviously criminal way

1. Acquisition or sale of property obtained in an obviously criminal way, if this had not been previously promised, is punished with a fine in the amount of 200 to 400 minimal salaries, or with arrest for the term of up to 3 months.

2. The same action committed:

  • 1) in large amount;

  • 2) by a group with prior agreement, is punished with a fine in the amount of 300 to 500 minimal salaries, or with imprisonment for the term of up 2 years.

3. Action envisaged in parts 1 or 2 of this Article committed:

  • 1) in a particularly large amount;

  • 2) by an organized group, is punished with imprisonment for the term of 2 to 5 years.

(216th Article amended on 01.06.06 HO-119-N law)

Section 9 Crimes against public security, computer data security, public order and morality, and public health

Chapter 23 Crimes against public security

Article 217. Terrorism

1. Terrorism, i.e. committal of explosion, arson or actions causing significant human losses, or other actions inflicting significant damage to property or actions causing danger to public, or threat of such actions, if these actions were committed with the purpose of violation of public security, intimidation of the population or exerting pressure on decision making by a state official, as well as, for the purpose of fulfilling another demand of the perpetrator, is punished with imprisonment for the term of 5 to 10 years.

2. The same action committed

  • 1) by a several persons with prior agreement,

  • 2) using firearms, is punished with imprisonment for the term of 8 to 12 years.

3. Actions envisaged in parts 1 or 2 of this Article, if they were committed:

  • 1) by an organized group;

  • 2) were accompanied with use of mass destruction weapon, radioactive materials or with a threat to use other means causing mass losses,

  • 3) caused death by negligence or other grave consequences, is punished with imprisonment for the term of 10 years to 15 years.

3. A person who participated in terrorism is exempted from criminal liability if he advised the authorities on time, or otherwise, contributed into the prevention of terror act, and if his actions do not contain the elements of other crime.

Article 217.1. Terrorist financing

1. Terrorist financing, i.e. directly or indirectly provision or collection of funds with an unlawful intention that they should be used or in the knowledge that they are to be used, in full or in part for the commitment of a terrorist act, by a terrorist organization, or an individual terrorist is punishable with three to eight years’ imprisonment, plus confiscation of property defined by part 5, article 55 of this Code.

2. The same offence, if committed with a prior agreement between a group of people or by an organized group, is punishable with eight to twelve years’ imprisonment, plus confiscation of property defined by part 5, article 55 of this Code.

3. For the purpose of this article, terrorist financing funds shall mean property linked to terrorist financing, i.e. the property used or intended for use in financing the actions defined by article 217 of this Code; the instrumentalities intended for the commission of terrorist acts and owned by the defendant; and, if the property linked to terrorist financing has not been discovered, other property of corresponding value.

(217.1th Article amended on 14.12.04 HO-16-N, 28.11.06 HO-206-N, 26.05.08 HO-81-N laws)

Article 218. Taking hostages

1. Taking hostage or keeping a hostage, which was committed for the purpose of forcing the state, an organization or a citizen to perform certain action or not to perform certain action on the condition of setting the hostage free, is punished with imprisonment for the term of 5 to 8 years.

2. The same action committed:

  • 1) by several persons with prior agreement;

  • 2) using violence dangerous for life or health;

  • 3) by using a weapon or some other item as a weapon;

  • 4) against an obvious minor;

  • 5) against an obviously pregnant woman;

  • 6) against an obviously helpless person;

  • 7) against two or more persons, is punished by imprisonment for the term of 6 to 10 years.

3. Actions envisaged in parts 1 or 2 of this Article, if they were committed:

  • 1) by an organized group;

  • 2) negligently caused death or damage to health, or other grave consequences for one’s health, is punished imprisonment for the term of 8 years to 15 years.

4. The person who refused from one’s demands and set the hostage free voluntarily is exempted from criminal liability, if his actions do not contain other elements of crime.

Article 219. Occupation of buildings, facilities, means of transportation or communication

1. Occupation of buildings, facilities, means of transportation and communication, other communication lines, or keeping them, accompanied with a threat of their destruction or damage, which was committed to force the state, an organization or a citizen to perform or not to perform certain action on condition of vacating the occupied property, is punished with imprisonment for the term of up to 5 years.

2. The same action which is committed:

  • 1) By a group with prior agreement;

  • 2) by threatening violence dangerous for life or health;

  • 3) by using weapons or other items as weapons, is punished with imprisonment for the term of 4 to 10 years.

3. Actions envisaged in parts 1 or 2 of this Article, if they were committed:

  • 1) by an organized group;

  • 2) negligently caused death or damage to health, is punished imprisonment for the term of 6 years to 12 years.

4. The person who refused from one’s demands who vacated voluntarily the occupied property is exempted from criminal liability, if his actions do not contain other elements of crime.

Article 220. Piracy

1. Assaulting a sea or river ship in order to capture somebody’s property, which was committed by violence or threat of violence, is punished with imprisonment for the term of 5 to 10 years.

2. The same action committed by an organized group or which negligently caused human death or grave consequences, is punished imprisonment for the term of 8 to 15 years with or without property confiscation.

Article 221. Hijacking or capture of an aircraft, ship or train

  • 1. Capture of an aircraft, ship or train for the purpose of hijacking or occupation, is punished with imprisonment for the term of 4 to 8 years.

  • 2. The same action when committed:

    • 1) by several persons with prior agreement;

    • 2) by applying violence dangerous for life or health, or by threatening to apply such violence,

    • 3) by using weapons or items used as a weapon, is punished imprisonment for the term of 7 years to 12 years.

  • 3. Action envisaged in parts 1 or 2 of this Article, if it was committed:

    • 1) by an organized group;

    • 2) caused death by negligence or other grave consequences, is punished imprisonment for the term of 8 to 15 years.

Article 222. Banditry

1. Creation of an organized armed group (band) with the purpose of assaulting citizens or organizations, leading such a group, or participation in the actions of the band, is punished with imprisonment for the term of 10 to 15 years, with or without property confiscation.

2. Participation in a band, is punished with imprisonment for the term of 6 to 10 years, with or without property confiscation.

Article 223. Creation of criminal associations or participation in criminal association

1. Creation of criminal associations or leading a criminal association, is punished with imprisonment for 8-12 years, with or without property confiscation.

2. Participation in a criminal association, is punished with imprisonment for 6-10 years, with or without property confiscation.

3. The acts envisaged in part 1 or 2 of this Article with abuse of official position, are punished with imprisonment for 10-15 years, or deprivation of the right to hold certain posts or practice certain activities for up to 3 years, with or without property confiscation.

4. The person who informed the state bodies about the creation of a criminal association by oneself, or about the participation in the criminal association, and who contributed to the prevention of its activity, is exempted from criminal liability, if there are no other criminal elements in his actions.

Article 224. Creation of armed formations not stipulated by law or participation therein

1. Creation of armed formations not envisaged by law or commanding such formations, if there are no elements of crime under Article 222 of this Code, are punished with imprisonment of 2-7 years.

2. Participation in armed formations not envisaged by law is punished with a fine of 200 to 600 of minimal salaries, or arrest for up to 3 months, or imprisonment for up to 5 years.

3. Acts envisaged in part 1 or 2 of this Article with abuse of official position, are punished with imprisonment for 6-10 years, with deprivation of the right to hold certain posts or practice certain activities up to 3 years.

(224th Article amended on 09.06.04 HO-97-N, 01.06.06 HO-119-N laws)

Article 233. Illegal turnover of radioactive materials

1. Illegal procurement, storing, use, transportation, transfer, sale, destruction or damage of radioactive materials, is punished with a fine of 50 to 100 minimal salaries, or arrest for the term of up to 2 months, or with imprisonment for the term of up to 2 years.

2. The same action which negligently caused grave or medium-gravity damage to health, is punished with a fine of 100 to 200 of minimal salary, or with imprisonment for the term of up to 5 years.

3. The action envisaged in part 1 of this Article which negligently caused human death or other grave consequences is punished with imprisonment for 4-10 years.

Article 234. Theft or extortion of radioactive materials

  • 1. Theft or extortion of radioactive materials, is punished with imprisonment for 3-5 years.

  • 2. The same act committed by:

    • 1) by several persons with prior agreement;

    • 2) by abuse of official position;

    • 3) with violence not dangerous for life or health, or with threat of such violence, is punished with imprisonment for the term of 4 to 7 years.

  • 3. Actions envisaged in parts 1 or 2 of this Article, committed:

    • 1) by an organized group;

    • 2) with violence dangerous for life or health, or with threat of such violence, is punished with imprisonment for the term of 5 to 12 years, with or without property confiscation.

Article 235. Illegal procurement, transportation or carrying of weapons, ammunition, explosives or explosive devices

1. Illegal procurement, transportation, keeping or carrying of weapons, explosives or explosive devices, except smoothbore long-barrel hunting guns and the cartridges thereof, ammunition, is punished with arrest for the term of up to 3 months, or with imprisonment for the term of up to 3 years.

2. The actions envisaged in part 1 of this Article which were committed by a group with prior agreement, are punished with imprisonment for the term of 2 to 6 years.

3. The actions envisaged in part 1 of this Article which were committed by an organized group, are punished with imprisonment for the term of 3 to 8 years.

4. Illegally carrying of gas weapons, cold steel, or throwing weapons, is punished with a fine in the amount of 200 to 600 minimal salaries, or with arrest for the term of 1-3 months, or with imprisonment for the term of up to 2 years.

5. The person who voluntarily surrendered the items mentioned in this Article is exempted from criminal liability, if there are no other elements of crime in his actions.

(235th Article amended on 01.06.06 HO-119-N law)

Article 238. Theft or extortion of weapons, ammunition, explosives and explosive devices

1. Theft or extortion of fire-arms, fire-arm components, ammunition, explosives and explosive devices, is punished with imprisonment for the term of 3 to 5 years.

2. Theft or extortion of nuclear, chemical, biological or other mass destruction weapons, or materials or equipment used in the creation of mass destruction weapons, is punished with imprisonment for the term of 4 to 7 years.

3. Actions envisaged in parts 1 or 2 of this Article, if they were committed:

  • 1) by a group of persons with prior agreement;

  • 2) by abuse of official position;

  • 3) by use of violence not dangerous for life or health, or with a threat of using such violence;

  • 4) in large amounts,

is punished with imprisonment for the term of 6 to 10 years, with or without property confiscation.

4. Actions envisaged in parts 1, 2 or 3 of this Article, if they were committed:

  • 1) by an organized group;

  • 2) by use of violence dangerous for life or health, or with a threat of using such violence;

  • 3) in particularly large amounts, is punished with imprisonment for the term of 8 to 12 years, with or without property confiscation.

Article 261. Involvement into prostitution

1. Involvement into prostitution of other person mercenarily, in case of absence of criminal characteristics envisaged in Articles 132 or 132.1 of this Code, is punished with a fine in the amount of 200 to 300 of minimal salary, or with imprisonment from 1 to 3 years.

2. The same actions committed

  • 1) by a group with prior agreement

  • 2) by abuse official position, is punished with imprisonment of 2 to 6 years.

3. Action envisaged in parts 1 or 2 of this Article, if it was committed:

  • 1) against the minor

  • 2) against a person who in a state of mental disorder is devoid of possibility to fully or partially recognize or control the nature and the meaning of own deeds;

  • 3) by an organized group, is punished with imprisonment for the term of 3 to 8 years.

(261st Article amended on 09.06.04 HO-97-N, 01.06.06 HO-103- N, 01.06.06 HO-119-N laws)

Article 262. Promoting prostitution

1. Establishing, managing or sustaining places for prostitution, or using public places for prostitution, or periodically providing an apartment or other venues for prostitution, or enjoying property excess by promoting prostitution in a different way, if criminal characteristics envisaged by Articles 132 or 132.1 of this Code are absent, is punished with a fine at the amount of 300 to 500 of minimal salaries, or with imprisonment for the term of 1 to 4years.

2. The same action committed;

  • 1) by a group with prior agreement;

  • 2) with abuse of official position,

is punished with imprisonment for the term of 2 to 6 years

3. Action envisaged by 1st and 2nd parts of this Article, committed:

  • 1) against a person under age of 18;

  • 2) against a person who in a state of mental disorder is devoid of possibility to fully or partially recognize or control the nature and the meaning of own deeds;

  • 3) by an organized group,

is punished with imprisonment for the term of 3 to 10 years

(262nd Article amended on 09.06.04 HO-97-N, 01.06.06 HO-103-N, 01.06.06 HO-119- N laws)

Crimes directed against health of population

Article 266. Illegal turnover of narcotic drugs or psychotropic substances with the purpose of sale

1. Illegal manufacture, processing, procurement, storing, transpoting or supplying the narcotic drugs or psychotropic substances with the purpose of sale, is punished with imprisonment for the term of 3 to 7 years.

2. The same action committed:

  • 1) by a group of persons;

  • 2) in large amount;

  • 2.1) repeatedly

  • 3) at the place of imprisonment or arrest;

  • 4) in disciplinary/educational institution,

is punished with imprisonment for the term of 5 to 10 years with or without property confiscation.

3. Actions envisaged in parts 1 or 2 of this Article, if they were committed:

  • 1) by an organized group;

  • 2) in particularly large amount,

is punished with imprisonment for the term of 7 to 15 years with or without property confiscation.

4. Illegal preparation, recycling, acquisition, storing, transporting, supplying or illegally selling the pre-courses for preparation of narcotics or psychotropic substances is punished with a fine in the amount of up to 200 minimal salaries, or with arresr\t of up to 3 months.

5. To establish the large and particularly large amounts of narcotic drugs or psychotropic substances stated in this Article with the annex attached to this Code.

6. A person voluntarily submitting narcotic drugs or psychotropic substances will be relieved of criminal responsibility for illegal manufacture, processing, procurement, keeping, trafficking or supplying of narcotic drugs or psychotropic substances.

(266th Article amended on 09.06.04 HO-97-N, 26.05.08 HO-76-N laws)

Article 267. Breach of regulations for manufacture, procurement, keeping, accounting, dispensing, transportation or supply of narcotic drugs or psychotropic substances

1. Breach of regulations for manufacture, procurement, storing, accounting, issuing, transportation or supply of narcotic drugs or psychotropic substances by the person who is in charge of their observance, if it resulted in theft or illegal turnover of afore-mentioned substances, is punished with a fine in the amount of 200 to 500 minimal salaries, or with imprisonment for the term of up to 3 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

2. The action envisaged in the first part of this article, if it was committed in large amounts, is punished with a fine in the amount of 500 to 800 minimal salaries, or with imprisonment for the term of 2 to 4 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The action envisaged in the first part of this article, if it was committed in particularly large amounts, is punished with imprisonment for the term of 3 to 5 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

(267th Article amended on 09.06.04 HO-97-N, 26.05.08 HO-76-N laws)

Article 268. Illegal turnover of narcotic drugs or psychotropic substances without the purpose of sale

1. Illegal manufacture, processing, procurement, keeping, delivery or supply of narcotic drugs or psychotropic substances without the purpose of sale, is punished with arrest for the term of up to 2 months or with imprisonment for the term of up to 1 year.

2. The same action committed

1) repeatedly,

2), in large amount;

is punished with imprisonment for the term of up to 3 years.

3. The same action committed in particularly large amount:

is punished with imprisonment for the term of 2 to 6 years.

(268th Article amended on.26.05.08 HO-76-N law)

Article 269. Theft or extortion of narcotic drugs or psychotropic substances

1. Theft or extortion of narcotic drugs or psychotropic substances, is punished with imprisonment for the term of 3 to 7 years.

2. The same action committed:

  • 1) by a group of persons with prior agreement;

  • 2) by abuse of official position;

  • 3) with violence not dangerous for life or health, or with threat of such violence,

  • 4) in large amount,

is punished with imprisonment for the term of 6 to 10 years with or without property confiscation.

3. The action envisaged in part 1 or 2 of this Article which was committed:

  • 1) by an organized group;

  • 2) in particularly large amount;

  • 3) with violence dangerous for life or health, or with threat of such violence,

is punished with imprisonment for the term of 8 to 15 years with or without property confiscation.

(269th Article amended on 26.05.08 04 HO-76-N law)

Article 269.1. Illegal preparation, use, forgery or sales of documents authorizing receipt of narcotics or psychometric substances or pre-courses thereof

1. Illegal preparation, use, forgery or sales of documents authorizing receipt of narcotics or psychometric substances or pre-courses thereof is punished with a fine at the amount of 300 to 600 minimal salaries or with arrest for the term of 1 to 3 months, or with imprisonment for the term of up to 2 years.

2. The same action committed:

  • 1) repeatedly;

  • 2) by a group with prior agreement,

is punished with imprisonment for the term of 2 to 5 years.

(269.1st Article supplemented on 26.05.08 04 HO-76-N law)

Article 270. Illegal provision of recipes or other documents entitling the acquisition of narcotic drugs or psychotropic substances

1. Illegal provision of recipes or other documents entitling the acquisition of narcotic drugs or psychotropic substances, by an authorized person is punished with imprisonment for the term of up to 2 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

2. The same action if committed repeatedly is punished with imprisonment for the term from 2 to 5 years with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

(270th Article amended on 24.12.04 HO-67-N, 26.05.08 HO-76-N laws)

Crimes directed against environmental safety

Part 27 Crimes directed against environmental safety

Article 281. Breach of environmental safety rules when implementing work

The breach of ecological safety rules by the person who is in charge of compliance with these rules, during design, location, construction, commissioning and operation of industrial, agricultural, scientific and other facilities, if this action negligently caused a significant change in the radioactive, chemical, and biological pollution of the environment, human death, mass diseases in people, mass death of animals or other grave consequences,

is punished with imprisonment for the term of up to 5 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

Article 284. Breach of safety rules when handling dangerous chemical and biological materials and waste

1. Production of prohibited dangerous chemical and biological materials or waste, breach of rules for their using, storage, transportation, destruction or other rules, if this created significant danger to human health or the environment, is punished with a fine in the amount of 200 to 500 minimal salaries, or correctional labor for the term of up to 2 years, or with imprisonment for the term of up to 2 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

2. The same action which:

  • 1) negligently caused pollution, poisoning or contamination of the environment, mass death of animals, damage to human health,

  • 2) was committed in an ecological disaster zone or in the emergency ecological situation, is punished with imprisonment for the term of up to 5 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The action envisaged in part 1 or 2 of this Article which negligently caused mass diseases in people or human death, is punished with imprisonment for the term of 3 to 7 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

4. The acts envisaged in this Article which willfully caused consequences envisaged in parts 1, 2 or 3 of this Article, are punished with imprisonment for 6-12 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

(284th Article amended on 01.06.06 HO-119-N law)

Article 286. Breach of established veterinary rules or rules for struggle against plant diseases and vermin

1. Breach of veterinary rules which negligently caused human or animal epidemics or other grave consequences, is punished with a fine at the amount of 100 to 200 minimal salaries, or with imprisonment for the term of up to 3 years with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

2. Breach of established rules for struggle against plant diseases and vermin which negligently caused grave consequences, is punished with a fee at the amount of 50 to 150 minimal salaries, or with imprisonment for the term of up to 2 years with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The acts envisaged in this Article which caused willful consequences envisaged in part 1 or 2 of this Article, are punished with imprisonment for up to 5 years with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

(286th Article amended on 01.06.06 HO-119-N law)

Article 287. Pollution of water

1. Pollution of surface or ground waters, pollution, obstruction, exhaustion of water-supply sources, or changing their natural properties or qualitative composition, if these actions, willfully or negligently, caused significant damage to flora or fauna, fish stocks, forests or agriculture,

is punished with a fine in the amount of 500-800 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with arrest for the term of up to 2 months.

2. The same action actions which:

  • 1) negligently damaged human health;

  • 2) caused mass destruction of animals;

  • 3) was committed in special nature protection zones, or in a zone of ecological disaster, or in a zone of ecological emergency, is punished with a fine in the amount of 600 to 1000 minimal salaries, or with imprisonment for the term of up to 3 years with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The action envisaged in part 1 or 2 of this Article which negligently caused human death, is punished with imprisonment for the term of 2 to 5 years with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

4. The acts envisaged in this Article which willfully caused the consequences envisaged in parts 1, 2 or 3 of this Article, are punished with imprisonment for 6-12 years with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

(287th Article amended on 01.06.06 HO-119-N law)

Article 288. Pollution of marine environment

1. Pollution of marine environment from land sources, means of transportation, or from artificial facilities built in the sea or as a result of breach of rules for disposal or dumping of raw materials dangerous for human health or natural sea stocks, or for legitimate use of marine environment, which willfully or negligently, caused significant damage to the fauna, fish stocks, the environment or other interests protected by law, is punished with a fine in the amount of 200 to 500 minimal salaries, or with or without deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with arrest for the term of up to 2 months.

2. The same actions which negligently damaged human health, are punished with imprisonment for the term of up to 3 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The action envisaged in part 1 or 2 of this Article which negligently caused human death, is punished with imprisonment for the term of 2 to 5 years.

(288th Article amended on 01.06.06 HO-119-N law)

Article 289. Pollution of ambient air

1. Pollution of air or changing its natural properties, committed by breach of the established norms, rules of equipment operation, facilities or other constructions, if this action caused significant damage, willfully or negligently, to the agricultural fields, constructions, cultural values, the flora and the fauna, the soil of the waters, is punished with a fine in the amount of 500 to 700 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 5 years.

2. The same actions which negligently damaged human health, are punished with a fine in the amount of 600 to 1000 minimal salaries, or with imprisonment for the term of up to 3 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The action envisaged in part 1 or 2 of this Article which negligently caused human death, is punished with imprisonment for the term of 2 to 5 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

(289th Article amended on 01.06.06 HO-119-N law)

Article 291. Breach of rules for protection and use of the lithosphere

1. Breach of rules of design, location, construction, commissioning and operation of mining enterprises or underground facilities not related to mining, breach of rules for protection and use of the lithosphere, as well as, unauthorized construction on the surface of mines, if this, negligently, caused significant damage, is punished with a fine in the amount of 200 to 500 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

2. Use of the lithosphere with breach of rules for protection and use of the lithosphere, or with deviating from such projects, or without a contract, which caused significant damage to human health, to the environment, to mineral resources, constructions and buildings contained in the lithosphere,

is punished with a fine in the amount of 700 to 1000 minimal salaries, or with imprisonment for up to 1 year, with or without deprivation of the right to hold certain posts or practice certain activities for up to 5 years.

(291st Article amended on 01.06.06 HO-119-N law)

Article 292. Illegal harvesting of aquatic flora and fauna

1. Illegal fishing or harvesting of aquatic fauna, or flora, if these actions:

  • 1) inflicted large damage;

  • 2) were committed by using mass destruction methods;

  • 3) were committed at the spawning beds or on a migration route to the spawning beds, or during spawning, is punished with a fine in the amount of 500 to 700 minimal salaries, or with arrest for the term of 2-3 months.

2. The actions envisaged in parts 1 or 2 which were committed by:

  • 1) abuse of official position;

  • 2) by a group of persons with prior agreement, are punished with a fine in the amount of 600 to 1000 minimal salaries, or with imprisonment for the term of up to 2 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. For the purpose of Articles 292, 294, 297 of this Code by large damage is meant and amount (value) exceeding 200 minimal salaries established at the moment of committing the crime.

(292nd Article amended on 09.06.04 HO-97-N, 24.12.04 HO-67-N, 01.06.06 HO-119-N laws)

Article 295. Obliteration of habitat of rare and endangered species registered in the Red Book of Rare and Endangered Species of the Republic of Armenia

Obliteration of habitat of rare and endangered species registered in the Red Book of the Republic of Armenia which willfully or negligently caused the obliteration (death) of the entire population of these species is punished with a fine at the amount of 200 to 600 of minimal salaries, or with imprisonment for the term of up to 3 years.

(295th Article amended on 01.06.06 HO-119-N law)

Article 297. Obliteration or damage of forest

1. Obliteration or damage of forest, as well as, trees which are not part of the forest stock, committed as a result of negligent handling of fire, explosives or other source of great danger, and if this caused great damage, is punished with a fine in the amount of 300 to 500 minimal salaries, or with imprisonment for the term of up to 2 years.

2. Obliteration or damage of forest, as well as, trees which are not part of the forest stock, committed as a result of arson or other publicly dangerous means, is punished with imprisonment for the term of 3 to 8 years.

(297th Article amended on 01.06.06 HO-119-N law)

Article 298. Breach of regime of specially protected nature zones

Breach of regime of reserves, specially protected zones, national parks, and natural objects specially protected by the state, which willfully or negligently caused significant damage,

is punished with a fine in the amount of 200 to 500 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 3 years..

(298th Article amended on 01.06.06 HO-119-N law)

Chapter 29 Crimes directed against State Services

Article 308. Abuse of official authority

1. Abuse of official authority or duties by a state official against the interests of the position and failure to carry out the duties for mercenary interests, personal, other interests or group interests, which caused essential damage to the legal interests of citizens, organizations, public or state rights (in case of property loss, the amount (value) exceeding 500 minimal salaries established at the moment of committing the crime), is punished with a fine in the amount of 200 to 300 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with arrest for the term of 2-3 months, or imprisonment for the term of up to 4 years.

2. The same action which negligently caused grave consequences,

is punished with imprisonment for 2-6 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The following public servants are considered state officials in this Chapter:

  • 1) persons performing the functions of a representative of the authorities, permanently, temporarily or by special authorization;

  • 2) persons, permanently, temporarily or by special authorization, performing organizational, disciplinary and administrative functions in state bodies, local self-government bodies, organizations thereof, as well as, in the army of the Republic of Armenia, or other forces of the Republic of Armenia.

4. State officials are also the following persons, envisaged in Articles 311,312 and 313 of this Code

  • 1) persons performing activities of state officials under the interstate rights of the foreign state, as well as members of any representation of legislative body or a body performing administrative functions of the foreign state;

  • 2) officials of international or transnational organization or body, or persons performing under the service agreements envisaged by the regulations of such organization or body, or other persons performing duties relevant to the duties of the latters;

  • 3) members of supreme board of international or transnational organizations or other entities performing similar activities;

  • 4) members or officials of international court recognized by the Republic of Armenia and performing juridical functions;

  • 5) country of the courts of foreign states.

(308th Article amended on 20.05.05 HO-119-N, 28.11.06 HO-206-N laws)

Article 309. Exceeding official authorities

1. Actions willfully committed by an official which obviously exceed his authorities and caused essential damage to the rights of citizens, organizations, state or legal interests (in case of property loss, the amount (value) exceeding 500 minimal salaries established at the moment of committing the crime), are punished with a fine in the amount of 300 to 500 minimal salaries, or with deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with arrest for the term of 2-3 months, or with imprisonment for the term of up to 4 years.

2. Same actions committed with violence, weapons, or special measures, are punished with imprisonment for the term of 2 to 6 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The same act which negligently caused grave consequences, is punished with imprisonment for the term of 6 to 10 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

Article 310. Illégal participation in entrepreneurial activité

Participation of a state official, despite the legal ban, in the founding, management of an entrepreneurial organization, personally or through proxy, when these actions involve granting this organization privileges and advantages, is punished with deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with arrest for the term of 1-3 months, or with imprisonment for the term of up to 2 years.

(310th Article amended on 01.06.06 HO-119-N law)

Article 311. Taking bribes

1. Taking bribes by a state official, in person or through an intermediary, for one’s self or for another person, in the form of money, property, rights on the property, securities or other favors, for performing or not performing any deed within his authority, in favor of the briber or briber’s representative or, by using official position, to facilitate performing or not performing of such deed or service favoring or connivance, is punished with a fine in the amount of 300 to 500 minimal salaries, or with imprisonment for the term of up to 5 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

2. Taking bribes by an official for performing or not performing or not performing of an obviously illegal actions within his authority, in favor of the briber or briber’s representative, is punished with imprisonment for 3-7 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The same action committed:

  • 1) by extortion;

  • 2) by a group of officials with prior agreement;

  • 3) in large amount,

  • 4) repeatedly,

is punished with imprisonment for the term of 4 to 10 years, with or without property confiscation.

4. Action envisaged in parts 1, 2 or 3 of this Article

  • 1) by an organized group;

  • 2) in particularly large amount,

  • 3) by a judge,

is punished with imprisonment for the term of 7 to 12 years, with or without property confiscation.

5. For the purpose of this Chapter by large amount is meant an amount (value) not exceeding 200 to 1000 minimal salaries.

For the purpose of this Chapter by particularly large amount is meant an amount (value) exceeding 1000 minimal salaries.

(311th Article amended on 05.12.06 HO-256-N law)

Article 311.1 Taking illegal payment by a public servant which is not an official person

1. Taking illegal payment by a public servant which is not an official person, i.e. receiving in person or through an intermediary, for one’s self or for another person, in the form of money, property, rights on the property, securities or other favors, for performing or not performing any deed within the authority of the public servant, in favor of the briber or briber’s representative or, by using official position, to facilitate performing or not performing of such deed or service favoring or connivance, is punished with a fine in the amount of 200 to 400 minimal salaries, or with imprisonment for the term of up to 3 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

2. Taking illegal payment by a public servant which is not an official person, for performing or not performing an obviously illegal actions within his authority, in favor of the briber or briber’s representative, is punished with imprisonment for 3-5 years, with deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The same action committed:

  • 1) by extortion;

  • 2) in large amount;

  • 3) by a group with prior agreement;

  • 4) repeatedly,

is punished with imprisonment for the term of 4 to 7 years.

4. Action envisaged in parts 1, 2 or 3 of this Article

  • 1) by an organized group;

  • 2) in particularly large amount,

is punished with imprisonment for the term of 5 to 10 years, with or without property confiscation.

5. For the purpose of this Article public servants are persons performing public services in accordance with Article 1 of the RA law on “Civil Services”.

(311th Article supplemented on 30.04.08 HO-49-N law)

Article 311.2 Using real or implied influence for mercenary purposes

1. Using real or implied influence for mercenary purposes i.e. receiving in person or through an intermediary, money, property, rights on the property, securities or other favors, for performing or not performing any deed within the authority of an official person, or the public servant which is not an official person, in favor of the any legal entity or any person or, by using official position, to facilitate performing or not performing of such deed or service favoring or connivance,

is punished with a fine in the amount of 200 to 400 minimal salaries, or with imprisonment for the term of up to 3 years.

2. The same action committed performing or not performing an obviously illegal actions is punished with imprisonment for 3-5 years.

3. The same action committed:

  • 1) by extortion;

  • 2) in large amount;

  • 3) by a group with prior agreement;

  • 4) repeatedly,

is punished with imprisonment for the term of 4 to 7 years.

4. Action envisaged in parts 1, 2 or 3 of this Article

  • 1) by an organized group;

  • 2) in particularly large amount,

is punished with imprisonment for the term of 5 to 10 years, with or without property confiscation.

(311.2nd Article supplemented on 30.04.08 HO-49-N law)

Article 312. Giving a bribe

1. 1. Giving a bribe, i.e. in person or through an intermediary, promising, offering or providing to a state official, for ones’ self or for another person, money, property, rights on the property, securities or other favors, for performing or not performing a deed within his authority in favor of the briber or the briber’s representatives, or, by using official position, to facilitate performing or not performing of such deed or service favoring or connivance, is punished with a fine in the amount of 100 to 200 minimal salaries, or correctional labor for 1-2 years, or with arrest for the term of 1-3 months, or with imprisonment for the term of up to 3 years.

2. Giving a bribe in a large amount,

is punished with a fine in the amount of 200 to 400 minimal salaries, or with imprisonment for the term of up to 5 years.

3. Giving a bribe,

  • 1) in a particularly large amount;

  • 2) by an organized group,

is punished with imprisonment for the term of 3-7 years.

  • 1. The person who gave a bribe is exempted from the criminal liability, if he was subjected to extortion, or if this person voluntarily informed the law enforcement bodies about giving the bribe.

(312th Article amended on 01.06.06 HO-119-N, 05.12.06 HO-256-N laws)

Article 312.1 Illegal payment to a public servant which is not an official person

1. Illegal payment to a public servant which is not an official person, i.e. providing in person or through an intermediary, for one’s self or for another person, in the form of money, property, rights on the property, securities or other favors, for performing or not performing any deed within the authority of the public servant, in favor of the briber or briber’s representative or, by using official position, to facilitate performing or not performing of such deed or service favoring or connivance, is punished with a fine in the amount of 100 to 200 minimal salaries, or with an arrest for the term of up to 2 month, or with imprisonment for the term of up to 2 years.

2. Illegal payment in a large amount,

is punished with a fine in the amount of 200 to 400 minimal salaries, or with imprisonment for the term of up to 4 years.

3. Illegal payment, performed:

  • 1) in a particularly large amount;

  • 2) by an organized group,

is punished with imprisonment for the term of 2-5 years.

  • 2. The person making an illegal payment is exempted from the criminal liability, if he was subjected to extortion, or if this person voluntarily informed the law enforcement bodies about making an illegal payment.

(311.2nd Article supplemented on 30.04.08 HO-49-N law)

Article 313. Bribery mediation

1. Bribery mediation, i.e. promotion of the agreement between the briber and bribe taker or implementation of previously reached agreement, is punished with a fine in the amount of 100-200 minimal salaries or with arrest for up to 2 months or imprisonment for up to 3 years.

2. The same act envisaged in part 1 of this Article, committed

  • 1) repeatedly,

  • 2) by abuse of official position,

is punished with a fine in the amount of 200-400 minimal salaries, or arrest for 1-3 months, or imprisonment for 2-5 years.

Article 329. Illegal state border crossing

1. Crossing the guarded state border of the Republic of Armenia without relevant documents or permits, is punished with a fine in the amount of 100-200 minimal salaries or imprisonment for up to 3 years.

2. The same act committed by a group with prior agreement or by an organized group or with violence or threat thereof, is punished with imprisonment for 3-7 years.

3. This Article is not extended to cases when a foreign citizen or stateless person enters the Republic of Armenia without relevant permits to enjoy the right for political asylum stipulated by the Constitution of the Republic of Armenia.

(329th Article amended on 09.06.04. HO-97-N law)

Article 352. Adoption of an obviously unjust court sentence, verdict or other court act

1. Adoption of an obviously unjust court sentence, verdict or other court act by the judge for mercenary purposes or for other personal motives, is punished with a fine in the amount of 300 to 500 minimal salaries, with deprivation of the right to hold certain posts or practice certain activities for up to 5 years, or with imprisonment for the term of up to 3 years.

2. The same action which negligently caused grave consequences, is punished with imprisonment for the term of 2 to 4 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

3. The same action which willfully caused grave consequences, is punished with imprisonment for the term of 3 to 7 years, with or without deprivation of the right to hold certain posts or practice certain activities for up to 3 years.

Article 375. Abuse of power, transgression of authority or administrative dereliction

1. Abuse of power or official position, transgression of authority or administrative dereliction, if these acts were committed for mercenary or group-interest motives, by a commander or official, and if these inflicted essential damage, is punished with imprisonment for 2-5 years.

2. The same acts which negligently caused grave consequences, are punished with imprisonment for 3-8 years.

3. The acts envisaged in parts 1 or 2 of this Article, committed under martial law, during war or military actions, is punished with imprisonment for 7 to 13 years.

(375th Article amended on 09.06.04 HO-97-N law)

Article 383. Plunder

Theft of items from the dead and wounded in the battlefield is punished with imprisonment for the term of 2 to 8 years.

Article 388. Terrorism against the representative of a foreign country or international organization

1. Assault on the representative of foreign states or international organizations, or kidnapping, or deprivation of freedom, if these actions were committed with the purpose of provoking war, or complication of international relations, is punished with imprisonment for the term of 5 to 12 years.

2. The murder of the representative of foreign states or international organizations, if this action was committed with the purpose of provoking war, or complication of international relations, is punished with imprisonment for the term of 10 to 15 years or for life.

Article 389. International terrorism

International terrorism, i.e., organization or implementation of an explosion or arson or other acts in the territory of a foreign sate, with the purpose of international complications or provocation of war or destabilization of a foreign state, aimed at the destruction of people, or bodily injuries, destruction or spoilage of facilities, roads and means of transportation, communications, or other assets, is punished with imprisonment for 10-15 years, or for life.

THE REPUBLIC OF ARMENIA CODE OF CRIMINAL PROCEDURES

Article 17. Fair Trial

1. Everyone has the right to a fair trial with observance of all requirements of fairness, by an independent and impartial court, of any criminal case affecting one's interests.

2. The judge, the prosecutor, the investigator, the officers of the agency for inquest cannot participate in the proceedings of a criminal case, if they are directly or indirectly interested in its outcome.

3. The body of criminal charge is obligated to undertake all measures prescribed by this Code for a comprehensive, full and objective investigation of the case circumstances, to reveal all the circumstances both convicting and absolving the suspect or accused, and also the circumstances reducing and aggravating his responsibility.

4. All statements of the suspect, the accused, and their defense attorney about their innocence, on the availability of evidence absolving the suspect or the accused or reducing their responsibility, all appeals on violation of the law in the course of criminal proceedings shall be thoroughly examined by the body conducting the criminal proceedings.

CHAPTER 7. PARTY OF CRIMINAL CHARGE

Article 52. The Prosecutor

1. The prosecutor is a state official, who conducts, within the limits of his/her competence, at all stages of the criminal procedure, the criminal charge, supervises the legitimacy of the investigation and inquest, supports the prosecution in court, appeals against the court verdicts and other decisions. The prosecuting attorney supporting the prosecution in court is called the prosecutor.

2. The prosecutor is entitled to lodge to the accused or to a person, who bears proprietary responsibility for the actions of the latter, a claim [suit] in protection of the interests of the state.

3. During the exercise of his/her powers at the proceedings of criminal case the prosecutor is independent and submits only to law. He/she shall execute the legitimate instructions of the superior prosecutor. If the subordinate prosecutor considers the instruction illegitimate, he/she appeals it to a superior prosecutor without executing it.

4. The subordinate prosecutor is obliged to execute all written instructions of the superior prosecutor with an exception of the case indicated by part five of the given article as well as the case when the prosecutor considers the instruction illegitimate. In case if the instruction given by the superior prosecutor is considered illegitimate the subordinate prosecutor should and in case of the instruction is considered ungrounded can appeal it to the superior of the prosecutor who gave the instruction.

5. In the process of controlling the legitimacy of the pro and post investigation the prosecutor is obliged to execute the instruction given by the superior prosecutor excluding the cases if the instruction is recognized as ungrounded or illegitimate. In such cases the controlling prosecutor should refuse the further execution of the instruction and immediately inform in a written form the superior prosecutor who has a right to overtake the control or instruct other prosecutor to continue the further execution of the case.

(additions in article 52 dated on 01.06.06 HO-121-N, 13.06.06 HO-67-N, edited with additions 22.02.07 HO-129-N)

Article 53. The Powers of the Prosecutor at the Pre-trial Proceedings of the Criminal Case

1. The prosecutor is authorized to conduct the following during the pre-trial proceedings:

1) to institute and carry out criminal charge and to start proceedings of cases instituted by the body of inquest, the investigator, to cancel the decision of the body of inquest and the investigator on suspension of a case, to institute a criminal case based on court motion, to cancel the decision of the body of inquest and the investigator rejecting the institution of a criminal case and to institute a criminal case.

2) To investigate personally the criminal case in its full volume, passing necessary decisions during the investigation and implementing investigatory and other procedural actions in accordance with provisions of this Code;

3) In case of a crime, instructs the body of inquest and the investigator to prepare the materials for the institution of a criminal case.

4) To instruct the body of inquest and the investigator to conduct urgent investigatory measures or conduct them personally;

5) To participate in the inquest;

6) To carry out prosecutorial management of the inquest and the investigation.

2. During the implementation of the procedure of prosecutorial management of the inquest and the investigation, the prosecutor is exclusively entitled to the following:

1) to check the implementation by the body of inquest the requirements of law on receiving, registration of and follow up on the reports on committed or prepared crimes, on other accidents;

2) to request from the investigator and the body of inquest for examination of criminal cases, materials and documents and to get acquainted with the data on the course of investigation at the place of their location;

3) to withdraw from the inquirer and to transfer to the investigator or subordinate prosecutor any criminal case, to transfer the criminal case from the investigator to the subordinate prosecutor or vice versa, to transfer the criminal case from one body of inquest to another, or from one investigator and subordinate prosecutor to another, or to accept the criminal case for his/her proceedings: in order to ensure the comprehensive, full and objective investigation;

4) to instruct an investigating team to undertake a criminal case, to establish the composition of the team, to appoint the team leader or to lead the team personally;

5) to resolve issues regarding challenges (rejections) declared to subordinate prosecutor, investigator, or the officer of the body of inquest, and also their self-rejections;

6) to give written instructions to subordinate prosecutor, investigator, and the body of inquest on the decisions passed and on implementation of investigatory and other procedure actions;

7) to resolve objections, prescribed by this Code, brought by the body of inquest and its employee, the investigator, who disagree with the instructions of inferior prosecutor, conducting the procedure management of the investigation;

8) to cancel illegitimate and ungrounded resolutions of the inferior prosecutor, the investigator, the body of inquest, and its officer and also the instructions of the inferior prosecutor;

9) to resolve the appeals against the decisions and actions of the subordinate prosecutor, investigator and the body of inquest, with the exception of appeals the consideration of which is in the competence of the court;

10) to dismiss inferior prosecutor, the investigator, and the officer of the body of inquest from further participation in the implementation of criminal proceedings on that case, if they have violated the law during the investigation of the case;

11) to apply to the appropriate bodies for deprivation from immunity for criminal charge of persons, possessing that immunity, if these persons are subject to involvement in the criminal case as accused;

12) to return criminal cases to the investigator and the body of inquest with his/her obligatory instruction on implementation of additional investigation;

13) to cancel the decision of the body of inquest or the investigator to suspend the case, and other decisions, in cases envisaged in this Code;

14) to approve the criminal information, and for the criminal cases with respect to the persons, committed crimes in the state of insanity or became insane, the final decision [act].

15) To forward the case to the court for investigation.

3. The prosecutor, during administration of the procedural management, is also entitled to:

1) pass separate necessary decisions personally and to conduct separate investigatory and other procedure decisions, and also the consideration of the cases in their full volume;

2) to receive from the body of inquest data on the conduct of operative-investigatory activity and the undertaken measures on the disclosure of crimes, on revealing of disappeared persons and lost property;

3) to demand documents and materials, which might contain data on accidents and the persons involved in it;

4) to give to the body of inquest written instructions, obligatory for them, on the implementation of operative-investigatory measures in connection with the criminal case proceedings;

5) to apply to the court in order to select arrest as a measure securing the appearance and to extend arrest, to impose arrest upon the arrest of communications, telephone conversations, postal, telegraph and other messages, and for warrants for wire-tapping the telephone conversations, searching apartments;

6) to refuse from the criminal charge of the accused, to suspend the criminal proceedings or to terminate the criminal charge;

7) to assign the body of inquest the execution of the resolutions on detention, bringing to court, arrest, the implementation of other procedure actions, and also to receive immediate assistance upon from the body of inquest, for implementation of investigatory and other procedural actions;

8) to undertake measures for the protection of the injured, the witness, and other persons participating in the criminal proceedings;

9) to address the court with motions, prescribed by this Code;

10) to release the persons, imprisoned without legitimate bases or without necessity;

11) to cancel the arrest of communications, telephone conversations, postal, telegraph and other messages when the necessity for such arrest terminates.

. The prosecutor, during the pre-trial proceeding of the criminal case, exercises also other powers, prescribed by this Code.

(amendments and additions in article 53 dated 25.05.06 HO-91-N, amendments and additions 22.02.07 HO-129-N)

Article 54. Powers of the Prosecutor During Consideration of the Criminal Case or Materials in the Court

1. During consideration of the criminal case by the court, the prosecutor:

1) declares challenges;

2) brings motions;

3) expresses opinion regarding the motions of other participants of the trial;

4) ensures the presentation to the court of the evidences; gives to the body of inquest mandatory assignments for the submission of the evidence to court;

5) participates in the examination of case materials;

6) objects against unlawful actions of other party;

7) objects against unlawful, groundless actions of the presiding person;

8) requests the inclusion into the protocol of court session of records regarding circumstances mentioned by him;

9) exercises the right to dismiss criminal charge against the accused;

10) announces the indictment in the court, makes the opening and closing speeches and a remarks in the court of first instance and the appellate court, and be present at the session of the Cassation Court;

11) appeals the verdict and other court decisions in cases prescribed by this Code;

12) exercises other powers, prescribed by this Code.

2. The prosecutor, participating in the court session is obligated to:

1) To obey to the order in the court session and observe the legitimate instructions of the presiding person;

2) Exercise other powers, prescribed by this Code.

3. Participation of the prosecutor in court is mandatory during consideration of criminal cases. (additions in article 54 dated 13.06.06 HO-67-N)

Article 55. The Investigator

1. Investigator is a state official, who is authorized to conduct investigation of the criminal case within the limits of his/her competence.

2. The investigator is authorized to prepare materials on the event of the crime and in accordance with the rules of subordination established by this Code, the investigator accepts the case for his/her proceedings or forwards it to other investigator or the body of inquest; the investigator can institute a criminal case during his proceedings, if an event of a new crime by another person has been discovered. The investigator is also entitled, in accordance with the provisions of this Code, to reject the institution of the proceedings of the criminal case.

3. After accepting the criminal case for his/her proceeding, the investigator, for the purpose of comprehensive, full and objective investigation shall independently lead the course of investigation, make necessary decisions, conduct investigatory and other procedural actions in accordance with the provisions of this Code with the exception of cases, when criminal procedure law stipulates to receive warrants from the prosecutor. The investigator bears responsibility for the lawful and timely implementation of investigatory and other procedural actions.

4. The investigator, in particular, is authorized to conduct the following:

1) Prior to the institution of the criminal case, to conduct the examination of the site and to appoint expert inquiry;

2) To interrogate the suspect, the accused, the injured, the witness, appoint expert examination, conduct observations, searches, seizures, and other investigatory actions;

3) Undertake measures for the compensation of the damage caused to the injured;

4) Request documents and materials of the case, which may contain data on accidents and the persons involved in it;

5) Request the conduct of revision, inventory, institutional expert examination, other check up actions;

6) Receive from the body of inquest, in connection with the prepared materials and the case under investigation, data on the implementation of operative-investigatory actions and the measures undertaken for disclosure of the crime, finding disappeared persons and lost property;

7) Give to the body inquest mandatory written assignments on implementation of operative-investigatory measures in connection with prepared materials and proceedings of the criminal case;

8) Assign to the body of inquest the fulfillment of resolutions on detention, bringing to court, arrest, conducting of other procedural actions, and also receive without delay from the body of inquest facilitation at the execution of investigatory and other procedure actions;

9) When receiving a report from the body of inquest about a committed crime, to go to the site of the crime and to get involved in the investigation of the case by means of institution of a criminal case or undertaking the instituted case in one’s proceedings.

10) Assign the body of inquest the execution of separate investigatory actions;

11) Summon persons as witnesses;

12) Draw in for the participation [in the actions] the witnesses to the search, interpreters, translators, specialists and experts;

13) Detain the person suspected in crime commitment;

14) Pass resolution on impleading the person to the case as the accused, put forward charges and to inform the prosecutor within 24 hours;

15) Recognize respective persons as the injured, civil plaintiff, civil defendant;

16) Ensure the appointment of lawyers in the capacity of defense attorneys and to permit the persons to participate in the capacity of defense attorneys and the representatives;

17) Dismiss defense attorneys and representatives from the participation in proceedings of the criminal case, if circumstances are revealed which exclude their participation in the criminal proceedings, as mentioned in article 93 this Code;

18) Exempt respective persons from the payment for the legal counsel;

19) Resolve challenges declared to the witness to the search, the translator and the interpreter, the specialist, the expert;

20) Resolve motions of persons participating in criminal proceedings, and also applications and requests submitted by other persons;

21) Resolve the complaints of the persons participating in criminal proceedings, within the limits of his/her competence;

22) Pass resolutions on the selection, alteration, cancellation of the precautionary measures and on implementation of other measures of procedural compulsion, with the exception of arrest; release upon his/her resolution the suspect and the accused kept in detention after expiration of the prescribed period;

23) Pass resolution on the suspension of criminal proceedings;

24) Appeal to the court with motions: on selection of arrest with respect to the accused as a precaution measure and on prolongation of the period of his/her detention; on imposing arrest on telephone conversations, postal, telegraph and other communications wire-tapping, with motion on the permission for search of the apartment;

25) Cancel the arrest on telephone conversations, postal, telegraph and other communications and wire-tapping, in case the necessity for such action ceases to exist;

26) Appeal any illegitimate instruction of the prosecutor, without suspending its execution;

27) Appeal instructions of the prosecutor to a superior prosecutor without executing it in case of disagreement with the instructions on calling the person as accused, on qualifying the action and on the volume of indictment, on sending the case for taking the accused to court or on abating the case;

28) Pass resolution on abatement of the criminal proceedings and on termination of criminal charge;

29) Prepare and present for the approval of the prosecutor the indictment, and as for criminal cases with respect to persons, committed actions forbidden by criminal law in the state of insanity or who has fallen into such state after the accomplishment of the action, the final act.

5. The investigator is obligated the legitimate instructions of the prosecutor.

5.1 The decision of the investigator during the pre-trial criminal case proceeding made within the scope of his authorities should be mandatory executed by all organizations, authorities and citizens.

6. The investigator also carries out other authorities envisaged in this Code.

(amendments and additions in article 55 dated on 5.05.06 HO-91-N, amendments 21.02.07 HO-93-N)

Article 56. Bodies of Inquest

The following are the bodies of inquest:

1) the police;

2) the commanders of military units, the heads of military institutions, regarding the cases of military crimes, and also regarding the cases of the deeds, committed on the territory of military units or incriminated to the conscripts; 2.1 The military police: regarding the cases within their competencies

3) The bodies of state fire control: regarding the cases on fires;

4) The state tax bodies: regarding the tax crimes ;

5) The custom’s bodies: regarding the cases on smuggling;

6) The national security bodies: regarding the cases within their competence.

7) The agencies of criminal execution: regarding the criminal offence implemented within the territory of the agency

8) The aircraft commander: regarding the criminal offence implemented in the craft during the flight (additions in article 56 dated on 07.03.00 HO-39, 25.05.06 HO-91-N, 21.12.06 HO-15-N, 22.02.07 HO-86-N, edited on 09.04.07 HO-144-N)

Article 57. Powers of the Body of Inquest

1. The head of the body of inquest personally, and also with the assistance of the officer of the body of inquest ensures the exercise of the powers of the body of inquest.

2. The body of inquest executes the following:

1) Undertakes the necessary operative-investigatory and criminal procedure measures for detection of the crime and the persons, who conducted it, for prevention and the suppression of the crime;

2) Implements examination of the crime site based on prepared materials and appoints expert inquiry prior to institution of the criminal case,.

3) Institutes a criminal case, undertakes the proceeding of the case or sends it by subordination, or rejects the institution of the criminal case, as envisaged in this Code, the copy of the decision to institute or reject the case is forwarded to the prosecutor within 24 hours.

4) Immediately informs the prosecutor or the investigator about the revealed crime and the initiated inquest;

5) After having instituted the criminal case, to discover the criminal, the traces of the crime, implements urgent actions, examination, searches, monitoring of correspondence, mail, telegrams, etc., wire-tapping, seizures, investigation, arrest of the suspect and interrogation, and questioning of the injured and the witness, cross-examination, appoints expert inure;

6) Within 10 days after the institution of the criminal case, and in the case of the discovery of the criminal and impleading, the case is forwarded to the investigator;

7) The instructions of the prosecutor are carried out based on the cases under consideration of the investigator;

8) Registers statements made about committed crimes;

9) Brings to the investigation the persons suspected in the crime, examines and searches them, and sets free the persons detained without sufficient grounds;

10) Allows the prosecutor to inspect the activities of inquest body;

11) Provides the prosecutor and the investigator within their authority, necessary information demanded by them;

12) Takes measures to compensate the damages inflicted by the crime;

13) Interviews the witnesses of the case, familiarizes himself with the circumstances of the case, and the documents and cases which can contain information on the incident and persons related to it;

14) Demands contain information on the incident and persons related to it.

15) Demands to conduct checks, inventorizations, etc.

16) Suspends the proceedings of the criminal case, and the copy of the decision forwards to the prosecution within 24 hours.

17) Organizes the implementation of the legitimate instructions of the court.

18) Carries out other actions to which he is authorized by this Code.

3. Only the head of the body of inquest can use the authorities of the body of inquest, institute the criminal case, reject institution of criminal case, suspend the criminal case proceedings, arrest the suspect, or apply means of securing the presence of the suspect, to eliminate or change these means, to apply to the court with a motion to implement operative-investigatory measures.

4. The head of the body of inquest is entitled to instruct the officer of the inquest body to conduct inquest of the case, to give him mandatory written instruction for implementation of certain investigatory actions, to transfer the case from one officer to another, to instruct several officers to investigate the case, to participate in the inquest, and to conduct inquest personally.

5. The instructions of the prosecutor on the criminal cases, given pursuant to the rules, established by this Code are obligatory for the head of the body of inquest.

6. The body of inquest implements other authorities envisaged in this law. (amendments and edits in article 57 dated on 25.05.06 HO-91-N, additions dated on 21.02.07 HO-93-N)

Article 58. The Injured

1. The person is recognized as the injured, in respect to whom bases are available to suppose, that a moral, physical or proprietary damage has been caused to him/her directly by a deed forbidden by Criminal Code. A person also is recognized as aggrieved, to whom moral or physical damage might be directly caused, if the deed, forbidden by the Criminal Code would have been finished.

2. The decision on recognition as an injured is passed by the body of inquest, the investigator, the prosecutor or by the court.

Article 59. The Rights and Obligations of the Injured

1. The injured has the right, in the manner prescribed by this Code:

1) to know the essence of the indictment;

2) to give evidences;

3) to give explanations;

4) to present materials for the inclusion into the criminal case and examination;

5) to declare challenges;

6) to declare motions;

7) to object against the actions of the bodies of criminal charge and to demand on inclusion of his/her objections into the protocol of the investigatory or other procedure action;

8) to get acquainted with the protocols of the investigatory and other procedure actions, in which he/she participated, and to submits remarks on the correctness and fullness of the records in the protocol; to demand, during the participation in investigatory or other procedure action, the inclusion into the protocol of the mentioned action or the court session the records on the circumstances, which, upon his/her opinion, have to be mentioned; to get acquainted with the protocol of the court session and to bring remarks on it;

9) to get acquainted with all materials of the case, from the moment of accomplishment of the investigation, make copies from them and to write out from the case any data in any volume;

10) to participate in the sessions of the court of first instance and review court;

11) to receive upon his/her request, free of charge copies of the decisions on the abatement of criminal proceedings, on inclusion into case as an accused, the copy of the indictment or final act, and also the copy of verdict or other final decision of the court;

12) appeals the actions and decisions of the body of inquest, the investigator, prosecutor, the court, including the appeal of the verdict and other final court decision, as established in this Code;

13) reconciles with the suspect and the accused in cases, prescribed by this Code;

14) objects to the appeals of other participants of the trial regarding the verdict or other final court decision;

15) receives the compensation, stipulated by law, of the damage caused by unlawful actions;

16) receives the compensation of expenses incurred during the criminal proceedings back the property, seized by the body, conducting criminal proceedings as a material evidence or on other bases, the originals of the documents, belonging to him/her; receives back the property belonging to him/her seized from the person, conducted a deed forbidden by the criminal law;

17) get back the property, seized by the body, conducting criminal proceedings as a material evidence or on other bases, the originals of the documents, belonging to him/her;

18) to have a representative and to terminate the powers of representative.

2. The injured has the following obligations: 1)To arrive upon the call of the body, conducting criminal proceedings;

2) To give evidences upon the demand of the body, conducting criminal proceedings;

3) To present the items, documents and also samples under his/her discretion for the comparative study upon the demand of the body, conducting criminal proceedings;

4) To be subjected to examination upon demand of the body, conducting criminal proceedings on the crime supposedly committed with respect to him/her;

5) To be subjected, upon the demand of the body conducting criminal proceedings, to the medical investigation in order to check the ability to perceive and to reproduce correctly the circumstances, subject to discovery in criminal case, if forcible arguments are available to suspect the lack of such abilities;

6) To obey the legitimate instructions of the prosecutor, the investigator, the body of inquest, obeys the legitimate instructions of the presiding person;

7) To observe the order at the court session.

3. The injured has also other rights and bears other obligations, prescribed by this Code.

4. The aggrieved enjoys the rights belonging to him/her and executes the obligations imposed on him/her personally or, if it is corresponding to the nature of respective rights and obligations, through a representative. The rights of the juvenile or incapable aggrieved are exercised instead of them, by their legitimate representative, in the manner, prescribed by this Code.

5. A legal entity, to which moral or material damage was caused by the crime, can be recognized as the inured party. In this case the rights and obligations of the aggrieved party are exercised by the representative of the legal entity.

(amendments in article 59 dated on 18.02.04 HO-34-N, 25.05.06 HO-91-N)

Article 60. Civil Plaintiff

1. A physical or legal entity, which prosecutes a claim during the proceedings of the criminal case, with respect to which sufficient bases are available to assume, that a material damage, subject to compensation in the manner of criminal proceedings, was caused to the latter upon a deed forbidden by Criminal Code, is recognized as civil plaintiff.

2. The decision on recognizing as civil plaintiff is passed by the body of inquest, the investigator, the prosecutor or the court.

Article 61. The Rights and Obligations of Civil Plaintiff

1. The civil plaintiff, with a purpose of the support of the claim prosecuted by him/her, has the following rights in the manner prescribed by this Code:

1) to know the essence of the indictment;

2) to give explanations on the claim submitted by him/her;

3) to present materials for the inclusion in the criminal case and examination;

4) to declare challenges;

5) to declare motions;

6) to object against the actions of the bodies of criminal charge and to demand on inclusion of his/her objections into the protocol of the investigatory or other procedure action;

7) to get acquainted with the protocols of the investigatory and other procedure actions, in which he/she participated, and to submits remarks on the correctness and fullness of the records in the protocol; to demand, during the participation in investigatory or other procedure action, the inclusion into the protocol of the mentioned action or the court session the records on the circumstances, which, upon his/her opinion, have to be mentioned; to get acquainted with the protocol of the court session and to bring remarks on it;

8) to get acquainted with all materials of the case, from the moment of accomplishment of the investigation, make copies from them and to write out from the case any data in any volume;

9) to participate in the sessions of the court of first instance and appellate court;

10) to address the court with a speech and a remark;

11) to receive upon his/her request, free of charge copies of the indictment or final act, and also the copy of verdict or other final decision of the court;

12) to appeal the actions and decisions of the body of inquest, the investigator, prosecutor, the court, including the appeal of the verdict and other final court decision;

13) to recall any objection given by him/her or his/her representative;

14) to issue objections, in the part regarding the claim submitted by him/her, on the appeals of other participants of the trial on verdict or other final decision of the court;

15) to express at the court session opinions regarding the motions and proposals of other participants of the trial;

16) to protest against illegitimate actions of other parties;

17) to object against the actions of the presiding person;

18) to have a representative and terminate the powers of representative.

2. The civil plaintiff has also a right in the manner, prescribed by this Code:

1) to refuse from the claim at any moment of the conduct of criminal proceedings;

2) to receive the compensation of the expenses, incurred during the proceedings of the criminal case;

3) to receive back the property, seized by the body, conducting criminal proceedings as a material evidence or on other bases, the originals of the official documents, belonging to him/her.

3. The civil plaintiff has the following obligations:

1) to arrive upon the call of the body, conducting criminal proceedings;

2) to ensure the presentation to the court of copies of the claim equal to the number of civil defendants;

3) to present the items, documents and also samples under his/her discretion for the comparative study upon the demand of the body, conducting criminal proceedings;

4) to obey the legitimate instructions of the prosecutor, the investigator, the body of inquest, to obey the legitimate instructions of the presiding person;

5) to observe the order at the court session.

4. The civil plaintiff can be summoned on as a witness.

5. The civil plaintiff has also other rights and bears other obligations, prescribed by this Code.

6. The civil plaintiff enjoys the rights belonging to him/her and executes the obligations imposed on him/her personally or, if it is corresponding to the nature of respective rights and obligations, through a representative. The rights of the juvenile or incapable aggrieved are exercised instead of them, by their legitimate representative, in the manner, prescribed by this Code.

CHAPTER 14. CONCEPT, PURPOSE AND USE OF EVIDENCE

Article 104. Concept of evidence

1. In criminal cases any facts are evidences, based on which, and as provided by law, the inquest body, the investigator, the prosecutor and the court can determine whether or not crime has been committed, whether or not the crime has been committed by the accused, or whether or not the accused is guilty or innocent as well as other circumstances relevant to the case.

2. The following can be considered as evidence in criminal proceedings:

1) testimony of the suspect

2) testimony of the accused

3) testimony of the injured

4) testimony of witness

41) ttestimony of the accused or suspect related to the guild of the given case

5) testimony of convict’s

6) expert’s report

7) material/demonstrative evidence

8) records of court and investigative proceedings

9) other documents

3. Only facts and evidentiary materials obtained according to the requirements and in the manner prescribed by this Code are to be heard at criminal proceedings.

(additions in article 104 dated on 25.05.06 HO-91-N)

Article 105. Facts inadmissible as evidence

1. In criminal procedure it is illegal to use as evidence or as basis for an accusation facts obtained: 1)by force, threat, fraud, violation of dignity, as well with the use of other illegal actions;

2) by violation of the rights of the suspect and accused to defense and that of the additional guaranties prescribed by this Code to persons unable to use the language of the court proceeding;

21) by violation of the rights of the witness foreseen by part 5 of article 86 of the given Code

3)by person not entitled to conduct a given criminal case or carry out an investigation or any other legal actions;

4) from a person who is subject to exclusion from the criminal proceeding when he was or had to be aware of the existence of the circumstances for such an exclusion;

5) by violation of the investigatory or other essential court proceedings;

6) from any person who is unable to recognize a document or object, confirm its truth, and provide information about the circumstances of its origin and source;

7)seizure or from any source unannounced at the court hearing;

8) as a result of applying methods unacceptable for the principles of modern science.

2. Any violation of the constitutional rights, freedom of a person and citizen, or of any requirements of this Code in the form of a restriction or elimination of the rights guaranteed by law to the persons involved in the case, that influenced or could have influenced the reliability of the facts, shall be considered an essential violation in the process of obtaining evidence.

3. If the evidentiary importance of any material is lost due to the violation of the requirements of the Criminal Code by the prosecution, it shall be considered evidence if the defense so petitions. This evidence is to be considered relevant exclusively to the case of a given suspect or accused. (additions in article 105 dated on 23.05.06 HO-104-N)

Article 106. Establishment of the evidence inadmissibility

1. The inadmissibility of facts as evidence as well as their restricted use in the proceeding shall be established by either the body which conducts the proceeding or one of the sides.

2. The acceptability of the evidence shall be substantiated by the side which obtained the evidence. If the evidence was obtained in accordance with the requirements/regulations of the present Code, the grounds for the inadmissibility of the evidence are to be presented by the side which argues its acceptability.

Article 107. Circumstances which are subject to Proof

The following shall be determined during the proceeding solely on the basis of the evidence:

1) The facts and circumstances of the incident (the time when committed, the venue, method, etc.);

2) Involvement of the suspect and accused in the incident;

3) Features of crime provided by the Criminal law;

4) The guilt of a person alleged to have committed an action forbidden by Criminal law;

5) Mitigating or aggravating circumstances provided by the Criminal law;

6) Circumstances on the basis of which a person involved in a case or any other person involved in a criminal proceeding lays his claims if not provided otherwise by law

(amendments in article 107 dated on 25.05.06 HO-91-N)

Article 108. Circumstances determined in case of availability of certain evidence

In criminal procedure, the following circumstances are to be determined only upon availability and preliminary examination of the following evidence:

1) Cause of death and nature of health damage - report of the expert in forensic medicine is to be presented;

2) Incapability of the accused to control and realize the nature and importance of his actions (inaction), their being dangerous at the time of the incident as a result of mental disease, temporary mental depression, other mental incompetence or mental alienation - report of the experts in forensic psychiatry and psychology is to be presented;

3) Incapability of the witness or injured to perceive and reconstruct the circumstances to be determined at the criminal proceeding as a result of mental disease, temporary mental depression, other mental incompetence or mental alienation - report of the experts in forensic psychiatry is to be presented;

4) Information on the injured, suspect, accused of reaching a certain age if it is relevant to the case, the document asserting the age is to be presented, if it is not available, a report of the experts in forensic medicine and psychology is to be presented;

5) Availability of the previous conviction (s) and sentence (s) of the suspect and the accused - corresponding document and if possible a copy of the court decision must be submitted.

(amendments in article 108 dated on 25.05.06 HO-91-N)

CHAPTER 15. TYPES OF EVIDENCE

Article 109. Testimony of the Suspect

1. Testimony given by the suspect in written or oral form at the pre-trial proceeding conducted in the manner prescribed by this Code is the information provided by him.

2. The suspect is entitled to testify about suspicions against him as well as about circumstances and evidence known to him, relevant to the case.

Article 110. Testimony of the Accused

1. Testimony given by the accused in written or oral form at the pre-trial proceeding as well as in court conducted in the manner prescribed by this Code is the information of the accused.

2. The accused is entitled to testify about the accusation brought against him as well as about circumstances and evidence known to him, relevant to the case.

Article 111. Testimony of the Injured

1. Information given by the injured in written or oral form at the pre-trial proceeding as well as in court conducted in the manner prescribed by this Code is the testimony of the injured.

2. The injured may be interrogated about any circumstances which need to be proved for the case as well as about his relations to the suspect and the accused. If the injured is unable to indicate the source of his information, such information shall not be considered.

Article 112. Testimony of the Witness

1. Information given by the witness in written or oral form at the pre-trial proceeding as well as in court conducted in the manner prescribed by this Code is called testimony of the witness.

2. The witness may be interrogated about any circumstances relevant to the case including his relations with the accused, the injured and other witnesses. If the witness is unable to indicate the source of his information, such can not serve as a source.

Article 113. Convict’s testimony

1. The convict’s testimony in the pre-trial proceedings as well as in court, as established in this Code, during the interrogation in the written or oral form are the information provided by the latter.

2. The convict is entitled to testify about those circumstances of the case which are proved through his passed court verdict which came into force.

Article 131.1. Testimony of suspect, or accused or offender in other criminal case

1. The suspect's or accused or offendants's testimony in other criminal case during a pre-trial proceedings as well as in court as established in this Code, during the interrogation in the written or oral form are the information provided by the latter.

2. The suspect or accused or offendant in other criminal case can be examined as for the given or other criminal case within the frame of his guilt about any circumstances for which he has been involved in the

3. The examination of the suspect or accused or offendant in other criminal case should take place by the regulations defined by the code for the suspect or accused or offendant

(additions in article 113 1 dated 25.05.06 HO-91-N)

Article 114. Expert’s Report

1. The expert’s report shall consist of grounded conclusions about issues through the examination of the materials of the case, and shall be written form, based on the knowledge of the expert in the sphere of science, technology, crafts or art, in his competence.

2. The expert can be interrogated for the purpose of explanation of his conclusions.

3. The protocol of the expert’s interrogation can not replace the expert’s conclusions.

Article 115. Material Evidence

1. Objects which served as the crime instruments or have preserved traces of the crime or were objects of criminal actions as well as money, valuables and other objects and documents which can serve as means to discover a crime, determine factual circumstances, expose the guilty person, prove a person’s innocence or mitigate responsibility are acknowledged to be material evidence.

2. An object shall be acknowledged as material evidence upon the decision of the body which carries out the criminal proceeding.

3. The court shall acknowledge an object as evidentiary material only if the possibility of its substitution or any change of the indications and qualities of the traces found on it, are eliminated upon receiving, fully describing, sealing and carrying out similar procedure, or in case the object is identified by the suspect, accused, injured or witness before being examined in the court.

Article 116. Safe-keeping of material evidence and other objects

1. Material evidence shall be kept with the criminal case, except for evidence which is unusually large in size which may be forwarded to enterprises, organizations or individuals to be maintained under their direct responsibility.

2. Precious stones and metals, foreign currency, money, checks, and securities confiscated while carrying out a criminal proceeding which may be considered material evidence for the corresponding criminal case may be, immediately upon being examined, are sent to enterprises of the State bank for maintenance as long as their individual characteristics have no evidentiary value.

3. Material evidence and other confiscated items, except perishable objects, are to be kept by the body which carries out the criminal case until the final verdict about its ultimate disposition rendered by the court or the body which carries out the criminal proceeding comes into legal force or the case is dismissed. In cases provided by this Code the decision about the material evidence may be carried out before the end of the criminal case.

4. If the argument about the rights for an object attached as material evidence is a subject to civil litigation, such an object shall be kept until the decision of the civil proceeding is final.

Article 117. Ensuring safety of objects during the criminal proceedings

1. While keeping or removing objects every measure shall be taken to prevent them from being lost, damaged, destroyed, touched or mixed with other objects.

2. While forwarding the case all the objects submitted for the case and those forwarded with the case as well as the disposition of material evidence not attached to the case shall be inventoried in the supplementary letter and in the document attached to the indictment. Material evidence is sent to the court in packaged and sealed form.

3. The received objects shall be compared with the information provided in the supplementary letter or the document attached to the indictment. Should a discrepancy be found, a protocol is to be created to that effect. Packaged and sealed materials are opened and examined only during criminal trial.

Article 118. Decisions about material evidence made before the end of the criminal proceeding

1. Before the end of the criminal proceeding the body which carries out the criminal proceeding shall return the following to the owner or legal possessor:

1) Perishable objects;

2) Objects needed in everyday life/daily use, on which confiscation is not extended by law;

3) Cattle and poultry; automobile or other means of transportation, if they are not subject to seizure on civil process or possible property recovery/confiscation, and court fees.

2. In cases when the owner or legal possessor of the objects enumerated in the first part of the present article is unknown or the return of the objects is impossible due to other reasons, the objects shall be submitted to corresponding organizations for realization, maintenance or care.

Article 119. Decisions about material evidence made after the end of the criminal proceeding

1. In the sentence of the court or the decision of the body which carries out the criminal proceeding about the dismissal of the case, the issue of material evidence shall be solved in accordance with the following rules:

1) Crime instruments which belong to the accused as well as objects which are subject to withdrawal from circulation shall be confiscated and forwarded to the corresponding institutions. Those which have no value shall be destroyed.

2) Items which have no value shall be destroyed, as established by law and if the interested parties petition to have the items returned to them.

3) Money and other valuables which cannot be legally possessed due to committing a crime or any other action prohibited by law shall be returned to the owners, possessors or their successors.

4) Money, items and other valuables obtained in an illegal way shall be used to cover the court expenses and damages of the crime, and if the person who suffered the damages is unknown, the money shall be forwarded to the state budget.

5) Documents which are considered material evidence shall be kept with the case or forwarded to the interested organization and citizens.

Article 120. Consequences of the damage, destruction or loss of items

1. The cost of an object damaged, destroyed or lost while conducting examination or other legal actions is included into court expenses.

2. Upon a verdict of acquittal or dismissal of the case, according to article 35, part 1, paragraphs 1-3, and part 2, the cost of the objects damaged or lost while conducting examination or other legal actions shall be reimbursed from the state budget.

Article 121. Records of investigations and court proceedings

1. Documents which contain information about circumstances relevant to the case made by the body which carries out the criminal proceeding in written form and in the manner provided by this Code are called records of proceedings.

2. The records of the following investigative and court proceedings conducted by the body of the criminal persecution, in accordance with the requirements of the present Code may be used as evidence:

1) Examination

2) Investigation

3) Identification

4) Exhuming

5) Confiscation

6) Search

7) Seizure of property

8) Interception of written, telephone, mail, telegraphic and other communication

9) Wire-tapping

10) Obtaining samples

11) Expert Investigation of samples

3. Records made while accepting a verbal statement about a crime, surrender, a confession of guilt, or while detaining or explaining to persons their rights and responsibilities may also be used as evidence.

4. If the record of the investigation is not complete, it cannot be completed by the testimony of the officer of the inquest body, investigator, or prosecutor, witness to the search, to serve as basis for accusation.

Article 122. Other documents

1. Any record registered on a paper, electronic or other media made in verbal, digital, graphic or other sign/symbol form which can provide information relevant to the criminal case is a document.

2. Documents which possess qualities mentioned in the first part of Article 115 of the present Code may also serve as material evidence.

3. Other documents are considered documents by decision of the body in charge of proceedings.

Article 123. Attachment, maintenance and return of the documents

1. The documents shall be attached to the materials of the criminal case by the body which carries out the criminal proceeding and kept with the case throughout the proceedings.

2. If the legal owner needs the documents confiscated or attached to the case for accounting, registration or other legal purposes, he shall be given the opportunity to use them temporarily or to make copies of them.

3. Six months after either the sentence of the court has come into legal force or the dismissal of the case by the body which carries out the criminal proceeding, the originals of the documents attached to the case shall be returned to their legal owners upon their request. However, a copy of the document the authenticity of which is certified by the investigator, prosecutor.

CHAPTER 16. PROOF

Article 124. Proof

1. Proof includes collection, examination, evaluation of the evidence with the purpose of determining the circumstances necessary for a legal, grounded and fair resolution of the case.

2. The bodies of the criminal persecution shall be responsible for proving the existence of evidence aggravating the criminal responsibility and guilt of the accused.

Article 125. Collection of evidence

1. Evidence shall be collected in the process of inquest, investigation and court proceeding by carrying out investigatory and trial proceedings provided by this Code.

Article 126. Verification of evidence

1. Evidence collected for the case shall be subject to a thorough and objective examination. Examination consists of analyzing the obtained evidence, comparing it with other evidence, collecting new evidence, checking the sources of the obtained evidence.

Article 127. Evaluation of evidence

1. All evidences are subject to scrutiny concerning its admissibility, and the totality of the evidence obtained is a subject to scrutiny concerning its sufficiency for the determination of the case.

2. The officer of the inquest body, investigator, prosecutor or judge, governed by law, shall carry out a detailed, thorough and impartial evaluation of the totality of the evidence, based on their internal conviction.

CHAPTER 25. INITIATION OF CRIMINAL CHARGE

Article 175. The duty for initiation of criminal charge

The prosecutor, the investigator, the inquest body must institute criminal charge, within their authority, provided there are reasons and grounds for the initiation of criminal charge envisaged in this Code.

Article 176. The reasons for initiation of criminal charge

1. The reasons for initiation of criminal charge are:

1) statements about crimes sent to the inquest body, investigator, prosecutor by physical persons and legal entities;

2) mass media reports about crimes;

3) the discovery of information about crime, material traces of crime and consequences of crime by the inquest body, the investigator, the prosecutor, the court and the judge in their line of duty.

Article 177. The statements of physical persons about crimes

1. The statements of physical persons about crimes can be written or oral.

2. The oral statement made about a crime during investigation or court trial is registered in the protocol of the investigation or the court session, respectively. In other cases separate protocols are written. The protocol must indicate the surname and the first name of the applicant, date of birth, home and work address, the relation to the crime and the source of information, as well as data about personal documents submitted by him. If the applicant has not submitted personal documents, other measures must be taken to check the information about the identity of the person.

3. If the applicant is 16 years old, he is warned about the responsibility for fraudulent representation which is confirmed by the signature of the latter.

4. The statement in the protocol is narrated in the first person.

5. The protocol is signed by the applicant and the recipient official.

6. Rules specified in paragraphs 1, 2, 4 and 5 of this Article are also extended to the statement made by the applicant about crime committed, in case of surrender.

7. A letter, a statement or other anonymous message about crime, unsigned or with false signature or written on behalf of fictitious person, cannot be a reason for initiation of criminal charge.

(amendments in article 177 dated 25.05.06 HO-91-N)

Article 178. Statements by legal entities

A statement by a legal entity must be in the form of an official letter, or confirmed telegram, telephone or radio message, e-mail, or other accepted form of communication. Enclosed to the message can be documents confirming the crime.

Article 179. Mass media reports

1. Reports on committed or prepared crimes, in press, on the radio, on TV, in documentary films, as well as reports forwarded to mass media and unpublicized, are considered mass media reports.

2. Mass media which publicized reports about crimes or sent to the media, as well as the authors of these reports must, at the request of the head of the investigating body, investigator, prosecutor, submit the materials in their possession confirming the report about the crime.

Article 180. The examination procedure of reports about crimes

1. Reports about crimes must be considered and resolved without delay, and when necessary to check the legitimacy of the reason for the initiation of criminal charge and the sufficiency of the grounds, no less than in 10 days after their receipt.

2. Within this period additional documents can be requested, explanations and other materials, as well as the examination of the locus criminis and expert examination.

Article 181. Decisions made as a result of examination of statements about crimes

In each case of the receipt of information about a crime, one of the following decisions is made:

1. on initiation of criminal charge;

2. on the dismissal of initiation of criminal charge;

3. on the transfer of the statement by subordination.

Article 182. Procedure of initiation of criminal charge

1. In case of availability of reasons and grounds for initiation of criminal charge, the prosecutor, the investigator, and the investigating body make a decision on initiation of criminal charge.

2. The decision must indicate: the reason and grounds for criminal charge, the article of the penal code by the elements of which the criminal charge is initiated, and the further progress of the case after initiation.

3. If at that moment the person injured by the crime is known, simultaneously with the initiation of the criminal charge this person is recognized as the injured party, and if a civil claim has been submitted at the same time with the statement about crime, that person is recognized as civil claimant, by the same decision.

4. The prosecutor sends a copy of the decision to initiate criminal charge to the physical person or the legal entity which reported about the crime.

5. At the same time, with the initiation of criminal charge, measures must be taken to prevent the crime, as well as to keep and preserve the traces of the crime, objects and documents, which can be significant for the case.

Article 183. Initiation of a criminal case based on the complaint of the injured person

1. Based on circumstances envisaged in part 1 of article 113, part 1 of article 114, part 1 of article 115, part 1 of article 116, article 117,; article 118, part 1 of article 119; part 1 and 2 of article 120; part 1 and 2 of article 121; part 1 of article 124; part 1 of article 128; part 1 and 2 of article 135; part 1 and 2 of article 136; part 1 of article 137 part 1 of article 158; article 174, part 1 and 4 of article 177; part 1 of article 178; part 1 of article 179; part 1 of article 181; part 1 of article 183; part 1 of article 184; part 1 of article 185; part 1 and 2 of article 186; article 197; part 1of article 213; part 1of article 242 of the Criminal Code of the Republic of Armenia, the case is initiated only based on the complaints of the injured, and in case of his reconciliation with the suspect or the accused, the case is subject to termination. Reconciliation is allowed until the court’s retreat to the conference room to adopt a verdict.

2. (part 2 void of force as of 21.02.07 HO-93-N)

3. The deviations from part 1 of the given article can be defined by International Agreements of the Republic of Armenia

(article 183 edited on 14.12.04 HO-57-N, edited and amended on 21.02.07 HO-93-N)

Article 184. Initiation of new case based on the materials of a criminal case

1. The inquest body, the investigator, the prosecutor make a decision to initiate a new case based on the materials of a criminal case under his examination and to separate it in separate proceedings, and the court appeals for such a decision to the prosecutor, provided another crime, not related to the crimes incriminated to the defendant has been revealed which was committed not by the defendant but by some other person, without the participation of the defendant.

2. The decision must indicate: the grounds for initiation of case and separation, episodes and persons against whom the new case was initiated and separated, the article in the penal code by which the case was initiated and separated in separate proceedings, the decision to send the separated case for further pretrial examination or to undertake the case in one’s own proceedings.

3. The list of separated materials, in the originals or copies, is included or attached to the decision: decisions, protocols, documents, real evidence.

4. The first copy of the decision and the attached list of the separated materials are included in the initial case and the second copy in the separated case.

5. The defendant, his legal representative and lawyer, as well as the injured party, civil claimant, civil defendant and their representatives who participated in the initial proceedings, are informed about the separation of the new case and its further progress.

(additions in article 184 dated on 25.05.06 HO-91-N)

Article 185. Dismissal of initiation of criminal charge

1. In case if illegitimacy of the reason or lack of grounds for initiation of criminal charge, the prosecutor, the investigator, the inquest body make a decision to dismiss the initiation of criminal charge.

2. The copy of the decision is sent to the physical person or legal entity which reported about the crime.

3. The decision dismissing the initiation of criminal charge can be appealed to higher prosecutor or in the court of appeal.

4. Based on the complaint concerning the dismissal of initiation of criminal charge, the higher prosecutor eliminates the decision appealed against, initiates criminal charge and sends it for preliminary examination to the investigator or takes the case under his own consideration or confirms the legitimacy of dismissal of the initiation of the criminal charge.

5. Based on the complaint concerning the dismissal of initiation of criminal charge, the court of appeal eliminates the decision appealed against, or confirms its adequacy. The elimination of the decision appealed against makes the initiation of the case by the prosecutor mandatory.

(additions, amendments and edits in article 185 dated on 25.05.06 HO-91-N, additions dated on 21.02.07 HO-93-N, amendments dated on 22.02.07 HO-129-N)

Article 186. Transfer of statements about crime by subordination

The official authorized to initiate a criminal case is entitled to transfer the statement about crime, without initiation of case, by subordination only in case when the crime was committed outside the given district, when inspection activities are necessary in the locus criminis to make a decision on the initiation of criminal charge.

(article 186 edited on 25.05.06 HO-91-N)

Article 187. The progress of the criminal case after initiation of the criminal case.

After initiation of the criminal case:

1. The prosecutor sends the case for investigation to the investigator or takes it under his own consideration.

2. The investigator performs investigation, immediately advising the prosecutor.

3. The head of the inquest body instructs the officer of the inquest body to perform immediate investigation activities or performs them personally, the decision on initiation of criminal case is immediately sent to the prosecutor for confirmation.

4. (amendments in article 187 dated on 22.02.07 HO-129-N)

CHAPTER 26. GENERAL CONDITIONS FOR INVESTIGATION

Article 188. Mandatory nature of investigation

1. Investigation is mandatory for all cases.

2. Inquest can be considered the initial phase of criminal proceedings within 10 days after initiation of the criminal case.

(article 188 edited on 25.05.06 HO-91-N)

Article 188.1. General conditions of investigation

1. It is forbidden to conduct investigation at night times with an exception of emergency cases

2. It is forbidden to apply violence, threat or any illegal activity as well as promoting a life and health threatening conditions towards the participants of the investigation during the investigation proceedings

3. While involving the accused, suspect, witness, injured, civil petitioners, their representatives or any other person forseen by articles 81, 83-86 of the given code the investigator should identify their state of being,, explain their rights and responsibilities as well as the general terms of investigation process. If the injured, witness, expert or translator are participating in the investigation proceedings the investigator should then inform them correspondingly on the criminal liabilities foreseen by articles 338 and 339 of the Criminal Law of the Republic of Armenia.

4. The investigator has a right to involve authorities from operative investigation structures for implementing investigation proceedings. This should be noted in relevant investigation protocol

(additions in article 188 z dated on 23.05.06 HO-104-N)

Article 189. Investigation bodies

Investigators of the Special Investigatory Service, Police investigators, investigators of the Ministry of Defense, National Security bodies, Tax and Customs bodies conduct investigation of criminal cases. (amendments in article 189 dated 25.05.06 HO-91-N, 22.02.07 HO-129-N, 02.11.07 HO-248-N, 28.11.07 HO 270-N)

Article 190. Investigative subordination

1. Police investigators conduct investigation concerning the crimes specified in articles 104-164, 166-187, 191, 192, 195-201, 204, 212-214, 218, 222, 223, 225, 225.1, 227-232, 235-249, 251-298, 300, 308-328, 331-332.2, 336, 341, 343-345.1, 347-355112-121; 123-124; 128; 135-137; 166-167; 170-171; 173-187; 190-192; 195-199; 202; 204; 212-214; 233-239; 242-247; 251-276; 292; 294-298; 321-326; 354-355 of the Criminal Code of the Republic of Armenia.

2. Police or tax investigators conduct investigation concerning the crimes specified in Articles 188, 189, 193, 194, 202, 203, 205-211 of the Criminal Code of the Republic of Armenia.

3. Investigators of national security bodies conduct investigation concerning the crimes specified in Articles 188-189; 193-194; 203; 205-211 of the Criminal Code of the Republic of Armenia.

4. Investigators of national security bodies or customs bodies conduct investigation of criminal cases specified in Article 215 of the Criminal Code of the Republic of Armenia.

5. Investigators of the Ministry of Defense conduct investigation of crimes directed against the military service code as well as crime committed in military unit or towards military contractor services.

6. Investigators of the Special Investigatory Service conduct investigation of crimes committed by managerial officials of the legislative, executive or judiciary authorities, officials of special state authorities in the course of their official duties, as well as crimes specified in Articles 149, 150, 154.1, 154.2 of the Criminal Code of the Republic of Armenia.

Whenever necessary, the General Prosecutor of the Republic of Armenia can withdraw certain cases from other investigatory agencies and transfer them to the Special Investigatory Service, if such cases are connected with the crimes committed solely or in complicity by the officials specified by this part or if such officials have been recognized as injured.

7. Investigators who institute criminal case, conduct investigation thereof in respect of cases specified by parts 2 and 4 of this Article, except for cases when the prosecutor transfers the investigation of that case to other investigatory bodies.

8. Investigators of those investigatory agencies, which have disclosed such crimes in the course of their investigatory competencies conduct investigation of criminal cases specified in Articles 128, 165, 200, 208, 209, 216, 308-310, 314, 315, 333-335, 337-340, 342, 345 and 346 of the Criminal Code of the Republic of Armenia.

9. Investigators of national security bodies and customs bodies conduct investigation concerning the crimes specified in Articles 188, 189, 205, 206, 235, 263, 266, 268, 271, 272, 275 and 325 188-189; 193-194; 203; 205-211 of the Criminal Code of the Republic of Armenia if such crimes have been disclosed in the course of their investigatory competencies, except for cases when the prosecutor transfers the investigation of that case to other investigatory bodies.

10. When investigation of cases conducted by different investigatory agencies is combined into one proceeding, or the investigation of disclosed crime belongs to other investigator’s competency, which is not foreseen by the part 8 of this Article, the investigation competency is decided by the prosecutor.

The Special Investigatory Service can not investigate any case belonging to the competency of other investigators, except for the cases specified by part 6 of this Article.

(amendments in article 190 dated on 19.03.99 HO-287, additions dated on 11.09.01 HO-215, amendments dated on 01.06.06 HO-61-N, edited on 25.05.06 HO-91-N, edited and amended on 22.02.07 HO-129-N)

Article 191. The place of investigation

1. The investigation is conducted at the place where the crime was committed.

2. For reasons of fast and complete investigation, it can be conducted at the place where the crime was discovered, as well as at the place where most of the suspects, accused or witnesses are located.

3. When necessary to conduct investigation at another place, the investigator is entitled to conduct this activity personally or to delegate it to the investigator of the given locale or to the inquest body.

Article 192. Beginning the investigation

1. Investigation is conducted only when the decision to initiate criminal case has been made.

2. After the initiation of criminal case the investigator and the officer of the inquest body immediately start the investigation of the case.

3. If the investigator or inquest body initiated the criminal case, and the case was taken over by them, a joint decision is made on the initiation of criminal case. These proceedings document should immediately be forwarded to the prosecutor, not later than 24 hours.

Article 193. The authority of the chief of investigation department

1. The chief of investigation department:

1) instructs the investigator to conduct investigation, transfers the case from one investigator to another;

2) supervises the timeliness of actions of investigators concerning criminal cases they are in charge, the observance of investigation deadlines and detention periods, the execution of the prosecutor’s instructions, as well as the instructions of other investigators.

3) instructs on the implementation of individual investigative activities;

4) delegates investigation to several investigators;

2. The chief of investigation department is entitled to participate in the investigation of cases taken over by an investigator, using the authorities of the investigator in this case.

3. The instructions given by the chief of investigation department on the criminal case can not restrict the initiative of the investigator and the rights specified in this Code. The instructions to the investigator are given in the written form and are mandatory for execution, however, they can be appealed to the prosecutor, except cases envisaged in part 4 of article 55, paragraph 27.

4. The instructions of the prosecutor are mandatory for the chief of investigation department.

In case of emergency the prosecutors's instructions can be given orally however the latter ones should be formulated in a written way not later than in 24 hours

(article 193 edited on 25.05.06 HO-91-N)

Article 194. The investigation conducted by investigation group

In case of complexity or large size of the case, the investigation can be delegated to several investigators, which is indicated in the decision to initiate criminal charge or a separate decision is made. The prosecutor or chief of investigation department is entitled to make such decision. The decision must indicate all investigators who have been instructed to conduct the investigation, including the head investigator of the group who takes over the case and supervises the activities of other investigators. The suspect, the accused, the injured person, the civil claimant and their representatives must be familiarized with the decision on conducting the investigation by a group of investigators and they are advised that they are entitled to challenge any investigator in the group.

(amendments in article 194 dated on 22.02.07 HO-129-N)

Article 195. The authority of the head of the investigation group

1. The head of the investigation group takes over the case, organizes the work of the investigation group, supervises the activities of other investigators.

2. Decisions concerning the joinder or disjoinder of criminal cases, the termination, suspension or resumption of proceedings, as well as the extension of investigation period, choosing arrest as measure to secure appearance of the defendant and the extension of its term are taken only by the head of the investigation group.

3. The decision to transfer a case to the court to discuss the indictment or enforcement of medical measures is made by the head of investigation group.

4. The head of investigation group is entitled to participate in the investigation activities conducted by other investigators, to conduct investigative activities in the case and to make decisions.

5. (additions in article 195 dated on 25.05.06 HO-91-N)

Article 196. The end of investigation

1. The investigation is concluded with a decision to transfer the case to the court for indictment, enforcement of medical measures or termination of the criminal case.

2. After the inquest, the chief of the inquest body forwards the case to the investigator, about which an appropriate decision is made. Inquest is over when:

1) the inquest deadline is over;

2) the person who committed the crime appears before the expiration of the inquest deadline;

3) the prosecutor transfers the case under consideration of the investigating body to conduct investigation, or the investigator is involved into the investigation.

Article 197. Investigation deadlines

1. Inquest is over within 10 days after initiation of the criminal case.

2. Investigation of a criminal case must be over no later than in two months. This deadline is calculated from the day of initiation of the criminal case and is over when decision is made on forwarding the case to the court or dismissal of the case.

3. The time of familiarization with the materials by the defendant or his lawyer is not included into the case investigation deadline. If the defendant and his lawyer delay the familiarization with the criminal case on purpose and without good motives, the investigator can limit the familiarization deadline by his own decision.

4. The time when the investigation was suspended on the grounds specified in this Code, is not calculated in the investigation period.

5. The investigation period specified in this Code can be extended by the prosecutor, based on the argumented decision of the investigator.

6. The investigator must submit the argumented decision on extension of the investigation period to the prosecutor, at least 3 days before the expiration of the investigation deadline.

7. In case of restarting the investigation of the criminal case, conducting additional investigation as well as restarting the terminated case the investigation should be completed in one month accordingly starting the day after the final decision made on restarting the investigation of the criminal case, conducting additional investigation as well as restarting the terminated case the expansion of this deadline can be done in accordance with the procedure foreseen in part 5 of the given article

(additions in article 197 dated on 25.05.06 HO-91-N)

Article 198. Mandatory elucidation and ensuring of rights for participants of the proceedings

The prosecutor, the investigator, inquest body officer is obliged to elucidate the rights and duties to the suspect, the accused, the injured person, civil defendant, civil plaintiff and their representatives and other persons participating in the investigation activities, as well as the consequences for failure to carry out their duties.

Article 199. Consideration and resolutions of petitions

1. The prosecutor, the investigator, the investigating body is obliged to consider all petitions initiated by the participants of the investigation.

2. Written and oral petitions must be considered and resolved within five days. The investigator or investigating body officer must make an argumented decision on the complete or partial dismissal of the petition.

Article 200. The obligation to reveal and eliminate the circumstances conductive to committed crime

1. The prosecutor, the investigator, the investigating body, during the investigation are obliged to reveal the circumstances conductive to the committed crime and, when necessary, to submit a legal appeal to the appropriate legal entity or official on the elimination of these circumstances.

2. The appeals are liable to mandatory consideration, and within a month the body which forwarded these appeals must be informed about the results.

Article 201. Prohibition to publicize the investigation data

1. The investigation data is liable to publication only by permission of the body in charge of case proceedings.

2. When necessary, the investigator, the investigating body warns in written form the witness, the injured person, the civil plaintiff and civil defendant, their representatives, specialists, experts, translators, witnesses to the search, lawyers and other persons related to the case about their responsibility not to publicize investigation data without the permission.

CHAPTER 31. SEARCH AND SEIZURE

Article 225. Grounds for conducting search

1. The investigator, having sufficient ground to suspect that in some premises or in some other place or in possession of some person, there are instruments of crime, articles and valuables acquired by criminal way, as well as other items or documents, which can be significant for the case, conducts a search in order to find and take the latter. 2.

2. The search can also be conducted to find searched-for persons and corpses.

3. The search is conducted only by a court decision.

(additions in article 225 dated on 25.05.06 HO-91-N)

Article 226. Grounds for seizure

1. When necessary to take articles and documents significant for the case, and provided it is known for sure where they find themselves and in whose possession, the investigator conducts seizure.

2. The seizure of documents which contain state secrets is conducted only by permission of the prosecutor and in agreement with the administration of the given institution.

3. No enterprise, institution or organization, no official or citizen has the right to refuse to give the investigator the articles, documents or their copies which he would demand.

Article 227. Persons present at search and seizure

1. Search and seizure is done in the presence of attesting witnesses.

2. When necessary, an interpreter and an expert take part in the search and seizure.

3. When performing search and seizure, one must provide the presence of the person or the full-age members of his family where the search or seizure is conducted. If their presence is impossible, the representative of the apartment maintenance office or local administration is invited.

4. Search and seizure at the premises owned by enterprises, institution, organizations and military units is done in the presence of their representative.

5. The persons whose premises are searched and whose items are seized, as well as the attesting witnesses, experts, interpreters, representatives, lawyers are entitled to be present during all actions of the investigator, make statements which must be recorded in the protocol.

Article 228. Procedure of search and seizure

1. Based on search or seizure warrant, the investigator is entitled to enter apartments or other buildings.

2. Prior to the search or seizure the investigator must familiarize the searched person or the one from whom seizure is done, with the warrant about which a signature is taken from the latter.

3. When conducting a search the investigator or the expert can use technical devices about which a record is made in the search protocol.

4. The investigator is obliged to take measures not to publicize the fact of the search and seizure, as well as their results and the facts of the private life of the searched person.

5. The investigator is entitled to prohibit the persons present at the search or seizure site to leave the site, as well as prohibit communication between each other until the investigatory actions are over.

6. When conducting a seizure, after presenting and announcing the warrant, the investigator proposes to hand over the articles and documents subject to seizure of one's own accord, in case of refusal, compulsory seizure is done. If the searched-for articles (none official copy) are not discovered at the place indicated in the warrant, by discretion of the investigator and by court decision, a search can be conducted.

7. When conducting a search, after presenting and announcing the decision, the investigator proposes to hand over the articles and documents or the hiding person subject to seizure. If the latter are handed over of one's own accord, this is recorded in the protocol. If the searched for items and documents are not handed over or are handed over partially, or the hidden person does not surrender, a search is conducted.

8. All taken items and documents are presented to the participants of investigatory actions, are described in detail in the protocol and when necessary, are sealed with the investigator's seal.

9. When conducting a search and seizure the investigator is entitled to open closed premises and warehouses, if their owner refuses to open the latter of his own accord. One must avoid from damaging locks, doors and other objects without necessity. 10.

10. (additions in article 228 dated 14.12.04 HO-28-N, 25.05.06 HO-91-N)

Article 229. Personal search

1. When conducting searches in the premises, in case of sufficient grounds, the investigator is entitled to conduct personal search and take items and documents possessed by the person at whose premises the investigatory actions are conducted, found in his personal effects, clothes or on the body which can have probatory value.

2. Personal search can be conducted without warrant in the following cases:

1) when arresting the suspect, and bringing him to the police or other law enforcement institution;

2) when using arrest as a measure to secure the appearance of the suspect or the accused;

3) when there are sufficient grounds to suspect that the person in the given premises where the search is made, may conceal documents or other items which have probatory value for the case.

3. Personal search can be conducted by the investigator, with the expert and attesting witness, provided they are of the same sex as the searched person.

(article 229 edited on 25.05.06 HO-91-N)

Article 230. Search and seizure protocol

1. When the search and seizure are over, the investigator writes an appropriate protocol which must indicate the place where investigatory actions were conducted, the time, the considerations, whether the searched for items and persons were surrendered of one's own accord, the name, surname, position of the person who conducted the search, the names, surnames and addresses of attesting witnesses, as well as the surnames, position and the legal status of other participants of the search.

2. All the seized articles must be indicated in the protocol of investigatory activities, mentioning their quantity, size, weight, individual features and other peculiarities.

3. If attempts were made to eliminate or hide the revealed articles or documents during investigatory actions, this fact is indicated in the protocol.

4. The investigator is obliged to familiarize all participants of investigatory actions with the protocol and they are entitled to demand for their comments to be incorporated in the protocol.

Article 231. The mandatory presentation of the copy of the search and seizure protocol

1. The copy of the search and seizure protocol with a signature is presented to the person in whose premises the investigatory actions had been conducted or to the full-age members of his family, and in case of their absence, to the representative of the apartment maintenance office in whose area the investigatory actions were conducted.

2. If the seizure or search took place in the territory of enterprise, entity, military unit or organization the copy of the protocol should be submitted to the respective representatives.

CHAPTER 32. SEIZURE OF PROPERTY

Article 232. Seizure of property 1.

1. Seizure of property is practiced as a remedy to secure property in civil claim and to prevent possible seizure and for coverage of court expenses.

2. Seizure of property is imposed on the property of the suspect and the accused as well as those persons whose actions can cause financial responsibility, regardless who posses what property.

3. The seizure of property commonly shared by spouses or the family is imposed on the part owned by the accused. In case of sufficient evidence that the commonly shared property increased or was acquired in a criminal way, the seizure can be imposed on the whole property of the spouses or the family or on a larger part of it.

4. Seizure can not be imposed on the property which according to law cannot be seized.

Article 233. Grounds for seizure of property

Seizure of property can be applied by the bodies conducting criminal proceedings only in the case when the materials collected for the case provide sufficient ground to suspect that the suspect, the accused or other person who has the property, can hide, spoil or consume the property, which is liable to seizure.

1.1 During the investigation of criminal case on the basis of articles 104, 112-113, 117, 122, 131-134, 166, 168, 175-224, 233-235, 238, 261-262, 266-270, 281, 284, 286-289, 291-292, 295, 297-298, 308-313, 329, 352, 375, 383 and 389 of the Criminal Code of the Republic of Armenia, the prosecuting body shall impose seizure on the property derived or obtained, directly or indirectly, through commission of those offences, including income or other benefits, instruments used or intended to be used in the commission of those offences, immediately after their disclosure. Seizure on that property will be imposed regardless of whether it is owned or held by a defendant or a third party.

2. Seizure of property is carried out based on the decision of the investigating body, the investigator or the prosecutor.

3. The decision on the seizure of property must indicate the property subject to seizure, the value of the property based on which it sufficient to impose seizure to secure the civil claim and court expenses.

4. When necessary, if there is a grounded suspicion, that the property will not be surrendered for seizure of one’s own accord, the prosecutor appeals to the court for a search permission, as established in this Code.

(additions in article 233 dated on 28.11.06 HO-207-N)

Article 234. Valuation of the property to be seized

1. The value of property to be seized is determined at market prices.

2. The value of the property which is seized as provision for civil claim or court expenses initiated by the prosecutor or civil plaintiff must be adequate to the amount of the claim.

3. When determining the portion of property to be seized from a number of accused or persons responsible for the actions of the latter, the degree of participation in the crime is taken into account however to provide a civil claim, the property of one of the relevant persons can be seized in full amount.

Article 235. Procedure of implementation of the decision for property seizure

1. The inquest body, the investigator or the prosecutor hand over the property seizure decision to the property owner or the manager and demands the submission of property. When the demand is rejected, an enforced seizure is done.

2. After the end investigation, by court ruling, the marshal of the court implements the seizure of property.

3. When imposing property seizure, when possible, an expert in commodity is involved who determines its approximate value.

4. The owner or the manager of the property is entitled to decide which articles or valuable items should be seized first to provide for the amount indicated in the property seizure decision.

5. The investigating body, the investigator or the prosecutor write a protocol on property seizure and the court marshal compiles other documents envisaged in law. The protocol (document) enumerates the whole seized property, accurately indicating the name, quantity, means, weight, degree of wear and tear, other individual features and when possible its value; it indicates what property was seized and what property was left for keeping, the seized property is described, the statements of present persons about the ownership of other people.

6. The copy of the appropriate protocol (document) with a signature is handed over to the owner or manager of the seized property, and in case of their absence, to the full-age members of their family, to the apartment maintenance office or local self-government representative. When seizing the property of an enterprise, institution or organization, the copy of the appropriate protocol (document) with signature is given to the administration representative.

Article 236. The preservation of seized property

1. Except real estate and large-sized items, other seized property as a rule is taken away.

2. Precious metals and stones, diamonds, foreign currency, cheques, securities and lottery tickets are handed for safe keeping to the Treasury of the Republic of Armenia, cash is paid to the deposit account of the court which has jurisdiction over this case, other taken items are sealed and kept at the body which made a decision to seize the property or is given for safe keeping to the apartment maintenance office or local self-government representative.

3. The seized property that has not been taken away is sealed and kept with the owner or manager of the property or his full-age members of his family who are advised as to their legal responsibility for spoiling or alienation of this property, for which they undersign.

Article 237. Appeals against seizure of property

The property seizure decision can be appealed against to the prosecutor however the submitted complaint does not prevent the execution of the decision.

Article 238. Release of property from seizure by criminal proceedings

1. The property is released from seizure by criminal proceedings ruling if as a result of recalling of the civil action, the qualification of the criminal act incriminated to the suspect or the accused has changed, and the necessity to seize property disappeared.

2. By petition of the civil plaintiff or other interested party, who are inclined to claim the property through civil proceedings, the court is entitled to preserve the imposed property seizure also after the end of criminal proceedings, within a month.

CHAPTER 54. MUTUAL LEGAL ASSISTANCE ON CRIMINAL CASES ACCORDING TO INTERNATIONAL AGREEMENTS

Article 474. Mutual legal assistance procedure on criminal cases at international relations

1. The execution of interrogation, inspection, confiscation, search, examination and other court operations provided by present code in the territory of a foreign state on the instructions or at the instance (hereinafter on demand) of courts, public persecutors, investigator, investigating bodies of the Republic of Armenia, as well as the execution of court operations provided by present code in the territory of the Republic of Armenia on demand of foreign state’s authorized bodies and official persons (hereinafter - authorized bodies) is carried out as provided by international agreements of the Republic of Armenia in accordance with procedure established by that agreements and present code.

2. Executing judicial operations provided by present code in the territory of the Republic of Armenia on demand of foreign state’s authorized bodies the court, public prosecutor, the investigator, investigating body of the Republic of Armenia apply norms of the present code – with the exceptions provided by corresponding international agreements.

Executing judicial operations in the territory of the Republic of Armenia on demand of foreign state’s authorized bodies the court, public prosecutor, the investigator, investigating body of the Republic of Armenia may apply legislative norms of criminal legal procedure of corresponding foreign state, if it is provided by international agreement with participation of the Republic of Armenia and given foreign state.

The demands of foreign states’ authorized bodies are fulfilled in terms provided by present code, if another term is not determined by corresponding international agreement.

Article 475. Bodies carrying out communication on the matter of legal assistance

1. The communication on the matter of legal assistance on criminal cases by international agreements of the Republic of Armenia is carried out:

a) in connection with executing interrogations concerning executing legal proceeding operations by the cases being in pre-trial investigation – through Prosecutor General Office of the Republic of Armenia;

b) in connection with executing interrogations concerning executing legal proceeding operations by the cases being in court proceedings – through the Ministry of Justice of the Republic of Armenia.

In case of being provided by international agreements of the Republic of Armenia, the communication can be carried out through diplomatic channels as well – through diplomatic representatives and consular institutions of the Republic of Armenia in foreign states, which receiving corresponding demands immediately submit them to authorized body – to submit to execution.

2. If a court, a public prosecutor, an investigator, investigating body of the Republic of Armenia gives the demand of execution court operations, they submit demands worked out in accordance with international agreements of the Republic of Armenia to corresponding authorized bodies determined by the first part of present article – to deliver it to foreign state’s authorized body with the purpose of its execution.

After authorized bodies of foreign states interrogate the court, the public prosecutor, the investigator, investigating body and submit to the authorized body provided by the first part of present article, the latter immediately provide the interrogation to the court, the public prosecutor, the investigator, investigating body of the Republic of Armenia worked out the demand.

3. If the demand to conduct legal proceedings operations was given by authorized bodies of foreign state and it was submitted to authorized body by the first part of the present article in accordance with international agreements of the Republic of Armenia, the latter submits the demand for execution to that court, public prosecutor, investigator, investigating body of the Republic of Armenia, which is authorized to execute given demand in accordance with present code.

The court, the public persecutor, the investigator, investigating body after to performing commission submit it to corresponding authorized bodies provided by the first part of present article, which immediately pass execution to an authorized body of foreign state.

4. In cases provided by international agreements of the Republic of Armenia giving demand, delivery demand concerning execution of court proceedings operations and transmission of the results of its execution may be carried out thought direct communication between corresponding authorized body of foreign state and corresponding court, public prosecutor, investigator, investigating body.

At that, if the execution of the demand received from authorized body of foreign state through immediate communication is not included in the authorities of the court, public prosecutor, the investigator, investigating body of the Republic of Armenia, immediately readdress the demand to authorized the court, public prosecutor, the investigator, investigating body of the Republic of Armenia, informing about it corresponding authorized body of the foreign state given demand.

Authorized court, public prosecutor, investigator, investigating body of the Republic of Armenia received the demand by readdressing executes the demand and dispatches it to the authorized body of foreign state as provided by the present part, at the same time informing corresponding body of the Republic of Armenia provided by the first part of present article about demand and its execution.

In cases provided by this part corresponding court, public prosecutor, investigator, investigating body of the Republic of Armenia informs through direct communication corresponding bodies mentioned in the first part of the present article about each demand, its receiving and execution – briefly pointed the demand, name of given body (name and position of the official person), content of demand, executing body or official person, content of execution, terms of demand’s giving and execution.

5. When the execution of demand received from foreign state’s authorized body corresponding to international agreements of the Republic of Armenia is impossible or does not arise from given international agreement, corresponding body of international state in accordance with procedure established by present article informs about impossibility of demand’s execution and the reasons of that.

Article 476. Carrying out demands provided by more than one international agreements

1. If the responsibility of carrying out demands concerning court legal proceedings operations by the foreign state’s authorized body arises from more than one international agreements signed by the Republic of Armenia with this state, the following orders will be applied:

a) if it is mentioned in the agreement, based on which international agreement exactly it has been worked out and submitted, the court, public prosecutor, investigator, investigating body of the Republic of Armenia executing the demand follow that international agreement;

b) if there are more than one international agreement acting between given foreign state and the Republic of Armenia mentioned in the demand, the court, public prosecutor, investigator, investigating body of the Republic of Armenia executing the demand follow the international agreement mentioned in the demand that gives most complete solution to the problems concerned with demand’s execution, at the same time applying the statements of other agreement (agreements), which are not provided by the international agreement giving most complete solution, but give possibilities to execute the demand fuller and more quickly.

c) if there is no mention in demand concerning with any international agreement acting between given state and the Republic of Armenia, the court, public prosecutor, investigator, investigating body of the Republic of Armenia executing the demand follow the international agreement that gives most complete solution to the problems concerned with demand’s full execution, at which the applying of statements of other agreements between given state and the Republic of Armenia that complete the agreement, which is followed by the court, public prosecutor, investigator, investigating body, is not impossible.

2. In the event that multilateral international agreement acts between the Republic of Armenia and given foreign state, which at the issues of betrayal gives privilege to that agreement with respect to other international agreements acting between the sides and regulating the issues of betrayal, the court, public prosecutor, investigator, investigating body of the Republic of Armenia follow this multilateral international agreement.

Article 477. To reject the execution of demand arising from international agreements

The execution of demands concerned with court legal proceedings submitted by foreign state’s authorized bodies based on international agreements of the Republic of Armenia may be rejected on the grounds provided by other agreements.

At that, if the demand has been submitted by authorized body of the state, with which the Republic of Armenia is connected with more than one corresponding international agreements, the execution of the demand may be rejected only if the circumstance (the reason) appearing the ground is provided by all international agreements - irrespective of the fact that whether the demand has been worked out and submitted in accordance with the agreement providing the circumstance (the reason) appearing the ground for rejection or in accordance with another international agreement, or if the execution of demand may cause damage to constitutional order, self-government, national security of the Republic of Armenia and the possibility of rejection of the execution the demand based on these grounds is provided by at least one international agreement acting with the participation of given foreign state and the Republic of Armenia.

Article 478. Betrayal crime perpetrate persons to foreign state

1. Citizens of foreign states, as well as persons without citizenship found permanent residence in the territory of a foreign state perpetrated crime in the territory of the Republic of Armenia – with the purpose of beginning criminal case against them in the corresponding state or continue the case began in the territory of the Republic of Armenia in accordance with present code, may be betrayed to that state only in cases, provided by international agreements acting with participation of that state and the Republic of Armenia.

In accordance with procedure established by corresponding international agreement all documents and other materials concerning with the crime perpetrated by betrayed person be at the case of the court, public prosecutor, the investigator, investigating body of the Republic of Armenia.

In the event that the order of documents’ and other materials’ dispatch is not provided or determined by international agreements, their dispatch may be carried out in accordance with agreement reached with central bodies of the Republic of Armenia and of foreign state or with authorized bodies of the court, public prosecutor, the investigator, investigating body having immediate and foreign state that have direct communication.

Dispatched documents in one copy are to be kept at the court, public prosecutor, the investigator, investigating body of the Republic of Armenia worked out or submitted the documents.

2. The betrayal of persons provided by the first part of present article to a foreign state with purposes provided by that part may be carried out at the period since their perpetration criminal act or in connection with it instituting criminal legal proceedings in the territory of the Republic of Armenia till the moment of pronouncement of sentence concerning that person or in other period provided by corresponding international agreement of the Republic of Armenia.

Article 479. Body authorized to make a resolve of extradition

1. If it is provided by international agreement of the Republic of Armenia to extradite a person perpetrated a crime to foreign state considered a member of this agreement and if different is not provided by that agreement, the decision of extradition of a person being in the territory of the Republic of Armenia may be made by:

1) the court of the Republic of Armenia, in the territory of which’s authority was instituted criminal proceedings concerning with person liable to extradition and the case is at pre-trial phase - through the mediation of public prosecutor of corresponding territory;

2) the court of the Republic of Armenia, in case which is the court legal proceedings of the criminal case instituted against given person liable to extradition;

3) Court of Cassation of the Republic of Armenia, if person liable to extradition based on court sentence holds punishment at criminal-executive institution or is put on probation - through the mediation of Ministry of Justice of the Republic of Armenia.

2. If in accordance with international agreement a citizen of the Republic of Armenia must be extradited or can be extradited to a foreign state, the allowance to make resolve of extradition has the court of the Republic of Armenia, in the administrative territory of which this person is registered, and if a citizen of the Republic of Armenia must be extradited or can be extradited to a international court acting with participation of the Republic of Armenia, the resolve of extradition makes Court of Cassation of the Republic of Armenia.

In cases provided by present part General Public prosecutor of the Republic of Armenia submits petition to corresponding court, if the case concerning with this person is at pre-trial case or Minister of Justice of the Republic of Armenia – if the case concerning this person is at the court proceeding phase or if the demand on his extradition was received from an international court.

3. When the extradition of a person, including – of citizen of the Republic of Armenia, to foreign state or international court is rejected, perhaps, if there are satisfied ground provided by present code to institute criminal charge against him concerning the action, for which he has sent petition of extradition from the foreign state or international court, the body made resolve of rejection must begin criminal charge concerning that person, and in cases provided by international agreements of the Republic of Armenia and in accordance with procedure established by it to take off the case concerning corresponding criminal charge from the case of foreign state’s court or of international court and to receive the case concerning that person instituted by authorized body of foreign state – executing corresponding criminal charge in accordance with the procedure established by present code.

Article 480. Extradition crime perpetrate person to the Republic of Armenia by a foreign state

1. In cases provided by international agreements of the Republic of Armenia and in accordance with procedure established by them persons perpetrated crimes in the territory of the Republic of Armenia and being in foreign countries – can be extradited to the Republic of Armenia by foreign states – with the purpose of instituting criminal case against them for crimes perpetrated in the territory of the Republic of Armenia.

In cases provided by international agreements of the Republic of Armenia and in accordance with procedure established by them with the same purpose foreign states can extradite to the Republic of Armenia the persons perpetrated the crime in the territory of given foreign state.

2. Executing criminal legal proceedings against persons provided by the first part of present article the rules of present codes are applied – with the exceptions provided by corresponding international agreements.

3. If a foreign state rejects the extradition of demanded person to the Republic of Armenia, in cases provided by given international agreements and in accordance with procedure established by them the court, public prosecutor, the investigator, investigating bodies dispatch their case to authorized body of corresponding foreign state – for the purpose of execution criminal charge concerning that person.

Article 481. Subpoena in the Republic of Armenia as a witness, civil plaintiff, their representatives, an expert, specialist and carrying out court legal proceeding operations

Persons appearing as a witness, civil plaintiff, their representatives, an expert, specialist by criminal case carrying out in the territory of the Republic of Armenia, who are out of the Republic of Armenia, in accordance with procedure and terms established by international agreements of the Republic of Armenia may be summoned to the Republic of Armenia – by the court, public prosecutor, the investigator, investigating body carrying out corresponding criminal case to execute necessary investigating or court operations with their participation.

During execution of necessary investigating or court operations with participation of that persons the rules of the present code are applied – with except provided by corresponding international agreements.

Article 111. To complete the code with new chapter 541 - including in it 482-499th articles of the code in new edition as well as to complete with articles 4991, 4992, 4993, 4994 and 4995 with following content:

CHAPTER 541. MUTUAL LEGAL ASSISTANCE ON CRIMINAL CASES IN CASE OF ABSENCE OF INTERNATIONAL AGREEMENTS

Article 482. Terms of legal assistance on criminal cases in case of absence of international agreements

1. In case of absence of international agreements concerning legal proceedings operations on criminal cases between foreign state and the Republic of Armenia, based on mutuality of authorized bodies and official persons (hereinafter – authorized bodies of given state) and the court, public prosecutor, the investigator, investigating bodies of the Republic of Armenia legal assistance can be shown at exceptional cases – in accordance with understanding reached through diplomatic channels based on the on mutuality of foreign state and the Republic of Armenia and about providing mutual aid, which must be previously coordinated:

a) the Ministry of Justice of the Republic of Armenia – concerning execution of legal proceeding operations being at court proceeding;

b) with Prosecutor General Office of the Republic of Armenia – concerning execution of legal proceeding operations being at pre-trial proceeding;

2. The communication and mutual assistance providing between authorized bodies of given foreign state and the court, public prosecutor, the investigator, investigating body of the Republic of Armenia between given state and the Republic of Armenia in accordance with procedure provided by the first part of given article continue until signing international agreement (agreements) on corresponding issue (issues) or until reciprocal participating of the Republic of Armenia and given foreign state to a valid multilateral international agreement of providing mutual assistance on criminal cases, if until that through diplomatic channels the Republic of Armenia or corresponding state in unilateral way or by bilateral agreement have not eliminate reached understanding concerning providing legal assistance on the basis of mutuality.

3. Providing legal assistance based on mutuality in accordance with procedure established by the first part of present article, with other bodies of the foreign state the court, public prosecutor, investigator, investigating body of the Republic of Armenia communicate through Ministry of Justice of the Republic of Armenia or through Prosecutor General Office of the Republic of Armenia correspondingly – in accordance with the rules of the 475th article of present code.

4. Ministry of Justice of the Republic of Armenia through Ministry of Foreign Affairs of the Republic of Armenia provides to the authorized central body of corresponding foreign state the text of present chapter translated into language acceptable for that state – to use providing legal assistance in the course of mutuality – accepting from this state its corresponding law.

Article 483. The content of petition about legal assistance in the course of mutuality

1. The petition of executing separate legal proceeding actions addressed to foreign state’s authorized body must be worked out in written, be signed by sending official person and confirmed with official stamp of the court, Prosecutor General Office, investigating body of the Republic of Armenia.

2. The petition concerning legal assistance in execution legal proceeding operation must contain:

1) the name of the court, public prosecutor, investigator, investigating body sending petition;

2) the name of foreign state, to which the petition is sent;

3) the name of the case and the character of the petition;

4) information about the persons, concerning which the petition is sent: name and surname, year, month, date, place (address) of birth, citizenship, line of work, place of residence or location, for juridical persons – name and location (address);

5) statement of circumstances subject to disclosure, as well as the list of documents, exhibits and other proofs that is expected to receive from performer of the petition;

6) information of factual circumstances of perpetrated crime, its qualification, in case of need – of nature and value of the damage caused by this crime, as well as other information being at the sender of petition that can suggest to effective fulfill of the petition.

Article 484. Fulfillment the petition concerning legal proceeding operations

1. The court, public prosecutor, the investigator, investigating body of the Republic of Armenia fulfill the petition submitted by foreign state concerning providing legal assistance based on mutuality by general rules of present code (chapters 1-53);

2. If petition cannot be fulfilled the checked documents returned to authorized body of international state sent the petition – mentioning the reasons hindering its fulfillment.

Petition is not fulfilled and is not a subject to return if its fulfillment can damage independence, constitutional order, government or security of the Republic of Armenia or conflicts with legislation of the Republic of Armenia.

Article 485. Sending case materials to foreign country to begin or to continue criminal charge

In case of crime perpetration by a citizen of foreign state or by a person without citizenship resident of foreign state in the territory of the Republic of Armenia and his leaving the Republic of Armenia all materials of instituted or investigated or liable to institution – the body executing the criminal case through corresponding authorized body provided by the first part of the 475th article of present code is sent to the corresponding body of given state – with petition to begin or to continue the criminal case concerning mentioned persons in accordance with legislation of this state.

The copies of all documents of the case provided by present article are kept at the court, public prosecutor, the investigator, investigating body of the Republic of Armenia executing the case – joined the list of material evidence that have been also sent to authorized body of corresponding foreign state.

Article 486. Fulfillment the petition concerning continue of criminal charge received from foreign states

1. The petition of foreign state’s authorized body concerned criminal charge execution with respect to the citizen of the Republic of Armenia perpetrated crime in the territory of foreign state and returned to the Republic of Armenia is dispatched:

a) to authorized research or investigating body of the Republic of Armenia – to institute criminal case and to investigate the case based on the materials attached to the petition;

b) to authorized public prosecutor or court of the Republic of Armenia – to continue preliminary investigation and legal proceedings of the criminal case already instituted against citizen of the Republic of Armenia in the territory of foreign state.

2. In case of beginning or continue criminal proceeding at the territory of the Republic of Armenia the proofs reached in the territory of foreign country by the investigation on case in accordance with procedure established by laws of that state have equal legal power with all other proofs received in the territory of the Republic of Armenia.

During fulfillment the investigation in the territory of the Republic of Armenia additional proofs submitted by foreign state’s authorized body are joined to other proofs in the case.

3. The authorized body of the given state sent petition is informed about setting the petition of foreign state’s authorized body to begin criminal legal proceedings or to continue legal proceedings in the territory of the Republic of Armenia in accordance with procedure established by the first part of present article going.

Article 487. Extradition

1. In case of receiving petition from foreign state’s authorized body about extradition of crime perpetrated person, the court, public prosecutor, the investigator, investigating body of the Republic of Armenia take appropriate measures having for the purpose to receive extradition permit or to carry out the sentence concerning to him and in direction of extradition this person to foreign state in accordance with procedure established by pointed 1-3 of the first part of the 479th article of the code.

2. Extradition regarding bringing in criminal responsibility is carried out for such kind of acts, which considered punishable by the laws of the state sent the petition and of the Republic of Armenia and for perpetration of which the penalty in the form of deprivation of liberty is provided – at least for period of one year.

3. Extradition regarding serving of a sentence is carried out for such kind of acts, which considered punishable by the laws of the state sent the petition and of the Republic of Armenia and for perpetration of which the penalty in the form of deprivation of liberty is provided – at least for period of six months.

Article 488. Rejection the extradition

The fulfillment of the petition of foreign state’s authorized body is rejected, if

1) at the moment of receiving the petition concerning with extradition by authorized body of the Republic of Armenia (first part of 475th article of present code) the criminal charge corresponding to the law of foreign state cannot be instituted, or the sentence cannot be executed because of being overdue or by other legal reason;

2) court sentence or decision of cessation of case proceeding and stoppage of criminal legal proceeding came into effect have been already proclaimed;

3) the petition concerns the extradition of a citizen of the Republic of Armenia;

4) in case of extradition in accordance with laws of given foreign country the death penalty may be settled and this state does not give satisfactory guaranties that in case of extradition such kind of penalty will not be settled and will not be executed;

2. The petition of person’s extradition may be rejected, if the person, whose extradition is demanded:

1) has got the right to political asylum in the Republic of Armenia in accordance with established procedure;

2) is persecuted in political, racial or religion motives;

3) is persecuted for military crime perpetration at peaceful period;

4) perpetrated the crime in the territory of the Republic of Armenia.

The extradition also can be rejected, if given foreign country does not provide mutuality in the area of legal assistance on criminal cases.

Article 489. Content of extradition petition

1. The petition of person’s extradition of foreign state’s authorized body in the framework of legal assistance in the course of mutuality must contain:

1) name of the addressee of petition;

2) description of factual circumstances of the act and original text of the law of foreign state submitting petition, on the base of which this act is considered a crime;

3) name and surname of the person, whose extradition is asked, his citizenship, place of residence of location (address) and if possible other information about him;

4) note concerning the value of damage caused by the crime and about its compensation at the moment of sending petition.

2. A confirmed copy of the decision of foreign country’s authorized body about arrest of the person must be attached to the petition of extradition.

3. A confirmed copy of the court sentence of foreign state’s authorized court – with the not of its entrance into effect and the article of criminal code of foreign state, according to which given person has been condemned must be attached to the petition for execution court sentence or of holding the non-held part of penalty in the territory of the Republic of Armenia.

Article 490. Additional information

1. If the request of extradition does not content all necessary information, the court, public prosecutor, the investigator, investigating body of the Republic of Armenia received the petition may request additional information and in case of need, to determine for it term lasting less than one month.

2. If foreign state’s authorized body submitted petition in the term provided by the first part of the present article does not submit additional information, the court, public prosecutor, the investigator, investigating body of the Republic of Armenia received the petition have to set free the person liable to extradition if he was arrested in accordance with decision of foreign state’s authorized body and based on the decision of authorized court of the Republic of Armenia.

Article 491. Arresting for extradition

1. In case of presence of a copy of the decision of foreign state’s authorized body attached to petition concerning his extradition, public prosecutor, the investigator, investigating body of the Republic of Armenia received the petition takes measures to arrest the persons liable for extradition in accordance with procedure establish by present code, if he considers impossible to fulfill the petition without it.

2. In the cases provided by the first part of present article the decision of authorized court of the Republic of Armenia must be taken with the presence of person liable to extradition.

If the decision of authorized court of the Republic of Armenia has been taken without the presence of person liable to extradition, because of his absence or of other reason, before fulfillment the extradition of this person, he must have possibility to appeal the decision of court to higher court.

The rules of present article are not applied for the person liable to extradition, which before receiving the petition of extradition, was arrested and carried a punishment in court-executive institution of the Republic of Armenia in accordance with procedure established by this code.

Article 492. Arresting or commitment before reception of the petition of extradition

1. Through the mediation of foreign state’s authorized body the person may be arrested in the Republic of Armenia before reception of the petition of extradition as well. The mediation must contain references to the decision or court sentence came into effect of foreign state’s authorized body – with notice that the petition of extradition of this person will be additionally provided. Before submission the petition of extradition the mediation about person’s arrest may be passed by post, telegram or fax, as well as through International Criminal Police (Interpol) or through another organization executing person’s search, to which the Republic of Armenia participates.

2. In accordance with procedure established by present code a person may be arrested without mediation or petition of extradition of foreign state’s authorized bodies, if there are ground provided by present code to assume that he has perpetrated the crime in the territory of a foreign state, with which the Republic of Armenia is connected with agreement of providing legal assistance on reciprocal basis. In case of submission a petition of extradition by this country, the arrested person is liable for extradition.

3. In cases provided by the first part of present article the rules of the third part of the 491st article of present code are applied at person’s arresting and if arresting the persons in cases provided by the second part, general rules determined by present code are applied.

4. In the cases provided by the first and the second part of present article foreign state’s authorized body is immediately informed about applying of corresponding preventive punishment concerning arrested or taken into custody person.

5. A person arrested in accordance with procedure established by the first part of present article must be set free, if the petition of his extradition has not been received in 30 days after taking him under custody.

A person arrested in accordance with procedure established by the third part of present article must be set free, if at the moment of completing the term provided for arrest a petition of extradition or before sending petition – the mediation of his arrest would not be submitted by foreign state’s authorized body.

In case of reception the petition of extradition or before sending petition – the mediation of his arrest, the rules of the 491st article or of the first part of present article of present code are applied.

Article 493. Extradition delay, temporary extradition

1. If criminal charge is incited against the person, whose extradition is demanded that person was condemned for other crime in the Republic of Armenia, his extradition can be delayed until the completion of the criminal charge, execution the sentence of the court or discharge of punishment in accordance with procedure established by the present code.

2. If the extradition of person provided by the first part of present article can lead to the lapse of statute of limitation of criminal charge determined by the law of foreign state against the petition of extradition or can cause damage to investigation carried out in that country, that person can be extradited temporary.

Temporary extradited person must be returned by the foreign state after execution of the court legal proceedings on the execution of criminal case, for which he has been extradited, but at least in three months since the day of extradition. In case of well-founded petition of foreign state’s authorized body or official person and concordance it with the court, public prosecutor of the Republic of Armenia, that term may be prolonged, but at least for one month.

3. The period of temporary extradited person’s being in foreign state is added to the term of imprisonment before trial or carrying punishment in the Republic of Armenia.

Article 494. Order of satisfaction of some demands or petitions about extradition

If there were received petitions about extradition of the same person from several states, public prosecutor or court of the Republic of Armenia by himself (by itself), which of these petitions he (it) should satisfy in the first place.

At that, considering the issue of satisfying in the first place one of the petitions, it is necessary to take into consideration all circumstances, especially the weight of crime and the place of perpetration, year, month and day of corresponding inquiries, the citizenship of plaintiff and that state’s further possibility of inquest.

Article 495. Executing extradition

1. After making decision of person’s extradition, the authorized body of corresponding state, which petition of execution has been satisfied, is informed about actual time and place of person’s extradition.

2. If foreign state’s authorized body, to which the notification provided by the first part of present article has been sent, does not accept the person liable to extradition in 15 days after the term provided by notification, this person, if he was arrested previously, is released from custody.

Article 496. Repeated extradition

If a person avoids of criminal charge executed against him or of carrying penalty in given foreign state and returned to the territory of the Republic of Armenia, by new petition of the same foreign state he extradite without submitting information and data provided by articles 489-490 of present code, if the grounds to reject extradition provided by the 488th article of present code had not been aroused.

Article 497. Giving allowance for transit extradition

1. Through written mediation of authorized body of a foreign state providing legal assistance with the Republic of Armenia on the basis of mutuality Prosecutor General of the Republic of Armenia decided the issue of giving allowance concerning the extradition through the territory of the Republic of Armenia of the person, the consent of the extradition of which was given by any third person.

The mediation concerning allowance of transit extradition is investigated in accordance with the same procedure that the petition of extradition.

2. In case of giving allowance of transit extradition, Persecutor General of the Republic of Armenia at the same time determines the way of extradition, which he finds most expedient (for example, by railway or automobile transport).

In case of stop in the territory of the Republic of Armenia during transit transportation, the extradited person is not allowed to leave corresponding carrier, and in case of need of leaving it may be done only under control of operative group and in term provided by General Executor of the Republic of Armenia.

3. the Republic of Armenia can reject allowance for transit transportation, if:

a) the action, for which the extradition of the person is requested is not considered a crime according to the law of the Republic of Armenia;

b) the person liable to extradition is not a citizen of the Republic of Armenia.

The transit is not allowed through the territory, where the person liable for extradition may be threatened by the danger of torture, brutal or inhuman treatment because of national or racial identity, religion, civil or political viewpoints.

Article 498. Obligation of criminal charge

1. In accordance with present code, public prosecutor, a court of the Republic of Armenia by the request submitted by foreign state’s authorized body in accordance with procedure established by present chapter, executes criminal charge concerning citizens of the Republic of Armenia, as well as foreign citizens and persons without citizenship, whose extradition has been rejected and who are suspected of perpetration a crime in the territory of the foreign state submitted the request.

2. If the crime, on which the criminal charge is instituted, arouses civil-legal requests of persons suffered damage of the crime, in case of presence of their petition about compensation of the damage, corresponding requests are investigating at the legal proceedings on present case - in accordance with present code.

Article 499. Limits of extradited person’s criminal charge

1. If in accordance with procedure established by the norms of present chapter a person was extradited to the jurisdiction of a court, public prosecutor, an investigator, investigating body of the Republic of Armenia for the beginning or the continue of criminal charge against him or for court sentence execution, thus without consent of authorized body of corresponding foreign state that person cannot be exposed to criminal responsibility or penalty until his extradition for the crime, by which he has not been extradited.

2. The person extradited without consent of authorized body of the foreign state allowed the extradition may not be extradited to a third state as well.

3. The consent of authorized body of the foreign state allowed the extradition is not requested, if the extradited person being citizen of foreign state or person without citizenship, in 30 days after completion of corresponding legal proceedings against him at the territory of the Republic of Armenia and in case of his conviction after carrying the punishment or after pre-schedule discharge according to other grounds provided by law does not leave the territory of the Republic of Armenia or if after leaving he returns there of his own free will. In the mentioned term is not included the time, during which the extradited person cannot leave the Republic of Armenia due to circumstances beyond his control.

Article 4991. Petition of execution legal proceedings on criminal charge

1. The petition about execution of legal proceedings on criminal case in the Republic of Armenia by foreign state's authorized body concerned with the Republic of Armenia in the course of mutuality must contain:

  • 1) name of authorized body of the foreign state submitting the petition;

  • 2) action description, in connection with which the petition about execution of legal proceedings is sent;

  • 3) as far as possible exact notes about time and place of action execution;

  • 4) the copy of the original text of the law of foreign state submitting petition, which consider present action as a crime, as well as the copies of the texts of that legislative norms, which have vital importance of legal proceedings on case:

  • 5) name and surname, citizenship of the suspect, as well as other information known about him;

  • 6) about the value of damage caused by the crime and situation with its compensation at the moment of sending petition.

2. The proofs and other materials existing at the authorized body of foreign state submitting petition must be attached to the petition.

All documents available at the test must be signed by corresponding official person – mentioned his position and confirmed with seal with imprint of the emblem of the official body of foreign state sent the petition.

Article 4992. Informing about results of legal proceedings on criminal case

The court, public prosecutor, the investigator, investigating body of the Republic of Armenia received the petition about execution of criminal charge informs the authorized body of the foreign state sent the petition about the final decision made on given criminal case – sending its confirmed copy.

Article 4993. Objects' extradition

1. The court, public prosecutor, the investigator, investigating body of the Republic of Armenia received the petition of providing legal assistance in the course of mutuality through the mediation of authorized body of the state sent the petition – without damaging the investigation of criminal case proceeded by it, extradites to it the subjects, which:

1) were used perpetrating the crime, including crime tools, subjects, obtained in criminal way, or the offender have received compensation instead of subjects, obtained in criminal way;

2) may have conclusive significance by the criminal case proceeded in foreign country. These subjects are handed in when the offender cannot be extradited because of his death, escape or other reasons.

3. The tools, subjects mentioned in present article may be extradited to foreign state’s authorized body on the term that after completion of legal proceedings on criminal case proceeding in foreign state, it will be returned to the court, public prosecutor, investigator, investigating body of the Republic of Armenia extradited it.

4. The rights of third persons concerning tools, subjects extradited to foreign state’s authorized bodies remain valid.

Article 4994. The order of applying to foreign state’s authorized body on the matters of legal assistance based on mutuality and of using materials acquired with its concern

1. Working out petition concerning providing legal assistance on the base of mutuality, the court, public prosecutor, investigator, investigating body of the Republic of Armenia maintains the requests provided by the law of given foreign state concerning the form of petition and its submission, and in case of absence of foreign law – the petition is worked out and sent to foreign state’s authorized body in accordance with form and procedure established by the 483rd and 489th articles of present code.

2. During execution the petition of the court, public prosecutor, investigator, investigating body of the Republic of Armenia by authorized body of given foreign state, submission of additional documents, materials, including proofs, subjects by the court, public prosecutor, investigator, investigating body of the Republic of Armenia is realized in accordance with agreements achieved by foreign state’s corresponding body and the statements of present chapter.

3. The documents, subjects, materials, including proofs, received by foreign state’s authorized body in connection with petition fulfillment the court, public prosecutor, investigator, investigating body of the Republic of Armenia use in accordance with present code.

If foreign state’s authorized body requested to return documents, materials or subjects provided by them, it is implemented in accordance with the agreements reached with it.

4. If as a result of legal assistance based on mutuality the extradition of a person perpetrated a crime to the Republic of Armenia took place, authorized court, public prosecutor, investigator, investigating body of the Republic of Armenia begins criminal legal proceedings or continues legal proceedings opened in foreign state, implementing concerning that person corresponding legal proceedings aroused from present code.

If his returning to the territory of foreign state causes the extradition of person by that state’s authorized body, it is realized in accordance with mutual agreement.

At that, if the extradition is caused by person’s being under arrest, in accordance with procedure established by the present code of the Republic of Armenia he may be detained for the term, during which that person is liable to return to the territory of given state.

5. Providing necessary information, extraditing persons, transferring tools or subjects of crime on criminal case executed by him by the petition of foreign state’s authorized body, the court, public prosecutor, investigator, investigating body of the Republic of Armenia have to attract attention of foreign state’s authorized body concerning their execution of corresponding actions, on corresponding rules of present chapter.

Article 4995. Person’s apparition to the Republic of Armenia

1. In accordance with agreements about providing legal assistance on criminal cases based on mutuality, based on demand or petition the persons speaking as a witness, a victim, civil respondent, civil plaintiff, their representatives, experts, specialists (hereinafter – other persons) on the case being in legal proceeding of the court, public prosecutor, investigator, investigating body of the Republic of Armenia, who being out of the borders of the Republic of Armenia, is known that they are in the territory of that foreign state, to the authorized bodies of which the corresponding petition is sent, may be called in the Republic of Armenia.

2. If other persons arrive to the Republic of Armenia by their consent and will, the court, public prosecutor, investigator, investigating body executing legal proceeding on corresponding criminal case fulfill correspondent court operations with his presence in accordance with procedure established by present code – with following reservations: if arrived other person is a citizen of foreign state of a person without citizenship having residence in its territory in accordance with the laws of that state, the execution of legal procedure operations of arrest, fine, as well as of expose to criminal responsibility for rejecting or avoiding of testifying or perjuring himself, deliberately giving false conclusions is forbidden.

3. Other persons may be called and arrived to the Republic of Armenia with expression of their free will in case of absence of agreements about mutuality between the state of their residence and the Republic of Armenia as well.

The rules provided by the second part of present article are applied concerning the persons arrived in the Republic of Armenia provided by present part as well.

Article 112. To complete the code with chapters 542, 543 and 544 with following content:

CHAPTER 542. RELATIONS WITH INTERNATIONAL BODIES ON THE MATTERS OF MUTUAL LEGAL ASSISTANCE

Article 4996. Basis of communication with international bodies

1. In the sense of present code as international bodies are considered created by and intergovernmental or interdepartmental international agreements the courts and other such kind of bodies, which authorities include execution of several legal proceedings on criminal cases and assistance, contribution, supporting to state’s efforts in the matter of struggle against criminality, as well as setting criminal penalties and their submission to execution.

2. The court, public prosecutor, the investigator, investigating body of the Republic of Armenia accomplish the relations with international bodies in accordance with international agreements the foundation (creation) of that bodies, determining their authorities, the participant of which is the Republic of Armenia.

If the Republic of Armenia is not a participant of international agreements of foundation of international body and of agreements arising from it, that regulate the issues of relations on criminal cases, the court, public prosecutor, the investigator, investigating body of the Republic of Armenia communicates with that bodies in accordance with international agreement of cooperation or support in legal area signed by given international body and the Republic of Armenia.

3. If the Republic of Armenia participates not to all of several international agreements of creation of given international body or limiting its authorities, the statements of other agreement (agreements), to which the Republic of Armenia does not participate, can be applied by the court, public prosecutor, the investigator, investigating body of the Republic of Armenia executing corresponding court legal proceedings, if they do not conflict with requests of present code and other laws containing the norms of court legal proceedings.

Article 4997. Order of communication with international bodies and providing legal assistance on criminal cases

1. The court, public prosecutor, the investigator, investigating body of the Republic of Armenia with questions aroused from authority of international body and with demands of providing legal assistance or support apply to them and receive legal assistance or support in accordance with procedure established by agreements provided by article 4996 of present code and according to that agreements.

At that, submitting corresponding demand to given international body, the courts of the Republic of Armenia realize it through Ministry of Justice of the Republic of Armenia, and public prosecutor, the investigator, investigating body – through Prosecutor General of the Republic of Armenia, if other procedure of legal assistance of support by corresponding international agreement is not established.

2. In case of possibility of participation of the court, public prosecutor, the investigator, investigating body (its representative) of the Republic of Armenia to providing legal assistance or support on criminal cases by international body, the court, public prosecutor, the investigator, investigating body (its representative) of the Republic of Armenia must during their stay at given body to discharge their obligations arising from present code and other laws.

3. The court, public prosecutor, the investigator, investigating body of the Republic of Armenia fulfill the demands of international body in accordance with rules provided by present code – with exceptions arising from international agreements.

If according to demands of international body authorized official person arise to the Republic of Armenia to participate to court legal proceedings take place in the Republic of Armenia, the procedure and terms of communication with him in the Republic of Armenia are decided by the international agreement concerning with authorities of that body, and if the procedure and terms are not determined by this agreement, the following rules are applied:

1) in connection with court legal proceedings concern courts in the Republic of Armenia, the official person of international body submits to Minister of Justice of the Republic of Armenia that case and the frame of issues concerning with it, which are liable to interpretation or solution in courts of the Republic of Armenia or by them;

2) in connection with criminal case at pre-trial investigation the official person of international body submits to Prosecutor General of the Republic of Armenia that case and the frame of issues concerning with it, which are liable to interpretation or solution by investigating or preliminary investigation bodies of the Republic of Armenia.

Prosecutor General of the Republic of Armenia decides investigating or inquest body or bodies of the Republic of Armenia liable to involve in interpretation or solution the issues submitted by official person of international body – in accordance with requests of present code.

After completion of corresponding court legal proceedings and at least in three days, the court, public prosecutor, the investigator, investigating body of the Republic of Armenia –correspondingly inform in written Minister of Justice or Prosecutor General of the Republic of Armenia of fulfilled court legal operations.

Minister of Justice of the Republic of Armenia, Prosecutor General of the Republic of Armenia – in the framework of their authorities systematize the operations of bodies and official persons of the Republic of Armenia involved in execution of corresponding court legal operations, in case of need involves to them other official persons.

CHAPTER 543. RECOGNITION OF COURT SENTENCES OF FOREIGN STATES’ COURTS AND INTERNATIONAL COURTS IN THE TERRITORY OF THE REPUBLIC OF ARMENIA AND ITS LEGAL CONSEQUENCES

Article 4998. Recognition of court sentences of foreign states in the Republic of Armenia

1. In the cases provided by international agreements of the Republic of Armenia the court sentences of foreign states’ courts are liable to recognition in the Republic of Armenia.

2. The grounds of recognition of court sentences of foreign states’ courts in the Republic of Armenia, the types of court sentences (decisions) liable to recognition are determined by international agreement of the Republic of Armenia signed with given state and acting with its participation.

3. The court sentence of foreign state’s court is recognized in the Republic of Armenia:

1) Chamber of Criminal and Military Cases of Court of Cassation of the Republic of Armenia, if the court sentence liable to recognition has been passed by the highest judicial body;

2) Court of Appeal of Criminal and Military Cases of the Republic of Armenia, if the court sentence liable to recognition has been passed by foreign authorized Court of Appeal;

3) Court of first instance of the Republic of Armenia – in accordance with jurisdiction established by present code, if the court sentence liable to recognition has been passed by foreign court of first instance.

4. The court of the Republic of Armenia authorized by the third part of present code concerning recognition of court sentence of foreign state’s court takes a decision. Court sentence of foreign state’s court recognized in the Republic of Armenia is executed in accordance with criminal-executive legislation of the Republic of Armenia, and as regards reparation of damages and other expropriations – in accordance with legislation of forced execution of court acts – with excepts provided by international agreements.

Article 4999. The terms of recognition of court sentence of foreign state’s court and the grounds of rejection

1. Making decision concerning the recognition of court sentence of foreign state’s court, the courts of the Republic of Armenia authorized by the third part of the 4998 article clarify, how much are kept the terms provided by corresponding international agreement, which appear as ground for making decision concerning recognition.

The observance of that terms, as well as the absence of grounds for rejection the recognition and execution of court sentence by given international agreement are the ground for making decision of recognition and submission to execution the court sentence of foreign state’s court in the Republic of Armenia.

2. The recognition of foreign state’s court’s court sentence may be rejected by the grounds provided by international agreements of the Republic of Armenia, as well as, if:

a) the action, for which the person has been condemned, is not considered as penal action;

b) as punishment the court sentence provided the death penalty.

Article 49910. Recognition and rejection of court sentence of international court

1. The court sentence of international court acting with membership (participation) of the Republic of Armenia is a subject to recognition, if it is provided by another international agreement (agreements) of that court’s foundation or determining its authority.

The decision concerning recognition of court sentence of international court in the Republic of Armenia is to be made by Chamber of Criminal and Military Cases of Court of Cassation of the Republic of Armenia in accordance with procedure established by international agreement determining the authority of the international court.

2. The decision of international court in the Republic of Armenia is recognized in accordance with procedure established by international agreements determining the authority of that court and the recognition may be rejected on the grounds provided by that agreement as well as in the events provided by points a and b of the second part of article 4999 of present code.

3. International court considered the intergovernmental body acting with membership (participation) of the Republic of Armenia, which in accordance with international agreement (agreements) of its foundation or with other international agreement (agreements) determining its authorities is authorized to investigate criminal cases and to make resolved with regard to them.

4. The execution of court sentences of international court in the Republic of Armenia is fulfilled in accordance with criminal-executive legislation of the Republic of Armenia, and with regards to reparation of damages and other expropriations – in accordance with legislation of the Republic of Armenia of forced execution of court acts – with excepts provided by international agreements of the Republic of Armenia.

Article 49911. Legal consequences of recognition of court sentence of foreign state’s court and international court

The recognition of court sentence of foreign state’s court and international court in the territory of the Republic of Armenia arise the same legal consequences that would be arisen by valid court sentence of a court of the Republic of Armenia.

Article 49912. Serving of a sentence of international court without recognition

1. If the constituent agreement (agreements) of international court or other agreement (agreements) determining its authority provides serving of a sentence or that court without recognition, this sentence – in accordance with procedures established by given international agreement on receiving in Ministry of Justice of the Republic of Armenia, is sent to serving – in corresponding criminal-executive institution.

2. If it is not provided by the order given international agreement the responsibility of execution in the form of immediate serving or recognition of the sentence, thus based on that sentence in accordance with articles 4081 and 4101 of given code, the proceedings of case reconsideration is raised.

Article 49913. Legal grounds and order of execution of international court’s sentence

1. International court’s sentence may be served in the territory of the Republic of Armenia in case of participation of the Republic of Armenia to international agreements concerning given court.

2. International court’s sentence also may be served in the territory of the Republic of Armenia when without taking such kind of international responsibility upon himself, in the framework of given court’s authority the written agreement of solving the sentence of that court in the Republic of Armenia has been achieved.

3. In the territory of the Republic of Armenia international court’s sentence is submitted to serving in accordance with international responsibilities of the Republic of Armenia and without decision-making concerning recognition the sentence by authorized court of the Republic of Armenia, if there is the different is not provided by mentioned responsibilities.

4. With the purpose of solving international court’s sentence in the territory of the Republic of Armenia, Minister of Justice of the Republic of Armenia – in accordance with international responsibilities of the Republic of Armenia, decides the criminal-executive institution, where condemned person must bear the punishment provided by court sentence.

5. The regime of criminal-executive law of the Republic of Armenia acts with respect to person bearing the punishment provided by international court’s sentence in the territory of the Republic of Armenia – with expects provided by international agreements.

Article 49914. Legal consequences of solving a sentence of foreign state’s court or of international court

1. The regime of criminal-executive law of the Republic of Armenia acts with respect to solving a sentence of foreign state’s court or of international court.

Concerning the person bearing punishment it arouses the same legal consequences as would be aroused, if given person was condemned in the territory of the Republic of Armenia and by valid court sentence solved by its authorized court.

2. The person completely or by non-suffered part bearing punishment condemned by sentence of foreign state’s court or international court in the territory of the Republic of Armenia enjoys the right of pre-schedule liberation from punishment, which proceeds from corresponding international agreements of the Republic of Armenia, including rights of pardon and amnesty.

3. After complete or partial bearing the punishment or after pre-schedule discharge on basis provided by the third part of present article, the person may be situated in the territory of the Republic of Armenia in accordance with his status and legislation of the Republic of Armenia (as a citizen of the Republic of Armenia, as foreign state’s citizen, person without citizenship etc.).

At that, if the completed the punishment preschedule discharged from the punishment is not a citizen of the Republic of Armenia and in accordance with international agreement of the Republic of Armenia he may be delivered to any foreign state that must accept him, that person by his approbation is delivered to given state.

4. If during solving the sentence of foreign state’s court or international court in the territory of the Republic of Armenia is reviewed by foreign state’s court or international court that have this authority, the solving stops or continues – in accordance with court sentence made as a result of review and with procedures and terms established by international agreement of the Republic of Armenia.

5. The court sentence of foreign state’s court or international court may be reviewed by authorized court of the Republic of Armenia exceptionally in cases provided by international agreement of the Republic of Armenia.

CHAPTER 544. APPEAL TO INTERNATIONAL COURT

Article 49915. Right to appeal to international court

1. Every person, who finds that by final court sentence made on criminal case in accordance with procedure established by present code with respect to him the rights provided by international agreements of the Republic of Armenia have been broken, has right to appeal to international court acting with participation of the Republic of Armenia – in accordance with procedure established by international agreements of foundation of that court or determining his authorities (hereinafter – court regulations).

2. For the purposes of present chapter final judgement is considered the decision made by Chamber of Criminal and Military Cases of Court of Cassation of the Republic of Armenia in accordance with procedures established by present code and came into effect in accordance with procedure established by 424th article.

3. The right to appeal to international court arises after final judgment’s attachment – since the moment provided by corresponding international court’s regulations. Person looses this right in cases and in accordance with procedure established by international court’s regulations.

4. The framework of persons obtains rights to appeal to international court is limited by regulations of given international court.

Article 49916. Order of appeal to international court

1. The order of appeal to international court is defined by regulations of corresponding international court.

2. The person intends to take advantage of the right of appeal to international court, as well as his legal representative or representatives, is allowed in accordance with procedure established by present code to get documents concerning given case, their copies, photocopies from Court of Cassation of the Republic of Armenia, as well as from other courts of the Republic of Armenia made court sentence on given case, to do extracts of them.

3. The expenses concerning appeal to international court carries the applicant, if other is not provided by regulations of that court.

Article 49914. Duty of assistance to international court

1. Court of Cassation of the Republic of Armenia replies to requests sent by international court concerning with clarification of conditions concerned with case in proceedings of international court or of submission additional proofs, documents and other materials and submits necessary materials and documents in 15 days since receiving corresponding request, if other term is not provided by regulations of international court.

2. Court of Cassation of the Republic of Armenia provides assistance for clarification of all conditions on given case interesting for international court – starting from necessity of clarification judicial error accepted by courts of the Republic of Armenia during investigation of given case and keeping the interest of justice until the end.

THE REPUBLIC OF ARMENIA LAW ON ADVOCACY

Article 19. Principal Obligations of an Advocate

An advocate (attorney) shall:

1) Conscientiously and honestly protect the interests of a client by all means not prohibited by laws of the Republic of Armenia;

2) follow the requirements of this law, the code of advocate's conduct and charter of the Chamber of Advocates;

3) not reveal advocate's secret, except for cases provided by the law;

4) continually improve his/her knowledge;

5) pay membership fees;

6) not to take any action conflicting with the interests of a client, not to take any line without agreeing with the client, except for cases when the advocate is sure of false self- incrimination by the defendant, not to admit the client's crime and connection with the crime conflicting with the client's position;

7) Perform obligations set forth by the Republic of Armenia Law “On Combating Money Laundering and Terrorism Financing”.

LAW ON PRIZE GAMES AND CASINOS

ARTICLE 6. REQUIREMENTS IMPOSED ON THE OPERATION OF PRIZE GAMING AND CASINO ACTIVITIES

1. In the proceeds, gained by way of exploitation of a gaming machine, the minimum amount of programmed share of total winnings shall equal 86 percent.

2. The operator shall:

a) Organize the casino and prize gaming activities only on premises (the address) specified under the license;

b) Prevent the casino hall to be visible from the outside;

c) Ensure the safety of the casino premises by means of security and fire alarm systems;

d) Prohibit persons under twenty-one years of age from entering the casino hall;

e) When organizing non-chance prize games, inform in advance and give an explanation to the players;

f) Provide the winning upon the player’s first request;

g) ensure the purchase and cashing of tokens (chips) only for cash in Armenian currency, by bank card, or other payment instruments accepted in banking practice;

h) For each following year pay the annual state duty in accordance with the schedule prescribed by the Republic of Armenia Law on State Duty;

i) Put the rules of organized games on display in the casino hall (except gaming machines that have the wining options on them);

j) Organize and operate the prize games in compliance with the statutory regulations approved by the designated body;

k) Ensures the observation of the requirements under the Republic of Armenia Law on Combating Money Laundering and Terrorist Financing.

3. Casinos or prize games, as well as mediated (by means of a casino hall) internet prize games shall be organized outside the administrative boundaries of town communities. (Article 6 as amended by HO-26-N Law of 14.12.04, HO-22-N Law of 25.12.06)

ARTICLE 8. LICENSING OF PRIZE GAMES AND CASINOS

1. The licensing of prize games and casinos shall be carried out in accordance with the procedure stipulated by the Republic of Armenia Law on Licensing, this Law, and other legal acts.

2. An application to be licensed shall be rejected, if:

  • a. The documents attached to the application do not correspond to the requirements of laws and other legal acts or contain false information;

  • b. The applicant for the license has overdue liabilities in respect of taxes and other payments required by law;

  • c. The regulation on organizing and holding the prize game contradicts the Republic of Armenia laws or other legal acts or contain provisions that may undermine the players’ interests or contradict the requirements of Article 7(1) hereof or the rules established on the basis of Article 7(5) hereof; or

  • d. In other cases stipulated by law.

3. If it is decided to grant the application for a license, the license shall be issued to the applicant no later than within a one-month period of making the first annual payment of the stamp duty established by law, but only after a document confirming the payment has been presented.

4. If the organizer presents to the Authorized Body (i) the information on eliminating the shortcomings mentioned in a decision to issue a license, which was made with a reservation, or (ii) the receipt of the first annual payment of the stamp duty to receive a license after the end of the one-month period, then the Authorized Body shall demand from the applicant, as a precondition for issuing the license, a declaration that, during such time period, the documents attached to the license application have not lost their legal force in terms of their conformity to the requirements of this Law and other legal acts.

5. If the aforementioned declaration is not presented, or if the applicant informs that any of the documents attached to the application has lost its legal force and fails to present another document replacing such document, the Authorized Body shall decide to reject the license application.

6. A license to organize prize game does not permit to organize a casino. A casino license permits organizing any prize game in line with the requirements of this Law in the same gaming hall.

7. The organization of Internet prize games shall be subject to licensing under a simple procedure in accordance with the Republic of Armenia Law on Licensing. The organization of Internet prize games shall not be subject to the requirements of this Law (with the exception of the Article 6(3) requirement hereof in respect of the organization of Internet prize games directly (through gambling halls)). The stamp duty for organizing Internet prize games shall be collected (paid) in the amount and procedure stipulated by the Republic of Armenia Law on Stamp Duties.

(Article 8 was amended by Law HO-22-N dated December 25, 2006)

ARTICLE 9. SUPERVISION OF THE ACTIVITIES OF PRIZE GAMES AND OF CASINOS

1. Supervision of the activities of prize games and of casinos shall be performed by the Authorized Body through onsite or offsite supervision and, based on its results, in the event of finding the violations prescribed by this Law, shall apply the sanctions stipulated by Article 11 of this Law.

2. Audits of the activities of prize games and of casinos shall be implemented in accordance with the procedure stipulated by law.

3. Offsite supervision shall be performed by means of studying the information (reports) on the activities of the organizers submitted by them to the Authorized Body under Article 10 of this Law.

LAW ON NOTARIES

ARTICLE 5. THE SECRECY OF NOTARIAL ACTS

1. The notary shall preserve the confidentiality of the information he obtains knowledge of through the authenticated or certified documents. The termination of employment shall not be construed to affect this responsibility, with the exceptions as provided for by the Republic of Armenia Law on Combating Money Laundering and Terrorist Financing.

2. The entity, the notarial acts have been performed with the consent of or in connection with, as well as the assignee or representative thereof, shall have the authority to relieve notary the obligation to preserve the secrecy of notarial acts.

After the death of mentioned entities, given the absence of or the impossibility to communicate with the assignees thereof, the notary may be relieved the obligation to preserve the secrecy of notarial acts by a court order.

The court may also relieve the notary the obligation to preserve the secrecy of notarial acts on other reasonable grounds.

3. The notary shall provide references regarding notarial acts only to individuals, as well as legal entities, governmental or local self-governance bodies (henceforth referred to as organization) or their representatives, upon the request and with the consent of the client.

4. Upon a written request from the prosecutor or a court, or an inspector, or an investigative body, as provided for by the law, the notary shall provide references regarding its notarial and other acts, extracts from the notarial work, copies and originals only in connection with criminal or civil court proceedings (preliminary or final). The judge, the prosecutor, the inspector, the investigative body or the attorney shall be prohibited to provide information regarding notarial acts to other entities, including mass media, or to publicize this information in their communications before the court order enters into legal force.

Additionally, supervisory bodies or the officials thereof, entitled to supervise the notarial acts, shall have the right to obtain information regarding notarial acts within the scope of their authority, in compliance with rules and provisions of the law.

5. Notary shall have the right to provide information regarding a will or the content thereof, as prescribed by this law, only after the death of the testator.

6. The rules of preserving the confidentiality of notarial acts under this law, shall apply to entities (witness, translator etc.) involved in notarial acts, as prescribed by the law, as well as entities, that obtained knowledge of such information in connection with the performance of their job related and official duties.

7. Notaries shall protect the information and documents involving state or official secrecy, as provided by law.

8. Under the circumstances specified in the first paragraph of part 4 of this Article, the notary shall have the right to notify the entities involved in notarial acts regarding submitted references, extracts, copies or originals in connection with notarial acts, within 3 days following said submission, unless otherwise prescribed by law.

9. Under the circumstances and in compliance with rules prescribed by the Republic of Armenia Law on Combating Money Laundering and Terrorist Financing the notary shall provide information to the Central Bank of the Republic of Armenia.

ARTICLE 23. RESPONSIBILITIES OF THE NOTARY

1. The notary shall have the responsibility:

1) To be impartial and to observe the norms of notary ethics when performing notarial acts;

2) to preserve the confidentiality of the information obtained in connection with its activities, as prescribed by this law, with the exceptions as provided for by the Republic of Armenia Law on Combating Money Laundering and Terrorist Financing;

3) To refuse to conduct notarial acts, when it conflicts with the laws, or other legal acts, or international agreements of the Republic of Armenia;

4) to notify the Ministry of Justice and the Notary Chamber, when he/she fails to appear at the office because of sickness or other good reason for more than 5 days; and

5) to provide at least a five days prior notice to the Ministry of Justice and the Notary Chamber regarding a change in the address of the notary office;

6) To ensure the observance of the provisions of the Republic of Armenia Law on Combating Money Laundering and Terrorist Financing.

2. The notary shall also have the responsibility, upon the request of entities having paid the service fee;

1) while performing notarial acts, to provide assistance - to clarify their rights and obligations, for them to exercise their rights and realize their legal interests; to warn them of possible consequences of notarial acts, to avoid a situation, where their unawareness of the law is employed against them;

2) To clarify the parties the meaning and the purpose of draft transactions they presented and to verify the consistency of the content thereof with actual intentions of the parties;

In case the entities refuse to accept advise provided under this paragraph, the notary does not bear any future responsibility for resulting losses or other consequences of realized notarial acts; with regard to this the notary enters a note.

3. If foreign law is applied in the documents presented for notarial authentication or certification, or if the notary has concerns regarding the application of foreign law, the notary shall notify the requesting parties, and shall enter an appropriate note in the letter of authentication. In this case, for the parts involving foreign law, the notary is not required to perform obligations under paragraph 3 of part 1 and of part 2 of this Article, and shall not bear any responsibility for the resulting damage to the parties, including third parties.

4. The notary shall not be required to check the veracity of statements or other documents presented, as prescribed by laws or other legal acts, by or within the scope of the authority of organizations and by individuals, and shall not bear any responsibility for the resulting damage to the parties, including third parties, with the exceptions as provided for by the law, or where established, that the notary was in the knowledge or should have been in the knowledge of the fraud.

Notary shall not be required to verify the genuineness of the documents to be certified or transactions to be authenticated, the information and the facts about the parties or indicated by them, or the intentions thereof, and shall not bear any responsibility for the resulting damage to the parties, including third parties, with the exceptions as provided for by the law, or when established that the notary was in the knowledge or should have been in the knowledge of the fraud.

The notary shall not be required to verify the compliance of the content of the documents subject to authentication, certification or other notarial acts with the requirements of laws or other legal acts, and shall not bear any responsibility for the resulting damage to the parties, including third parties, in connection with the notarial acts specified under paragraphs 6-7, 11-12 and14 of part 1 of Article 36 of this law.

5. Notary and notary office shall not be subject to requirements, other than those provided for by this law. (Article 23 as amended by HO-21-N Law of 14.12.04)

ARTICLE 40. IDENTIFICATION AND DETERMINATION OF LEGAL CAPACITY AND CAPABILITY TO ACT OF A PERSON THAT HAS APPLIED TO PERFORM A NOTARIAL ACTION

1. When performing a notarial action, the notary must check the identity and legal capacity of individuals, representatives of individuals, or representatives of organizations that have applied to perform a notarial action, and an organization’s legal capacity and capability, with the exception of delivering providing counseling or other notarial services not deemed notarial actions and with the exception of cases of applying to perform the notarial actions stipulated by sub-paragraphs 5-7 of Article 36(1) of this Law.

When performing notarial actions based on a power-of-attorney, the notary must check the powers of the authorized persons.

2. The identity and legal capacity of a natural person shall be determined on the basis of the personal identification documents.

An organization’s legal capacity and capability to act shall be determined on the basis of the requirements of the Armenian legislation and the legal entity’s by-laws.

The legal capacity and capability to act of state or community bodies acting on behalf of the state or a community shall e determined on the basis of the requirements of the Republic of Armenia legislation and the by-laws of entities or institutions acting on behalf of the state or the respective community.

REPUBLIC OF ARMENIA LAW ON PRECIOUS METALS

ARTICLE 2. PRINCIPAL TERMS

Terms used in this Law shall mean as follows:

a) “precious metals” – gold, silver, platinum and platinum group metals (palladium, iridium, rhodium, ruthenium, osmium) in any form and condition (unrefined, refined, bar, ore, alloy, semi-finished, semi-fabricated, chemical substance, coin, scrap, by-products, etc.), other than articles made thereof;

b) “Precious stones” – natural, either unrefined or refined diamond, emerald, ruby, sapphire, alexandrite, and natural pearls;

c) “articles made of precious metals” – finished articles, manufactured for a specific purpose and use, made of precious metals or of alloys thereof with other metals, that may have elements of non-precious metals;

d) “Manufacturing of articles made of precious metals” – the process of manufacturing articles made of precious metals;

e) “refining (“affinage”) of precious metals” – metallurgical process of smelting and purification of precious metals from ores and alloys;

f) “refined precious metals” - bars of any size, grains, powder of precious metals refined to or beyond 99.5% purity, manufactured by refining companies in compliance with international and Armenian (Republic of Armenia) standards;

g) “Retail dealing in precious metals, articles made of precious metals” – buying and selling of precious metals, articles made of precious metals designated for personal, household, or other use;

h) “Bank gold” – “gold” as defined under the Republic of Armenia Law on Currency Control;

i) “standardized ingot” – an ingot of precious metal of any size and standard, as prescribed by this law, manufactured by a refining company;

j) “Standard” - measure indicating the weight of the precious metal in the 1/1000 weight unit of an alloy;

k) “Assaying” – determination, with diverse techniques, of the content of precious metals in substances and articles;

l) “Hallmark” – stamp, that certifies the content of precious metal in the 1/1000 weight unit (standard) of the article made of precious metals;

m) “Hallmarking” – the technological process of impressing/stamping the respective standard on the metal surface of an article made of precious metals;

n) “Distinguishing mark” – stamp, that indicates the assayer and/or the hallmark maker of articles made of precious metals;

o) “Name mark” – mark, that certifies the manufacturer of the article made of precious metal;

p) “Troy ounce” – unit of weight used for precious metals that equals 31.1034807 grams;

q) “Refining Company” – a company licensed, as provided by the law, to refine precious metals, to manufacture bank gold and standardized ingots.

ARTICLE 8. RETAIL DEALING IN PRECIOUS METALS AND IN ARTICLES MADE THEREOF

1. The retail dealing in precious metals and in articles made thereof may be regulated, if necessary, by rules established by the Government.

2. The retail dealing in precious metals and in articles made thereof, with the exception of the articles specified under paragraphs “a”, “b”, “c”, “d”, “e” of part 7 of Article 6 of this law, may be carried out on condition, that said articles bear a hallmark and a distinguishing mark thereon, as provided by the law.

3. Where the existing hallmark and distinguishing mark of the precious metals and articles made thereof, subject to assaying and hallmarking under this law, conflict with the requirements thereof, the responsibility for assaying and hallmarking shall be borne by the retail dealer.

4. Articles made of precious metals involved in the retail dealing shall bear a hallmark and a weight tag; where there are precious stones thereon, a tag shall also include the weight and quality of stones.

5. The Government shall set the rules for retail dealing in scraps of precious metals and in semi-finished articles made of precious metals, with regard to the assaying and hallmarking.

6. The responsibility for the observance of the requirements under this Law with respect to the retail dealing shall be borne by the retail dealer.

REPUBLIC OF ARMENIA LAW ON AUDIT ACTIVITIES

ARTICLE 11. AUDITING STANDARDS

Auditing standards are the normative legal acts regulating methods and order of carrying out auditing and relating services correspondent with international standards.

The auditor selects the methods and techniques of working basing on the requirements of normative legal acts on auditing.

The Government of the Republic of Armenia establishes auditing standards, as well as requirements for auditor’s ethics basing on international standards and code of conduct.

(Was revised in 08.06.04 HO-93-N law)

ARTICLE 13. DOCUMENTATION OF AUDIT AND ASSOCIATED SERVICES

1. Auditor shall document the conducted audit and the associated services in conformity with the established auditing standards.

2. Audit documentation shall involve formulation of audit opinion based on the audit work papers and audit results. Additionally, where specifically required under an agreement or upon the auditor’s own motion an audit report shall be produced (a letter addressed to the management of the audit client).

3. Audit work papers include documents prepared or obtained and maintained by the auditor with the purpose of carrying out an audit. Audit work papers contain confidential information (commercial secret).

4. Audit opinions, audit reports, audit work papers and other related documents shall be protected under the laws of the Republic of Armenia for at least 5 years following the conduct of an audit.

ARTICLE 18. AUTHORITY AND THE RESPONSIBILITIES OF THE AUDITOR

1. The auditor shall have the authority:

a) To fully examine the documents associated with the financial and economic activities of the audit client, as well as to verify the existence of the property as accounted;

b) to obtain oral, written explanations regarding the questions arising in the course of carrying out the audit services and other necessary information from the audit client, as well as to request such information from a third party;

c) To request in writing and obtain necessary information or confirmation from a third party upon a prior notice to the audit client;

d) To engage other auditors, experts (also on the contractual basis), as well as other commercial organizations in carrying out the audit services. The rules of the engagement of the mentioned entities in carrying out the audit services are defined by the auditing standards;

e) To refuse to conduct an audit or to present an audit opinion, if the audit client refuses to reveal information necessary to produce an audit opinion;

f) To exercise other rights not prohibited under the laws of the Republic of Armenia.

2. The auditor shall have the responsibility:

a) To observe the requirements of the laws of the Republic of Armenia in the course of implementing audit actions;

b) To ensure the observance of the requirements under part 4 of Article 12 of this law by its staff and the entities set down in paragraph “d” of part 1 of this Article;

c) To decline to carry out an audit in case of the absence of the license or under the circumstances specified under part 4 of Article 12 or in paragraphs “a” and “b” of part 2 of Article 19 of this law;

d) To ensure the preservation of confidentiality of the documents and the information involving commercial, organizational or bank secrecy, received and prepared in the course of carrying out the audit activities. The list of confidential information is set forth by the law, by an audit agreement and shall not be publicized, with the exception of the cases defined by a law or an agreement, as well as with a written consent of the legal entity, organization or private entrepreneur being audited. This list does not include the information, which shall not be considered as involving organizational, commercial or bank secrecy under the laws of the Republic of Armenia;

e) To report in writing any violation of the provisions of part 1 of Article 26 of this law to the authorized body within 30 days following said violation;

f) to submit quarterly reports on the audit activities to designated body, required exercise control over the fulfillment of requirements under the regulatory legal acts, as enacted by the Government of the Republic of Armenia, within 30 days following the current quarter; as well as, to submit yearly results’ reports before April 15th of the year following current year;

g) To keep the records of its agreements, as prescribed by the Government of the Republic of Armenia;

h) Perform responsibilities provided by the Law of the Republic of Armenia “On combating money laundering and terrorist financing” and by other laws.

(Article 18 as amended by HO-93-N Law of 08.06.04, HO-86-N Law of 26.05.08)

ARTICLE 31. RESPONSIBILITY FOR INFRINGING REQUIREMENTS OF THIS LAW

The auditors, persons conducting audit and persons being audited are subject to responsibility provided by law in cases of infringing requirements of this law.

ARTICLE 31.1. RESPONSIBILITY OF THE PERSON CONDUCTING AUDIT FOR INFRINGING REQUIREMENTS OF THIS LAW

The Authorized Body applies the following measures of responsibility, except for suspending or revoking the license:

a) Warning and instruction to eliminate the violation.

b) Fine:

(Article 31.1 was amended by the Law HO-25-N, 16.12.05)

ARTICLE 31.2. WARNING AND INSTRUCTION TO ELIMINATE THE VIOLATION

1. The Authorized Body determines the violation and warns the person conducting audit on the basis of inspections or reviewing quarter and annual reports of persons conducting audit submitted by Subparagraph “f”, Part 2, Article 18 of this Law.

2. Warning constitutes instruction on elimination of violation in the timeframe prescribed by the Authorized Body or on conducting future measures for prevention of similar violations and informing in written to the Authorized Body on that:

3. As a measure of responsibility, warning is imposed if the person conducting audit `

a) infringed the timeframes stipulated by Subparagraph “f”, Part 2, Article 18 of this Law in respect of submitting quarter or annual reports;

b) Infringed the requirements stipulated by Subparagraph “f”, Part 2, Article 18 of this Law in respect of submitting quarter or annual reports.

(Article 31.2 was added by the Law HO-25-N, 16.12.05)

ARTICLE 31.3. FINE

1. The fine is imposed and calculated according to the decision of the Authorized body in the order stipulated by the legislation of the Republic of Armenia. If the person conducting audit does not agree with the decision on imposing a fine, then the Authorized body applies to the court with a suit to enforce payment of the fine.

2. As a measure of sanction the fine should apply, if the person conducting audit:

a) Infringed the requirement of conducting audit services at least by 1 person, as prescribed by Point 4 of Article 6 of this Law, which gives rise to a fine of 300000 AMD for each case of infringement;

b) Infringed the requirement prescribed by Point 4 of Article 13 of this Law, which gives rise to a fine of 150000 AMD for each case of infringement;

c) Infringed the requirement prescribed by Subparagraph 2, Point 2 of Article 14 of this Law, which gives rise to a fine of 100000 AMD for each case of infringement;

d) Infringed the requirements prescribed by Subparagraph “c”, Point 2 of Article 18 of this Law, which gives rise to a fine of 200000 AMD for each case of infringement;

e) Infringed the requirements prescribed by Subparagraph “g”, Point 2 of Article 18 of this Law, which gives rise to a fine of 200000 AMD;

f) In case of issuing a warn on the basis of Part 2, Article 31.2 of this Law, if the infringement is repeated during one year a fine is raised of 100000 AMD for each case of infringement.

g) Infringed the requirement prescribed by Part 1, Article 13 of this Law, but according to the RA legislation, the infringement was considered non substantial and not affected the form and the content of the audit statement, which gives rise to a fine of 100000 AMD;

h) The infringement of the requirement prescribed by Part 2, Article 31.2 of this Law was not eliminated in the period set out by the Authorized body or the Authorized body was not notified about that, which gives rise to a fine of 100000 AMD for each case of infringement;

3. In the period of 2 years after application of a fine according to Point 2 of this Article, in case the infringement, which was subject to the fine is continued or a similar new infringement occurs, the fine is increased for 500000 AMD.

4. Statements composed with the infringement of Points “a”, “c”, “d” of this Article are not considered as due audit statements.

(31.3-ñ1 was added by the Law HO-25-N, 16.12.05)

LAW ON ACCOUNTING

ARTICLE 5. ACCOUNTING

Accounting is a system for the collection, registration and summary of information in monetary expression concerning the state and flow of the assets, equity, liabilities of an enterprise through comprehensive and continual documented accounting of all economic operations.

ARTICLE 18. CONFIDENTIALITY OF ACCOUNTING INFORMATION

1. The information in the initial accounting documents, account books, as well as in the reports for internal use is considered to be a commercial secrecy and can be accessed upon the permission of the organization’s chief executive in cases and by the procedure provided for by the founding documents of the organization and the legislation.

2. The persons and organizations that have received information comprising commercial secrecy must preserve the secrecy thereof. In case of the publication of such information they bear responsibility pursuant to the legislation.

STATUTE54 FINANCIAL MONITORING CENTER OF THE CENTRAL BANK OF THE REPUBLIC OF ARMENIA

Chapter 1. General Provisions

1. The Financial Monitoring Center (hereinafter referred to as FMC) of the Central Bank of the Republic of Armenia (hereinafter referred to as Central Bank) is a special structural sub-division of the Central Bank, which implements powers stipulated by laws, resolutions of the Board of the Central Bank, decrees and instructions of the chairman of the Central Bank, and this statute.

2. The FMC ensures the implementation of functions of the Authorized Body (hereinafter referred to as AB) under the RA Law against laundering of illicit proceeds and terrorism financing.

3. In its activities the FMC is guided by the strategy and work plan approved by the Board of the Central Bank.

Chapter 2. The Goal, Objectives And Functions Of The FMC

2.1. The goal of the FMC is to set up effective mechanisms for the fight against laundering of illicit proceeds and terrorism financing (hereinafter ML and TF).

2.2. The objectives of the FMC are:

2.2.1. coordination of activities aimed at prevention of ML and TF;

2.2.2. detection of ML and TF cases and implementation of effective measures to assist their prosecution;

2.2.3. through enhancing public awareness of the negative consequences of ML and TF, formation of an environment of intolerance towards that phenomenon, as well as contribution to the consistent deepening of knowledge on fight against ML and TF in the Republic of Armenia;

2.2.4. ensuring participation of the Republic of Armenia to international efforts to fight ML and TF and presentation of the position of the Republic of Armenia in the relevant international structures.

2.3. FMC is in charge of the following functions:

2.3.1. formation and development of information databases on fight against ML and TF, which includes:

a. formulation of requirements towards inflow and outflow information, related documents and relevant requests and reports;

b. centralized receipt and logical checks of information received from entities reporting to AB, detection and correction of inaccuracies, input of the relevant information into the centralized information system;

c. based on the relevant demand (request), the receipt of the necessary information from the state, ministerial and public databases, its development, input into the centralized information system and exchange;

d. input of other collected information into the centralized information system, receipt of information from the aforementioned system on the basis of the relevant demand (request), development and provision of necessary digital files;

e. submission of proposals on reporting forms, frequency of their submission, content and completion;

f. development of algorithms for information check through the centralized information system;

g. study and assimilation of international experience on centralized information system development;

2.3.2. development and analysis of data to fight ML and TF, which includes:

a. analysis of information submitted by entities reporting to AB to detect suspicious transactions;

b. collection and development of additional relevant information on suspicious transactions;

c. analysis of possible elements of crime in transactions (deals) which are being observed for detection of cases of ML and TF;

d. implementation of strategic analysis for fight against ML and TF, identification of possible tendencies on structural changes, dynamics, links and mutual connections, implementation of legal and economic analysis of digital information;

e. study of typologies of ML and TF cases, development of methodology for their disclosure and detection of indicators;

f. implementation of relevant analysis on the basis of requests from international organizations, foreign financial intelligence units, sub-divisions of the Central Bank, state and other agencies to fight against ML and TF;

g. comparative analysis of volume and quality of information received from entities reporting to AB;

h. examination, processing, formalization, automatization and implementation of internal business procedures (procedures insuring receipt, inputting, processing, dissemination of data, and internal document circulation),.

i. examination, comparison and presentation of outcomes of IT systems within the FMC and in the entire field of AML/CFT.

j. insuring exchange of information with internal and external (law enforcement agencies) sources.

2.3.3. exchange of information and cooperation with other state authorities of the Republic of Armenia, inclusive of law enforcement agencies, which includes:

a. provision by the FMC of information received as a result of measures implemented during the fight against ML and TF to the authorized state bodies, in accordance with the procedure defined by law;

b. development and adjustment of effective cooperation methods, agreements on fight against ML and TF between relevant authorized bodies and AB, coordination of activities on their signing and further cooperation;

c. provision of information on ML and TF cases to prosecution bodies, follow-up on the course of implementation of operational investigation activities based on the above information, as well as course of proceedings of initiated criminal cases (investigation, preliminary investigation and judicial inquiry);

d. provision of expert or other assistance deriving from its objectives on fight against ML and TF needed for operational investigation and inquest actions of criminal prosecution bodies, as well as judicial inquiry and activities of relevant authorized bodies;

2.3.4. exchange of information and cooperation with international organizations, foreign financial investigation bodies, other state authorities of the Republic of Armenia, inclusive of law enforcement agencies, involved in fight against ML and TF, which includes:

a. implementation of activities for membership to Egmont group;

b. development of concepts of cooperation with foreign financial intelligence units, preparation of cooperation agreements, coordination of their adjustment and signing procedures;

c. exchange of information and implementation of other types of activities within the framework of effective cooperation with foreign financial intelligence units;

d. preparation of the position of the Republic of Armenia in the relationships with international organizations involved in fight against ML and TF (FATF, MONEYVAL, etc.), follow-up on international legal agreements and other documents adopted by those structures;

2.3.5. regulation of fight against ML and TF, which includes:

a. development of mechanisms for the implementation of the requirements of international legal agreements and other documents on fight against ML and TF;

b. implementation of activities aimed at the development of legislation, normative and other legal acts on fight against ML and TF;

2.3.6. ensuring (supervising) implementation of requirements of legislation on fight against ML and TF, which includes:

a. preparation of criteria, manuals and guidelines about compliance of activities of entities reporting to AB and their clients with international and national standards on fight against ML and TF, analysis of efficiency of their implementation;

b. analysis of internal procedures and rules of entities reporting to AB and their supervising bodies aimed at prevention of ML and TF;

c. monitoring of compliance of activities of entities reporting to AB and their clients with international and national standards on fight against ML and TF, implementation, if needed, of joint checks with other subdivisions of the Central Bank and other state authorities;

2.3.7. implementation of consultation and training on fight against ML and TF, which includes:

a. identification of consultation and training needs of the staff of state authorities, entities reporting to AB and their clients, staff of the Central Bank and wide segments of society on international legal standards and national legislation on fight against ML and TF;

b. provision, if needed, of consultation to the staff of state authorities, entities reporting to AB and their clients, staff of the Central Bank and wide segments of society, as well as development, coordination and implementation of training programs on fight against ML and TF.

Chapter 3. The principles of the FMC activities

3.1. The activities of the FMC are based on the principles of objectiveness, impartiality, variety, centrality, confidentiality and efficiency. While implementing activities arising from the objectives of the FMC, employees of the Center are guided by the principles set up by this chapter.

3.2. The employees of the FMC are independent from other structural sub-divisions of the Central Bank. The independence of employees of the FMC is provided by the special status of the FMC within the Central Bank.

Chapter 4. The accountability and relations of the FMC with the Board of the Central Bank

4.1. The FMC reports to the Board of the Central Bank. The FMC submits annual report to the Board of the Central Bank about the measures undertaken and results achieved in the fight against ML and TF, which includes:

a. the present status of information management system on fight against ML and TF and steps taken in the direction of its development;

b. general description of disclosed and analyzed ML and TF cases and the course of their investigation;

c. activities on the strategic analysis for fight against ML and TF, identification of possible tendencies on structural changes, dynamics, links and mutual connections, legal and economic analysis of digital information;

d. the present state and measures taken to develop cooperation of the FMC with state authorities and entities reporting to AB in fight against ML and TF;

e. general description of existing legislation (other normative acts) on fight against ML and TF and works performed to ensure its reforming;

g. description of programs implemented in the direction of training and consultation on fight against ML and TF.

The FMC submits to the Board of the Central Bank summarized quarterly reports on its day-to-day activities as well as on actions taken in the scope of national and international cooperation, and on gained outcomes.

4.2. The Board of the Central Bank approves the strategy of activities of the FMC.

In accordance with the strategy of activities of the FMC, the Board of the Central Bank approves the work plan of the FMC.

4.3. The Board of the Central Bank approves the annual budget (cost estimate) of the FMC.

4.4. As a result of its analysis the FMC applies to the Board of the Central Bank for suspension or termination of a suspicious transaction or of an account.

4.5. In the relationships with national, foreign and international bodies involved in fight against ML and TF, the FMC performs, on behalf of Central Bank, the necessary activities stemming from the functions of the clause

2.3 of this statute, in accordance with the procedure defined by the Board of the Central Bank.

4.6. If necessary the FMC applies directly to the Board of the Central Bank.

Chapter 5. Relations of the FMC with other sub-divisions of the Central Bank

5.1. While implementing its functions, the FMC cooperates with other sub-divisions of the Central Bank, in accordance with the procedure defined by the Board of the Central Bank.

5.2. The functions defined by the paragraph 2.3.1., sub-paragraph “b” of the paragraph 2.3.3., sub-paragraph “b” of the paragraph 2.3.4., sub-paragraph “b” of the paragraph 2.3.5., sub-paragraph “c” of the paragraph 2.3.6., paragraph 2.3.7. of this statute are performed by the FMC with the support of the relevant sub-divisions of the Central Bank, within the objectives and powers defined by their statute.

Chapter 6. Resources of the FMC

6.1. The property assigned to the FMC by the Central Bank is under its administration and use.

6.2. The annual budget (cost estimate) of the FMC is submitted to the approval of the Board of the Central Bank after being passed through the budgetary procedure defined by the internal rules of the Central Bank.

6.3. The international donor organizations can provide to the Central Bank financial means and other property necessary for due implementation of the FMC activities.

Chapter 7. The structure of FMC and organization of activities

7.1. The FMC is composed of the Head of the FMC, Deputy Head of the FMC, the Secretary Assistant, the Legal Compliance and International Relations Division, the Analysis Division and the IT Division. The Head of the FMC, Deputy Head of the FMC, the Employees of the Legal Compliance and International Relations Division, the Analysis Division and the IT Division are the FMC members as prescribed by the paragraph 3 of the Article 10 of the AML/CFT law. The Secretary Assistant is an administrative employee. The administrative employees are not the FMC members as prescribed by the paragraph 3 of the Article 10 of the AML/CFT law. The Head of the FMC, the Deputy Head of the FMC and other members are appointed by the Board of the Central Bank.

7.2. The Head of the FMC:

a. coordinates the process of drafting the FMC strategy, presents to the Board of the Central Bank characteristics of FMC’s development and ensures development of AML/CFT system upon them.

b. leads works of the Center’s annual program preparation and presents to the approval of the Board of the Central Bank.

c. coordinates works of compiling FMC’s annual and quarter reports, as well as the Center’s annual budget (estimate of expenditures), exercises its disposal.

d. coordinates and oversees work of the Secretary Assistant and the Divisions;

e. participates to the sessions of the Board and departmental administration of the Central Bank, committee acting within the Central Bank, as well as inter-ministerial committee;

f. organizes and participates to the consultations, sessions, discussions on issues relating to the Center and submits information about the results to the members of the Center;

g. submits to the discussion of the Board of the Central Bank proposals on employing and dismissing employees of the Center, their disciplinary encouragement and punishment;

h. determines the issues concerning the business trips, training and re-training of the employees of the Center;

i. submits proposals to the Board of the Central Bank on participation of the Central Bank and the Republic of Armenia in national and international discussions on fight against ML and TF;

j. drafts proposals to donor organizations about the needs of the Republic of Armenia in fight against ML and TF and submits them to the Board of the Central Bank;

ja. leads the process of development of rules with regard to work behavior and evaluation of work performance to ensure the normal course of activities of the Center;

jb. coordinates preparation of reports about the activities of AML/CFT system, as well as the FMC (if needed, regarding activities of each employee separately) and submits them to the Board of the Central Bank;

jc. coordinates the activities of developing annual reports of the Central Bank on fight against ML and TF to be presented to the public and submits them to the Board of the Central Bank;

jd. administers the correspondence addressed to the Center and oversees its due and timely implementation;

k. exchanges information (makes requests and answers to requests) and cooperates with foreign financial intelligence units, as well as exchanges information and cooperates with other state bodies, including law enforcement authorities.

l. signs relevant Memoranda of Understanding between the FMC and foreign financial intelligence units in the field of AML/CFT.

la. implements other powers authorized by the Board of the Central Bank.

7.3. The Head of FMC is responsible for working discipline of the Center and performance of his job responsibilities with due time and quality.

7.4. The Board of the Central Bank determines the number of FMC members, the requirements towards them and their job descriptions.

7.4.1. The Deputy Head of the FMC:

a. Coordinates implementation of functions envisaged in paragraph 2.3.2, sub-point d of paragraph 2.3.3, paragraphs 2.3.5, 2.3.6 and 2.3.7.

b. Fulfils other instructions, orders and indications of the Head of the FMC.

7.4.2 In case of absence of the FMC Head his functions are fulfilled by the Deputy Head.

7.5. The FMC divisions perform the following functions stemming from the FMC objectives:

a. The IT Division performs functions defined by paragraph 2.3.1, sub-point “b” of paragraph 2.3.2, 2.3.6 and paragraph 2.3.7;

b. The Analysis Division performs functions defined by paragraph 2.3.2, sub-point “d” of paragraph 2.3.3 and paragraphs 2.3.5, 2.3.6 and 2.3.7;

c. The Legal Compliance and International Relations Division performs functions defined by sub-points “a”, “b”, “c” of paragraphs 2.3.3 and paragraphs 2.3.4, 2.3.5, 2.3.6 and 2.3.7

7.6. The administrative staff of FMC is appointed by the Chairman of the Central Bank.

7.6.1. The Secretary Assistant of the FMC ensures necessary conditions for normal course of activities of the Center and its employees, particularly:

a. checks the documents addressed to the Center, submits them to the Head of the Center and forwards them to the addressees defined by the Head of the Center;

b. submits to the signature of the chairman of the Central Bank the outgoing correspondence of the Central Bank, registers it, keeps the copies and submits to the relevant sub-division for sending to the addressees;

c. arranges the delivery of the statistics reference books, annual report and other documents to the relevant addresses and updates database;

d. prepares minutes and working schedules, checks the deadlines of the assignments given to the employees of the Center by the Board, Chairman of the Central Bank and Head of the Center;

e. copies the necessary documents for the Head of the Center;

f. maintains and archives the documents developed in the Center as by roster of the Central Bank;

g. arranges preparation of formal and non-formal correspondence, prepares and sends other documents;

h. supervises and registers the attendance of the employees of the Center;

i. ensures the current designing and update of the Center's web site;

j. participates to the preparation of the Center’s budget as regards administrative expenses;

k. during the implementation of functions stemming from the objectives the Center, performs other organizational duties as assigned by the Head of the Center.

7.7. While performing their duties the Head and the other employees of the FMC shall be guided exclusively by the law, ensure the required confidentiality of information, display impartiality and good faith.

Board of the Central Bank of The Republic of Armenia

Approved by Decision No 269

September 9, 2008

Board of the Central Bank of the Republic of Armenia

REGULATION ON THE MINIMAL REQUIREMENTS STIPULATED FOR THE FINANCIAL INSTITUTIONS IN THE FIELD OF COMBATING MONEY LAUNDERING AND TERRORIST FINANCING

Chapter 1. Subject Matter

1. This Regulation is based on Republic of Armenia Law “On Combating Money Laundering and Terrorist financing” (hereinafter referred to as Law).

2. This Regulation stipulates the requirements, rules and criteria in the field of money laundering and terrorism financing (hereinafter referred to as ML/TF) prevention:

a) Minimal requirements with regard to the functions of the management bodies of financial institutions, including the internal monitoring body, and to the rules for performing such functions in the field of combating money laundering and terrorism financing;

b) Rules for approving and amending the internal legal acts of financial institutions in the field of combating money laundering and terrorism financing; the minimal criteria with regard to such internal legal acts;

c) Criteria for high or low risk of money laundering and terrorism financing, and the rules for their determination;

d) Minimal rules for customer identification;

e) Minimal rules for customer due diligence (including enhanced and simplified);

f) Minimal rules for the recording, collecting and updating the documents (information) for the financial institutions in the field of ML/TF prevention;

g) Minimal rules for identifying suspicious transactions (business relationships) and for considering the relevance of reporting to the Authorized Body by financial institutions;

h) Minimal rules for the audit of financial institutions’ activities the field of ML/TF prevention;

i) Minimal rules for the selection, training and qualification of the competent staff in the field of ML/TF prevention.

3. The provisions of this Regulation are extended to the following reporting entities (hereinafter referred to as financial institutions):

  • 1) banks;

  • 2) credit organizations;

  • 3) persons engaged in dealer-broker foreign currency trading, foreign currency trading;

  • 4) licensed persons providing cash (money) transfers;

  • 5) persons rendering investment services in accordance with the Republic of Armenia Law on Securities Market ;

  • 6) central depositary for regulated market securities in accordance with the Republic of Armenia Law on Securities Market;

  • 7) insurance (including reinsurance) companies and insurance (including reinsurance) brokers;

  • 8) pawnshops.

Chapter 2. Minimal requirements with regard to the functions of the management bodies of financial institutions and to the rules for performing such functions

4. The Board of the financial institution (hereinafter referred to as Board) and executive body are responsible for the establishment of an effective internal system of ML/TF prevention; ensure its current activities and supervision.

5. In case the Board is missing in the management structure of the financial institution the functions stipulated by paragraph 8 of this Chapter shall be performed by the executive body.

6. In case the both Board and the executive body are missing in the structure of the financial institution the functions stipulated by paragraphs 8 and 9 of this Chapter are performed by the management bodies stipulated by the internal legal acts.

7. If the reporting body is an individual entrepreneur, the functions stipulated by paragraphs 8 and 9 of this Chapter are performed by the individual entrepreneur or his/her Authorized body.

8. In the field of ML/TF prevention the Board of the financial institution shall:

1) stipulate the policy of the financial institution to combat ML/TF;

2) approve the annual program of the internal monitoring body and internal audit in the field of ML/TF prevention, the reports on their execution, as well as oversee the implementation of those programs;

3) when needed initiate studies of internal monitoring body dealing with ML/TF prevention; approve the measures aimed at the elimination of shortcomings identified in the aftermath of audit or other supervisions and oversee their implementation;

4) approve internal legal acts of ML/TF prevention (hereinafter referred to as internal legal acts);

5) receive and discuss the reports of the internal monitoring body and (or) internal audit on the state of implementation of internal legal acts at the frequency stipulated by itself;

6) approve the reports submitted to the supreme management (Board in the bank) by the internal monitoring body; and

7) oversee the efficiency of internal system of ML/TF prevention.

9. The executive body of the financial institution (hereinafter referred to as executive body) in the field of ML/TF prevention shall:

1) ensure the complete and effective application of internal legal acts;

2) ensure the implementation of the policy of combating ML/TF and procedures stipulated by the supreme management, as well as for their current enforcement;

3) appoint and dismiss the head (staff) of the internal monitoring body upon the approval of the Board;

4) provide that the staff of the financial institution masters completely the internal legal acts of combating ML/TF, as well as code of ethics;

5) jointly with the internal monitoring body ensure the appropriate education and training of the proper staff in combating ML/TF;

6) ensure the performance of customer due diligence measures, including the simplified or enhanced due diligence, on-going monitoring, as well as information registration, storage and upgrading;

7) provide the internal monitoring body with necessary equipment;

8) undertake measures aimed at the elimination of the shortcomings identified in the aftermath of study, audit or other controls carried out by the internal monitoring body; and

9) perform other functions stipulated by this Regulation and internal legal acts.

Chapter 3. Internal monitoring function and the body dealing with ML/TF prevention

10. The head (staff member) of the internal monitoring body is appointed and dismissed by the executive body upon the approval of the Board.

11. The head (staff member) of the internal monitoring body shall have university degree and at least 2 years professional experience.

12. The head (staff member) of the internal monitoring body cannot be the person, who

a) has previous conviction for crimes committed deliberately;

b) by the court decision has been deprived of the right to hold positions in financial, banking, tax, customs, commercial, economic and legal fields;

c) has been recognized as bankrupt and have unpaid (non-satisfied) obligations;

d) is involved as suspect, accused or defendant in a criminal case;

e) has negative business reputation in banking sector;

f) does not meet the requirements stipulated by paragraph 11 of this Regulation; and

g) is affiliated with the management of the given financial institution.

13. In the banks the internal monitoring function cannot be conferred upon a staff member of the customer service department.

14. According to Article 22 of the Law in case of assigning the function of ML/TF prevention to another subdivision or staff member of the financial institution in the job obligations of the sub-division or staff member the function of ML/TF prevention shall be clearly described and sufficient time shall be allocated to perform it. According to the same Article the function of ML/TF prevention can be assigned to respective persons engaged in professional activities of consulting on ML/TF prevention.

15. The internal monitoring body shall have direct access to all documents (including credit files, working documents, contracts, etc.) concerning the customer’s accounts and transactions. The internal monitoring body shall be entitled to require clarifications from any staff member of other sub-divisions on business relationships (transactions), customers, authorized bodies, as well as real beneficiaries.

16. The financial institution shall in its legal acts envisage that the internal monitoring body supports and provides consulting to the Board and to the executive body while they realize ML/TF prevention functions conferred on them.

17. The internal monitoring body shall at least:

1) draft the internal legal acts on combating ML/TF and submit them to the approval of the Board;

2) implement monitoring of effectiveness of legal acts in the field of combating ML/TF, makes recommendations on increasing their effectiveness;

3) provide connection between the financial institution and the Authorized body in terms of ML/TF prevention issues;

4) provide submission of information and reports on the transactions to the Authorized body on behalf of the financial institution;

5) realize analyses and other activities to disclose suspicious business relationships and transactions;

6) follow the on-going monitoring of business relationships and periodically review the process of updating and clarifying the information,

7) ensure the risk-based classification of customers of the financial institution; implement on-going monitoring of high risk business relationships;

8) organize internal education and training in ML/TF prevention; implement monitoring of training program process and its outcomes;

9) make a decision on suspension or rejection to carry out the business relationship or transaction, on freezing the funds connected with terrorism; if necessary, discuss that issue with the customer service clerk; and in case of controversy make a final decision;

10) based on the standards defined by the Board and according to the established order, inform the Board on suspension or rejection to carry out the business relationship or transaction;

11) implement monitoring of data registration and keeping; and

12) carry out activities stipulated by this Regulation; internal legal acts or assigned by the Board.

18. The successive report submitted by the internal monitoring body to the supreme management (to the Board in the banks) should at least include:

1) the number of suspicious business relationships and transactions, subject to mandatory reporting, as well as the short description of suspicious transactions (business relationships);

2) the number and complete description of transactions and business relationships, on which analyses have been carried out, though they have not been reported as suspicious transactions or business relationships;

3) the number and short description of business relationships and transactions suspended or rejected by the financial institution, the cost of the suspended transactions;

4) the amount of frozen funds; and

5) other information stipulated by internal legal acts.

Chapter 4. Rules for approving and amending the internal legal acts of financial institutions in the field of combating money laundering and terrorism financing; the minimal criteria with regard to such internal legal acts

19. Internal legal acts of a financial institution shall be approved and amended by the Board.

20. In a week after the internal legal acts have been approved, they shall be submitted to the Authorized body. Based on the remarks and recommendations made by the Authorized body the internal legal acts shall be reviewed within twenty days, and the amended acts shall be resubmitted to the Authorized body within a week.

21. In addition to the requirements to the content of internal legal acts of Article 21 of the Law, the internal legal acts of the financial institutions shall also define:

a) the process of submitting proposals on filing reports on or suspending or rejecting suspicious transactions and business relationships by the customer service clerk to the internal monitoring body;

b) the criteria and order of informing the Board on suspending or rejecting the transaction or business relationship by the internal monitoring body.

Chapter 5. Criteria for high risk and the rules for their determination

22. The following persons, events or objects are high risk criteria:

1) the resident natural person or legal person customer registered (performing an activity) in an offshore country or territory;

2) the relation of the customer’s business relationship or occasional transaction to such countries (territories) (according to the lists stipulated by the Authorized body and respective international organizations), where the international standards for combating ML/TF are not appropriately applied, as well as to the countries released by the UN, to which sanctions are applied;

3) the residence (location) of the customer in the countries (territories) mentioned in clause 2 of this paragraph;

4) charity and non-profit organizations;

5) bearer securities (including the bearer checks), which are put into circulation during the business relationships or are subject of an occasional transaction;

6) cases, when suspicions arise on the veracity and equivalence of the obtained identification data including the existence of real beneficiaries and veracity of data on them;

7) cases, when it becomes clear that the establishment of business relationships with the customer or conclusion of the transaction has been rejected by another financial institution;

8) cases, when there is a customer making a large scale cash circulation, business relationship or occasional transaction;

9) customers, whose accounts are used for frequent and unexplainable moves of funds to various financial institutions;

10) business relationships or occasional transactions with politically exposed persons, members of their families, as well as affiliated with them persons;

11) private banking;

12) establishment of non face-to-face business relationships or occasional transactions through electronic means or correspondence (non face-to-face relationships);

13) business relationships or occasional transactions through such account or means, which have not been used for more than 6 months;

14) corresponding banking; and

15) allowing credit to the customer, when the credits allocated are ensured by the deposits at the same institution.

23. The internal legal acts of the financial institution can also envisage other criteria and requirements for high risks.

24. To identify the high risk criteria the following circumstances can be taken into account:

1) the customer is not a citizen or resident of the Republic of Armenia or the previous or current citizenship or residence of the customer assumes high risks in regard of ML/TF;

2) the customer has previously been involved in business relationships or transactions, which from ML/TF standpoint has been suspicious;

3) the accounts, means or reputation of the legal person are used for the circulation of a natural person’s assets;

4) the structure or management of a legal person is unreasonably complicated;

5) it is impossible or difficult to identify the participants of a legal person; and

6) the legal person customer issues bearer securities.

25. The existence of high risk criteria is determined during customer due diligence. With the purpose to identify and assess the high risk criteria the financial institution compares:

1) the customer identification data;

2) the customer business profile;

3) the customer business relationships;

4) the nature and purpose of the customer’s occasional transaction;

5) information received from the available sources; and

6) other circumstances.

26. While establishing non face-to–face business relationships or concluding transactions the financial institution shall as a minimum undertake the following additional measures:

1) performance of solely noncash transactions – except for the cash payments done through payment terminals and ATMs; and

2) ask for additional documents, like contracts, payment receipts or other justifying documents.

27. With the purpose to determine the political influence of the person the financial institution can perform the following actions:

1) inquiry of information from the possible customers or receipt of data about the customers and nature of activities of the persons affiliated with them;

2) study of public information and use of private databases about politically exposed persons (World-Check, etc.).

Chapter 6. Criteria for Low risk

28. The following persons, events or objects are low risk criteria:

1) effectively controlled financial institutions from the viewpoint of combating ML/TF;

2) public bodies;

3) local self-governing bodies;

4) organizations founded by the state;

5) payments to the consolidated budget of the Republic of Armenia; and

6) payments for public utilities.

Chapter 7. Minimal rules for customer identification

29. Identification of a customer, including an authorized person and the beneficial owner is done based on Article 15 of the Law.

30. Before establishing a business relationship with a customer (authorized person) or carrying out an occasional transaction, when there is a high risk criterion as per this Regulation and the internal legal acts of reporting entities, the financial institution checks the existence of the beneficial owner on the ground of a declaration filed by customer (authorized person) in accordance with the form introduced in Appendix 2. During a business relationship the form of declaration envisaged by this clause is filed (changed) only in case a beneficial owner appears or in case of the change of the beneficiary.

31. Information obtained during the customer identification must be checked by the customer service division and if necessary by the internal monitoring body or by other divisions. The check may not include the check of all the identification information, though it should be enough for the real identification of the customer. For this purpose the financial institutions can use both paper based and non-paper based methods of checking.

Chapter 8. Minimal rules for customer due diligence (including enhanced and simplified)

32. When carrying out a customer due diligence in a business relationship the financial institution shall at least:

1) check the interrelation between those transactions, discover the possible scheme of that connection, as well as define the objectives of the aforementioned transactions;

2) check if the substance of the transactions corresponds to the type of activities performed by the customer;

3) obtain possible information about the customer’s income sources;

4) compare the sources of money turnover, movement and volumes of various transaction of the customer;

5) assess the possible ML/TF risks of the transaction or business relationships through comparing the grounds and criteria of suspicious transactions and business relationships;

6) check, whether there are such business relationships and (or) occasional transactions, with which the customer has a purpose to avoid from submitting report to the Authorized body by the financial institution;

7) check the types, frequency and chronology of the transaction in a certain period of time;

8) perform the registration of contractual parties, recipient, beneficial owner, as well as the authorized person and perform comparison to identify the affiliation of the customers; and

9) undertake other measures stipulated by the internal legal acts.

33. The financial institution shall perform enhanced customer due diligence, if case there is high risk criterion.

34. While performing enhanced examination the financial institution shall at least:

1) perform more comprehensive and in-depth check of the veracity of the documents (information) necessary to establish business relationships with the customer, for example by requiring other justifying documents (information);

2) require information about the customer’s assets and their origin;

3) examine the information about the customer, business relationships and transactions through the databases;

4) make inquiries from other reporting or other bodies, including foreign partners, to check the information about the customer, business relationships with him/her and occasional transactions; and

5) undertake other measures to have real and complete understanding about the customer, business relationships with him/her and occasional transactions.

35. Through the enhanced customer due diligence the financial institution shall receive reasonable excuses and clarifications and in this way have a real and complete understanding about the given customer, business relationships with him/her and occasional transactions. If in the aftermath of the undertaken measures the financial institution does not have a real and complete understanding, it shall consider the possibility of submitting a report to the Authorized body on suspicious transaction or business relationship.

36. The financial institution can perform simplified customer due diligence in case there is low risk criterion.

37. The simplified customer due diligence for natural persons shall at least include the clarification and registration of the following information:

1) name, surname;

2) account number, if any; and

3) data on ID.

38. The simplified customer due diligence for the legal persons shall at least include the clarification and registration of the following information:

1) name of the legal person;

2) serial number of the state registration certificate; and

3) identification data on the person entitled to manage the bank accounts of the customer.

Chapter 9. Minimal requirements for the recording, collection and updating the information

39. The financial institutions shall collect the information mentioned in paragraph 44 of this Regulation in a way, which will ensure its use in the future as evidence. The documents asserting the information shall have the requisites ascribed to them.

40. The information shall be registered. The registration shall be conducted through the classified databases. The information registration shall be done in a way, which will enable to restore the data of the staff member, who has performed identification or other actions subject to registration.

41. The information may be kept in paper based form, computers and electronic bearers.

42. The financial institution shall ensure the security, confidentiality of the registered and kept information and prevent its unauthorized use and disposition.

43. By its internal legal acts the financial institution shall stipulate the frequency of upgrading the information obtained about the customer.

44. The financial institution shall register and keep:

1) customer identification data as established by the Law;

2) data about the main conditions of the transaction (business relationship) as established by the Law;

3) data about any analysis and activities performed with the purpose to determine the suspiciousness of the transaction or business relationship;

4) report on the suspicious transaction, as well as its grounding information and minutes of the deliberations concerning the submission of the report; and

5) data and implications about the suspicious transaction or business relationship, which has not been reported to the Authorized body.

Chapter 10. Minimal rules for identifying suspicious transactions (business relationships) and for considering the relevance of reporting to the Authorized Body by financial institutions

45. In case the customer service clerk identifies ML/TF suspicions in business relationships or transactions according to the criteria described in the Law, guidelines submitted by the Authorized body or on the basis of personal opinion, he/she shall immediately inform the internal monitoring body as established by the internal legal acts.

46. In case of identifying a suspicious transaction on the grounds of the information received from the customer service clerk, other sources or in the aftermath of own monitoring the internal monitoring body shall submit a suspicious transaction report to the Authorized body.

47. The financial institution shall by its internal legal acts stipulate the internal procedures for identifying suspicious business relationships and transactions and consideration of reporting on them to the Authorized body. The aforementioned procedures shall stipulate at least:

1) procedures of informing the internal monitoring body the preliminary information (assumptions) about the suspicious business transaction or business relationships;

2) order and terms of developing, checking the information about the suspicious business transaction or business relationship and making possible conclusions by the internal monitoring body; and

3) possible actions and analysis for the purpose to determine the possible suspicious business transaction or business relationship, including the order of access to the national and international databases, requests, criteria of assessing their results and summary.

48. The Authorized body can pass individual names or other data to financial institutions and instruct to submit suspicious transaction report in case the transaction or business relationship concerns the provided data. Based on these instructions, if no deadline is determined, the financial institutions shall at least once a ten day review the business relationship and occasional transaction with their customers and in case of identifying the possible information submit suspicious transaction report.

49. The requests submitted by the Authorized body for the purpose to analyze the suspicious transaction or business relationship, including the requirement to submit additional documents (information), shall be executed by the financial institution within the shortest time mentioned in the request or requirement.

Chapter 11. Minimal rules for the audit of the financial institutions’ activities in the field of ML/TF prevention

50. According to Article 23 of the Law the internal audit shall at lease once a year perform check to make sure that the executive body and the internal monitoring body ensure the full compliance of the financial institution with the requirements stipulated by the Law, this Regulation and other legal acts, as well as internal legal acts. In case, when the function of combating money laundering and terrorism financing is assigned to the internal audit division or staff member, then the audit is performed by the body and order established by the internal legal acts of the financial institution.

51. The internal audit shall regularly submit to the Board and executive body reports about its evaluations and disclosures, including its conclusions about relevance and efficiency of staff training in the field of combating ML/TF.

52. According to Article 23 of the Law the financial institution shall submit to the Authorized body a copy of the external audit opinion invited for the purpose to introduce the legislation on combating ML/TF and crosscheck the efficiency level.

53. The financial institution, which has an subsidiary company, branch and (or) representation, shall be responsible for the appropriate application of the provisions of this Regulation. With this purpose the financial institution shall receive and study the copies of the reports on combating ML/TF conducted by the internal and (or) external audit in its subsidiary companies, branches and representations.

Chapter 12. Minimal rules for the selection, training and qualification of the competent staff in the field of ML/TF prevention

54. The checking of the qualifications and professional relevance, including qualification and professional relevance test (hereinafter referred to as Test) shall be held for the candidates and applicants for the positions of the head and personnel of the internal monitoring body.

55. In the sense of this Regulation the candidates are those persons having come to the qualification and professional relevance test of the financial institution, whom the financial institution has appointed to the position of the head and personnel of the internal monitoring body.

56. In the sense of this Regulation applicants are the persons, who upon their personal initiative submit an application to pass a qualification and professional relevance test.

57. The persons appointed to the position of the head and personnel of the internal monitoring body, prior to the enforcement of this Regulation, shall be qualified within three months upon the enforcement of this Regulation and the persons appointed to the position of the head and personnel of the internal monitoring body after the enforcement of this Regulation within three months upon their appointment.

58. The auditors qualified by the Central Bank of the Republic of Armenia; persons having relevance diploma or certificate of International Association of Relevance; persons (applicants) having passed a practical course and qualification examination in the field of combating ML/TF organized by the European Bank of Reconstruction and Development are exempt from the requirement of passing a qualification exam.

59. The qualification and professional relevance check of the candidates (applicants) is done by the Licensing and Supervision Commission (hereinafter referred to as Commission) of the Central Bank of the Republic of Armenia.

60. To take part at the test the candidates (applicants) shall submit to the Authorized body the following documents:

1) an application;

2) a copy of the payment order of the amount stipulated by the Authorized body for the qualification and professional relevance test;

3) a copy of the passport;

4) a copy of the work record card;

6) a copy of the university certificate and

5) autobiography (CV).

61. In case the documents stipulated by paragraph 60 of this Regulation are fake or unreliable the Authorized body refuses the application or cancels the qualification certificate.

62. The tests of the candidates (applicants) are held in written form (in test form).

The written test is conducted by software. The Commission members, as well as upon the commitment of the Commission other Authorized body personnel can follow the test.

63. The test is a document containing questions, which is prepared based on the list of topics published beforehand. The lists and tests are approved by the Board of the Authorized body.

64. The tests shall be reviewed at least once in a year.

65. The examination tests of the head and personnel of the internal monitoring body are made to check the knowledge of the candidate (applicant) about the international documents and practice of combating ML/TF; requirements of the legal framework of the Republic of Armenia; ML/TF typologies, Regulation and supervision of the activities of the given financial institution. The test also checks the analytical capacities of the candidate (applicant).

66. In the professional relevance test there are 120 questions for the head of the internal monitoring body and 100 questions for the personnel.

67. For each question of the test the candidate (applicant) has on average 1.5 minutes.

68. Each of the test questions contains four answers, of which one is correct. The correct answer of the test gains 1 point and 0 point for wrong answer or no answer.

69. The candidates (applicants) are allowed to take part in the test in case of presenting a passport or other ID. During the test the candidate (applicant), as well as other persons in the test room shall not use legal acts or other legal materials, professional literature, information bulletins and talk to each other. In case of violating any of these requirements the applicant is stripped of right to take part in the rest of exam and a negative conclusion is given about him/her.

70. The Commission evaluates the questions of the tests as follows:

1) negative conclusion in case the applicant gains maximum up to 70% of the points;

2) positive conclusion in case the applicant for the positions of the head and personnel of the internal monitoring body gains 70 and more percent of the points and he/she is given a qualification certificate.

71. The results of the answers to the test questions (based on the computer data) are approved by the Commission.

72. The candidates (applicants) can appeal against the test results within 5 working days after the test – by submitting a written application to the chairman of the Authorized body. Upon the instruction of the chairman a revision commission can be set up, which can review the conclusion of the commission.

73. Based on the test results and positive feedback of the Commission upon the personal decision of the chairman of the Authorized body the candidate (applicant) is given a qualification certificate.

74. The qualification certificates of the head or personnel of the internal monitoring body are given for a period of 3 years from the moment of their issuance.

75. In case of loss of the qualification certificate the head or personnel of the internal monitoring body inform the Authorized body in writing – by submitting a written application in the dame of the chairman of the Authorized body. The Commission annuls the lost certificate and instead of it, within 10 days upon the receipt of the written application, a new certificate is given with a note “Copy”.

76. The name, surname, address of the persons that received certificates; the individual decision number and date of the chairman of the Authorized body; number of the Commission protocol and date; qualification certificate number and date of issuance are registered in the registration book of the issued qualification certificates.

77. The test is held within 15 days after the candidate or applicant submits the document package.

78. The financial institution shall regularly organize trainings for all the staff dealing with combating ML/TF. In case of employing new personnel a training of combating ML/TF issues shall be organized during first three months.

79. All the personnel of the financial institution shall be aware about their internal legal acts in the field of combating ML/TF.

80. The financial institution shall stipulate and conduct regular training courses for its staff in the field of combating ML/TF. Those courses shall stipulate training for the Board members, executive body personnel, internal monitoring body personnel, customer service and audit department personnel. The training and retraining of those personnel shall make sure that they have appropriate knowledge about the requirements and procedures for combating ML/TF, in particular:

1) about high and low risk criteria; most frequently encountered grounds and criteria for suspicious transaction or business relationships, including about the typology of the suspicious transactions provided by the Authorized body guidelines and

2) about the legislation of the Republic of Armenia, the provisions of this Regulation and internal legal acts on combating ML/TF.

81. The training courses of the financial institutions, all of their materials, as well as the names and signatures of the persons that took part in them shall be registered separately and kept for at least 5 years.

Chapter 13. Transitional provisions

82. The moment this Regulation come into legal force the Regulation 5 of the Board of the Central Bank of the Republic of Armenia dated December 17, 2002 “On combating the circulation of criminal proceeds and terrorism financing in the banks and credit organizations, as well as other persons providing with reports”, reference form “About suspicious transactions”, Decree No442-N “On approving the sample lists of the information required by the bank for opening an account, information required by the credit organization during serving the customers and debtors”.

Approved by the Decree No....

Dated ....2008

Of the Board of the Central Bank of the Republic of Armenia

Declaration about Existence (Absence) of a Beneficial Owner

Ia -------------------------------------------------------------------------, on----- ------ ----------- ------------------------------------------------------------------- acting in business relationships or single transaction as --------------------------------------------------, declare that in the business relationships or single transaction there is/there is not a beneficial owner.

In case of existence the beneficial owner is------------------- --------------------------.

I also commit myself to inform the ------------------------------------------------------------------------------------------- in case of change of the beneficial owner or emergence of a beneficiary during the business relationships.

------ --------------- -------

/date/ -------------------------

/signed/

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Is approved by the Central Bank Board Decision No 97A dated March 3, 2005.