MFA_Report_on_the_occupied_territories_March_2016_1
MFA_Report_on_the_occupied_territories_March_2016_1
MFA_Report_on_the_occupied_territories_March_2016_1
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<strong>the</strong> NKR.” 58 According to <strong>the</strong> Armenian media, “<strong>the</strong> presence of a state bank of <strong>on</strong>e country in<br />
ano<strong>the</strong>r may mean a complete financial “miatsum”(unificati<strong>on</strong>)”. 59<br />
The Government of Armenia encourages its commercial banks to open branches in <strong>the</strong> <strong>occupied</strong><br />
<strong>territories</strong>. Eight Armenian banks, namely, “Artsakhbank”, C<strong>on</strong>verse Bank, Ardshininvestbank,<br />
Armbusinessbank, Armec<strong>on</strong>ombank, Araratbank, Unibank and Ameriabank are operating<br />
<strong>the</strong>re. 60 As of January 2012, Armenian banks operated 18 branches. 61 The biggest number of<br />
branches of Armenian banks in <strong>the</strong> <strong>occupied</strong> <strong>territories</strong> is opened by Ardshininvestbank and<br />
Armbusinessbank – six branches each. 62 Banks are generally active in m<strong>on</strong>ey transfer services<br />
to/from <strong>the</strong> <strong>occupied</strong> <strong>territories</strong> directly (bank-to-bank) and indirectly through m<strong>on</strong>ey transfer<br />
systems, or specialized M<strong>on</strong>ey Transfer Operators (MTO), 63 including Anelik CJSC (Russia), 64<br />
Unistrim ASC KB (Russia), 65 M<strong>on</strong>eygram Internati<strong>on</strong>al Inc. (USA), 66 Quick Post CJSC, and Swift<br />
system. 67 There are reports that several foreign banks and entities, including Areximbank-<br />
Gazprombank Group CJSC (Russia), Sberbank (Russia), Promsvyazbank OJSC (Russia),<br />
Deutche Bank Trust Company Americas (USA), Deutche Bank AG (Germany), Commerzbank AG<br />
(Germany), Forabank AKB (Russia), Citi Bank (USA), Raiffeisen Zentral Bank (Austria), Dresdner<br />
Bank (Germany), UBS Bank (Switzerland) and Mellat Bank (Iran ) provide m<strong>on</strong>etary transfers to <strong>the</strong><br />
<strong>occupied</strong> <strong>territories</strong> via Armenian banks operating in those <strong>territories</strong> and having corresp<strong>on</strong>dent<br />
accounts with those foreign entities. 68 In 2005, CBA granted to Haypost CJSC – a nati<strong>on</strong>al postal<br />
operator of Armenia – a license for <strong>the</strong> implementati<strong>on</strong> of m<strong>on</strong>ey transfers systems. Since <strong>the</strong>n<br />
Haypost CJSC has been carrying out m<strong>on</strong>ey transfers to/from <strong>the</strong> <strong>occupied</strong> <strong>territories</strong>. 69<br />
“Artsakhbank CJSC”, established in February 1996 with License No. 75 from CBA 70 with <strong>the</strong> head<br />
office in Yerevan (Armenia) 71 , provides banking services to <strong>the</strong> structures of <strong>the</strong> separatist regime. 72<br />
As of August 2015, <strong>the</strong> bank had 22 branches, 7 of which are located in Yerevan and 15 throughout<br />
<strong>the</strong> <strong>occupied</strong> <strong>territories</strong>. The bank is a shareholder in <strong>the</strong> Armenian Card CJSC, and a full member<br />
of Armenia’s “ArCa” payment system. The bank is a member of SWIFT Internati<strong>on</strong>al (since 2003)<br />
and affiliate member of Europay/Mastercard Internati<strong>on</strong>al payment system (since 2005). The<br />
biggest shareholders of <strong>the</strong> bank are foreign individuals. The bank’s shares are owned by Armeniaregistered<br />
Business Fund of Armenia CJSC (40.7 percent) 73 , a Swiss nati<strong>on</strong>al Vartan Sirmakes (25.6<br />
percent) and Hrach Kaprielyan (USA) (23.2 percent), who is <strong>the</strong> chairman of <strong>the</strong> bank’s Executive<br />
Board. To note, Vartan Sirmakes is Business Fund of Armenia’s 100 percent shareholder and a<br />
board member, which means that he owns in total some 66.3 percent of shares in “Artsakhbank”. 74<br />
Kaprielyan’s deputy, Ashot Arshak Gomtsyan, and all members of <strong>the</strong> bank’s Executive Board<br />
are citizens of Armenia. 75 In <strong>March</strong> 2015, “Artsakhbank’s” authorized capital has increased by 4.5<br />
billi<strong>on</strong> drams to 11 billi<strong>on</strong> drams due to acquisiti<strong>on</strong> of shares by <strong>the</strong> Business Fund of Armenia. 76<br />
Several insurance companies (Nairy Insurance LLC, Armenia Insurance LLC, Reso Insurance CJSC,<br />
Ingo Armenia Insurance CJSC, Rosgostrakh-Armenia Insurance CJSC) and appraisal companies<br />
58<br />
See “10 Reas<strong>on</strong>s to Invest in NKR”, .<br />
59<br />
See “Armenia-Karabakh: Two Armenian states discuss comm<strong>on</strong> programs for closer cooperati<strong>on</strong>”, Armenianow.com, 01 April 2011,<br />
.<br />
60<br />
See “Central Bank of Armenia chair hails Karabakh’s banking system”, PanARMENIAN.Net, 09 September 2013,<br />
.<br />
61<br />
See “C<strong>on</strong>verse Bank opens its first branch in Stepanakert”, ArmInfo.am, 28 February 2012, .<br />
62<br />
Ibid.<br />
63<br />
See “Remittances In The Cis Countries: A Study Of Selected Corridors”, World Bank <str<strong>on</strong>g>Report</str<strong>on</strong>g>, July 2007, .<br />
64<br />
See .<br />
65<br />
See .<br />
66<br />
See .<br />
67<br />
See .<br />
68<br />
See “Artsakhbank CJSC”, ; .<br />
69<br />
“C<strong>on</strong>verse Transfer Express M<strong>on</strong>ey Transfers”, .<br />
70<br />
See .<br />
71<br />
See .<br />
72<br />
See .<br />
73<br />
See .<br />
74<br />
Ibid.<br />
75<br />
See .<br />
76<br />
See “Artsakh bank increases its authorized capital by 4.5 billi<strong>on</strong> drams”, Armbanks.am, 05 <strong>March</strong> 2015, .<br />
23