Update-2024-April-en

LEGAL UPDATE

April 2024

LEGAL ACTS SUBJECT TO CHANGE

1. THE RA LAW ON AMENDMENT TO THE RA CODE OF ADMINISTRATIVE OFFENSES

2. THE RA LAW ON ADDITIONS AND CHANGES TO THE LAW ON “WINNING GAMES,
INTERNET WINNING GAMES AND GAMING”

3. THE RA LAW ON AMENDMENTS TO THE LAW "ON GAMBLING"

4. DECISION OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA ON THE
ESTABLISHMENT OF MANDATORY RULES OF CONDUCT IN CUSTOMS
CONTROL ZONES, INCLUDING RULES FOR THE MOVEMENT OF
PERSONS AND VEHICLES IN CUSTOMS CONTROL ZONES

5. DECISION OF THE STATE COUNCIL OF THE REPUBLIC OF ARMENIA ON
STATISTICS ONAMENDMENTS TO THE DECISION ON THE STATUS OF
CALCULATIONS OF THE ORGANIZATION

Name of the legislative act

THE RA LAW ON AMENDMENT TO THE RA CODE OF ADMINISTRATIVE OFFENSES

Change status

The Law enters into force on October 27, 2024, 6 months after its official publication, that is, on April 9, 2024.

What are the changes related to?

As a result of the amendment, in order to counteract the unhindered conduct of activities in Armenia by foreign unlicensed companies, it was provided that the websites of organizations organized in foreign countries and not licensed to organize lotteries established by the legislation of the Republic of Armenia, creating the Internet or any similar global system and any coordinated network channels on the territory of Armenia, allowing the player to participate in the game with any winnings is subject to blocking.

Article 150.17. Non-fulfillment or improper fulfillment of obligations to block lottery (sweepstakes) sites and games with Internet winnings organized in foreign countries by Public electronic communication network operators providing Internet access services and organizations that do not have the appropriate license established by the legislation of the Republic of Armenia.

1. Non-fulfillment or improper fulfillment of obligations to block lottery (sweepstake) sites and Internet-winning games organized by organizations that do not have the appropriate license established by the legislation of the Republic of Armenia, in accordance with the laws "On winning games, Internet-winning games and casinos" and "On Lotteries" in accordance with the procedure established by laws on "Games with winnings, games with online winnings and casinos", entails a warning with an order to eliminate the violation.

2. Repeated commission of the act provided for in paragraph 1 of this Article, within one year after the warning, entails the imposition of a fine in the amount of five hundred to one thousand times the minimum wage established for each violation.

3. Repeating the violation specified in part 2 of this Article within one year after being subject to administrative liability or failing to eliminate the previous violation within one month after being subject to administrative liability results in the imposition of a fine in the amount of three thousand times the minimum wage established for each violation.

Name of the legislative act

I. THE RA LAW ON ADDITIONS AND CHANGES TO THE LAW ON “WINNING GAMES,
INTERNET WINNING GAMES AND GAMING”

II.THE RA LAW ON AMENDMENTS TO THE LAW "ON GAMBLING"

Change status

This amendment is effective April 19, 2024.

What are the changes related to?

In the territory of RA, the activities of "organization of lotteries", "organization of games with
winnings", "organization of games with winnings on the Internet" are considered a type of activity subject to licensing, however, organizations established in foreign countries and defined by the legislation of the Republic of Armenia that do not have a license for the activity of "organization of games with winnings on the Internet" in the territory of the Republic of Armenia or through any similar global system and any coordinated network channels create (in any way grant the right to participate) a player to participate in any winning game. For licensed companies in Armenia, they have become uncompetitive, creating an obvious anti-competitive environment. Unlike the licensed organizers in the Republic of Armenia, there are no clear guarantees and mechanisms according to which the rights of customers will not be revoked in the case of using services provided by unlicensed and similar foreign companies engaged in similar activities in the Republic of Armenia.
As a result of the amendment, in order to counteract the unhindered conduct of activities in
Armenia by foreign unlicensed companies, it was provided that the websites of organizations
organized in foreign countries and not licensed to organize lotteries established by the legislation of the Republic of Armenia, creating the Internet or any similar global system and any coordinated network channels on the territory of Armenia, allowing the player to participate in the game with any winnings are subject to blocking:

Article 4.4. Online gambling organized in foreign countries.

1. It is prohibited to create an opportunity to participate in winning games on the Internet organized by organizations established in foreign countries and not having the appropriate license established by the legislation of the Republic of Armenia, as well as advertising these games on the territory of the Republic of Armenia or in the Internet space available in the Republic of Armenia.

2. The Government of the Republic of Armenia establishes the cases and procedure for blocking the possibility of participation and access to winning games on the Internet organized by organizations established in foreign countries and not having the appropriate license established by the legislation of the Republic of Armenia, organizations that do not have the appropriate license.

3. Internet gambling sites organized in foreign countries and organized by organizations that do not have the appropriate license established by the legislation of the Republic of Armenia are subject to blocking by Public Electronic communication network operators providing Internet access services, in accordance with the procedure and deadlines established by the Government of the Republic of Armenia, based on the list of sites to be blocked.

4. The list of sites subject to blocking provided for by this Law is approved by the head of the authorized body on the basis of the conclusions of the Interdepartmental Commission identifying sites subject to blocking.

5. The composition and rules of procedure of the Interdepartmental Commission for the identification of sites to be blocked are established by the Prime Minister. The conclusions of the Interdepartmental Commission on the identification of sites subject to blocking are given in
accordance with this Law and in accordance with the procedure established by the Government of the Republic of Armenia.

6. In case of violation of the provisions established by part 3 of this Article, operators of the Public Electronic Communication network providing Internet access services are liable in the cases and in the manner established by the Code of the Republic of Armenia on Administrative Offenses and the Law of the Republic of Armenia "on Electronic Communications", according to the statement of the authorized body.

7. The Interdepartmental Commission for the identification of sites subject to blocking publishes a list of wallets of organizations included in the list of sites subject to blocking in accordance with part 4 of this Article.

Article 10. The procedure for submitting information (reports) on winning games, online winning games and casino organization

(…)

4. By April 30 of the year following the reporting year, the organizer of the lottery game or Internet winning game or casino submits to the supervisory authority and publishes its annual financial statements with an independent audit opinion on the official website of the public notices of the Republic of Armenia www.azdarar.am.

5. In the case of an independent audit opinion issued by an independent audit organization that does not meet the criteria presented to the person conducting an audit of financial and economic activities defined by Part 3 of this article, the financial reports are considered unpublished.

Name of the legislative act

DECISION OF THE GOVERNMENT OF THE REPUBLIC OF ARMENIA ON THE
ESTABLISHMENT OF MANDATORY RULES OF CONDUCT IN CUSTOMS CONTROL
ZONES, INCLUDING RULES FOR THE MOVEMENT OF PERSONS AND VEHICLES IN
CUSTOMS CONTROL ZONES

Change status

This Decision was adopted on 12.04.2024 and entered into force on the day following its official publication, namely on 13.04.2024.

What are the changes related to?

The adoption of this Decision is due to the need to define the mandatory rules of behavior in the customs control zones, including the movement of people and vehicles in the customs control zones.

The Decision established:

1 In the customs control zones located in the territory of the state border crossing points of the Republic of Armenia, where the regime of the state border crossing points of the Republic of Armenia is defined and operates, the procedure for the entry (exit) of persons, vehicles, cargo, other property, animals, the state border crossing the procedure for the location and movement of persons and vehicles is controlled and regulated by the decision of the Government of the Republic of Armenia No. 735-N of May 12, 2011.

2 The entry, exit, and movement of goods, vehicles, and persons in other customs control zones different from the above-mentioned customs control zones are carried out with the permission of the officials of the customs authorities, in the manner and procedures provided for it, and in the places agreed with the officials of the customs authorities.

3 The entry and presence of third parties in the zones must have the sole purpose and reason of participation in the implementation of customs or other operations within the framework of declaration, release and/or customs control, or the performance of actions necessary for their implementation, and the entry and presence of third parties in the specified zones without this purpose prohibited.

DYou can get acquainted with the text of the decision by following this link: https://www.arlis.am/DocumentView.aspx?DocID=191754

Suggestion:

It is necessary to observe the mandatory rules of conduct established by this decision in the
customs control zones located on the territories of checkpoints across the state border of the
Republic of Armenia.

RULES

ON MANDATORY BEHAVIOR IN CUSTOMS CONTROL ZONES, INCLUDING THE MOVEMENT

OF PERSONS AND VEHICLES IN CUSTOMS CONTROL ZONES

1. Hereby, in accordance with part 6 of Article 189 of the Law on Customs Regulation, the mandatory rules for the entry, exit, location and movement of persons and vehicles in the customs control zones, as well as the conduct of persons, are defined.

2. In the customs control zones located in the territories of the state border crossing points of the Republic of Armenia, where the regime of the state border crossing points of the Republic of Armenia is defined and operates, the procedure for the entry (exit) of persons, vehicles, cargo, other property, animals at the crossing points, at the state border crossing points the location and movement of persons and vehicles are monitored and regulated by the decision of the Government of the Republic of Armenia N 735 of May 12, 2011.

3. Entry, exit, and movement of vehicles and persons in other customs control zones (hereinafter zone) different from the customs control zones specified in point 2 of these rules are carried out with the permission of the officials of the customs authorities, in the manner and procedures provided for this and in the places agreed with the officials of the customs authorities.

4. The deployment, parking of vehicles in the zones are carried out with the permission of the officials of the customs authorities, in the places, ways, period and duration agreed with the officials of the customs authorities.

5. Entry, exit, presence or activity of persons in zones, including third parties (an official of a customs body or other state body or other persons who are not persons endowed with the appropriate official powers of the organizer of the zone, hereinafter referred to as third parties), as well as officials of other state bodies, may be carried out only with the permission of customs authorities and under the supervision of their control, if necessary, by providing appropriate permits or passes.

6. According to the decision of the customs authority exercising control, the zones can be divided into zones of differentiated access.

7. Persons in the zones are obliged to comply with the legal instructions and instructions of customs officials, due to the need for customs control and resulting from it.

8. The entry and stay of third parties in the zones must have a purpose and justification solely for declaring, releasing or participating in customs or other operations within the framework of customs control or for performing actions necessary for their implementation.

9. It is prohibited for third parties to enter the territory of the zone, stay in this territory without declaration, release or for the purpose of performing other customs operations within the framework of customs control.

10. Smoking and the consumption of alcoholic beverages are prohibited during and at the place of customs operations, near vehicles subject to customs control.

11. Movement, location, parking or stopping of people and vehicles on the territory of the zone are allowed in specially designated or designated places for this purpose.

12. Movement, placement, parking, stopping of persons, vehicles on the territory of the zones are carried out in accordance with the routes of movement performed in designated or allocated places for this purpose, as well as marking of parking, stopping and placement places.

Name of the legislative act

DECISION OF THE STATE COUNCIL OF THE REPUBLIC OF ARMENIA ON STATISTICS ON
AMENDMENTS TO THE DECISION ON THE STATUS OF CALCULATIONS OF THE
ORGANIZATION

Change status

This amendment was made on 18.04.2024 and entered into force on 23.04.2024.

What are the changes related to?

This instruction will regulate the relations related to the procedure of filling out the statistical report Form No. 6-F (quarterly) "On the state of the organization's calculations" (hereinafter referred to as the Report).
The Report is submitted by legal entities and individual entrepreneurs (respondents), who are
informed about it in accordance with the provisions of the order approved by the State Council of Statistics of the Republic of Armenia on June 20, 2016 No. 05-N.

Suggestion:

It is necessary to submit the report (quarterly) to the Statistical Committee of the Republic of
Armenia within the period and periodically indicated on the Report form, taking into account the changes made by this Decision.

2. FILLING PROCEDURE

The report consists of 2 sections:

1) Section 1. "Accounts receivable and payable, bank loans, loans, stocks and biological assets",
2) Section 2. "Accounts receivable and accounts payable by country".

9. According to the meaning of this instruction:

1) non-profit organizations serving households are legal entities that are mainly engaged in the production of non-market services for households that do not pursue the goal of making a profit and do not distribute the profits among the participants (their status does not allow these organizations to be a source of income, profit or other financial benefit for the units that create these organizations.
The resources of these organizations come from membership fees, donations and property income. Non-profit organizations serving households include political parties, non-governmental organizations, charitable foundations, the Armenian Apostolic Church and other religious organizations, professional and other types of unions, cultural organizations, some educational and research organizations, etc.).

2) a household is a group of persons (individuals) who live in the same housing, combine all (or part of) their income and property and collectively consume certain types of goods and services (mainly housing services and food) (these are employers, self-employed, employees or persons who receive income from property and transfers.),

3) non-financial organizations or companies are institutional units whose main activity is the production of market goods or non-financial services,

4) financial organizations are all those resident organizations that are mainly engaged in providing financial services to other institutional units, including insurance and pension fund services (financial organizations are the Central Bank, deposit organizations, money market funds, non-monetary market investment funds, other financial intermediaries, auxiliary financial organizations, affiliated financial institutions, interest recipients, insurance companies and pension funds.),

5) a structural unit is considered a resident of a given economic territory if its main region (Center) of economic interests is located on the economic territory of that country (while the presence of economic interests in that country means that there is a certain location, housing, building, structure or other territory provided for the organization of production on the economic territory of that country, where an economic entity carries out and further intends to carry out a certain amount of economic activity and transactions with other entities for an indefinite period of time or for a certain long period of time (usually 1 year or more). A household is considered a resident of a country if, in the economic territory of the latter, the members of the household have or intend to have a place of residence, which is the main place of residence of the members of the household. Presence or intention for 1 year or more on the territory of the country is a sufficient condition to consider the place of residence as the main one. If a household member is absent for more than a year, he ceases to be a member of this household and, therefore, becomes a resident of another country.).