Update-2026-september-en

LEGAL UPDATE

September 2026

1. Amendments and Additions to the Tax Code of the Republic of Armenia.

2. Amendments and Additions to the Decision No. 1976-N of the Government of the Republic of
Armenia dated December 3, 2020.

1. On Making an Addition to Decision No. 229-N of the Board of the Central Bank of the
Republic of Armenia dated July 28, 2009.

1. Amendments and Additions to the Law of the Republic of
Armenia “On Foreigners”.

1.GOVERNMENT DECISION No. 1364-N OF THE REPUBLIC OF ARMENIA ON MAKING
AMENDMENTS AND ADDITIONS TO GOVERNMENT DECISION No. 410-N OF APRIL 10,
2025 AND GOVERNMENT DECISION No. 1954-N OF DECEMBER 25, 2025.

PART I. TAX SECTOR

(This section of legal updates includes legal news related to the tax sector for September 2026)

1. Amendments and Additions to the Tax Code of the Republic of Armenia

Name of the legislative act

Amendments and Additions to the Tax Code of the Republic of Armenia https://www.arlis.am/hy/acts/228152

Status of the amendment:

The amendments to the Law will enter into force on September 1, 2026..

Legislative act amended by the adoption of the above-mentioned act:

As a result of the adoption of this Law, amendments have been made to the Tax Code of the Republic of Armenia.

What the amendments concern:

The amendments concern the deadlines for issuing accounting documents, the regulation and mandatory application of electronic cash registers, the requirements for cash register receipts, as well as liability measures for violations of the relevant requirements.

ON MAKING ADDITIONS AND AMENDMENTS TO THE TAX CODE OF THE REPUBLIC OF ARMENIA

Article 1. In Article 56 of the Tax Code of the Republic of Armenia adopted on October 4, 2016 (hereinafter referred to as the “Code”):

1. in paragraph 2, after the word “machine”, add the words “(including an electronic cash register)”;

2. paragraph 4 shall be restated as follows:

“4. Settlement documents (except for the cases specified in paragraphs 8 and 8.1 of this Article) shall be issued:

1. prior to the supply of goods;

2. upon completion of the performance of works (including by stages provided for by the contract) and/or upon completion of the provision of services (including by stages provided for by the contract).”;

3. supplement with a new paragraph 4.1 as follows:

“4.1. A waybill shall be issued prior to the transportation of goods.”

Article 2. In Article 57 of the Code:

1. in paragraph 2, after the words “cash register receipt”, add the words “(including an electronic receipt generated by an electronic cash register)”;

2. paragraph 2.1 shall be restated as follows:

“2.1. If, in addition to the mandatory information (data) prescribed for a cash register receipt (including an electronic receipt generated by an electronic cash register), the address of the destination of the goods and, where the purchaser of the goods is an organization, individual entrepreneur or notary, also the taxpayer identification number (TIN) of the latter is included, the cash register receipt, as well as an electronic receipt issued (generated). in accordance with the procedure established by the Government, shall constitute an accompanying document for the purposes of this Article.”;

3. in paragraph 7, after the word “machines”, add the words “(including electronic cash registers)”.

Article 3. In subparagraph “b” of point 12 of part 2 of Article 65 of the Code, after the words “cash register receipts”, add the words “(including electronic receipts generated by an electronic cash register)”.

Article 4. In point 1 of part 3 of Article 335 of the Code, after the word “machines”, add the words “(including electronic cash registers)”.

Article 5. In point 4 of part 10 of Article 346 of the Code:

1. in subparagraph “b”, after the words “cash register receipts”, add the words “(including electronic receipts generated by an electronic cash register)”;

2. in subparagraph “c”, after the word “machines”, add the words “(including electronic cash registers)”.

Article 6. In part 3 of Article 349.1 of the Code:

1. subparagraph “e” of point 2 shall be repealed;

2. supplement with a new point 3 as follows:

“3) the year in which the statute of limitations prescribed by the Code for the assessment of tax liabilities based on the results of a desk (internal) review conducted by the tax authority regarding taxable transactions expires.”

Article 7. In part 1 of Article 380 of the Code, after the word “cases”, add the words “as well as in cases where organizations, individual entrepreneurs and notaries carry out their activities using a duly registered electronic cash register”.

Article 8. In Article 380.1 of the Code:

1. paragraph 1.1 shall be restated as follows:

“1.1. The use of an electronic cash register is mandatory in cases of order placement and passenger transportation by organizations or individual entrepreneurs providing passenger transportation services through an electronic platform, passenger transportation by organizations, individual entrepreneurs or individuals using passenger taxis, as well as in cases of sales, performance of works or provision of services by organizations, individual entrepreneurs and notaries. The sectors, cases and deadlines for mandatory use of electronic cash registers by organizations, individual entrepreneurs and notaries when carrying out sales, performing works or providing services shall be established by the Government.”;

2. in paragraph 2, the words “paragraph 1” shall be replaced with “paragraphs 1 and 1.1”, and the word “and” shall be replaced with the words “as well as”;

3. the first sentence of paragraph 4 shall be restated as follows:

“4. The technical requirements for an electronic cash register, the requirements for its registration and deregistration, the mandatory particulars of the electronic receipt generated through it, the requirements applicable to a website or electronic application (electronic commerce platform), the rules for the use of an electronic cash register, as well as the procedure for using an electronic cash register and generating an electronic receipt on behalf of another taxpayer shall be established by the Government.” Article 9. In Article 381 of the Code: 1. in paragraph 2, delete the words “provided for by points 8 and 9 of paragraph 3 of this Article”; 2. paragraph 3 shall be restated as follows: “3. Organizations, individual entrepreneurs and notaries using cash registers shall, when making monetary settlements in cash or through payment cards or other payment instruments used on the basis of payment technologies, provide the purchaser of goods, recipient of works or recipient of services with a cash register receipt.”; 3. in paragraph 7, after the word “rules”, add the words “, the information (data) to be printed on the cash register receipt”. Article 10. In points 1 and 2 of part 2 of Article 406 of the Code, the words “during the tax year in which the measurement is conducted, for any period preceding the measurement” shall be replaced with the words “during the tax year in which the measurement is conducted or during any period of the tax year preceding that tax year”. Article 11. In part 7 of Article 408 of the Code, delete the following sentence: “For the purposes of applying this paragraph, underpayment of the amount of the state duty below the prescribed amount shall also be deemed to include the performance of passenger transportation without an electronic cash register or in violation of the rules for its use, for which a fine of AMD 200,000 shall be imposed in each case.” Article 12. In Article 416 of the Code: 1. in the title, after the word “machines”, add the words “(including electronic cash registers)”; 2. supplement with a new paragraph 1.1 as follows: “1.1. Where the use of an electronic cash register is mandatory in accordance with paragraphs 1.1 and 1.2 of Article 380.1 of the Code, an organization, individual entrepreneur, notary (including a person using an electronic cash register on behalf of another taxpayer), or an individual carrying out passenger transportation by a passenger taxi shall be fined AMD 500,000 for carrying out transactions involving the supply of goods, performance of works or provision of services, or passenger transportation without an electronic cash register.”; 3. in paragraph 2: a. after the word “machines”, add the words “(including electronic cash registers)”; b. the words “or the notary” shall be replaced with the words “, notary (including a person using an electronic cash register on behalf of another taxpayer), or an individual carrying out passenger transportation by a passenger taxi”; c. after the word “machines”, add the words “(including electronic cash registers)”; 4. in paragraph 4: a. the words “cash register software” shall be replaced with “cash register software (including an electronic cash register)”; b. after the words “cash register software”, add the words “(including electronic cash register)”; c. after the words “cash register receipt”, add the words “(including an electronic receipt generated by an electronic cash register)”; d. after the word “machines”, add the words “(including electronic cash registers)”; 5. in paragraph 6: a. after the words “cash register receipt”, add the words “(including an electronic receipt generated by an electronic cash register)”; b. the words “use of the cash register” shall be replaced with “use of the cash register (including an electronic cash register)”. Article 13. 1. This Law shall enter into force on January 1, 2027, except for points 2 and 3 of Article 1 and Article 9 of this Law, which shall enter into force on September 1, 2026. 2. The subordinate regulatory legal acts arising from this Law shall be adopted by January 1, 2027, except for the subordinate regulatory legal act ensuring the implementation of Article 9 of this Law, which shall be adopted by September 1, 2026. 3. Until the subordinate regulatory legal acts ensuring the implementation of Article 8 of this Law enter into force, the regulations in force prior to the entry into force of this Law shall apply to the placement of orders and provision of passenger transportation services by providers of passenger transportation services through electronic platforms, as well as to passenger transportation by passenger taxis.

PART II: PUBLIC SECTOR

(This section of legal updates includes legal news related to the state sector for August 2026)

1. Adoption of the New Law “On Investments”

Name of the legislative act

Law of the Republic of Armenia “On Investments” No. HO-285-N https://www.arlis.am/hy/acts/227811/latest

Change status:

This Law entered into force on 11 August 2026.

Which legislative act was amended by the adoption of the above-mentioned act:

The adoption of the above-mentioned act resulted in changes to the Law of the Republic of Armenia “On Investments.”

What the amendments concern:

The new Law primarily concerns the establishment of a new framework for the legal protection of investments in the Republic of Armenia, improvement of the investment environment, and promotion of investment. The Law applies equally to foreign and domestic investors, establishing national treatment and most-favoured-nation treatment for foreign investors. The definition of “investment” has been expanded to include funds, shares and equity interests, securities, intellectual property rights, claims, licences, and other assets. Investors are granted guarantees concerning the free movement of capital and property, protection of investments against direct and indirect expropriation, fair and adequate compensation, as well as access to judicial, extrajudicial and, in certain cases, international arbitration mechanisms for the resolution of disputes. At the same time, the Law introduces a new system of investment incentives, which may include tax, customs, financial, administrative, infrastructure and land-related benefits, as well as the possibility of entering into investment agreements. Another important change is the introduction of a stability guarantee for the investment legal framework, under which certain guarantees continue to apply for five years following their amendment or repeal. The Law also establishes transitional rules distinguishing between new and previously made investments, as well as thresholds for the phased application of the Law to domestic investors.

CHAPTER 1

GENERAL PROVISIONS

Article 1.

Subject Matter of the Law

1. This Law regulates: 1. the legal framework for investments in the Republic of Armenia;

2. the freedoms, guarantees and rights applicable to investors and their investments, as well as mechanisms for the protection of such rights;

3. the obligations of investors;

4. the legal basis, principles and administration of investment incentives;

5. the institutional framework of investment policy in the Republic of Armenia.

2. This Law applies to both domestic and foreign investors and investments.

3. This Law does not apply to the restructuring of financial organizations carried out by the Central Bank of the Republic of Armenia pursuant to the Law “On the Central Bank of the Republic of Armenia.”

Article 2.

Relationship Between the Law and International Treaties

1. The interpretation and application of the provisions of this Law shall not restrict the rights and guarantees of investors provided for by international treaties of the Republic of Armenia. In the event of a conflict between an international treaty of the Republic of Armenia and the provisions of this Law, the provisions of the international treaty shall prevail.

Article 3.

Key Concepts Used in the Law

1. The following key concepts are used in this Law:

1. “Investment” means the lawful acquisition, allocation, creation or use of the following assets for the purpose of carrying out entrepreneurial activities in the Republic of Armenia (except for the cases provided for in Part 2 of this Article), provided that such assets are used or were clearly acquired, allocated or created for the purpose of carrying out entrepreneurial activities:

a. property, including funds, as well as information or rights to intellectual property objects, including inventions, industrial designs and production secrets (know-how), trademarks and service marks;

b. shares, equity interests, units and other rights or instruments evidencing participation in a commercial organization or investment fund (hereinafter, “participation interest”), as well as other securities;

c. rights to claims having economic value that are directly or closely related to the investment;

d. property rights, concession rights, licences, operating or other permits or similar rights granted by law or contract, including rights to explore, develop, extract or exploit natural resources;

e. a new asset created in the Republic of Armenia as a result of the investment.

2. “Investor” means an individual making an investment in the Republic of Armenia in accordance with the legislation of the Republic of Armenia, regardless of citizenship, lack thereof or residency; a legal entity, regardless of its country of incorporation or residency; an investment fund; as well as states and communities.

3. “Investment project” means a plan of actions undertaken by an investor for obtaining profit (income) or creating value, setting out the purpose, amount, budget, sources, timing, methods, return on investment or value to be created, results and potential risks of the investment to be made by the investor.

4. “Control or significant influence” means the ability to direct decisions or materially influence them, including through voting rights, representation on a board, veto rights, shareholders’ agreements or similar arrangements.

5. “Foreign investor” means a foreign state, a foreign community, an individual who is not a citizen of the Republic of Armenia or whose primary place of residence is outside the Republic of Armenia, or an organization established under the laws of another state, as well as an organization established in the Republic of Armenia over which such persons or organizations exercise, directly or indirectly, significant influence or control.

6. “Domestic investor” means an investor that is not considered a foreign investor.

2. For the purposes of this Law, portfolio investments that do not provide control or significant influence over an organization and are acquired primarily for short-term income, price appreciation or liquidity, and are not aimed at establishing long-term economic relations, shall not be considered investments.

Portfolio investments include, but are not limited to:

1. participation of less than 10% in listed voting equity securities of a company, which does not confer either representation on the board of directors or management rights, except for rights established for the protection of minority shareholders;

2. acquisition of debt securities with an initial maturity of 12 months or less;

3. investments in marketable securities and derivatives that do not result in control or significant influence over the issuer;

4. commercial accounts receivable and claims arising exclusively from contracts for the sale of goods, provision of services or performance of works.

CHAPTER 2

FREEDOM OF INVESTMENTS, RIGHTS, GUARANTEES, PROTECTION AND OBLIGATIONS OF INVESTORS

Article 4.

Scope of Investment Protection

1. The protection provided for by this Law applies to investments, income lawfully derived therefrom, dividends, and the lawful use thereof.

2. The Republic of Armenia does not guarantee the success of an investment and shall not be liable for business, market, operational or other risks inherent in business activities.

3. Investors have the right to compensation for damage caused by unlawful actions or omissions of state and local self-government bodies and officials and, in cases prescribed by law, by lawful administration. Compensation shall be provided in accordance with and in the amount prescribed by this Law, other laws, international treaties or an agreement concluded between the investor and the Republic of Armenia.

Article 5.

Constitutional Guarantees and Freedom to Make Investments

1. In accordance with the Constitution, the Republic of Armenia guarantees freedom of economic activity, free economic competition and protection of all forms of property, including intellectual property.

2. The Republic of Armenia guarantees the freedom of investments made within the territory of the Republic of Armenia in accordance with the procedures and conditions established by law. This guarantee does not preclude the establishment by law of licensing requirements, specific requirements or other permits for entrepreneurial activities, provided that such measures are not arbitrary, discriminatory or disproportionate and are aimed at protecting the public interest.

3. The freedom to make investments in certain sectors, geographical areas or organizations in the Republic of Armenia may be restricted or prohibited exclusively by law and only for overriding purposes such as public health, environmental protection and climate-risk mitigation, financial and price stability, public order, sovereignty and national security. Such restrictions and prohibitions must be specific, non-discriminatory and proportionate.

Article 6.

Non-Discrimination

1. National Treatment is applied and guaranteed in the Republic of Armenia to foreign investors and their investments. Under National Treatment, foreign investors, under similar conditions, have rights, freedoms and obligations equal to those of domestic investors in relation to their investments, including their management, implementation, operation, expansion, sale or other disposal.

The legal guarantees afforded to foreign investors in the Republic of Armenia may not be less favourable than those afforded to domestic investors.

2. Most-Favoured-Nation Treatment (MFN) is applied and guaranteed in the Republic of Armenia to foreign investors and their investments. Under MFN treatment, the Republic of Armenia guarantees, under similar conditions, treatment no less favourable to foreign investors and their investments, including their management, implementation, operation, expansion, sale or other disposal, than that accorded to investors or investments of any other state. This does not apply to the right to resort to international arbitration or to cases arising from customs unions, free economic zones, economic unions, common markets, tax-regime arrangements or other international treaties.

Article 7.

Free Movement and Conversion of Capital and Property

1. Investors have the right, freely and without unjustified delays by state authorities, including delays exceeding statutory deadlines or, where no such deadline is prescribed, reasonable periods dictated by the nature of the relevant process, to transport, send, import into and transport, send or export from the territory of the Republic of Armenia monetary values. Such monetary values remain subject to procedures and requirements established by Armenian legislation for maintaining financial-system stability, preventing money laundering and terrorist financing, preventing economic risks, statistical purposes and declaration requirements.

2. Investors have the right to exchange their foreign currency into freely convertible foreign currency of their choice through financial organizations, subject to Armenian legislation.

3. Investors have the right, freely and without unjustified delays by state authorities, to transport, send, import into and transport, send or export from the territory of the Republic of Armenia property that is not withdrawn from civil circulation and is not prohibited by law. Such property remains subject to customs, tax, environmental, health and safety procedures and requirements established by Armenian legislation.

4. The freedoms and guarantees established by this Article may be restricted by law or in accordance with procedures prescribed by law in the context of bankruptcy, criminal, administrative, judicial, tax or customs proceedings, as well as other administrative proceedings established by law.

Article 8.

Protection of Investments

1. The Republic of Armenia guarantees the protection of investments made by investors against direct or indirect expropriation.

2. For the purposes of this Law, direct expropriation means an official action or measure of the state, a state body, a local self-government body or an official thereof that results in the compulsory taking or seizure of an investment or any part thereof, including confiscation, alienation, requisition or nationalization, by depriving the owner of ownership rights.

3. Indirect expropriation means deliberate and discriminatory actions or decisions by the state that result in the substantial and prolonged deprivation of the use, value or economic benefit of an investment, even where no transfer of ownership or deprivation of possession has occurred.

4. Measures carried out in accordance with the law for the compulsory enforcement of lawful obligations, including debt collection, fulfilment of tax obligations or enforcement of judicial acts, shall not constitute direct expropriation.

Such measures shall also not constitute indirect expropriation unless, taking into account and analysing the specific facts of the relevant case in accordance with Parts 5 and 6 of this Article, it is determined otherwise.

5. Several interconnected measures may constitute indirect expropriation even if each measure individually would not have such an effect. In determining whether a measure or series of measures constitutes indirect expropriation, the specific facts of each case must be taken into account and analysed, including the purpose and nature of the measure, the investor’s specific and reasonable investment expectations, and the proportionality between the public purpose pursued and the impact on the investment.

6. Non-discriminatory regulatory and supervisory measures undertaken during a state of emergency or martial law, or in the public interest and for legitimate purposes such as public health, national security, environmental protection and climate resilience, financial stability, provided that they comply with legal requirements, shall not constitute indirect expropriation unless they are manifestly excessive or disproportionate to their purpose.

7. Unlawful direct expropriation in the Republic of Armenia, as well as indirect expropriation, is prohibited. If such expropriation nevertheless occurs in violation of this prohibition, the investor shall have the right to receive adequate compensation as prescribed by Parts 9–11 of this Article and applicable international or other agreements.

8. Direct expropriation of investments made in the Republic of Armenia may take place for the purpose of ensuring an overriding public interest or within the legal regimes of a state of emergency or martial law, on the grounds and in accordance with the procedures prescribed by law, as well as in other cases provided by law, subject to the principles and requirements established by Parts 9–11 of this Article.

9. Compensation regimes relating to overriding public interest, states of emergency and martial law are established by the Constitution and, respectively, by the laws “On Alienation of Property for the Purpose of Ensuring Overriding Public Interests,” “On the Legal Regime of a State of Emergency” and “On the Legal Regime of Martial Law.”

Property may also be subject to attachment for the enforcement of obligations, and in cases prescribed by law, property, including property of illicit origin, may be taken or confiscated without compensation pursuant to a judgment or court decision.

In other cases of direct expropriation prescribed by law, unlawful direct expropriation and indirect expropriation, adequate compensation shall be provided, in addition to other requirements and procedures established by law, subject to the following principles:

1. non-discriminatory, prompt, adequate and effective compensation;

2. prior compensation based on the fair market value of the property in cases prescribed by law, and, where prior compensation is not required by law, within a reasonable period;

3. determination of the fair market value of the property taking into account the requirements of Part 10 of this Article.

10. Compensation shall be equivalent to the fair market value of the expropriated investment immediately before the expropriation or before the expropriation became publicly known, whichever is earlier, and shall not reflect any change in value resulting from knowledge of the intended expropriation, except where otherwise provided by law for compensation regimes relating to overriding public interest, a state of emergency or martial law.

Compensation may include interest calculated at the bank interest calculation rate established by the Central Bank in accordance with the procedure prescribed by the Civil Code of the Republic of Armenia.

Where fair market value cannot be determined, compensation shall be determined taking into account all relevant factors and circumstances, including the investment made, the nature and duration of the investment, replacement cost, book value and goodwill.

Loss of profit and other damages shall not be included in compensation for the investment unless otherwise provided by Armenian legislation or an agreement concluded between the investor and the Republic of Armenia.

11. For the purposes of this Article, fair market value means the value determined on the basis of the market-value methodology that best takes into account the actual circumstances of the expropriation and the requirement to provide the investor with fair compensation.

Article 9.

Protection of Investors

1. Investors in the Republic of Armenia are entitled to the following legal protection measures:

1. access to justice in criminal, civil, administrative and other judicial proceedings, as well as extrajudicial dispute-resolution mechanisms established by Armenian legislation or international treaties;

2. proper application of procedures established by law in judicial, extrajudicial and administrative proceedings, including the avoidance of unjustified delays in decision-making, including delays exceeding statutory deadlines or, where no such deadline is prescribed, reasonable periods dictated by the nature of the relevant process, as well as transparency of judicial and administrative decisions and procedures;

3. protection against discrimination or arbitrariness in decisions of judicial, administrative and law-enforcement bodies;

4. protection against pressure, unlawful coercion and threats by state bodies, local self- government bodies and their officials;

5. physical protection and security, including the obligation of competent authorities to take reasonable measures to respond to and prevent acts of violence, vandalism or unlawful interference by third parties that may cause physical damage to an investment or endanger the personal safety of an investor;

6. other measures applicable to investors and investments as established by law and other legal acts.

Article 10.

Lawful Investments

1. The rights, guarantees and protections provided for by this Law, except for those having universal constitutional application, apply only to lawfully made investments made in good faith.

2. Investments created, acquired or operated through fraud, corruption, money laundering, provision of false information, concealment of the beneficial owner, violation of international sanctions, or serious (material) violation of the laws of the Republic of Armenia shall not benefit from the protections and guarantees provided by this Law.

Article 11.

Ownership and Other Property Rights over Land

1. In accordance with the Constitution and the Land Code of the Republic of Armenia, investors may hold ownership or other property rights over land in the Republic of Armenia.

Article 12.

Right to Hire Employees

1. In accordance with the Labour Code of the Republic of Armenia and legislation regulating migration, investors may employ in the Republic of Armenia both citizens of the Republic of Armenia and foreign citizens or stateless persons.

Article 13.

Obligations and Liability of Investors

1. Investors shall comply with the legislation of the Republic of Armenia, health and safety standards and mandatory corporate governance rules applicable to them; respect culture and cultural heritage, business and other customs, and employees’ rights; take care of environmental protection and follow the principles of climate-change policy; duly fulfil tax and other mandatory payment obligations; and comply with anti-corruption legislation.

2. Investors shall be liable for failure to perform or improper performance of obligations established by law or other legal acts, as well as for damage caused thereby, in cases and in accordance with the procedures prescribed by law.

3. In the event of violations by an investor, the competent authority may take one or more of the following measures in accordance with applicable legislation and due process:

1. suspend or terminate access to investment incentives or other state support;

2. require the return of benefits received from an investment incentive or require equivalent compensation;

3. impose liability provided for by law, in cases and according to the procedure prescribed by law; 4. apply to a court or law-enforcement authorities, as appropriate.

4. Liability shall be proportionate to the nature and severity of the violation and assessed in accordance with the principles of fairness, transparency and legal certainty.

5. The parties may provide for other forms of liability and procedures for their application in an agreement concluded with the investor.

Article 14.

Availability of Dispute-Resolution Mechanisms

1. Investors have the right, in accordance with domestic legislation of the Republic of Armenia and its international treaties, to use all judicial and extrajudicial means of dispute resolution.

2. The Republic of Armenia may consent to the resolution of a dispute through international arbitration where, under applicable laws, investment agreements, international or other treaties to which it is a party, the dispute falls within the jurisdiction of the courts of the Republic of Armenia. Such consent must be in writing and explicit.

3. Where a dispute relating to an investment arises between an investor and a state or local self- government body of the Republic of Armenia, the parties must attempt to resolve the dispute through negotiations before applying to a competent court or arbitral tribunal.

Upon written request by the investor or the state or local self-government body of the Republic of Armenia, negotiations with the other party shall commence within 30 days from the date of notification of the dispute and shall conclude within 90 days, unless otherwise agreed by the parties or another period is prescribed by an international treaty or applicable domestic or international business or dispute-resolution practice. If the notified party does not respond within 30 days, the negotiations do not take place or conclude without an agreement, the investor or the state or local self-government body may resort to the available legal remedies.

All information exchanged during the negotiation stage shall remain confidential to third parties, except for courts, arbitral tribunals, attorneys and experts involved in the dispute.

Each party to the dispute has the right to propose mediation to the other party.

Article 15.

Transparency and Stability of the Legal Framework for Investments

1. The Republic of Armenia shall take measures to ensure that legal acts applicable to investors and investments are transparent, publicly accessible, certain and clear.

Such measures include, but are not limited to, the official publication of draft and adopted versions of normative legal acts, publication of official clarifications, publication of the justifications for adopting normative legal acts and public-policy objectives, and, where necessary, the organization and publication of official translations of normative legal acts into foreign languages, as well as other necessary measures ensuring transparency, accessibility, certainty and clarity of legal provisions.

2. Investors and their investments benefiting from the guarantees established by this Law shall continue to be protected by such guarantees irrespective of amendments to or repeal of the scope of such guarantees, for a period of five years following such amendment or repeal, except where otherwise provided by an agreement concluded between the investor and the Republic of Armenia.

CHAPTER 3

INVESTMENT INCENTIVES

Article 16.

Purpose, Nature and Principles of Investment Incentives

1. The Republic of Armenia may establish investment incentives in certain sectors of the economy or regions for the purpose of encouraging investments.

2. Investment incentives may include fiscal incentives (tax, customs and other mandatory state payments), financial support, state regulatory measures, simplified administration, infrastructure incentives, including preferential terms for using infrastructure-related property or land plots owned by the state or entities under state control, assistance in acquiring land plots, including the gratuitous transfer of ownership rights over state or community-owned land plots, direct sale, lease, granting of development rights, alienation of property, as well as recognition of privately owned land as being subject to overriding public interest, in compliance with the Land Code and relevant normative legal acts.

They may also include incentives for the construction or development of infrastructure, as well as other incentives established by Armenian legislation.

3. Investment incentives must derive from the objectives of Armenia’s adopted medium-term or long-term investment policy.

4. Investment incentives shall be established taking into account the following principles:

1. prevention of discrimination against investors operating in the relevant sector or region;

2. minimum adverse impact on economic competition;

3. the imperative of creating or maintaining jobs;

4. environmental protection;

5. proportionality of the incentive to the targeted result, meaning that the incentive must be an effective means of achieving its purpose while minimizing negative impacts on public finances and the interests of third parties;

6. measurability of the results of the incentive throughout the entire period of its application;

7. public accountability of the investor benefiting from the incentive and of the state authorities supervising and administering the incentives.

Article 17.

Legal Basis for Providing Investment Incentives

1. Investment incentives shall be established by law and, within the scope of powers provided by law, also by decisions of the Government or another competent state body, or by an investment agreement concluded between the Republic of Armenia, represented by the Government or a body authorized by the Government, and the investor. The Government shall establish the principal terms and conditions, criteria and priority investment areas for investment agreements.

2. Fiscal incentives shall be established by tax legislation or by laws establishing the relevant mandatory state payment or fee.

Article 18.

Administration of Investment Incentives

1. The administration of procedures for applying for and receiving investment incentives, compliance with accountability criteria, supervision, as well as evaluation and monitoring in accordance with the procedure established by the Government, shall be carried out by the body responsible for developing and implementing the Government’s policy in the field of investment promotion (hereinafter, the “Authorized Body”), unless otherwise provided by the law or other normative legal act establishing the relevant incentive.

2. The Authorized Body shall maintain a public register of all investment incentives in force in the Republic of Armenia.

CHAPTER 4

INSTITUTIONAL FRAMEWORK OF INVESTMENT POLICY

Article 19.

Bodies Developing and Implementing the Investment Policy of the Republic of Armenia

1. The investment policy of the Republic of Armenia shall be developed and implemented by the following bodies: 1. the Government, within the powers established by the Constitution and laws;

2. the Authorized Body, within the powers established by law and decisions of the Government adopted on the basis thereof.

Article 20.

Powers of the Government

1. The Government shall:

1. ensure a favourable investment environment and promote investments in the Republic of Armenia;

2. approve the medium-term and long-term investment policy of the Republic of Armenia;

3. based on the expected socio-economic impact of the implementation of a project, the amount of investment, sectoral or regional priority, as well as the sustainability of the project, approve investment projects submitted for state support and establish the requirements, criteria and conditions applicable to each investment project;

4. approve the procedure for monitoring and evaluating investments, including investment incentives;

5. approve a summary of the policy on foreign direct investment in the Republic of Armenia;

6. approve mechanisms for interaction between state bodies and investors in relation to investments;

7. approve the format, information to be included and procedure for maintaining the public register of all investment incentives in force in the Republic of Armenia;

8. designate the investment promotion body and establish its functions, powers, structure and operating procedures;

9. exercise other powers established by this Law and other laws.

Article 21.

Powers of the Authorized Body

1. The Authorized Body shall:

1. develop and submit to the Government for approval the medium-term and long-term investment policy of the Republic of Armenia;

2. develop and submit to the Government for consideration draft laws and other legal acts in the field of investments;

3. develop and submit to the Government for approval a summary of the policy on foreign direct investment in the Republic of Armenia and ensure its periodic updating;

4. exercise other powers established by this Law and other laws.”

2. On Approving Regulation 4/07 “Requirements for the Activities of Persons Providing Investment Services”

Name of the legislative act:

Decision No. 113-N of the Board of the Central Bank of the Republic of Armenia dated 8 April 2008 “On Making Additions to Decision No. 113-N of the Board of the Central Bank of the Republic of Armenia dated 8 April 2008”

https://www.cba.am/hy/Publications/9541/

Change status:

This Decision entered into force on 12 August 2026.

Which legislative act was amended by the adoption of the above-mentioned act:

The adoption of the above-mentioned Decision resulted in amendments to Regulation 4/07 “Requirements for the Activities of Persons Providing Investment Services” of the Republic of Armenia.

What the amendments concern:

The amendments concern the introduction of a new mandatory system for managing the risk of circumvention of international sanctions by investment companies. In particular, investment companies and branches of foreign investment companies are required to have risk-based internal control and monitoring systems and procedures, conduct assessments of customer, counterparty, transaction, geographical and other risks, implement automated sanctions screening tools, ensure pre-transaction screening and promptly review relevant information in the event of changes to sanctions lists. The board and executive body of an investment company assume responsibility for approving the relevant policies, ensuring the availability of necessary resources and exercising oversight, while the designated responsible person is responsible for implementing the system, assessing risks and reporting. The amendments also provide for employee awareness, periodic testing of systems, at least annual risk assessments and at least semi-annual reporting to management. The Decision enters into force six months after its official publication. On Making Additions to Decision No. 113-N of the Board of the Central Bank of the Republic of Armenia dated 8 April 2008.

CENTRAL BANK OF THE REPUBLIC OF ARMENIA
BOARD
Decision No. 23-N
30 January 2026
ON MAKING ADDITIONS TO DECISION NO. 113-N OF THE BOARD OF THE CENTRAL BANK
OF THE REPUBLIC OF ARMENIA DATED 8 APRIL 2008

Date of publication: 11 February 2026
With the aim of ensuring the availability of an appropriate set of tools aimed at effectively managing the risk of circumvention of international sanctions by investment companies,

based on Part 4 of Article 27 of the Law “On the Securities Market”,

guided by Part 3 of Article 2 and Point “e” of Part 1 of Article 20 of the Law “On the Central Bank of the Republic of Armenia,” as well as Part 3 of Article 33 and Article 34 of the Law “On Normative Legal Acts,” the Board of the Central Bank of the Republic of Armenia

decides:

1. In Regulation 4/07 “Requirements for the Activities of Persons Providing Investment Services,” approved by Decision No. 113-N of the Board of the Central Bank of the Republic of Armenia dated 8 April 2008 “On Approving Regulation 4/07 ‘Requirements for the Activities of Persons Providing Investment Services’” (hereinafter, the “Regulation”), make the following additions:

1. After Chapter 24 of the Regulation, add Chapter 25 with the following content:

CHAPTER 25

MANAGEMENT OF THE RISK OF CIRCUMVENTION OF INTERNATIONAL SANCTIONS

144. The provisions of this Chapter shall also apply to a branch of a foreign investment company.

145. An investment company shall have risk-based internal control systems and procedures for managing the risk of circumvention of international sanctions, which shall at least include mechanisms for assessing risks related to the circumvention of international sanctions, as well as mechanisms for mitigating and monitoring such risks, testing the control system and reporting.

For the purposes of this Regulation, international sanctions means any economic, financial, trade or other restrictive measures imposed by international organizations or states, including the freezing or blocking of assets, restrictions on access to funds or economic resources, sectoral financing or investment restrictions, trade, export or import controls, prohibitions on services, and measures aimed at combating the circumvention of the aforementioned restrictions, except for the lists of persons related to terrorism or the proliferation of weapons of mass destruction established under the Law “On Combating Money Laundering and Terrorist Financing,” the regulation of which is established by other relevant laws and subordinate normative legal acts.

For the purposes of this Regulation, the risk of circumvention of international sanctions means the likelihood that an investment company will incur losses as a result of the circumvention of international sanctions.

146. Depending on its business activities, size, complexity and risk profile, an investment company shall comply only with the regulations concerning international sanctions established by those countries or international organizations that may directly or indirectly affect the activities of the investment company.

147. An investment company shall have internal control processes that enable it to fully and effectively identify, assess, suspend or reject transactions that involve a risk of circumvention of international sanctions.

148. The board of an investment company shall:

1. approve procedures for internal control and monitoring related to the management of the risk of circumvention of international sanctions and review them annually or more frequently in the event of material changes within the company or in the market;

2. approve an action plan aimed at eliminating deficiencies, shortcomings and failures identified in the process of managing the risk of circumvention of international sanctions as specified in Subpoint 2 of Point 163 of this Regulation, and review it annually or more frequently in the event of material changes in the process of managing the risk of circumvention of international sanctions;

3. approve the budget necessary for implementing the process of managing the risk of circumvention of international sanctions.

149. In the absence of a board of the investment company, the requirements established by Point 148 of this Regulation shall be fulfilled by the person responsible for decision-making under the company’s charter.

150. The executive body of an investment company shall:

1. ensure the implementation and effective operation of the requirements established by Point 145 of this Regulation;

2. define the duties and scope of responsibility of the person responsible for performing the function of managing the risk of circumvention of international sanctions (hereinafter also referred to as the “Responsible Person” for the purposes of this Chapter), appoint the Responsible Person, who must be a manager already registered by the Central Bank, and, where necessary, other persons responsible for managing the risk of circumvention of international sanctions, while preventing potential conflicts of interest;

3. ensure the availability of sufficient technological, expert and other resources for carrying out the day- to-day activities aimed at managing the risk of circumvention of international sanctions;

4. ensure the implementation of the action plan aimed at eliminating deficiencies, shortcomings and failures identified in the process of managing the risk of circumvention of international sanctions as specified in Subpoint 2 of Point 163 of this Regulation.

151. The Responsible Person shall, at a minimum:

1. develop methodologies and procedures for managing the risk of circumvention of international sanctions and submit them to the board for approval;

2. identify and assess the investment company’s risks related to the circumvention of international sanctions, exercise control and monitoring over the identified risk of circumvention of international sanctions, and ensure its effective management;

3. develop an action plan aimed at eliminating deficiencies, shortcomings and failures identified in the process of managing the risk of circumvention of international sanctions;

4. perform other functions related to the management of the risk of circumvention of international sanctions.

152. An investment company shall have a methodology for assessing the risk of circumvention of international sanctions and, on the basis thereof, shall conduct an assessment of the risk of circumvention of international sanctions at least once a year for the purpose of identifying potential deficiencies and issues.

153. The assessment of the risk of circumvention of international sanctions shall include an assessment of inherent risk, risk management and residual risk.

154. As part of the risk assessment process, the assessment of inherent risk shall include, at a minimum:

1. assessment of customer risk;

2. assessment of geographical location risk;

3. assessment of the risk of the services offered, including transaction risk;

4. assessment of counterparty and intermediary risk;

5. assessment of service-chain risk.

155. An investment company shall assess the effectiveness of the relevant tools aimed at mitigating inherent risks that form part of the process of managing the risk of circumvention of international sanctions, as well as the effectiveness of their application.

156. An investment company shall assess the residual risk of circumvention of international sanctions, which shall be determined based on the assessment of the inherent risk level of its operations and the adequacy and effectiveness of its risk management.

157. Issues and deficiencies identified through other control processes, such as monitoring, testing and internal audit, shall also be included in the results of the assessment of the risk of circumvention of international sanctions.

158. The internal control systems and processes of an investment company shall, at a minimum, enable the company to:

1. conduct due diligence of its customers, its customers’ counterparties and its own counterparties, as well as all parties to transactions;

2. assess the risk of circumvention of international sanctions associated with customers and counterparties;

3. monitor transactions;

4. monitor the activities of customers and counterparties based on available information;

5. assess the process of assessing the risk of circumvention of international sanctions;

6. collect and retain information identified during the process of managing the risk of circumvention of international sanctions.

159. An investment company shall ensure that the relevant employees involved in operations related to the management of the risk of circumvention of international sanctions are informed of the procedures implemented by the investment company for managing such risk and any updates thereto.

160. An investment company shall have a process for monitoring the effectiveness of the process of managing the risk of circumvention of international sanctions.

161. An investment company shall conduct control and testing of the process and key procedures for managing the risk of circumvention of international sanctions, which shall, at a minimum, verify that the monitoring systems operate properly and periodically assess their effectiveness from a risk- management perspective.

162. An investment company shall ensure that, where issues are identified in the internal control systems aimed at managing the risk of circumvention of international sanctions, immediate and effective measures can be taken to mitigate and eliminate the relevant risk.

163. At least semi-annually, the Responsible Person shall submit reports to the board (where applicable) or the executive body regarding, at a minimum:

1. the process of managing the risk of circumvention of international sanctions, its components, the progress of its implementation, and all risks relating to international sanctions;

2. identified deficiencies, failures and shortcomings in the process of managing the risk of circumvention of international sanctions;

3. the results of the assessment of the risk of circumvention of international sanctions;

4. potential violations of regulations concerning international sanctions, as well as measures aimed at eliminating such violations.

164. An investment company shall have appropriate procedures enabling cases of deficiencies, failures and shortcomings identified in the internal control system for managing the risk of circumvention of international sanctions to be immediately reported to the Responsible Person and ensuring that effective measures are taken to mitigate and eliminate the risk of circumvention of international sanctions.

165. An investment company shall have procedures and automated tools for monitoring international sanctions that are appropriate to its size, complexity, risk profile and current operations and that enable a detailed examination of its operations, including transactions, for the purpose of identifying and effectively managing risks of circumvention of international sanctions. The procedures established under this Point shall be reviewed annually or in the event of a material change within the investment company or in the market.

166. Taking into account the specific characteristics of international sanctions regulations, an investment company shall, at a minimum, take into account the following in the monitoring process:

1. geographical factors, including countries, cities and regions subject to stricter and more extensive international sanctions regimes;

2. key words related to international sanctions;

3. the sources of origin of goods, services, software and technologies forming part of a transaction;

4. organizations and entities owned by or affiliated with parties subject to international sanctions and suspected of circumventing international sanctions. Where necessary, reliable internal and external data or information concerning such entities may also be taken into account;

5. identification data of financial organizations subject to international sanctions;

6. the International Securities Identification Numbers (ISINs) of securities issued or traded in countries subject to international sanctions.

167. An investment company shall monitor, at a minimum:

1. customers and counterparties;

2. participants of the investment company, employees involved in the execution of transactions, and governing bodies of the investment company, at least annually;

3. currencies of transactions;

4. locations where operations are conducted.

168. When monitoring customer-related data as prescribed by this Chapter, an investment company shall, at a minimum, take into account persons connected with such customer who have already been identified by the investment company, including persons holding direct and indirect significant participation, beneficial owners, directors and authorized persons, the customer’s business relationships, and, in the case of individuals, their citizenship, actual residential address and principal country of taxation, and, in the case of legal entities, their location and place of business.

169. Where an investment company regularly provides services to financial organizations operating outside the territory of the Republic of Armenia or outside the scope of this Regulation, the investment company shall continuously assess and document the process of managing the risk of circumvention of international sanctions of such financial organization.

170. Monitoring of customer data prescribed by this Chapter shall be carried out when establishing a business relationship with a customer and shall be continuous in nature. In the event of any change or update to international sanctions lists or customer-related data, the investment company shall conduct monitoring within one business day following such change or update.

171. Data concerning transactions conducted by investment companies shall be subject to monitoring prior to the execution and approval of the transaction.

172. An investment company shall periodically test the effectiveness of its international sanctions monitoring tools and systems, which shall, at a minimum:

1. be carried out based on the criteria established by the investment company for monitoring, the analyses performed and the reports prepared;

2. include verification of the reliability and completeness of data relating to the management of the risk of circumvention of international sanctions.

173. An investment company shall document its international sanctions monitoring tools and shall ensure transparency regarding system limitations or risk-based decisions that are not identified through the monitoring control mechanisms.

174. In addition to international sanctions monitoring control mechanisms, an investment company shall implement an appropriate methodology, including transaction-monitoring scenarios for identifying cases of evasion or circumvention of international sanctions.

The scenarios shall be periodically reviewed and assessed to ensure that the methodology remains appropriate for identifying cases of evasion or circumvention of international sanctions.

2. This Decision shall enter into force six months after the date of its official publication.

3. RA Law “On Local Duties and Fees”

Name of the legislative act:

RA Law No. HO-388-N “On Making Amendments and Additions to the Law of the Republic of Armenia on Local Duties and Fees”

https://www.arlis.am/hy/acts/218523

Change status :

The Law enters into force on 30 August 2026.

Which legislative act was amended by the adoption of the above-mentioned act:

The Law of the Republic of Armenia “On Local Duties and Fees”.

What the amendments concern:

The amendments mainly concern the revision of local duty rates and the procedure for their application. In particular, the amendments clarify the local duties charged by communities for certain permits, including a duty of AMD 100,000–300,000 per calendar year for permission to use the names or symbols of communities, settlements included in communities, or administrative districts of Yerevan as registered trademarks or in company names and business activities. A local duty of AMD 10,000 per square meter is established for obtaining a permit to organize public catering services during both the summer and winter seasons in adjacent areas of common use. In addition, a local duty of AMD 10,000–15,000 per month for each device is established for conducting trade or providing services through automated self-service machines located outside buildings and structures. At the same time, in urban settlements, the community council may increase the prescribed rates by up to 3 times, while in Yerevan the rates may be increased by up to 7 times, subject to the exceptions specified by law. The amendments also repeal certain previous provisions relating to “compensation fees” and remove the requirement to establish local duty and fee rates before approval of the community’s annual budget. In addition, the grounds for the refund of paid local duties and fees are expanded.

REPUBLIC OF ARMENIA

L A W

Adopted on 3 July

2026 LAW ON MAKING AMENDMENTS AND ADDITIONS TO THE LAW “ON LOCAL DUTIES AND FEES”

Article 1. In Article 1 of the Law HO-185 of 26 December 1997 “On Local Duties and Fees” (hereinafter referred to as the “Law”), the words “or compensatory fees” shall be deleted, and the words “the procedure and conditions for refunding overpaid amounts” shall be replaced with the words “the procedure and conditions for refunding paid amounts”.

Article 2. In Part 1 of Article 9 of the Law:

1. Point 15 shall be restated as follows:

“15) for granting a permit to use the names or symbols of the communities of the Republic of Armenia, settlements comprising communities, or administrative districts of Yerevan Municipality as a trademark registered in accordance with the law or in the processes of manufacturing goods, performing works or providing services, as well as in trade names;”.

2. Points 23 and 24 shall be restated as follows:

“23) for granting a permit to persons providing public catering services within the territory of the community to organize public catering services during the summer season in areas of common use adjacent to the respective facility;

24. for granting a permit to persons providing public catering services within the territory of the community to organize public catering services during the winter season in areas of common use adjacent to the respective facility;”.

25. The following new Point 25 shall be added:

“25) for granting a permit to conduct trade or provide services through automatic self-service devices outside buildings and structures within the administrative territory of the community.”

Article 3. In Article 11 of the Law:

1. the words “, before approving the annual budget of the community” shall be deleted from Part 1;

2. Part 5 shall be repealed.

Article 4. In Article 12 of the Law:

1. in Part 1:

a. Point 15 shall be restated as follows:

b. Point 23 shall be restated as follows:

“23) for granting a permit to persons providing public catering services within the territory of the community to organize public catering services during the summer and winter seasons in areas of common use adjacent to the respective facility — AMD 10,000 per square meter;”,

c. The following new Point 24 shall be added:

“24) for granting a permit to conduct trade or provide services through automatic self-service devices outside buildings and structures within the administrative territory of the community — from AMD 10,000 to AMD 15,000 per device for each month.”

2. Part 3 shall be restated as follows:

“3. The rates prescribed by this Article may, by a decision of the Council of Elders of the community, be set up to 3.0 times higher in urban settlements and up to 7.0 times higher in the city of Yerevan, except for Points 1, 1.1, 2 and 3 of Part 1 of this Article.”

3. Part 5 shall be repealed.

Article 5. In Article 13 of the Law:

1. the words “, before approving the annual budget of the community” shall be deleted from Part 1;

2. Parts 2 and 3 shall be repealed.

Article 6. In Article 14 of the Law, the words “compensatory fee” and “in the amount of the compensatory fee” shall be deleted.

Article 7. In Article 17 of the Law:

1. in the title and Part 1, the words “local duty and/or local fee and/or overpaid amounts” shall be replaced with the words “paid local duty and/or local fee amounts”;

2. the following new Part 2.1 shall be added:

“2.1. Other grounds for refunding paid local duty and/or local fee amounts may also be established by separate laws regulating relations related to local duties and fees.”

3. Part 3 shall be supplemented with the following new sentence:

“Where separate laws regulating relations related to local duties and fees provide for other grounds for refunding paid amounts of local duties and fees, an application for the refund of the amount may also be rejected in the cases prescribed by such laws.”

Article 8. This Law shall enter into force one month after the date of its official publication. If, after the entry into force of this Law, the Council of Elders of a community makes relevant amendments to the legal acts establishing the rates of local duties and fees already adopted for the given year, such legal acts shall continue to apply as the current legal acts establishing the rates of local duties and fees set for subsequent years in the respective community.

4. Law on Making Additions and an Amendment to the Law on State Duty

Name of the legislative act:

Law on Making Additions and an Amendment to the Law on State Duty, HO-441-N

https://www.arlis.am/hy/acts/218523

Status of the Amendment:

This Law entered into force on 1 August 2026..

Legislative Act Amended by the Above-Mentioned Act:

As a result of the adoption of the above-mentioned act, amendments were made to the Law of the Republic of Armenia “On State Duty”.

What the Amendments Concern:

As a result of the amendment to the Law HO-186 of 27 December 1997 “On State Duty”, specific state duty rates have been established for individual and public notices prescribed by the Law “On Public and Individual Notification via the Internet”, distinguishing between notifications made in the form of text and electronic documents, establishing minimum and maximum fee thresholds, and providing that, where an individual notification is made simultaneously in several formats, the state duty shall be calculated on a combined basis.

The Law HO-186 of 27 December 1997 “On State Duty” shall be supplemented by Article 20.5 with the following content:

“Article 20.5.

State Duty Rates for Individual and Public Notices Prescribed by the Law of the Republic of Armenia “On Public and Individual Notification via the Internet”

1. State duty for individual and public notices prescribed by the Law of the Republic of Armenia “On Public and Individual Notification via the Internet” shall be charged at the following rates:

1. For an individual notice:

a) In the case of text:

AMD 0.05 per printed character, but not less than AMD 50 and not more than AMD 250;

b) In the case of an electronic document:

AMD 0.5 per kilobyte, but not less than AMD 100 and not more than AMD 500;

2. For a public notice:

AMD 10 per printed character, but not less than AMD 2,000 and not more than AMD 100,000, and, for publication of a report prescribed by the Law of the Republic of Armenia “On Non-Governmental Organizations”, not more than AMD 5,000.

2. If an individual notice contains both text and an electronic document simultaneously, the state duty shall be charged in an amount equal to the aggregate of the state duties calculated separately for each of them.”

5. Regulation 16.02 “Rules and Conditions for Issuance and Servicing (Circulation) of Electronic Money and Requirements for Conducting Transactions with Electronic Money”

Name of the legislative act:

Regulation 16.02 “Rules and Conditions for Issuance and Servicing (Circulation) of Electronic Money and Requirements for Conducting Transactions with Electronic Money” https://www.arlis.am/hy/acts/162267

Status of the Amendment:

This Regulation entered into force on 1 August 2026.

Legislative Act Amended by the Above-Mentioned Act:

As a result of the adoption of the above-mentioned act, amendments were made to the regulations of the Central Bank of the Republic of Armenia.

What the Amendments Concern:

The amendments mainly concern the modernization and clarification of the regulatory framework governing the issuance, servicing and circulation of electronic money. In particular, the amendments clarify the distinction between ordinary electronic money and social electronic money, revise the rules applicable to electronic money issuance, top-up, redemption, transfer and conversion transactions, and update the requirements concerning the accounting and reporting of such transactions. The amendments also clarify the requirements applicable to issuers’ internal rules, customer identification and due diligence procedures, as well as the conditions for conducting certain electronic money transactions through agents and exchange service providers. In addition, a number of provisions that are no longer applicable have been repealed, and the reporting requirements have been updated to provide for a more detailed classification of electronic money types and transactions.

REGULATION 16.02 ON THE PROCEDURE AND CONDITIONS FOR THE ISSUANCE AND SERVICING (CIRCULATION) OF ELECTRONIC MONEY AND THE REQUIREMENTS FOR THE CONDUCT OF TRANSACTIONS WITH ELECTRONIC MONEY

CHAPTER 1

GENERAL PROVISIONS

1. This Regulation establishes the procedure and conditions for the issuance and servicing (circulation) of electronic money within the territory of the Republic of Armenia, the requirements for electronic money issuers to comply with the applicable requirements and discharge their obligations, the procedure and conditions for completing and submitting reports by electronic money issuers, as well as the conditions for delegation by issuers of the functions prescribed by this Regulation.

2. This Regulation applies to the electronic money issuers specified in subparagraph 2 of paragraph 3 of this Regulation. The requirements of this Regulation do not apply to the services specified in Appendix 1.

CHAPTER 2

KEY CONCEPTS USED IN THE REGULATION

3. The key concepts used in this Regulation are:

1. electronic money – as defined in subparagraph “ia” of Article 3 of the Law of the Republic of Armenia “On Payment and Settlement Systems and Payment and Settlement Organizations”;

2. electronic money issuer (hereinafter, the “Issuer”) – an organization licensed by the Board of the Central Bank of the Republic of Armenia (hereinafter, the “Central Bank”) to carry out money transfers and also authorized by the Board of the Central Bank to issue electronic money, or a commercial bank operating in the Republic of Armenia, a branch of a foreign commercial bank, or another organization that, pursuant to the laws and other legal acts of the Republic of Armenia, may issue electronic money within the territory of the Republic of Armenia;

3. electronic money settlement system (hereinafter, the “System”) – the entirety of the Issuers or Agents (hereinafter, the “Participants”), as well as the procedures, rules and processes ensuring the issuance and servicing of electronic money and the operation of the relevant hardware and software;

4. System rules – rules approved by the competent management body of the System operator, establishing the procedure and conditions for participation in the System, issuance, use and servicing of electronic money, services provided within the System, clearing, processing and settlement, as well as the application of the technical and software means ensuring the foregoing;

5. System operator – a Participant of the System responsible for the operation of the System and authorized by the other Participants of the System to perform clearing and/or settlement;

6. User – an individual, legal entity or individual entrepreneur who, pursuant to an agreement concluded with the Issuer and the System rules, is entitled to use the electronic money acquired by such User in the services provided within the System in accordance with the conditions and rules previously announced and established by the Issuer;

7. Account of Record – the entirety of records maintained in the Issuer’s centralized database or microprocessor (chip) concerning the Issuer’s monetary obligations towards the User, Service Provider, Agent or Converter (hereinafter, the “Customer”);

8. electronic money servicing – ensuring the performance of transactions with electronic money (provision of services) and related settlements, as a result of which the User is able to top up the Account of Record and/or submit the electronic money recorded in the Account of Record for redemption, transfer electronic money to other Users registered in the System and/or pay Service Providers for services rendered or goods sold;

8.1) User registration – the process of opening an Account of Record in the Issuer’s System in the User’s name;

9. electronic money conversion – a function of the Issuer whereby electronic money issued by one electronic money issuer is exchanged for electronic money issued by another system (hereinafter, the “Conversion”). The Conversion function provided for in this subparagraph may be delegated by the Issuer to another person (hereinafter, the “Converter”) in accordance with the conditions established by Chapter 5 of this Regulation;

10. receipt for a transaction conducted with electronic money – a payment and settlement document generated in the form prescribed by a normative legal act of the Board of the Central Bank certifying the performance of a transaction with electronic money;

11. (Subparagraph 11 repealed by Decision No. 48-N of 22 March 2022)

12. (Subparagraph 12 repealed by Decision No. 48-N of 22 March 2022)

13. Service Provider – a legal entity or individual entrepreneur who, pursuant to an agreement concluded with the Issuer and the System rules, has agreed to accept the issued electronic money as a means of payment for services rendered, goods sold or works performed by such person;

14. Agent – a financial organization specified in subparagraph 15 of this paragraph, other than the Issuer, which, pursuant to an agreement concluded with the Issuer and the System rules, performs the redemption of electronic money and/or replenishment (top-up) of the User’s Account of Record;

15. financial organization – an organization licensed to carry out money transfers, or a bank operating in the Republic of Armenia, or a branch of a foreign bank;

16. (Subparagraph 16 repealed by Decision No. 48-N of 22 March 2022)

(Paragraph 3 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

4. Depending on the technology used, the Issuer may issue the following types of electronic money:

1. card-based electronic money (hereinafter, the “electronic wallet”) – a monetary value (prepaid electronic value) contained in a microprocessor (chip) installed in a card or other device, which enables the User, through the relevant infrastructure, to use such value in the services provided within the System in accordance with the agreement concluded with the Issuer and the System rules, and whereby, upon use, the monetary value contained in the microprocessor (chip) is decreased or increased in real time. At the same time, information concerning the transaction is transmitted to the Issuer;

2. computer-system-based electronic money (hereinafter, “virtual/network money”) – a monetary value (prepaid electronic value) recorded in the operating system of the Issuer’s computer or other electronic device or through special software (in the Issuer’s centralized database), which enables the User, through the relevant network or the Internet, to use such value in the services provided within the System in accordance with the agreement concluded with the Issuer and the System rules.

5. The electronic money defined in paragraph 4 of this Regulation may, in turn, be:

1. general-purpose electronic money (hereinafter, “electronic money”) – a monetary value (prepaid electronic value) stored in a microprocessor (chip) or in the Issuer’s centralized database, the funds in the Account of Record of which may be credited in cash or non-cash form;

2. social-purpose electronic money (hereinafter, “social electronic money”) – a monetary value (prepaid electronic value) stored in a microprocessor (chip) or in the Issuer’s centralized database, the funds in the Account of Record (settlement account) of which may be credited only with amounts of pensions, recurring benefits (provided for a definite or indefinite period) and other monetary payments made from the state budget of the Republic of Armenia under social protection programs.

(Paragraph 5 amended by Decisions No. 48-N of 22 March 2022 / the Decision contains transitional provisions / and No. 177-N of 30 June 2026)

6. The Issuer shall ensure that the circulation of the electronic money defined in subparagraphs 1 and 2 of paragraph 4 of this Regulation is carried out under a closed-loop electronic money model. This means that the System must be structured so as to prevent the repeated use of electronic money; that is, electronic money received by a Service Provider registered in the System as payment for services rendered or goods sold must mandatorily be submitted to the Issuer for redemption, with the equivalent monetary funds being paid to the Service Provider.

7. The following services (transactions) may be provided in connection with electronic money within the meaning of this Regulation:

1. (Subparagraph 1 repealed by Decision No. 48-N of 22 March 2022)

2. issuance of electronic money/replenishment (top-up) of the Account of Record – a function whereby the Issuer increases the amount of electronic money recorded in the Account of Record of a User registered in the System by the amount of funds paid for top-up in cash or non-cash form, thereby assuming a monetary obligation towards the User;

3. (Subparagraph 3 repealed by Decision No. 48-N of 22 March 2022)

4. payment with electronic money – a function whereby payment for services rendered or goods sold by a Service Provider is made with electronic money by decreasing the electronic money recorded in the Account of Record of the User initiating the payment by the amount payable and increasing the Account of Record of the Service Provider registered in the System by the equivalent amount;

5. redemption of electronic money – a function whereby the Issuer decreases the electronic money recorded in the Account of Record of a Customer registered in the System by the amount instructed for redemption, in cash or non-cash form, thereby reducing the amount of its monetary obligation towards the Customer;

6. conversion of electronic money – a function whereby the Issuer assumes an obligation to ensure the availability of the electronic money being converted in another electronic money issuer’s system in the User’s electronic money account, while decreasing the electronic money recorded in the Account of Record of the User initiating the conversion by the amount subject to conversion. The Issuer’s obligation towards the User shall be deemed fulfilled upon receipt from the User of confirmation, in the manner established by the Issuer, of the availability of electronic money in the other electronic money issuer’s system. If, as a result of the conversion, the electronic money is not available in the User’s electronic money account in the other system, the Issuer shall be obliged to return the funds to the User;

7. conversion of electronic money through a Converter – a function whereby the Issuer assumes an obligation to ensure the availability of the electronic money being converted in another electronic money issuer’s system in the User’s electronic money account, while decreasing the electronic money recorded in the Account of Record of the User initiating the conversion by the amount subject to conversion and increasing the Converter’s Account of Record registered in the System by the equivalent amount. The Issuer’s obligation towards the User shall be deemed fulfilled upon receipt from the User of confirmation, in the manner established by the Issuer, of the availability of electronic money in the other electronic money issuer’s system. If, as a result of the conversion, the electronic money is not available in the User’s electronic money account in the other system, the Issuer shall be obliged to return the funds to the User;

8. transfer of electronic money – a function whereby the Issuer assumes an obligation to decrease the electronic money recorded in the Account of Record of the User initiating the transfer by the amount subject to transfer and increase the Account of Record of another User receiving the transfer, registered in the System, by the equivalent amount.

(Paragraph 7 amended by Decisions No. 48-N of 22 March 2022 / the Decision contains transitional provisions / and No. 177-N of 30 June 2026)

CHAPTER 3

MINIMUM REQUIREMENTS FOR THE ISSUER’S RULES OF OPERATION, AGREEMENTS AND DOCUMENTS RELATING TO THE RULES/SCHEMES FOR THE CIRCULATION OF ELECTRONIC MONEY

8. The Issuer shall have rules of operation established and approved by its competent management body, which shall at least include:

1. the types of services provided by the Issuer, as well as the procedure, conditions and time limits for their provision;

2. the time limits, procedure and conditions for final settlement of monetary obligations and/or claims arising from transactions conducted by Customers;

3. a description of the mechanisms for managing risks arising between the Issuer and the Customer;

4. a clear procedure for fulfilling obligations assumed as a result of issuing electronic money, including the procedure and conditions for redeeming issued electronic money;

5. where a maximum validity period is established for electronic money, the procedure and conditions for returning to the User the monetary funds equivalent to the electronic money held by the User after expiry of such period;

6. the procedure and conditions for retaining receipts certifying transactions conducted with electronic money and the maximum time limits, procedure and conditions for providing statements concerning completed transactions;

7. the procedure and conditions for allocation of powers and obligations, as well as liability, among the Participants;

8. the procedure for reviewing complaints submitted by Users and the time limits, procedure and conditions for accepting or rejecting complaints based on the results of such review;

9. a description of the identification procedures for each Customer registered in the System, including the procedure and conditions for the use of passwords and codes;

10. a description of the identification procedures for electronic money issued by the System, including the procedure and conditions for the use of passwords and codes;

11. (Subparagraph 11 repealed by Decision No. 48-N of 22 March 2022)

12. (Subparagraph 12 repealed by Decision No. 48-N of 22 March 2022)

13. (Subparagraph 13 repealed by Decision No. 48-N of 22 March 2022)

14. the procedure and conditions for accounting for obligations assumed in respect of issued electronic money;

15. the procedure and conditions for accounting for redeemed electronic money, including electronic money redeemed through Agents;

16. (Subparagraph 16 repealed by Decision No. 48-N of 22 March 2022)

17. the procedure and conditions for documenting and retaining documents relating to each transaction connected with the issuance and servicing of electronic money;

18. requirements established for a new Customer joining the System;

19. requirements for equipment ensuring the performance of transactions with electronic money, as well as the procedure and conditions for servicing such equipment;

20. internal legal acts prescribed by the legislation on combating money laundering and terrorist financing, including customer due diligence procedures for opening an Account of Record in the User’s name.

(Paragraph 8 amended by Decisions No. 48-N of 22 March 2022 / the Decision contains transitional provisions / and No. 177-N of 30 June 2026)

9. Upon provision of electronic money, an agreement shall be concluded between the Issuer and the User for the issuance and servicing of electronic money and for opening and replenishing the Account of Record (hereinafter, the “electronic money issuance and servicing agreement”), which shall at least include provisions concerning:

1. the rights, obligations and liability of the User;

2. the rights, obligations and liability of the Issuer;

3. the types of services provided with electronic money within the System;

4. the form of electronic money servicing, the network used, the conditions for charging fees, the requirements for use and, where such requirements may be changed, the procedure, conditions and time limits for notifying the User of such changes;

5. commissions applied by the Issuer;

6. the procedure, conditions, time limits and forms for redemption of electronic money, including after expiry of its validity period, and for replenishment (top-up) of the Account of Record;

7. the extent of the Issuer’s liability and the procedure, conditions and time limits for actions to be taken in cases of fraud, unauthorized transactions, technical errors or other problems arising in the System;

8. the procedure, conditions and time limits for the User to immediately notify the Issuer in cases of fraud, unauthorized transactions, technical errors or other problems arising in the System;

9. the cases and conditions under which information concerning the User may be provided to other persons;

10. the procedure, conditions and time limits for resolving disputes where the User has disagreements.

10. An agreement shall be concluded between the Service Provider that has agreed to accept electronic money as a means of payment and is registered in the System and the Issuer concerning the acceptance of electronic money as a means of payment for services rendered or goods sold (hereinafter, the “services agreement”), which shall at least include provisions concerning:

1. the rights and obligations of the Service Provider, as well as liability for failure to perform or improper (incomplete) performance of its obligations;

2. the types of services provided by the Service Provider, applicable tariffs and other conditions, and the procedure, conditions and time limits for notifying the Issuer of changes thereto;

3. commissions applied by the Issuer;

4. the procedure, conditions and time limits for settlements relating to obligations arising from the provision of services within the System;

5. the procedure, conditions and time limits for settlements between the Issuer and the Service Provider in respect of obligations arising as a result of the return of an amount received by the Service Provider for goods sold or services rendered (refund), including where the transaction is declared invalid.

11. (Paragraph 11 repealed by Decision No. 48-N of 22 March 2022)

12. (Paragraph 12 repealed by Decision No. 48-N of 22 March 2022)

13. (Paragraph 13 repealed by Decision No. 48-N of 22 March 2022)

14. Where redemption and/or replenishment of electronic money is carried out through an Agent, the agreement concluded with the Issuer shall at least include provisions concerning settlements between the Agent and the Issuer, the procedure, conditions and time limits for redemption of electronic money upon the Users’ first request, as well as the rights, obligations and liability of the parties when carrying out redemption and replenishment of electronic money.

15. Information concerning the redemption and replenishment of electronic money carried out by an Agent shall be transmitted to the Issuer within the time limits and in the format established by the agreement concluded with the Issuer and the System rules.

16. The Issuer shall develop rules governing the circulation of the electronic money issued by it, which shall establish the scope of powers and obligations of Customers, including the mechanism for allocating losses and the applicable time limits in the event of an incident, problem or fraud occurring in the System, as well as the requirements applicable to Customers and the electronic money circulation scheme, which shall be approved by the competent management body.

17. Any amendment to the internal procedures, rules and conditions ensuring the performance of transactions with electronic money by the Issuer shall be recorded, documented and approved by the competent management body of the Issuer.

CHAPTER 4

REQUIREMENTS FOR THE PERFORMANCE OF TRANSACTIONS WITH ELECTRONIC MONEY

18. Transactions with electronic money shall be performed in accordance with the agreements concluded between the Customer and the Issuer and the System rules.

19. The electronic money held in the Account(s) of Record identifying each User to whom electronic money issued by the Issuer relates shall at no time exceed the equivalent of AMD 1,000,000, irrespective of the number of accounts opened in the name of each User.

(Paragraph 19 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

20. Funds available in the Account of Record of a User of social electronic money shall be subject to redemption (cash withdrawal) only through the Issuer. Transfers and/or conversions may not be made from the funds available in the Account of Record of a User of social electronic money.

(Paragraph 20 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

21. (Paragraph 21 repealed by Decision No. 177-N of 30 June 2026)

22. (Paragraph 22 repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

23. (Paragraph 23 repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

24. (Paragraph 24 repealed by Decision No. 177-N of 30 June 2026)

25. (Paragraph 25 repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

26. Redemption and/or replenishment of electronic money may be carried out by the Issuer directly and/or through an Agent in accordance with the services agreement concluded with the Issuer and the System rules.

27. Funds available in the User’s Account of Record shall be subject to redemption by the Issuer, directly and/or through an Agent, upon the User’s first request. Regardless of any circumstances, the Issuer shall ensure redemption by it of the funds available in the User’s Account of Record.

(Paragraph 27 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

28. Funds available in the Account of Record of a Service Provider shall be subject to redemption by the Issuer upon the first request of the Service Provider by transferring such funds to the Service Provider’s bank account, directly or through an Agent. Regardless of any circumstances, the Issuer shall ensure redemption by it of the funds available in the Service Provider’s Account of Record.

(Paragraph 28 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

29. Service Providers registered in the System may not transfer electronic money available in their Account of Record to an Account of Record registered in their own name as a User, or vice versa, transfer electronic money from an Account of Record registered in their own name as a User to an Account of Record registered in their own name as a Service Provider.

30. The Issuer shall ensure the servicing of the electronic money issued by it and acquired by the User, bearing the risk of losses incurred by the User as a result of failure to perform or improper performance of such servicing.

31. The Issuer shall ensure that the User is able to use the electronic money in accordance with the agreement concluded with the Issuer, irrespective of the provisions of the agreement concluded between the Issuer and the Agent.

32. The issuance and redemption of electronic money within the territory of the Republic of Armenia shall be carried out in the national currency of the Republic of Armenia, the Armenian dram.

32.1. During the use of electronic money, a payment and settlement document certifying the performance of a transaction with electronic money shall be generated in paper and/or electronic form, namely, a receipt for a transaction conducted with electronic money, which shall contain the minimum required details established by normative legal acts of the Central Bank.

(Paragraph 32.1 supplemented by Decision No. 168-N of 14 October 2016)

32.2. At least once a month, the electronic money issuer shall inform the Customer of transactions conducted with electronic money by providing an Account of Record statement, which shall contain the minimum required details established by normative legal acts of the Central Bank. The time limits, conditions and procedure for providing the statement shall be established by the agreement concluded between the Customer and the electronic money issuer.

(Paragraph 32.2 supplemented by Decision No. 168-N of 14 October 2016)

CHAPTER 5

CONDITIONS FOR DELEGATION OF THE CONVERSION FUNCTION

33. The Conversion function prescribed by this Regulation may be delegated by the Issuer where:

1. the conditions prescribed by Part 4 of Article 19.1 of the Law of the Republic of Armenia “On Payment and Settlement Systems and Payment and Settlement Organizations” are satisfied;

2. the Converter is a legal entity or individual entrepreneur and performs exclusively Conversion within the Issuer’s System;

3. the Converter submits a legal document (system rules, agreement or other document) establishing its competence or authority to carry out the conversion of electronic money issued by an electronic money system, including entering into agreements with other persons for the conversion of electronic money issued by such electronic money system;

4. an agreement for delegation of the Conversion function is concluded between the Issuer and the Converter, which shall at least include provisions concerning:

a. the rights and obligations of the Converter, as well as liability for failure to perform or incomplete performance of its obligations;

b. the conversion services provided by the Converter, applicable tariffs, the conditions for charging tariffs and other conditions, as well as the procedure, conditions and time limits for notifying the relevant parties of amendments thereto;

c. commissions applied by the Issuer;

d. the procedure, conditions and time limits for settlements in respect of obligations arising from services provided by the Converter;

e. the procedure, conditions and time limits for settlements between the Issuer and the Converter in respect of obligations arising from the return of amounts received for services provided by the Converter, including where the transaction is declared invalid;

f. provisions establishing the Issuer’s liability towards the User for failure to perform or improper performance of obligations related to the service delegated to the Converter;

g. provisions concerning the supervision by the Issuer of the Converter with respect to the delegated functions in accordance with the procedure prescribed by law;

h. provisions concerning mechanisms aimed at managing risks potentially arising as a result of delegation of the Conversion function.

34. The draft agreement specified in subparagraph 4 of paragraph 33 of this Regulation shall be submitted to the Central Bank prior to delegating the Conversion function. The provisions of the delegation agreement already concluded may not differ from the provisions stipulated in the draft agreement submitted to the Central Bank.

35. Delegation of the Conversion function shall not result in deterioration of the quality of the Issuer’s internal control or of the ability of the competent body of the Issuer to monitor the Issuer’s compliance with legislative requirements.

CHAPTER 6

PROCEDURE AND CONDITIONS FOR SUBMITTING AND COMPLETING REPORTS ON THE SERVICING OF ELECTRONIC MONEY BY THE ISSUER

36. Report No. 11 prescribed by this Regulation shall be submitted exclusively by electronic mail through the CBA-Net system, in accordance with the files provided by the Central Bank and Appendix 2. In the event of a failure of the CBA-Net system, the report shall be submitted on magnetic media, accompanied by a letter concerning the failure. The report shall be submitted to the Central Bank using a protected file (“Microsoft Office 97” or an improved version thereof) sent to the Issuer by the Central Bank department responsible for receiving and summarizing reports; modification of such file is prohibited. A report submitted in any other manner shall be deemed not to have been accepted.

37. The report shall indicate the date of the last day of the reporting period. The date shall be indicated in the following format: day.month.year (for example, 31/01/2014).

38. Monthly Report No. 11 consists of four tables. The report shall include data relating to electronic money, its servicing and redemption, as well as the types of transactions conducted with electronic money and the Accounts of Record maintained by the Issuer.

(Paragraph 38 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

39. The first table of the report, “Issued and Redeemed Electronic Money”, shall contain data on the amount and number of electronic money amounts topped up and/or redeemed during the reporting month by the Issuer or through an Agent. Furthermore:

1. In the “Type of Electronic Money” column, the type of electronic money issued by the Issuer shall be indicated according to the following classification: “Electronic Wallet” or “Virtual Money”;

2. In the “Form of Electronic Money” column, the form of electronic money issued by the Issuer shall be indicated according to the following classification: “Electronic Money” or “Social Electronic Money”;

3. In the “Serviced By” column, the person ensuring the top-up and/or redemption of the Account of Record opened by the Issuer shall be indicated as follows:

a. “Issuer” if the electronic money top-up or redemption was carried out by the Issuer;

b. “Agent” if the electronic money top-up or redemption was carried out by an Agent;

c. (Subparagraph c repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

4. In the “Type of Transaction” column, the type of transaction conducted with electronic money shall be indicated according to the following classification: “Top-up” or “Redemption”;

5. In the “Accounts of Record” column, transactions conducted through Accounts of Record registered in the System shall be indicated as follows:

a. “Service Provider” if electronic money was redeemed from the Account of Record for a Service Provider registered in the System;

b. “Individual User” if the Account of Record was topped up or electronic money was redeemed from the Account of Record for an individual User;

c. “Legal Entity User” if the Account of Record was topped up or electronic money was redeemed from the Account of Record for a legal entity or individual entrepreneur User;

d. “Converter” if electronic money was redeemed from the Account of Record for a Converter registered in the System;

6. In the “Method of Top-up or Redemption” column, the methods of topping up or redeeming the Account of Record registered in the System shall be indicated as follows:

a. “Cash”, if the Account of Record was topped up or electronic money was redeemed from the Account of Record using cash;

b. “From/to bank account”, if the Account of Record was topped up by transferring funds from a bank account or electronic money was redeemed from the Account of Record by transferring funds to a bank account;

c. “From/to payment card”, if the Account of Record was topped up by transferring funds from a payment card or electronic money was redeemed from the Account of Record by transferring funds to a payment card;

d. (Subparagraph d repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

e. “Through other electronic money”, if the Account of Record was topped up by transferring funds from another electronic money account or electronic money was redeemed from the Account of Record by transferring funds to another electronic money account; f. (Subparagraph f repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

g. “Through another device”, if the Account of Record was topped up or electronic money was redeemed from the Account of Record through another device (POS terminal, ATM, etc.).

(Paragraph 39 amended by Decisions No. 48-N of 22 March 2022 / the Decision contains transitional provisions / and No. 177-N of 30 June 2026)

40. (Paragraph 40 repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

41. The third table of the report, “Transactions Conducted with Electronic Money”, shall contain information on the amount and number of transactions conducted with electronic money during the reporting month, broken down by types of services and Service Providers, where:

1. In the “Type of Electronic Money” column, the type of electronic money used for payment for services rendered or goods sold shall be indicated as “Electronic Wallet” where payment was made by electronic wallet or “Virtual Money” where payment was made by virtual money;

2. In the “Form of Electronic Money” column, the form of electronic money used for payment for services rendered or goods sold shall be indicated as “Electronic Money” where payment was made by electronic money or “Social Electronic Money” where payment was made by social electronic money;

3. In the “Type of Transaction” column, the types of transactions carried out in the System shall be indicated as follows:

a. “Payment” where electronic money was used to make payments, for example, for utility services, loan repayment or insurance, classified under the relevant lines such as “1. Water”, “2. Gas”, “3. Electricity”, “4. Mobile Communications Services” or “5. Fixed Telephone Services” and others;

b. “Conversion through a Converter” where Users converted electronic money into other electronic money or vice versa through a Converter registered in the System, classified under the relevant lines “Purchase of other electronic money” or “Sale of other electronic money”;

c. “Conversion” where Users converted electronic money issued within the System into other electronic money or vice versa, classified under the relevant lines “Purchase of other electronic money” or “Sale of other electronic money”;

d. “Transfer” where electronic money was transferred between Users registered in the System through Accounts of Record, by selecting the line “Transfer from Account of Record to Account of Record”;

4. In the “Type of Service” column, the services provided within the System for which payment was made with electronic money shall be indicated as follows:

a. “Purchase of goods” where payment with electronic money was made for the purchase of goods;

b. “Utility services” where payment with electronic money was made for water, gas, electricity, fixed telephone or mobile telephone services, respectively;

c. “Compulsory Motor Third Party Liability Insurance (CMTPL)” where electronic money was used to make a payment for motor vehicle insurance; d. “Insurance” where electronic money was used to make an insurance payment;

e. “Transfer from Account of Record to Account of Record” where electronic money was transferred from one Account of Record to another Account of Record registered in the System; f. “Taxes”, “Duties” or “Fines” where payments were made to the Treasury using electronic money;

g. “Loan repayment” where electronic money was used to repay a loan;

h. “Purchase of other electronic money” or “Sale of other electronic money” where electronic money issued by another electronic money issuer was purchased or sold, respectively; i. “Other” where electronic money was used to make payments for services not included in the above list;

5. In the “Payment Beneficiary” column, the beneficiary of the payment made with electronic money shall be indicated as follows:

a. “Service Provider” where the recipient of the electronic money payment is the Service Provider;

b. “Treasury” where the recipient of the electronic money payment is the Treasury;

c. “HayJurmagh-Koyugh” (“HayJurmagh-Koyugh”), “Hayrussgazard” (“Hayrussgazard”) or “Electric Networks of Armenia” where the recipient of the electronic money payment is the respective company;

d. “VivaCell-MTS”, “Beeline”, “Orange Armenia”, “Rostelecom” or “Ucom” where the recipient of the electronic money payment is the respective telecommunications operator;

e. “WebMoney” or “Yandex.Money” where the recipient of the electronic money payment is the respective foreign electronic money system;

f. “User” where the recipient of the electronic money transfer is another User registered in the System;

g. “Financial organizations operating in the territory of the Republic of Armenia”, including “Commercial Banks”, “Insurance Companies”, “Credit Organizations” or “Payment and Settlement Organization”, selected as applicable, where the recipient of the electronic money payment is a bank, insurance company, credit organization or payment and settlement organization, respectively;

h. “Other” where the recipient of the electronic money payment is an organization not included in the above list. (Paragraph 41 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

42. The fourth table of the report, “Accounts of Record Maintained by the Issuer”, shall contain information as of the reporting month concerning the amounts held in and number of Accounts of Record opened by the Issuer, where:

1. In the “Organizations/Participants” column, information concerning the Accounts of Record registered in the System shall be indicated as follows:

a. “Service Provider” where the Account of Record was opened for a Service Provider;

b. “Converter” where the Account of Record was opened for a Converter;

c. “Individual User” where the Account of Record was opened for an individual User; d. “Legal Entity User” where the Account of Record was opened for a legal entity or individual entrepreneur User;

e. “Other electronic money system” where the Account of Record was opened for another electronic money system;

f. “Agent” where the Account of Record was opened for an Agent;

g. (Subparagraph g repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

2. In the “Status of Account of Record” column, information concerning the status of Accounts of Record registered in the System shall be indicated as follows:

a. “Active” where at least one transaction has been carried out through the Account of Record during the preceding year;

b. “Passive” where no transaction has been carried out through the Account of Record during the preceding year;

2.1) In the “Form of Electronic Money” column, information concerning the form of the Accounts of Record opened in the System shall be indicated as follows:

a. “Electronic Money” where an Account of Record for electronic money has been opened in the System;

b. “Social Electronic Money” where an Account of Record for social electronic money has been opened in the System.

(Paragraph 42 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

43. The fifth table of the report, “Accounts of Record Opened or Closed by the Issuer”, shall contain information on the number of Accounts of Record opened or closed by the Issuer during the reporting month, where:

1. In the “Organizations/Participants” column, information concerning Accounts of Record opened or closed in the System shall be indicated as follows:

a. “Service Provider” where the Account of Record was opened or closed for a Service Provider;

b. “Converter” where the Account of Record was opened or closed for a Converter; c. “Individual User” where the Account of Record was opened or closed for an individual User;

d. “Legal Entity User” where the Account of Record was opened or closed for a legal entity or individual entrepreneur User;

e. “Other electronic money system” where the Account of Record was opened or closed for another electronic money system;

f. “Agent” where the Account of Record was opened or closed for an Agent;

g. (Subparagraph g repealed by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

2. In the “Status of Account of Record” column, information concerning the status of Accounts of Record registered in the System shall be indicated as follows:

a. “Opened” where the Account of Record was opened during the reporting month;

b. “Closed” where the Account of Record was closed during the reporting month;

2.1) In the “Form of Electronic Money” column, information concerning the form of the Accounts of Record opened or closed in the System shall be indicated as follows:

a. “Electronic Money” where an Account of Record for electronic money was opened or closed in the System;

b. “Social Electronic Money” where an Account of Record for social electronic money was opened or closed in the System.

(Paragraph 43 amended by Decision No. 48-N of 22 March 2022 / the Decision contains transitional provisions)

APPENDIX 1

to Regulation 16.02 “Procedure and Conditions for the Issuance and Servicing (Circulation) of Electronic Money and Requirements for the Performance of Transactions with Electronic Money”

LIST OF SERVICES CONSTITUTING EXCEPTIONS

1. This Regulation shall not apply to services provided through prepaid monetary values that may be used only within a limited network constituting the distribution network of a single organization (for example, public transportation cards, fuel cards, commercial cards, membership cards).

2. This Regulation shall not apply to prepaid values (airtime) used to purchase digital goods or services and which may be provided exclusively by a mobile communications operator, provided that:

1. the nature of such goods or services implies that the mobile communications operator adds value to them by providing access, search or distribution services; and

2. such goods or services may be used exclusively through digital devices (for example, a mobile telephone, tablet or other similar device), and the mobile communications operator does not act solely as an intermediary between the subscriber and the service provider but provides the subscriber with the digital goods or services in exchange for the relevant prepaid value.

6. On Making an Amendment and an Addition to the Law “On Trade and Services”

Title of the Legislative Act:

Law “On Making an Amendment and an Addition to the Law ‘On Trade and Services’” HO-396-N https://www.arlis.am/hy/acts/228626

Status of the Amendment:

This Law entered into force on 30 August 2026.

Legislative Act Amended by the Adoption of the Above Act:

As a result of the adoption of the above-mentioned act, amendments were made to the Law “On Trade and Services.”

Subject Matter of the Amendments:

The amendments primarily concern the regulation of trade and the provision of services through automatic self- service devices located outside buildings and structures. New Article 5.5 provides that such activities may be carried out only by legal entities or individual entrepreneurs that have obtained the relevant permit in accordance with the legislation. At the same time, the procedure and conditions for their installation and operation, applicable restrictions, as well as the types of goods or services permitted, are to be established by a decision of the Council of Elders of the community. In addition, the amendment to Article 15.3 clarifies that the requirements concerning the location of service facilities subject to restrictions, including the permissible distance between such facilities, are also established by the Council of Elders of the community. Thus, the principal amendment consists in granting communities broader regulatory powers over the installation of automatic self-service devices and the conduct of trade or provision of services through such devices, as well as making the conduct of the relevant activities conditional upon obtaining a permit.

Article 1. The Law of the Republic of Armenia “On Trade and Services” of 24 November 2004, HO-134-N (hereinafter referred to as the “Law”), shall be supplemented with Article 5.5 reading as follows: “Article 5.5. Conducting Trade or Providing Services through Automatic Self-Service Devices Outside Buildings and Structures within the Administrative Territory of a Community 1. Within the administrative territory of a community, trade or services may be provided through automatic self-service devices located outside buildings and structures only by legal entities or individual entrepreneurs that have obtained a permit in accordance with the legislation. 2. The procedure and conditions for conducting trade or providing services through automatic self- service devices located outside buildings and structures within the administrative territory of a community, the applicable restrictions, as well as the permissible types of goods to be sold or services to be provided, shall be established by a decision of the Council of Elders of the community.”. Article 2. The third part of Article 15.3 of the Law shall be amended and restated as follows: “3. The requirements concerning the location of service facilities subject to restrictions, including the distance between such facilities, shall be established by the Council of Elders of the community.”. Article 3. This Law shall enter into force one month after the date of its official publication. A subordinate normative legal act arising from this Law shall be adopted within six months following the adoption of this Law.

PART III. ADVERTISING SECTOR

(This section of legal updates includes legal news related to the private sector for August 2026)

1. On Making an Addition to the Law “On Advertising”

Name of the legislative act:

Law No. HO-400-N “On Making an Addition to the Law ‘On Advertising’” https://www.arlis.am/hy/acts/228638

Change status :

This Law entered into force on January 1, 2026.

Which legislative act was amended by the adoption of the above-mentioned act:

The Law of the Republic of Armenia “On Advertising”.

What the amendments concern:

The amendments concern the clarification of the rules and restrictions governing the placement of outdoor advertising. In particular, the amendments establish that the scope, quantity, placement procedure and conditions of outdoor advertising shall be determined by the community council. The placement of outdoor advertising or notices in common-use areas of a community, on support poles, utility poles, tree trunks, street furniture and other public places is permitted only upon obtaining the relevant permission from the head of the community. At the same time, the placement of advertising is prohibited inside museums, historical and architectural monuments, as well as in buildings and on the premises of state authorities and local self-government bodies.

Article 11.

1. Outdoor advertising shall be placed in settlements in the form of posters, advertisements, notices, billboards, light boxes and other technical means.

2. The scope, quantity, placement procedure and conditions of outdoor advertising shall be determined by the community council.

3. It shall be prohibited to place outdoor advertising in common-use areas of a community, on support poles, utility poles, tree trunks, street furniture, as well as in any other public places, without the permission of the head of the community. The placement of notices outside the designated billboards shall likewise be prohibited. 4. It shall be prohibited to place advertising inside museums, historical and architectural monuments, as well as in buildings and on the premises of state authorities and local self- government bodies.”

Article 2. This Law shall enter into force one month after the date of its official publication.: