CBA BANS ARMENIAN BANKS FROM PARTICIPATING IN "WESTERN UNION"

Noyan Tapan

Au g 25, 2008

YEREVAN, AUGUST 25, NOYAN TAPAN. At the August 22 sitting conducted
by the CBA chairman Arthur Javadian, the Central Bank of Armenia
(CBA) Board made a decision to ban the Armenia-based banks from
participating in the Western Union (WU) money transfer system.

According to the CBA PR service, the banks were instructed to cancel
their agreements with WU in the order envisaged by these agreements.

The decision was made with the aim of reducing the riskiness of the
banks as there have been cases of ungrounded violation of provisions
of the agreements that WU had signed with Armenian banks. For example,
provision of services was discontinued in branches of some banks, which
may disrupt the normal operation of banks, affect their financial state
and create unforeseeable situations in the money transfer system,
as well as to affect the economic, financial and real sectors of
the country.