ARMENIAN BANKS PROHIBITED FROM PARTICIPATING IN WESTERN UNION
ARKA
Aug 25, 2008
YEREVAN, August 25. /ARKA/. On Monday, the board of the Central Bank
of Armenia prohibited the banks operating in Armenia from participating
in Western Union international payment system.
The press office of the Central Bank of Armenia told ARKA News Agency
that the board had instructed banks to void their contracts with
Western Union.
The Central Bank did that to curb banks’ risks, since Western Union
sometimes violates terms of contracts signed with commercial banks
operating in Armenia.
In particular, Western Union has stopped serving clients in some
branches of the banks. These moves can strike at the banks’ activity
and financial stability and create unpredictable situation in money
transfer sector.
The Central Bank also thinks that things can affect also Armenia’s
economic, financial and real sectors.
The CBA made s similar decision yet in February 2006. The then decision
was prompted by discrepancies in WU regulations and the fear that
they can create risks and jeopardize financial stability in Armenia.
The decision was expected to take force on March 15, 2006, but banks
obtained the Central Bank’s permission on March 14 and Western Union
started cooperating with Armenian banks under test conditions in 1995
and functioning officially in 1996.
Armenian commercial banks participate not only in SWIFT traditional
system, but also in 17 other international systems – Western Union,
Money Gram, Anelik, Unistream, Express Post, Interexpress, Contact,
Leader, Migom, Private Money Transfer, STB Express, Faster, Blizko,
Zhivie Dengi etc.
Besides, non-banking organizations HayPost (ArmPost), TelCel, Depi
Tun, Elver, Parvana, Tandem Payments and Mega Pantera take part in
the systems. ($1 – AMD 301.14)