Bank secrecy initiative to open doors for outflow of financial means : ARF-D representative

Formation of new system must not take place on the account of ruining the already acting one, chairman of the ARF-D Supreme Body’s Financial task group Armen Grigoryan told Aysor.am, referring to the legislative initiative on Banking secrecy.

Introducing the bill the deputy justice minister said it will contribute to the revelation of corruption crimes while some claim that it will harm the economy because of weakening of the banking system.

“The Article 4 of Bank secrecy law clearly states which is considered to be banking secret. The fight against corruption for each country and especially for our country is one of the important issues for ensuring the uninterrupted work of statehood systems,” he said, stressing that there is no doubt in the need of fighting against corruption, in creating independent body fighting against corruption but the law is to ensure the uninterrupted work of the banking system.

“The formation of a new system must not be done by ruining the already existing one. The amendments in the law on banking secrecy will have a long-term impact. The Central Bank has an opportunity to implement a number of functions for possible revelations. It is possible to make improvements, create systems,” Grigoryan said.

As to whether the bill will result in taking money from banks and putting them in foreign ones, Grigoryan said the public and specialized circles must voice about the possible consequences and concerns for them to be considered at the discussion of the initiative at the NA.

“There is a danger of outflow of the financial means which in its turn may result in reduction of non-cash transactions, instead the cash flows will grow which will create favorable field for corruption,” he said, adding that it may also scare the investors.

As to whether it makes the banking system more vulnerable, Grigoryan said that bank itself guarantees protection of banking secrecy.

“While in case of this amendment we will tell the banks that you are not the guarantors or ask them to show where their guarantees end and from where the interventions begin. With this we will weaken the partnership relations between a bank and the customer which will become an impediment for possible investments,” he said.