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The biggest portal about international asset protection and diversification

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Why is it worth opening an account in the largest bank in Armenia?

Opening an account with a bank in Armenia is a reliable and safe financial instrument for managing your own assets. Given the restrictions in the country’s legislation, which provide for mutual settlements exclusively in Armenian drams in the Armenian jurisdiction (the only exceptions are companies in the Armenian FEZ), the presence of corporate accounts in local banks greatly facilitates transactions with counterparties and cash flow management.

Today we will talk about the leading bank of Armenia, which occupies the first positions in most financial indicators and guarantees comprehensive support in the development of local, international business, as well as complete confidentiality and protection of non-residents’ assets. Opening a corporate account in Armenia is beneficial for several reasons. Let’s try to understand them in detail.

How to open an account in Armenia for a non-resident legal entity? What are the challenges and how they can be solved?

The banking sector of Armenia is quite stable, but the list of banks that are ready to open corporate accounts for foreign companies are not very large in number. Today we will consider one of the few financial institutions of the republic which offers corporate accounts to non-resident accounts to legal entities. In addition to an excellent financial instrument for capital management, foreign investors and businesspeople receive a full range of banking services, including the provision of an individual client manager services.

The financial institution we offer is the # 1 institution in Armenia in many respects. In particular:

  • 1st place among Armenian banks in terms of key financial indicators, which indicates an increased potential in working with large companies;
  • the bank’s top management includes prominent financial market professionals who have joined local employees from dynamically developing Armenian banks and large international banks operating in Armenia;
  • Rating S & P long c -term – B +, short-term – B (stable);
  • the bank is characterized by an extensive network of branches – 19 units, the number of employees reaches 1064 people, 142 ATM s , 2370 POS- terminals, 373 virtual POS- terminals;
  • the bank’s own assets – 15.3%, lending – 16.8%, liabilities – 15.9%, capital – 11.8%, net profit – 14.4%;
  • impressive above average growth is confirmed by CAGR indicators – over 20% in the last five years, the financial institution has been the backbone of the banking sector in Armenia since 2015;
  • 1st place among TOP5 retail banks in Armenia in retail trade and loan portfolio of small and medium-sized businesses.

Opening a corporate account in Armenia for a non-resident legal entity is also beneficial because there is an exclusively client- oriented approach here for the most effective achievement of goals. The financial institution has a successful and long-time history of cooperation with with prominent international financial organizations such as EBRD , IFC , DEG , KFW , FMO , ADB , PROPARCO , EADB , BSTDB , OEB.

Opening a corporate account in Armenia for non-resident legal entities: other achievements and successes of the absolute leader in the banking sector of the republic

This financial institution has been on par with other financial institutions in Armenia since 2015, which indicates steady growth, development and expansion of services for corporate and private clients. In addition to the constant growth of Internet banking customers (+ 73% annually since 2015), the financial institution is characterized by the following indicators:

  • the number of online banking transactions increased by 110%;
  • the growth of transactions through terminals and ATM amounted to + 404%;
  • the number of transactions using standard and virtual POS terminals increased by 128%;
  • the share of scoring loans in the total volume of consumer loans increased to 92% (against 36% of other financial structures);
  • the total number of loans for SMEs in the amount of less than AMD 10 million – 89%;
  • total volume of loans for business support in the amount of up to AMD 10 million – 69%.

When deciding to open a corporate account in Armenia, one should take into account the extensive possibilities, including opening accounts in different types of currencies – Armenian drams, Russian rubles, Swiss francs, British pounds sterling, UAE drachmas, Russian rubles, etc.

The main achievements of the largest Armenian bank for the III quarter of 2019 year:

  • first place in terms of assets – 820 billion AMD;
  • commitment leadership – AMD 724 billion;
  • first place in loan portfolio – AMD 558 billion;
  • leading place in terms of equity – AMD 97 billion;
  • first place by net profit – AMD 8.8 billion.

Explore also the main benefits of doing business in Armenia 

Why is it profitable and safe to open a corporate account in of the best banks in Armenia?

According to the estimates of Moody’s  international rating agency, the bank’s  long-term rating of deposits in national currency increased from B 1 to Ba 3, in foreign currency – from B2 to B1. The financial institution has signed an agreement with of FMO (Netherlands Development Finance Fund) for funds in local currency in the amount of 20 million. USD for youth funding and support “green” projects in Armenia.

In addition, the institution acted as the lead organizer for Zangezur Copper Molybdenum Combine ‘ s (Zangezur Copper-Molybdenum Combine), issuance of bonds in the amount of USD 50 million and AMD 2.5 billion, which is the largest corporate DCM in the history of the Armenian capital market.

In the desire to open a corporate account in Armenia, foreign investors and businessmen often are interested to know more about the bank’s future plans and strategic goals. This financial institution has prioritized the following directions for its future development and expansion:

  1. Digitalization of banking services.
  2. Diversification of assets.
  3. Improving the efficiency and quality of service for residents and non-residents.
  4. Maintaining a leading position in the banking sector of Armenia.
  5. Further enhanced growth and profitability.

A wide range of services in the leading financial institution is also attributable to the fact that the founders of the financial institution in Armenia are investors of the Armenian diaspora and local successful people. Businesspeople living outside Armenia, but with Armenian roots, with deep understanding of all the needs of international business, which helped them better tailor the services to meet the best and most effective corporate account management standards.

At the moment, non-resident legal entities from Europe, Asia, Africa, South and North America, the Pacific region can open a corporate account in the bank in Armenia.

Opening a corporate account in Armenia for a non-resident company – why is the expert assistance important?

When choosing a non-resident account for a foreign company, it is especially important to take into account not only the capabilities and instruments offered by the financial  institution, but also the ability to maintain confidentiality. Another important aspect is that all documents are submitted in the official (state) language, in our case, in Armenian. That is, the prepared package of documents must be legalized and apostilled.

With the help of our lawyers, you will free from the paperwork, preparation and collection of all necessary documents – our specialists will deal with these issues after signing an agreement between our company and a non-resident legal entity.

Additionally, you can subscribe to our Youtube channel to be the first to know about the latest news and updates and learn more details about opening of bank accounts for your business abroad, and much more.  

Next, we will consider what information must be provided to non-resident legal entities in Armenia.

Open a corporate account in a bank of Armenia: mandatory information to be included in the application form

In addition to the list of documents established by the financial institution, the applicant must fill out a questionnaire in the prescribed form. The information to be indicated in the questionnaire includes, in particular:

  • full company name, registration number and registration date;
  • country of registration of the legal entity, TIN ( Taxpayer Identification Number );
  • center of vital interests, grounds for exceptions;
  • information about the manager of the company with an identification number;
  • Shareholder data with a check mark in the relevant field if 10% or more of the shares are directly or indirectly owned by US beneficiaries;
  • client’s address, legal address of the company, contact details;
  • affiliates who are clients of the financial institution;
  • financial details :
  • the amount of annually paid taxes;
  • average annual turnover;
  • the number of company employees;
  • expected monthly turnover (all data are indicated in AMD);
  • source of funds in accounts;
  • the objective of cooperation.  
  • existing active accounts with other banks and the type of accounts;
  • existing liabilities to other banks;
  • information about the beneficial owner (s).

in order to open a corporate account in a bank of Armenia, the client also fills out a special form, which indicates the preferred means of communication and notifications on transactions, account statements and cards. The preferable language of communication, address for receiving information, contact details of the company are prescribed in the questionnaire.

Important! The largest Armenian bank, like most other financial institutions, conducts a thorough due diligence of clients before opening corporate and personal accounts for non-residents. We can not guarantee that the bank will approve opening of an account after a due diligence check conducted  by the bank’s security service.  

Read also about the opening of a new free economic zone in Gyumri, which is preparing to launch in 2022.

Open a corporate account in a bank of Armenia – affordable service with a full range of banking instruments

If we explore the tariffs offered by the largest Armenian bank for servicing non-resident corporate accounts, we will note the rather low cost of opening and maintaining a legal entity account.

The financial institution also offers opening personal accounts for individuals and legal entities (residents and non-residents), escrow accounts and non-personal metal accounts, bank safes and cells. It should be noted that banking secrecy in Armenia is protected by law and information cannot be made available to third parties.

For those who wish to open a corporate account in Armenia to serve the business needs of a foreign company, we advise you to use the services of a professional, which will save you extensive time and resources and significantly increase the chances of being approved after bank compliance procedures.

If you need to open an account for a non-resident legal entity in Armenia or a personal account in the largest and most reliable bank, please contact our specialists by e-mail [email protected]. We are also well-versed in assisting your registration of business in Armenia, as well as registration of ownership of real estate in Armenia.  Moreover, if you wish to move to Armenia for a permanent residence and for obtaining citizenship, as well as in the search for commercial or residential real estate for rent for offices or for personal residence, you are encouraged to contact us for professional assistance.

If you have any requests regarding information that you would like to see on the pages of our portal, send your ideas and comments to our mailing address. 

What are the advantages of an Armenian bank in servicing non-residents?

In addition to an extensive network of branches, representative offices, ATMs and POS- terminals, the largest commercial bank of Armenia has individual programs for servicing corporate clients. The financial institution has a large list of additional services, including automation of payments and transactions, accounting services, and diversification of assets. Here, non-resident companies and individuals receive a full range of banking services with the ability to service specific types of activities on an individual basis. Another advantage is the low cost of opening and maintaining non-resident accounts. 

Can I open an account in a bank of Armenia on my own?

Yes, non-residents can independently submit documents for consideration to the bank. However, in the context of stringent customer checks, an incorrectly filled out document or an error can lead to an unequivocal refusal to cooperate. Therefore, we strongly recommend that you seek legal assistance to guide you through the correct preparation of your documents for submission to the bank. This will simplify the compliance procedure and increase the chances of approval from the bank. Also, qualified assistance will allow you to identify risks if there are “problems” or “black spots” in the activities of your company, to select the optimal package of services that meets all business needs. 

What accounts does an Armenian bank open for non-residents?

One of the largest and most stable financial institutions in Armenia opens corporate accounts for non-resident legal entities and individuals, personal accounts for foreigners, and temporary escrow accounts. Here you can also have an impersonal metal account for storing capital in precious metals, rent a bank safe (safe deposit box) for a short or long period. Additionally, servicing non-residents implies participation in various promotional campaigns, access to designated lines of credit, depending on your line of business and the currently available government programs. The bank has enhanced service capabilities consistent with the European level, as it was founded on the capital of the Armenian diaspora and local businessmen.

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