Money Laundering Defense and Legalization of Criminal Proceeds Cases

In the context of globalization, controlling financial flows is a necessary condition for accessing international payment systems. For this reason, the recommendations put forward by the FATF (Financial Action Task Force) obligate countries that have ratified the Vienna and Palermo Conventions, including the Republic of Armenia, to combat money laundering. Our experienced lawyers and attorneys are prepared to provide high-quality defense in criminal cases involving money laundering.

What is Money Laundering?

According to Article 296 of the Criminal Code of Armenia, money laundering is defined as the conversion or transfer of property obtained through criminal means to conceal or misrepresent its illicit origin, or assisting any person in evading responsibility for a committed crime, as well as concealing or distorting the true nature, source, location, ownership, movement, or rights related to such property, or acquiring, possessing, using, or managing it.

What Property is Considered Criminally Obtained?

Criminally obtained property is considered to be any asset directly or indirectly derived from or resulting from a crime, including income generated from its use, other benefits gained, instruments or means used or intended for use in committing a crime, and any object obtained as a result of an offense specified in the Criminal Code.

What is Not Considered Money Laundering?

The mere use of illegally obtained property is not considered money laundering. According to the interpretation of the Court of Cassation of Armenia, if a person did not intend to integrate illicit funds into the legal economy but only wished to use them (since the crime was committed precisely to obtain and use such funds), then the elements of money laundering are absent.

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Must the underlying crime be proven before money laundering can be established?

According to precedent set by the Court of Cassation, it is not mandatory to have a final conviction for the predicate offense. To confirm the criminal origin of the property subject to money laundering, it is sufficient to present certain facts from the case, including indirect evidence, that reasonably establish the property’s criminal origin.

How precisely must the underlying crime be described?

The investigating authority is not required to specify or describe the exact offense under the Criminal Code that generated the illicit property. It is sufficient to provide a general description of the criminal act (e.g., the property was obtained through theft, trafficking, drug or arms smuggling, organized crime activities, or another offense).
It is also important to note that acquiring, selling, or assisting in the sale of criminally obtained property by a person motivated by self-interest, without prior agreement, and which does not constitute money laundering, is classified as a separate crime under Article 295 of the Criminal Code of Armenia. This is not considered complicity in money laundering.

Why Choose MB Legal?

Issues related to money laundering cases are not limited to criminal law. Resolving matters of financial flows and justifying fund transfers requires the involvement of corporate law experts and economists, resources which you will find among our professional partners.