ARMENIA Law and Practice Contributed by: Varoujan Avedikian, Tamara Martirosyan, Sofya Sargsyan and Larisa Gevorgyan, Andersen Legal
8. Other Review/Approvals 8.1 Other Regimes
Sanctions Currently, Armenia does not maintain its own inde - pendent sanctions lists. Nevertheless, Armenian financial institutions adhere to internationally recog - nised sanctions regimes, including those established by the United Nations, the European Union, and the In addition to financial transfers, real estate acquisition and land use represent another key aspect of foreign investment activity regulated under Armenian law. Normally, foreign legal entities and individuals may own buildings (premises). However, the ownership of land by foreign entities and individuals is partially restricted. In particular, non-citizens and foreign-reg - istered entities may directly acquire title only to land plots for the purposes of homesteading and garden - ing, as well as for the construction and maintenance of individual residential houses, public and industrial facilities, and multi-apartment residential buildings. Nevertheless, such foreign legal entities or citizens may lease the restricted types of land plots or hold them indirectly through an Armenian-registered sub - sidiary in which the foreign investor holds shares. Additional limitations apply to the alienation of land plots mentioned under Article 60 of the RA Land Code, among which it is worth mentioning objects of his - torical and cultural value, state nature reserves, state- owned forests, etc. Moreover, all real estate transfer transactions must be notarised and registered with the State Cadastre Committee, which finally issues a certificate confirming legal title. U.S. OFAC. Real Estate For investment projects involving construction or land development, foreign investors must also comply with urban planning and zoning regulations under the Law on Urban Development and, where applicable, obtain construction permits from municipal authorities. Pro - jects likely to impact the environment or cultural herit - age may be subject to environmental impact assess - ment and heritage protection clearance as well. Beyond general property ownership rules, foreign investors engaging in regulated industries must also
As mentioned earlier, the legal framework for FDI in Armenia is generally the same as that for domestic enterprises. However, beyond the general laws out - lined in the foregoing, some specific laws and regula - tions that may be particularly important when making an investment in Armenia should be highlighted. Exchange Regulations and Sanctions Armenia maintains an overall liberal foreign exchange environment regulated by the Law on Currency Regulation and Control and the implementing rules established by the CBA. Generally, foreign investors are permitted to open foreign currency accounts, convert freely between the Armenian dram and other currencies, and transfer funds abroad for legitimate purposes. According to the Armenian law on Foreign Invest - ments, foreign investors may make investments in the territory of Armenia: • in foreign currency and the national currency of Armenia; • in movable and immovable property (buildings, structures, equipment and other tangible assets) and any property rights related thereto; • in shares, bonds and other securities defined by the legislation of Armenia; • in the form of monetary claims, and with the right to demand the performance of obligations having a contractual value; • in any IP right having a value; • with the right to carry out economic activities pro - vided for by Armenian legislation or by a contract, including the right to explore, extract develop or exploit natural resources; • in paid services; and • in any investments not prohibited by Armenian legislation. However, banks and other financial institutions must comply with the KYC and AML obligations under the RA Law on Combating Money Laundering and Terror - ism Financing.
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