Banking account

*The tariff includes VAT

1. a/ TSP service account (including additional accounts) opening in “ARMECONOMBANK” OJSC system is Free for RA resident pensioners, non-profit organizations, governmental, governmental noncommercial, community based non- commercial and public organizations, “Escrow” accounts, unallocated metal accounts, social package accounts, state benefit accounts with the exception of the accounts opened on behalf of the condominium association for which the below mentioned tariffs shall apply.

• Account opening – AMD 5000
• Additional account opening  (per account )- AMD 1000

b/ Additional account opening fee is charged from the customer (individual and/or corporate entity) having an account for each new account/ accounts every time the customer submits an application. If the customer owns a bank account with any structural subdivision of “ARMECONOMBANK” OJSC the opening of a new account with any of the subdivision is considered an additional account.

c/ Account opening

*The tariff for physical entity costumers submitting foreign passport / non RA/ is AMD 50000.

* 1)The tariff for non-resident legal entities, 2) non-resident private entrepreneurs, 3) resident legal entities in the structure of which more than 50% of participants/shareholders are physical entities with foreign passports/non-RA/ or non-resident legal entities 3) private entrepreneurs registered in RA but not having RA passport is AMD 70000.

The fee does not apply to the opening of additional accounts.

2. a/ Should the balance of the account which has not been credited or debited more than 365, 731 and 1096 days be equal or less than AMD 15 000, AMD 20 000 or AMD 25 000 (and/or equivalent foreign currency) respectively after charging the commission fee the account will be automatically closed and the charging of the commission for the further month will be terminated.

b/ This tariffs applies to those card accounts the term of which has expired, the card has not been reissued and no transaction has been implemented through the account within 365 days and more  proceeding the expiry term of the card

c/ The tariff does not apply to the accountholders accounts which, in the terms set by the law, are under process of liquidation, custody bank accounts,  social package accounts, state benefit and state support accounts and term deposits at the request and bank and card accounts of the customer

3. for any period

4. 4.1. Statements to Individuals who have placed  term deposit with ARMECONOMBANK OJSC in the amount of  AMD 3,000,000 (or equivalent currency) or more for 20 banking  days,  corporate  entities or physical entity customers deemed to be directors of these entities whose total average balance of card, bank or deposit accounts of the previous month exceeds AMD 10,000,000 (or equivalent currency), statements for ARMECONOMBANK OJSC employees, statements to the students on internship at AEB, as well as statements on social package  and state benefit service are free of charge.

4.2. Free of charge for the copies of SWIFT messages executed within the same day.

5. a/ After each transaction,  the provision of account statements, copies of payment documents, as well as document copies of up to 1 year transactions implemented via “Mobile/Online Banking” system is FREE OF CHARGE,
b/ For the provision of statements on more than one year transactions executed via “Home bank”, "Mobile/Online Banking" system AMD 1000 is charged.
c/ The provision of references from state support and social package accounts is free of charge.

6. Statements and payment documents on the transactions implemented within the previous month can be provided free of charge up to the last banking day of the coming month inclusive.

7. a/ Free of charge for the service of TSAs (trade and service outlets), social package accounts, state support accounts and for the replenishment of Child deposit and Accumulative voluntary deposit.
b/ No fee is charged for the account management fulfillment, if the assignment is executed within 10 calendar days
c/For the current fulfillment of account management assignment a fee is charged, if an assignment is fulfilled in the given month.

8. a/ Free of charge for the service of treasuries.

b/ AMD 500 is charged in case of cash withdrawal with cashier's orders by legal entity and private entrepreneur customers served in ARMECONOMBANK OJSC.

9. ARMECONOMBANK OJSC isn’t responsible for not receiving answers from correspondent bank.

10. Except the customers, who meet “VIP” standards accepted by ARMECONOMBANK OJSC.

11. Except pension accounts, power of attorneys given by the private entrepreneurs for loan management and other cases envisaged by the contract. 

Upon the customer’s application, the Bank opens temporary and main accounts, unallocated metal accounts, escrow accounts and special accounts of constructors and other special accounts set by normative legal acts of RA Central Bank.

The temporary account is opened for the newly established (under the process of registration) legal entity or private entrepreneur customers.

Main accounts are opened for physical entities and registered legal entities (private entrepreneurs).

Constructors’ special accounts are opened for registered legal entities (private entrepreneurs)

Constructors’ special accounts are opened only in AMD, and temporary and main accounts – both in AMD and foreign currency. 

The below mentioned transactions may be executed through the account:

• Cash in (by cash or cashless)/ Credit monetary funds to the account (by cash or cashless)
• Cash pay-out within the positive balance of the account
• Cashless transfers within the limits of positive balance of the account
• Transfers of monetary funds between the customer’s accounts,
• Other operations set forth by the appropriate information bulletin

The accounts may be managed remotely through HOME BANK, ONLINE BANKING, MOBILE BANKING. To get acquainted with the terms visit the following link.

It isn't possible to execute transactions in other currencies other than in the currency of the account.

The Bank is obliged to credit the monetary funds transferred to the customer’s account (cashless gold) no later than the following day the following day after the receipt of relevant payment documents by the bank.

The Bank is obliged to give or transfer monetary funds (transfer non-cash gold) from the account upon the customer’s order no later than day following the day the relevant payment documents have been submitted to the Bank, with the exception of operations through the account to be executed based on the power of attorneys, which are carried out in compliance with the requirements of the Bank’s legal acts after verifying the authenticity of the power of attorney.

The accountholder’s right to manage the account and monetary funds available on it can be restricted by Court decision based on the application submitted by Judicial Acts Compulsory Enforcement Bodies and tax authorities.

Cash facilities available on the account may be written off without the customers consent by the court decision based on the decision of the authorities of Compulsory Enforcement Service or tax authorities. 

The account may be closed under the customer’s unilateral application or by the Bank if no monetary fund is available on the account, no transaction has been executed through the account within a year, the customer has not paid the fees envisaged by the Tariffs or failed to fulfill his/her obligations as well as in other cases envisaged by the Agreement.

In case of the closure of the account, the funds available on it shall be given to the customer or transferred to another account upon the latter’s order not later than within 8 days after the receipt of the customer’s relevant written application, after which the account is closed.

In case of contract disputes the customer shall apply to the Bank in written form and will receive the reply to such request within 10 Business days. In case of disagreement with reply, the customer has the right to apply to the court or to the Financial system mediator.

There is no limit in the minimum initial amount for card opening.  Interest paid against card accounts is subject to taxation with income tax under tax legislation of RA.

To open an account with the Bank, a physical entity customer shall submit the following documents:

• Document containing public services number,
• Private entrepreneur’s State Register certificate or an excerpt and stamp (as the customer wishes) given by Unified State Register (required from private entrepreneurs only),
• Tax code (required only from private entrepreneurs, should the latter not be specified in the registration certificate by RA State Register) 
• In case of opening an account for a private entrepreneur being under the liquidation process (under the process of insolvency), the liquidation manager shall also submit the appropriate competent authority’s decision on the liquidation and the resolution on his/her appointment to the Bank.  
• In case of a person authorized to manage the funds available on the account(s)- power of attorney certified by the notary  or issued by the customer at the Bank in compliance with  defined manner.  
• To open a constructor's special account, the customer shall also submit the copy of the construction permission (required from private entrepreneurs only) 

To open a bank account, the resident legal entities shall submit the below mentioned documents:

• identification document of  director,
• Copy of State Register certificate (acting head's registration insert) and a reference about the participants/ in case of foundations, non-governmental organizations and associations and other organizations, the participants of which are not registered by any state authority or in compliance with the rules of Central Depository of Armenia OJSC by an account operator company - a reference about the participants issued by the executive body of the given company at least 30 days prior/, if the information on the participants has not been included in the Charter (maximum 30 days old)) or a statement given by Unified State Register. In case of Joint Stock a reference (statement) on shareholders from organizations deemed to be account operators in accordance with the rules of “Central Depository of Armenia ” OJSC, moreover

should a corporate participant with 20% or larger participation exist among the participants, a statement on participants of such participant, which have 20% or larger participation, and so forth for all levels, is required

• Bound and sealed copy of the charter with “True copy of the original” inscription
• Tax code (if it isn’t specified in the certificate by RA State Register)
• Extracts and verified copies of the orders on the appointment of the persons entitled with the right to sign
• Should the authorized entity open an account – the original power of attorney notarially verified 
• Should the liquidation manager open an account, the latter submits the decision of the competent body on liquidation and the resolution (order) on the assignment of the Liquidation manager.
• For the opening of constructor’s special account, the copy of the construction permission of the building to be built by the customer shall be submitted.   

To open a bank account, non-resident legal entities shall submit the following documents to the Bank: 

• identification document of  the director,
• notarially certified  Armenian translation of the original reference (information) about participants  issued 30 days prior, if  the information on the participants has not been included in the Charter (maximum 30 days old), moreover 
• should a corporate participant with 20% or larger participation exist among the participants,  notarially certified  Armenian translation of the original statement on such participants, and so forth for all levels
• should the authorized entity (entities) open an account- notarially certified Armenian translation of the original power of attorney
• notarially certified Armenian translation of the original document confirming the registration of the non-resident legal entity by the Authority carrying out the state registration of legal entities in the country of origin of the non-resident legal entity
• notarially certified Armenian translation of the original document on the registration and jurisdiction of the non-resident legal entity’s manager given by the Authority carrying out the registration of legal entities in the country of origin of the non-resident legal entity, notarially verified  copy of the identification document of the non-resident legal entity’s manager,
• notarially certified Armenian translation of  non-resident legal entity’s founding documents (charter, founding agreement and etc.)

On the purpose of due diligence of the customer envisaged by RA law on “On combating money laundering and terrorism financing” , the Bank may request additional documents or other information from the consumer based on <> principle, as well as ask the consumer additional questions during oral communication.

Under the Foreign Account Tax Compliance Act (FATCA) with the USA, the Bank may collect additional customer information to determine whether it is a U.S. taxpayer.

Based on various circumstances additional documents and information may be required.

The Bank, in the cases and periodicity set forth by the RA Legislation, provides the phisical entity account holder with the account statements in the language the customer prefers, with the exception of cases when the account has not been credited or debited during the accounting period.

An annual interest rate is calculated against the funds available on the account, unless other rate is defined by the information bulletin on the accounts serviced by plastic cards ¹.

In case of annual nominal value

A year is 365 days, 366-day year basis for leap year

In case of annual percentage yield *.

Interest rates are calculated on 365 day- year basis.

* The annual percentage yield on the deposits is calculated in compliance with the procedure set by CBA by the following formula: 

where

1)         APY – is the annual percentage yield of the deposit

2)         r – is the annual rate of simple interest

3)         n – periodicity of interests’ capitalization in a year

1. Interests are calculated at the daily average of monetary funds available on the account over the accounting month and are paid on the first working day of the month following the accounting month. 

Moreover,

* If the bank account is opened and/or the monetary funds available on the account have been accrued within the reporting month the calculation of average daily interests are carried out on the basis of calendar days of the accounting month,

* Should the account be closed within the accounting month the interests for the given month are not paid.

NOTE: INTEREST ON THE FUNDS AVAILABLE ON YOUR ACCOUNT WILL BE CALCULATED BASED ON THE NOMINAL (SIMPLE) INTEREST RATE AND THE ANNUAL PERCENTAGE YIELD SHOWS THE INCOME YOU WOULD REALIZE, IF YOU WOULD HAVE  MADE THE MANDATORY  PAYMENTS REGARDING THE DEPOSIT AND WOULD HAVE RECEIVED THE ACCRUED INTERESTS AT THE  SET PERIODICITY . THE RECEIVED DEPOSIT INTERESTS TO THE DEPOSIT. YOU WILL FIND THE ORDER OF CALCULATING THE ANNUAL PERCENTAGE YIELD IN www.aeb.am

The Bank has the right to unilaterally change the payable interest.

Calculation sample:

                                                                                                                  AMD

In calculations a year is 365 days; moreover, the interest amounts are calculated based on income tax. 

1. The deposits are guaranteed by RA law on Guaranteeing the Recovery of Deposits of Individuals;

1. Only the deposit in AMD is guaranteed.
2. The deposit in AMD is guaranteed in full and the deposits in foreign currency in the amount of AMD 7 mln and the difference of the recovered deposit in AMD.

The procedure, manner, general terms and conditions for the provision of banking services are defined by the “General Terms of Banking Services of ARMECONOMBANK OJSC”  approved by the Executive Board of the Bank, which can be found via the following link.  

YOU ARE ELIGIBLE TO COMMUNICATE WITH FINANCIAL INSTITUTION BY THE MEANS OF COMMUNICATION YOU PREFER – THROUGH POSTAL SERVICES OR ELECTRONICALLY. THE RECEIPT OF INFORMATION ELECTRONICALLY IS THE MOST CONVENIENT. IT IS AVAILABLE ROUND-THE-CLOCK (24/7), FREE OF THE RISK OF LOSS OF PAPER INFORMATION AND ENSURES THE CONFIDENTIALITY.

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