Law on Financial System Mediator


(enacted in 2008)

The Law on Financial System Mediator of 2008 establishes a recourse mechanism for the customers of the financial institutions in Armenia. This law applies to almost all institutions licensed by the Central Bank (banks, credit organizations (including microfinance organizations), insurance companies, pawnshops, investment companies, etc). Claims (not exceeding the Armenian currency equivalency of USD 25,000) of individual customers can be referred to the Financial System Mediator. The Financial System Mediator’s office is financed by financial institutions through regular mandatory contributions. Complaints are handled in a short period of time and without any cost to the customers. The decisions of the Financial System Mediator are not compulsory for the customers, who can agree or not agree with the decisions. In the event that the customer does not agree with the decision, it will not be legally enforced. However, financial institutions are bound by the Financial Service Mediator’s decisions and can only appeal these decisions under exceptional circumstances (when there has been a breach of procedural rules).

This law includes the following chapters:

  • Chapter 1 General Provisions;
  • Chapter 2 Claims and Procedure of Their Examination;
  • Chapter 3 Financial System Mediator;
  • Chapter 4 Legal Status and Management;
  • Chapter 5 Financial System Mediator’s Report, Cooperation with the Central Bank, and Information Disclosed by Organizations;
  • Chapter 6 Office Funding and Organization Mandatory Contributions;
  • Chapter 7 Responsibility of Organization for Infringement of Provisions of this Law; and
  • Chapter 8 Transitional Provisions.