U.S. Department of State Country Reports on Terrorism 2006 - Armenia

With substantial U.S. assistance, Armenia continued to strengthen its capacity to counter the country's few perceived terrorist threats. Armenia's geographic location, porous borders, and loose visa regime presents opportunities for traffickers of illicit materials, persons, and finances.

Armenia's reliance on ties with neighboring Iran have dampened Armenian criticism of Iranian extremism and led to closer trade relations between the two countries. Diplomatic and trade relations with Iran are seen as a geographic and strategic necessity for the landlocked country, in light of closed borders with Turkey and Azerbaijan, and the perceived risk of instability in Georgia. President Kocharian spoke out in November against the possibility of international sanctions against Iran.

The Financial Monitoring Center (FMC), a U.S. – supported financial intelligence unit within the Central Bank, is still developing as a regulatory body. Established in 2005, the FMC began to make investigative strides this year. The FMC received 23 suspicious transaction reports in 2006. After analyzing the reports, the FMC developed five suspicious transaction cases; three of the cases were subsequently referred to the Prosecutor General's office for further investigation. To date, the FMC has received no reports of transactions involving watch-list designees. The heavy flow of remittances, however, may hinder efforts to detect fund transfers in support of terrorism. The FMC has applied for Egmont Group membership.

Armenia introduced additional security features into the production of passports, continued to install passport readers at border posts, and continued efforts to increase the security of its vital documents, such as birth certificates. On November 1, the government implemented mandatory fingerprinting for travelers departing Zvartnots Airport, Armenia's only international airport. The National Security Service (NSS) and police shared information with the U.S. Embassy when they discovered fraudulent U.S. visas or other such documents.

In May, the UN Analytical Support and Sanctions Monitoring Team for al-Qaida and the Taliban visited Armenia to monitor the implementation of sanctions under UNSCR 1267 and successor resolutions. The team met with the Central Bank, the Ministry of Defense, the National Security Service and the Police, as well as the Ministry of Foreign Affairs. According to the MFA, the team said it was satisfied with Armenia's level of preparedness. Armenia supported U.S. efforts in Iraq with troops on the ground and provided overflight authorization in support of Operation Enduring Freedom.

In September, Armenia participated in a CIS-wide exercise called "Atom-Antiterror 2006." The Armenian Special Forces together with the Russian Federal Security Service, ran counterterrorism and hostage release drills at the Armenian Nuclear Power Plant.