Escrow account

The amounts credited by the holder of escrow funds as an operation guarantee for execution of transaction for paying the seller (beneficiary) are deposited on the escrow account. Should the holder of escrow funds submit the document defined by the escrow agreement to the Bank (escrow agent) or should the person who credited escrow funds provide the Bank (escrow agent) with a written order to pay the holder of escrow funds, the Bank (escrow agent) can pay escrow funds credited on the escrow account to the holder of escrow funds by cash or transfer to the account specified by the holder of escrow funds in the order and terms set forth by the escrow agreement.

If the document envisaged by the escrow agreement isn’t submitted to the Bank within the terms set by the escrow agreement, the escrow account will be formed as a banking account of the entity that entered escrow funds with the authority to manage the funds available on the account.

After debiting escrow funds from the escrow account (after the balance of the account becomes zero) the account is closed.  

The escrow accounts are opened for individuals and registered legal entities (private entrepreneurs).

The escrow accounts are opened only in AMD.

The opportunity to execute operations in the currency other than the currency of the account is not envisaged. 

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

The Bank is obliged to give or transfer monetary funds 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 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.

To open an escrow account, the physical entity/ private entrepreneur customers shall submit the below mentioned documents to the Bank:

• identification document,
• 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 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  the defined manner.  

To open an account with the Bank, the resident legal entity 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 

To open an account with the Bank, the non-resident legal entity shall submit the below mentioned documents:

• identification documents 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 statements, copies of the payment documents and/or duplicates,  other information and references on the escrow account or the transactions executed through it are provided at the rates set forth for the main bank account.

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 with the exception of cases envisaged by the RA Civil Law.

Funds available on the escrow account are guaranteed by RA Law on guarantee of remuneration of bank deposits of physical entities.

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.

To get acquainted with the tariffs and conditions (information summaries) of the service for the previous year, please visit the link: