Commercial banks in Armenia decide independently which payment networks they will partner with, a topic covered by TASS citing the Central Bank of Armenia (CB). The Central Bank’s explanation emphasizes that financial institutions weigh partnerships with payment systems within their risk management frameworks, including considerations related to sanctions. In the case of Mir cards, banks assess the risk of potential penalties or restrictions in the United States, which can influence decisions to terminate or suspend support for certain card networks.
According to the CB, if banks choose to discontinue cooperation with any payment system, they are required to inform their customers clearly when service terms change. This approach ensures customers understand how changes in arrangements may affect their access to services and the use of payment cards in everyday transactions.
Earlier reports indicated that Armenia’s payment ecosystem was officially open, with the National System of the Russian Payment Card (NSPK) involved in processing arrangements through the Armenian Card (ArCa). In that context, participating banks were expected to stop servicing Mir cards at the end of March, signaling a shift in the cross-border card acceptance landscape and prompting banks to adapt their client communications and risk controls accordingly. [Attribution: Central Bank of Armenia] The news cycle around this issue reflected the broader international sanctions environment and the need for banks to align their operations with evolving regulatory requirements.
On March 19, TASS reported that the Central Bank of Armenia decided to ban local banks from servicing the Russian Mir payment card as of March 29 due to concerns about potential sanctions exposure. The Bank framed this action as a collective decision by private banks to avoid provoking the Russian side, underscoring the tension between compliance obligations and strategic relations within the region. [Attribution: Central Bank of Armenia] This episode highlighted the delicate balance Armenian lenders must strike between offering convenient payment options and maintaining compliance with international sanctions regimes.
The situation also involved other regional players, including reports that a major Kazakh bank had halted its activities with Mir cards. This development contributed to a broader pattern of banks reassessing support for Mir within the evolving sanctions landscape, reinforcing the need for robust risk management practices and transparent customer communications across markets where Armenian banks operate. [Attribution: Central Bank of Armenia] The combined set of actions illustrates how payment ecosystems adapt when major geopolitical and regulatory risks surface, influencing card acceptance networks, interbank cooperation, and consumer access to payment services in Armenia and neighboring economies.
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