Declarations to be Analyzed for Identifying Corruption Risks

According to the newspaper 'Zhoghovurd', it has been reported from the unified website for the publication of legal acts that a draft has been put into circulation, which aims to establish a unified system of risk criteria for the analysis of declarations. This system will allow the Commission to conduct more targeted, comprehensive, and objective analyses.

The draft introduces a mechanism of risk criteria, including a scoring system, the definition of a minimum threshold, as well as the possibility for a competent division to assess additional risk factors. These regulations are linked to the objectives of developing the electronic declaration system outlined in the anti-corruption strategy of the Republic of Armenia and do not create a budgetary impact.

It is expected that the new regulations will enhance the accuracy of analyses, reduce subjective approaches, and contribute to the early identification of corruption risks and increased trust in the declaration system.

The draft outlines seven risk criteria, each corresponding to a specific score on a scale of 0 to 100. If the total score of a declaration is 60 or higher, it is subject to in-depth analysis. The Commission approves the list of declarations to be analyzed each year, either automatically or manually. Higher-scoring declarations are prioritized for analysis, with a minimum of 200 declarations per year.

The seven risk criteria are as follows:

1. Negative or very low annual expenses (30 points) - When a public official and their family’s expenses are negative or close to the minimum subsistence budget. In other words, the individual declares spending less than what is necessary for a minimum standard of living.
2. Absence of data on family members (5 points) - When the declarant has not reported on family members or close relatives, although it is known that they exist.
3. Delayed declaration (3 points) - The declaration was submitted only after administrative penalties were imposed.
4. Non-submitted declaration (7 points) - The declaration was not submitted even after administrative penalties.
5. Loans without sufficient cash (5 points) - The amount of the loan exceeds available cash (excluding mortgage loans).
6. Large amounts of cash (25 points) - When three conditions are present: cash exceeds 5 million drams, cash is more than three times the amount of non-cash transactions, and the origin of the cash is not substantiated by previous declarations.
7. Additional risk factor (25 points) - Commission specialists may add 25 points in each case where other suspicious circumstances arise. For example, a significant difference between the market value of property acquired or sold.

Analysis of declarations will be carried out based on the risk indicators of declaration analysis if the calculated amount of the risk indicators is 60 or higher, considering that the purpose of declaration analysis is to identify not only individual discrepancies but also cases where risk factors collectively create a high probability of corruption risks.

More details are available in today’s issue of the newspaper.