Joint Statement by the CEC and the CPC on Donations

The Central Electoral Commission of the Republic of Armenia and the Corruption Prevention Commission inform the parties participating in the elections (the parties included in party alliances) about the donations made to them, contributions to pre-election funds, and the management of pre-election fund resources that they will continue their active cooperation during the pre-election campaign phase aimed at ensuring financial transparency and accountability of the parties. Through the joint oversight mechanisms of the commissions, continuous monitoring of the legality of donations made to parties (including those in alliances) and contribution submissions to pre-election funds will be ensured.

Any violations identified will receive an appropriate legal response through the application of the liability measures prescribed by law.

Accordingly, it is deemed necessary to mention the provisions of the Electoral Code of the Republic of Armenia (hereinafter referred to as the Electoral Code) regarding the declaration of income and expenses for pre-election funds, and the provisions of the Law on Parties of the Republic of Armenia (hereinafter referred to as the Law on Parties) concerning permissible sources of party financing, restrictions, and the procedure for making donations.

WHO CAN MAKE DONATIONS TO PARTIES
Only citizens of the Republic of Armenia can make donations to parties. During elections conducted under the proportional representation system, no other entity besides the party has the right to contribute to the pre-election fund.

Mandatory Conditions and Procedure for Making Donations
Individuals making a donation are obliged to provide their first and last name, their tax identification number (TIN), or the number of the certificate regarding not having a TIN, and the number of the identity document.

Prohibited Donations (from whom it is not allowed to accept donations)
Parties are prohibited from receiving donations from the following entities:

• Foreign sources: foreign states, individuals without Armenian citizenship, foreign legal entities, and international organizations;
• Legal entities: any kind of legal entities (including state and municipal organizations, organizations with state or municipal participation, LLCs, closed joint-stock companies, charitable, religious organizations, etc.);
• Public funds: from state and municipal budgets and/or extrabudgetary funds (except for legally prescribed state financing);
• Anonymously: when it is impossible to clearly identify the donor. Specifically, a donation is considered anonymous by the CPC if, through verifying its mandatory conditions, it is not possible to distinctly identify the donor.

What is Considered a Donation
It is clarified that a donation is not merely the provision of monetary resources. According to the Law on Parties, donations are classified as follows:

• Direct monetary support: donations in the form of financial resources, including loans;
• Indirect monetary support: repayment of a party's debt by a third party or forgiveness of debt by a creditor, or donations in other forms of activity;
• In-kind support: in addition to the above, donations include the performance of free work for the benefit of the party, provision of services, transfer of property ownership to the party, leasing property to the party, and performing services or works for the party at significantly lower prices than the market value.

The price is considered significantly lower when it deviates by more than twenty percent from the current market price.

A donation must be made personally. Each donor must execute the transfer of his/her own funds, with mandatory identification of the above data. If donations are collected by another person, relevant documents must be prepared, including powers of attorney to act on their behalf.

Restrictions
The total amount of donations made to a party, as well as membership fees and entry fees in monetary terms, cannot exceed 1 billion AMD within one year, including 10 million AMD from one individual. An individual may contribute to one or more parties within the maximum limit of donations.

The verification of the maximum threshold of 1 billion AMD for donations to a party will be calculated from the total of the contributions received throughout the year. Compliance with the total maximum limit for a party's donations, entrance fees and membership fees within a year will be verified not at any specific moment during that year but on an annual basis.

REGARDING PRE-ELECTION FUNDS
1. How is a pre-election fund created?
The pre-election fund for participating parties (party alliances) is formed only from the contributions made by that party (or the member parties of the alliance) according to the Electoral Code.

2. Who and how can provide products or services to the party free of charge or for less than market value?
Entities who are not allowed to make donations to parties under the Law on Parties also cannot provide the products and services described in Part 1 of Article 27 of the Electoral Code for free or for less than market value.