The new Criminal Code entered into force on July 1, 2022, and its provisions establishing criminal liability for legal entities began operating on January 1, 2023. Although monetary penalties are the primary punishment tools for legal entities with criminal intent, other measures have emerged over time. Most frequently, these measures include various restrictions on corporate rights.

The Criminal Code of the Republic of Armenia provides for the temporary suspension of the right to engage in certain types of activities as a liability measure, which represents a prohibition on engaging in certain types of economic activities, including entrepreneurial or other activities.

If a legal entity evades and continues to engage in the prohibited type of activity, this enforcement measure is replaced with an exceptional measure – forced liquidation.

According to Syuzanna Soghomonyan, serious changes are needed in the Criminal Code that would extend the institution’s operation to the procurement system as well.

Details in the video.