Albania Moves to Enhance Beneficial Ownership Transparency
The Albanian government has launched an initiative aimed at improving the transparency of beneficial ownership in the country, a crucial step towards combating money laundering and terrorist financing.
Background
Following the entry into force of Law No. 112/2020 “On the Beneficial Owners Register” and the activation of the beneficial owners register in February 2021, reporting entities have faced challenges in implementing their legal obligation to initially register their beneficial owners and update existing data.
Challenges Encountered by Reporting Entities
The government has identified several difficulties and challenges encountered by reporting entities during the identification of their beneficial owners related to:
- The concept of a beneficial owner
- The registration procedure
- Required documentation
These problems are caused by the novelty of the beneficial ownership registration process for many Albanian businesses and non-governmental organizations (NGOs).
Addressing the Challenges
To address these issues, the National Business Center has participated in meetings organized by the European Banking Federation Association (EBRA) to discuss best practices implemented by EU member states for beneficial owners’ registration and the implementation of the 4th Anti-Money Launderling Directive. The government is now proposing an evaluation and analysis of best practices from other EU countries with a long experience in this field.
Consultative Meetings
Through consultative meetings with representatives of reporting entities and interest groups, the Albanian government aims to identify the most effective practices for integrating into its legislation on registering and updating beneficial owners’ data. The ultimate goal is to enhance transparency and reduce the risk of money laundering and terrorist financing.
Milestones
To achieve this objective, the government has outlined two milestones:
- Organizing a meeting with reporting entities and interest groups to gain experience from best practices in EU countries
- Hosting a training session to recognize international practices in registering beneficial owners’ data
Both events are expected to be completed by 2024.
Conclusion
The Albanian government is committed to improving its beneficial ownership transparency, and this initiative marks an important step towards achieving that goal.