Financial Crime World

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AML/CFT Policies and Procedures in Albania

In a bid to combat money laundering and terrorist financing, Albania has implemented robust Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CTF) policies and procedures.

Regulatory Compliance Framework

Albanian law requires entities operating in the country to adhere to specific customer due diligence (CDD) requirements. These include:

  • Transaction thresholds of 100,000 Lek for certain entities or those providing transfer services, foreign exchange, or gaming services
  • Requirements for identification and verification of customer identities

Entities must also follow rigorous identification and verification procedures during the CDD process, including:

  • Continuous monitoring of transactions
  • Updating customer records
  • Reporting suspicious activities
  • Ceasing to maintain anonymous accounts

Simplified Due Diligence Measures

The Albanian government has introduced simplified diligence processes for low-risk cases, based on risk assessments by relevant authorities and internal processes. However, ongoing monitoring of client relationships is still necessary to detect unusual or suspicious transactions.

If the risk is no longer deemed low during ongoing monitoring, entities must shift to the complete measures detailed in Article 4/1. Simplified diligence is not allowed in cases of suspicions of money laundering, terrorist financing, or other criminal activities.

Documentation for Customer Identification

The Albanian government has outlined specific requirements for customer identification, including:

  • Name
  • Date and place of birth
  • Residences
  • Employment
  • Identification document details
  • Personal numbers

Entities must also capture additional information, such as:

  • Registration details
  • Activity certification
  • Taxpayer Identification Number (TIN)
  • Addresses
  • Depending on the type of legal or natural person

Regulatory Bodies

The Albanian government has established various regulatory bodies to enforce AML and CTF regulations. These include:

  • The Financial Intelligence Unit of Albania (FIU-Albania), which serves as the central authority for receiving, analyzing, and disseminating reports related to suspicious transactions, money laundering, and terrorist financing.

Penalties and Sanctions

Failure to comply with AML and CTF regulations can result in penalties, including:

  • Administrative sanctions
  • Civil sanctions
  • Criminal sanctions

The Albanian government has also introduced measures to deter non-compliance, such as proportional and deterrent consequences for trust-related responsibilities under Article 3/1 of the AML/CTF Law.

Recommendations and Clauses

In its latest Mutual Evaluation Report (MER), Albania was praised for addressing most technical compliance shortcomings. The report recommended:

  • Continued efforts to strengthen CDD and record-keeping obligations
  • Measures to improve transparency and cooperation with international partners

Overall, Albania’s AML and CTF policies and procedures aim to ensure a robust and effective framework for combating money laundering and terrorist financing in the country.