Financial Crime World

Albania Cracks Down on Financial Institution Compliance

In Albania, financial institutions are subject to strict anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, enforced by a range of government agencies. The Financial Supervisory Authority (FSA), an independent public organization, oversees the insurance, securities, and pension fund industries, including ensuring compliance with AML/CTF standards.

Key Players in Albania’s AML/CTF Landscape

  • The General Directorate for the Prevention of Money Laundering (GDPML), which develops and implements AML/CTF policies
  • The Coordination Committee for the Fight Against Money Laundering (CCFML), which provides overall direction for AML/CTF efforts
  • The Albanian State Police (ASP), responsible for law enforcement and border security
  • The General Prosecutor’s Office (GPO), which conducts criminal prosecution and supervises trials
  • The General Directorate of Customs (GDC), which reports criminal violations uncovered in customs jurisdiction
  • The Bank of Albania (BOA), which regulates, licenses, and supervises Albanian banks

Complying with AML/CTF Regulations

To comply with AML/CTF regulations in Albania, financial institutions must adhere to specific requirements:

  • Conducting customer due diligence (CDD) precautions
    • Applying a risk-based approach to detect, evaluate, monitor, and reduce risks related to money laundering and terrorism financing
    • Implementing suitable AML/CTF systems, including relevant policies and procedures
    • Continuously assessing clients’ business connections based on transactional profiles, customer profiles, and regional risk exposure

Reporting Obligations

Financial institutions in Albania have a duty to immediately report any suspicious transactions or activities to the appropriate authorities, suspected of being related to proceeds of crime or funds derived from criminal conduct used to finance terrorism.

Conclusion

In summary, Albania’s financial institutions must navigate a complex web of regulations and reporting requirements to ensure compliance with AML/CTF standards. By understanding these obligations, institutions can reduce their risk exposure and contribute to the country’s efforts to combat money laundering and terrorist financing.