Albania Toughens Up on Anti-Money Laundering Standards
Albanian Government Takes a Stand Against Money Laundering and Terrorist Financing
The Albanian government has introduced a series of regulations to strengthen its anti-money laundering (AML) standards, aiming to combat money laundering and terrorist financing in the country.
Financial Intelligence Unit: The Central Authority for AML
At the heart of these efforts is 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.
Key Requirements for Entities Operating in Albania
- All entities operating in Albania are required to adhere to specific customer due diligence requirements, including:
- Rigorous identification and verification of customer identities
- Understanding the aim of the business relationship
- Continuous monitoring of transactions
- Updating customer records
- Entities must follow a set of rules outlined in Article 4/2, which allows for simplified diligence processes in low-risk cases based on risk assessments by relevant authorities and internal processes. However, this approach is not allowed in cases of suspicions of money laundering, terrorist financing, or other criminal activities.
Stronger Penalties for Non-Compliance
The regulations also introduce stronger penalties for non-compliance with AML standards. Failure to follow customer due diligence requirements can result in:
- Reporting suspicious activities
- Ceasing to maintain anonymous accounts
Administrative, Civil, and Criminal Penalties
The regulation on sanctions and penalties (Article 23) defines administrative, civil, and criminal penalties that may apply for entities and individuals found in violation of AML and CTF regulations under the law.
Strengthening Customer Due Diligence
The regulation also emphasizes the importance of customer due diligence, requiring all reporting entities to:
- Identify key individuals such as the founder, beneficiary, trustee, or any person who exercises actual control over them
- Determine the residence of the trustee and ensure transparency and compliance with AML and CTF measures
- Maintain crucial information about founders, beneficiaries, trustees, de-facto control persons, regulated agents, and service providers
Albania’s Commitment to Combating Money Laundering and Terrorist Financing
The Albanian government’s efforts aim to boost compliance with international standards on combating money laundering and terrorist financing. In July 2018, the country approved the Mutual Evaluation Report (MER), which examined its progress in resolving technical compliance issues.
Re-ratings were granted where sufficient development had been accomplished, demonstrating Albania’s commitment to strengthening its AML framework.
The introduction of these regulations demonstrates Albania’s determination to combat money laundering and terrorist financing, ensuring a safer financial system for both domestic and international investors.