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Consequences of Non-Compliance in Finance: Albania Faces Strict Regulations and Penalties
Overview
TIRANA, ALBANIA - As Albania continues to strengthen its anti-money laundering (AML) and countering the financing of terrorism (CTF) regulations, financial institutions and other entities operating in the country are facing increased scrutiny and penalties for non-compliance.
Strict Guidelines for Customer Due Diligence Requirements
The Financial Intelligence Unit of Albania (FIU-Albania), responsible for supervising AML/CTF activities in the country, has set strict guidelines for customer due diligence (CDD) requirements. These include:
- Rigorous identification and verification of customer identities
- Understanding the aim of the business relationship
- Continuous monitoring of transactions
- Updating customer records
Consequences of Non-Compliance
The consequences for non-compliance are severe, with penalties including:
Administrative Sanctions
- Fines and penalties imposed by regulatory bodies
Civil Sanctions
- Lawsuits and damages awarded to victims of money laundering or terrorist financing
Criminal Sanctions
- Imprisonment and fines imposed on individuals and entities found guilty of money laundering or terrorist financing
Recommendations for Financial Institutions and Entities
To avoid penalties for non-compliance, financial institutions and entities operating in Albania are advised to:
- Conduct thorough customer due diligence procedures
- Maintain accurate and up-to-date records of transactions and customer information
- Report suspicious activities to the FIU-Albania promptly
- Comply with regulations on customer identification, including Politically Exposed Persons (PEPs)
- Regularly review and update their anti-money laundering and countering the financing of terrorism policies and procedures
By prioritizing compliance with AML/CFT regulations, financial institutions and entities operating in Albania can help prevent money laundering and terrorist financing, while also protecting themselves from severe penalties.