Financial Crime World

Albanian Courts Crack Down on White-Collar Crimes in Business Sector

Tirana, Albania - The Albanian business landscape has experienced significant growth following regulatory reforms and an influx of foreign investment. However, one area that has gained increasing attention from authorities is white-collar crime, committed by corporate executives and employees. The Albanian Government has made public commitments to combat corruption and related felonies in both the public and private sectors.

Albanian law holds individuals and businesses accountable for corporate crimes such as:

  • Fraud
  • Corruption
  • Environmental damage
  • Bankruptcy-related offenses

White-collar crimes are punishable by fines, imprisonment, or both. Company executives, and even their agents, may face criminal liability on behalf of their respective organizations.

Recent Cases

Although the Albanian judiciary’s track record in white-collar crime cases is less than desirable, a few recent cases offer insight into the impending strengthening of the legal framework.

Case 1: Director Sentenced for Embezzlement

One case saw a company director sentenced to 3.6 years in prison for embezzlement. The director illegally diverted money from the company bank account, justifying it as an advance payment to a contractor. Subsequent audits revealed the contractor had received no payment, and the director’s illegal possession of the funds came to light.

  • The court emphasized the importance of punishing offenders to maintain the proper functioning of commercial enterprises and protect their interests.
  • Despite the director’s acknowledgment of his debt to the company and his request for a civil trial, the court declined to grant exemption from criminal liability.

Case 2: Foreign Shareholder Convicted of Theft by Abuse of Power

Another case involved a foreign shareholder, who was convicted of “theft by abuse of power” and sentenced to 6.6 years in prison. The shareholder, owning 4% of the share capital in a construction company, was illegally authorized to execute sales contracts and collect funds through a power of attorney from the company’s director.

  • When discrepancies were discovered between buyers’ receipts and the company’s accounting records, the power of attorney was revoked.
  • The shareholder continued to manipulate transactions, amassing over EUR 859,321 and ALL 4,000,000 from unsuspecting buyers.

Case 3: Company and Director Criminally Liable for Fraud

In another intriguing case, the court ruled that both a company and its director were criminally liable for fraud. The company, posing as a copyright collection agency, had illegally obtained copyright royalties from the Albanian Copyright Office without licenses or the consent of the rightful claimants.

Consequences of Conviction

Individuals convicted of white-collar crimes in Albania cannot hold any managing position in a local company for five years. Additionally, any sentence exceeding five years of imprisonment bans the individual from assuming director, administrative, liquidator, undertaker, or other duties related to representing a legal entity.