Albania Fails to Implement Effective Data Standard for Beneficial Ownership Register

Tirana, Albania - The Albanian government has been criticized for its lack of progress in implementing a robust data standard for its beneficial ownership register.

Transparency and Anti-Money Laundering Efforts

The register is designed to increase transparency and combat money laundering and terrorist financing. However, according to a recent report by the International Reform Monitor (IRM), Albania has yet to ensure that the data submitted to the register is accurate, up-to-date, and compatible with other government databases.

Recommendations for Improvement

• The IRM recommends that legal and technological mechanisms be put in place to verify the accuracy of the data submitted to the register.
• This could include empowering the National Business Centre (NBC) to verify data accuracy and imposing sanctions for inaccurate or incorrect submissions.

Current Challenges

• The current system relies on reporting entities and authorized individuals to ensure the accuracy of the data, which may lead to unverified and potentially inaccurate information in the register.
• Albania has yet to establish a system for proactively checking the veracity of data, leaving room for errors and inconsistencies.

Potential Solutions

• Improve the effectiveness of the beneficial ownership register by addressing how it can be used to root out corruption in government processes such as procurement.
• Consider implementing systems similar to those used in Denmark and Ukraine, where data is automatically checked against other datasets to ensure accuracy.

Public Access and Downloadability

• The report recommends that data from the open beneficial ownership register should be downloadable without administrative obstacles.
• Limit the use of “legitimate interest” criteria to uphold the principle of public access.

Government Response

Elona Hoxha, a representative from the NBC, emphasized the importance of ensuring data accuracy and veracity. However, experts have raised concerns that Albania may be falling short of international standards for beneficial ownership transparency.

Recommendations by Experts

• The Albanian government needs to take immediate action to address these weaknesses and ensure that its beneficial ownership register is accurate, up-to-date, and transparent.
• Anything less would undermine the effectiveness of this important tool in combating money laundering and terrorist financing.