Financial Crime World

Albania Ensures Beneficial Ownership Transparency with New Registry Launch

Tirana, August 29th, 2020 - In a significant move to combat money laundering and terrorism financing, the Albanian Parliament has introduced a new law requiring companies and non-governmental organizations (NGOs) to disclose their beneficial owners. The Register of Beneficial Owners (RBO) is an electronic database maintained by the National Business Center, which will contain information on the beneficial owners of reporting entities.

What is Beneficial Ownership?

Beneficial ownership refers to the ultimate control or ownership of a legal entity, either directly or indirectly, through shares, voting rights, or other means. This includes:

  • Shares
  • Voting rights
  • Other means of indirect control

New Law Requirements

Under the new law, companies and NGOs must provide detailed information about their beneficial owners, including:

  • Name
  • Surname
  • Personal identification number
  • Date of birth
  • Citizenship
  • Permanent residence address
  • Passport number (for foreign citizens)
  • Percentage of ownership

The reporting deadline for existing entities is 60 days after the RBO’s establishment, while new entities must submit the required information within 30 days.

Consequences of Non-Compliance

Failure to comply with these obligations can result in fines ranging from ALL 250,000 (approximately EUR 2,000) to ALL 500,000 (approximately EUR 4,000), with repetitive violations subject to doubled fines. The legal representative of non-compliant entities may also face separate penalties.

Support for Compliance

The Albanian government has emphasized the importance of ensuring transparency and accountability in corporate ownership structures. “The RBO will enable authorities to identify and track beneficial owners more effectively, reducing the risk of money laundering and terrorist financing,” said a government spokesperson.

EY Albania Law Team is offering services to assist companies with compliance, including:

  • UBO identification
  • Filing procedures
  • Representation during administrative and court proceedings
  • Internal procedure setup

The team can also address any legal queries related to the new law.

Conclusion

The introduction of the RBO marks an important step forward in Albania’s efforts to strengthen its anti-money laundering and counter-terrorism financing framework. The registry aims to ensure transparency and accountability in corporate ownership structures, reducing the risk of money laundering and terrorist financing.