Albania Financial Institution Compliance Policies Under Scrutiny

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A recent report has shed light on Albania’s financial institution compliance policies, highlighting areas of strength and weakness in implementing international standards. The report assesses Albania’s progress in implementing the Financial Action Task Force (FATF) Recommendations, which aim to combat money laundering, terrorist financing, and other illicit activities.

Areas of Strength

• Assessing risk and applying a risk-based approach
• Implementing national cooperation and coordination mechanisms
• Strong commitment to confiscation and provisional measures, as well as targeted financial sanctions related to terrorism and terrorist financing

Areas for Improvement

Financial Institution Secrecy Laws

• Albania’s policies on correspondent banking, money or value transfer services, and wire transfers require improvement

Customer Due Diligence and Record Keeping

• Weaknesses identified in these areas

Correspondent Banking and Money Transfer Services

• Policies require improvement to prevent illicit activities

Internal Controls

• Albania still needs to improve its internal controls, particularly in relation to foreign branches and subsidiaries

Supervision

• Financial institutions are subject to regular monitoring by regulatory bodies
• Regulatory bodies have the power to impose sanctions for non-compliance
• Framework in place for reporting suspicious transactions and tipping-off and confidentiality measures

Conclusion

While Albania has made significant progress in implementing international standards, there is still work to be done to strengthen its financial institution compliance policies and practices.