Financial Crime World

Albania’s Financial Compliance Blog: Exploring the Regulatory Landscape of Anti-Money Laundering and Counter-Terrorist Financing in Albania

Albania’s Financial Watchdogs: The Role of the Financial Intelligence Unit (FIU)

  • The Albanian Financial Intelligence Unit (FIU-Albania) is the primary authority for combating Money Laundering (ML) and Countering the Financing of Terrorism (CTF) activities within Albania.
  • Serve as the central receiver, analyzer, and disseminator of reports related to suspicious transactions, ML, and CTF.
  • Law No. 9917, the “Prevention of Money Laundering and Financing of Terrorism” law, anchors Albania’s financial system regulations.
  • Sets guidelines for customer due diligence (CDD) requirements and threshold transactions identification.

Key CDD Requirements for Albanian Entities: Adherence to Regulatory Guidelines

  • Entities operating in Albania must take due diligence measures to prevent ML and CTF activities.
  • Immediate identification for transactions worth 100,000 Lek or more, and threshold transactions for entities providing transfer services, foreign exchange, or gaming services.
  • Transactions surpassing 1,000,000 Lek require identification once threshold met, address doubts regarding previously acquired identification data.
  • Focus on suspicious ML or CTF transactions, regardless of transaction values.

Streamlined Due Diligence: Low-risk Cases and Ongoing Monitoring

  • Entities can apply simplified diligence procedures for low-risk cases based on risk assessments and internal processes.
  • Ongoing monitoring crucial for financial compliance.

Customer Identification Documentation: Verifying Identity in Albania

  • Proper identification vital in preventing financial crimes.
  • Natural persons require documentation with name, personal details, and identification document details.
  • Legal persons need documentation of name, registration details, activity certification, taxpayer identification number, and addresses.

Consequences of Non-compliance: Penalties for Breaking the Law

  • Ignoring due diligence and record-keeping obligations may lead to significant penalties.

Trustees and Their Roles: Obligations under Albanian AML/CFT Law

  • Trustees responsible for maintaining key information about founders, beneficiaries, trustees, etc.
  • Failure to disclose status when establishing a business relationship can result in severe consequences.
  • Entities have an obligation to identify key individuals when dealing with legal arrangement customers.
  • Determining the trustee’s residence essential for transparency and compliance with AML/CTF measures.

Key Regulations in Albania’s AML/CFT Landscape

  • Article 287 of the Albanian Criminal Code, Regulation on Customer Due Diligence and Reporting (Article 7), Regulation on Reporting and Record Keeping (Article 18), Regulation on Politically Exposed Persons (Article 12), and Regulation on Sanctions and Penalties (Article 23)

References

  • Law No.9917, May 19, 2008, “On The Prevention Of Money Laundering And Financing Of Terrorism”
  • Albanian Financial Intelligence Unit