Financial Crime World

Albania’s KYC Regulations: AML Law and Customer Due Diligence Requirements for Financial Professionals

KYC requirements in Albania

Albania’s financial services industry is subject to Know Your Customer (KYC) guidelines and regulations. These requirements aim to prevent money laundering and terrorist financing by verifying the identity, suitability, and risks involved in maintaining business relationships.

  • Albanian AML Regulations: Primarily based on the AML Law (Law no. 9917, dated 19.5.2008) and the AML Regulation (Regulation no. No. 44/2009).
  • Effective Dates: Latest amendments were made in 2019.

Governing Authority

The General Directorate on Prevention of Money Laundering is the authority responsible for overseeing compliance with AML regulations in Albania.

Customer Due Diligence process

Financial professionals in Albania must adhere to mandatory procedures for customer due diligence.

What’s Involved?

For newly identified customers, the following information is required:

  • Business identification data: Name, registration details, entity type, tax ID, etc.
  • Ultimate beneficiary details and identification data
  • Transactional data: Parties involved, transaction value, execution date, etc.

Customers need to provide this information before establishing a business relationship or engaging in specific transactions, such as:

  • Transferring money within or outside Albania
  • Transactions exceeding certain thresholds

For high-risk relationships, face-to-face identification is necessary before establishing a legal relationship.

Third-Party Verification: Delegation and Reliance

Third-party verification is not explicitly prescribed in the AML Law but may be an option under certain circumstances. Albanian entities can engage professional advisors for verification, such as:

  • Credit institutions
  • Financial institutions
  • Auditors, external accountants, and tax advisors
  • Notaries and other independent legal professionals

While these third parties may not be expressly required to adhere to AML regulations, entities need to ensure their compliance to minimize risk.

Entities cannot rely on other trust or company service providers for KYC procedures.

Ask the Experts: Questions Welcome

Uncertainties regarding KYC procedures and AML regulations in Albania are common. If you have any specific questions, don’t hesitate to ask. We’ll be happy to help clarify any ambiguities or complexities you might encounter.