Financial Crime World

TIRANA TIMES - Banking Industry Regulations 2023 in Albania: What You Need to Know

Introduction

The Albanian banking industry has undergone significant changes in recent years, with a new law on payment services coming into effect in 2020. The law aims to promote competition and innovation in the financial sector, while also protecting consumers and increasing transparency.

Objectives of the Payment Services Law (PSL)

  • Promote Competition and Innovation: Encourage the use of electronic payment instruments, reducing reliance on cash in the economy.
  • Protect Consumers: Ensure access to a payment account with basic features for consumers, allowing them to receive benefits from the financial market.
  • Expand Access to Payment Services: Provide easy access to payment services throughout Albania.

Key Provisions of Law No. 100/2023

Law No. 100/2023 “On Payment Accounts with Basic Features” was adopted on December 14, 2023, and aims to align with EU legislation. The law ensures that individuals have the right to:

  • Receive payments
  • Make transactions
  • Access information about their accounts

Licensing Requirements for Payment Service Providers

To operate in Albania’s payment services market, payment service providers must:

  • Obtain a license from the Central Bank of Albania (BoA)
  • Submit an application with:
    • A description of the activity sought to be carried out
    • A business plan with a budget forecast for three financial years
    • Evidence of minimum initial capital
    • Descriptions of governance arrangements and internal control mechanisms
  • Pay a registration fee to the BoA (approximately EUR 300)

Requirements for FinTech Companies

FinTech companies must be aware of the following requirements:

  • Obtain a license from the BoA
  • Meet minimum capital requirements ranging from approximately EUR 25,000 to EUR 450,000
  • Comply with the Payment Services Law and relevant bylaws

Conclusion

The Albanian government’s efforts to promote electronic payment instruments and increase transparency have created a favorable environment for businesses operating in this sector. However, it is essential for FinTech companies to stay informed about changes in regulations and requirements to ensure compliance and success in the market.

Sources:

  • Bank of Albania
  • Payment Services Law (PSL) No. 55/2020
  • Law on Payment Accounts with Basic Features No. 100/2023