Financial Crime World

BANKS IN ALBANIA FACE SCRUTINY OVER FINANCIAL CRIME SCANDAL

A Shocking Revelation: Pyramid Scheme Leaves 103,000 Citizens Reeling

TIRANA, ALBANIA - In a disturbing turn of events, Albania’s financial sector has been exposed to a vast pyramid scheme that has defrauded over 103,000 citizens. The scheme, orchestrated by several unlicensed financial entities and debt collection agencies, has allegedly deceived citizens through microcredit schemes, with some victims losing significant assets.

The Scandal Unfolds

  • Several unlicensed financial entities and debt collection agencies have been involved in the pyramid scheme.
  • These companies acquired 3,999 non-performing loans from a second-tier bank, amounting to €7,299,203.
  • They used a coercive credit-taking scheme, freezing around €510 million in citizen assets and forcing debtors with old bank debts to take new loans despite their inability to repay.

Consumer Credit Misuse

  • Consumer credit was extended by non-banking financial institutions to individual applicants without proper counseling or involvement of adult family members to assume legal responsibility for loan repayment.
  • Lenders assumed the risk of issuing these loans, raising questions about how collateral could be executed through private bailiffs, affecting entire families’ immovable property for a financial obligation taken by one member.

The Consequences

Over six years, this type of credit and its subsequent sales and resales have led to a paradoxical situation where interest amounts plus indirect costs have surpassed the principal value. Documents reveal that these companies used coercive tactics, forcing creditors to take new loans to unblock old ones, with MCA still holding the portfolio.

Reactions and Responses

  • Financial expert Eduart Gjokutaj has criticized the monitoring bodies, saying that microcredits have been misunderstood and that the problem lies with the monitoring bodies.
  • “It is crucial to resolve the issue of people held hostage and implement effective measures to prevent similar cases in the future,” he stated.

Investigation and Accountability

In response to the scandal, the Economic and Financial Crime Investigation Sector of the DVP Tirana has taken security measures against several individuals suspected of involvement in the scheme. Aldo Daka, Albert Gega, Edmond Mato, Arben Meskuti, Kejda Seferi, Elda Ibro, Alketa Tanushi, and Jorsida Dervishi have been placed under house arrest or arrested.

The scandal has sparked widespread outrage among Albanian citizens, with many calling for stricter regulations and greater accountability in the financial sector. As investigations continue, the full extent of the damage caused by this pyramid scheme remains to be seen.