Financial Crime World

Financial Crime Reporting Guidelines in Albania Take Shape Amidst International Compliance Efforts

Introduction

As the international community emphasizes the importance of anti-money laundering (AML) and counter-terrorism financing (CTF), Albania has been working diligently to strengthen its regulatory framework. The Financial Intelligence Unit of Albania (FIU-Albania) plays a crucial role in supervising AML/CTF activities nationwide.

Key Legislation

The key legislation guiding these efforts includes Law No. 9917, which establishes a comprehensive framework for preventing money laundering and financing terrorism. Under this law, entities operating in Albania are required to adhere to specific customer due diligence (CDD) standards.

Transaction Thresholds

Entities must identify customers when transactions exceed:

  • 100,000 Lek
  • Involving foreign exchange, transfer services, or gaming services
  • 1 million Lek or more conducted in one go or through linked transactions

Validity of Previous Data

Doubts about previously acquired identification data must be addressed by entities to ensure compliance with AML/CTF regulations.

Suspicions of Illicit Activities

Entities are required to address suspicions of money laundering or terrorist financing, regardless of transaction values.

Due Diligence Procedures

During the due diligence process, entities should follow rigorous identification and verification of customer identities, understand the purpose of business relationships, continuously monitor transactions, and update customer records. Strict verification protocols must be in place for sporadic customers or those entering a relationship prior to verification completion.

Simplified Due Diligence Measures

Albania has implemented regulations on simplified due diligence measures for low-risk cases. However, ongoing monitoring is necessary even when simplified diligence is applied to detect unusual or suspicious transactions.

Documentation Requirements

For natural persons:

  • Capture identification data such as name, date/place of birth, residences, employment, and personal numbers.
  • Accept genuine documents, notarized copies, or valid electronic documents from customers.
  • Request additional identification documents if needed to confirm the provided data.

For legal persons engaged in for-profit activities:

  • Identify registration details with the National Registration Centre
  • Documents showing the scope of activity
  • Taxpayer Identification Number (TIN)
  • Address

Additional Documents

Legal or proxy representatives of a customer must provide identification data such as name, date/place of birth, citizenship, residences, employment, and representation document copy.

Regulation on Politically Exposed Persons (PEPs)

This regulation defines criteria for identifying and monitoring PEPs and outlines enhanced due diligence measures required when dealing with these individuals.

Re-Ratings Granted Under Mutual Evaluation Report

Albania approved the Mutual Evaluation Report in July 2018, which examined the country’s progress in resolving technical compliance issues. Re-ratings were granted where sufficient development had been accomplished.

Customer Due Diligence (CDD) and Record-Keeping Obligations

Failure to follow AML/CFT Law’s CDD and record-keeping obligations can result in penalties, including proportional and deterrent consequences for trust-related responsibilities under Art. 3/1.

Article 3: Obligations of Trustees

The AML/CFT legislation stipulates the obligations of trustees, including those managing third parties’ assets, providing services to customers, and acting as trustees or equivalent functions for other legal arrangements.

Article 4/1: Obligations of Trustees in Albania

Trustees must identify the Beneficial Owner of these trusts and take appropriate steps to verify their identity using reliable sources.