Financial Crime World

ALBANIA TIGHTENS MONEY LAUNDERING LAWS TO COMBAT FINANCIAL CRIME

In a bid to strengthen its anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, Albania has introduced a range of laws and regulations aimed at combating financial crime.

Financial Intelligence Unit of Albania

The Financial Intelligence Unit of Albania (FIU-Albania) is the country’s central authority for supervising AML/CTF activities. The unit receives, analyzes, and disseminates reports related to suspicious transactions, money laundering, and terrorist financing.

Customer Due Diligence Requirements

Entities operating in Albania must adhere to specific customer due diligence requirements:

  • Transaction thresholds: Transactions equal to or exceeding 100,000 Lek for specific entities or those providing transfer services, foreign exchange, or gaming services.
  • Validity of previous data: Doubts about the accuracy of previously acquired identification data must be addressed.
  • Suspicion of illicit activities: Suspicion of money laundering or terrorist financing, regardless of transaction values, requires attention.

Simplified Due Diligence Measures

Simplified diligence processes can be applied in low-risk cases, based on risk assessments by relevant authorities and internal processes. However, ongoing monitoring of client relationships is necessary even when simplified diligence is applied to detect unusual or suspicious transactions.

Documentation for Customer Identification

Entities must capture the following data for customer identification:

  • Natural persons: Name, date/place of birth, residences, employment, identification document details, and personal numbers.
  • Legal persons: Name, registration details, activity certification, TIN, and addresses.

Regulation on Customer Due Diligence (CDD)

This regulation provides guidelines on conducting customer due diligence procedures, including the identification and verification of customer identity, as well as requirements for collecting and verifying customer information.

Regulation on Reporting and Record Keeping

This regulation prescribes procedures and requirements for reporting suspicious transactions and activities to the FIU-Albania, along with the obligations of financial institutions and other reporting entities to maintain records of transactions and customer information.

Regulation on Politically Exposed Persons (PEPs)

This regulation defines criteria for identifying and monitoring politically exposed persons (PEPs) and outlines the enhanced due diligence measures required when dealing with PEPs.