Financial Crime World

Albania Strengthens Financial Sector with AML/CTF Compliance

TIRANA, ALBANIA - As Albania’s financial sector continues to grow and develop, banks and other financial institutions must adhere to strict Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) procedures. The Financial Supervisory Authority (FSA), a public independent organization, oversees the implementation of these regulations.

Regulatory Bodies

Several key regulatory bodies play crucial roles in ensuring AML/CTF compliance in Albania:

  • Financial Supervisory Authority (FSA): Oversees and monitors financial institutions’ adherence to AML/CTF regulations.
  • General Directorate for the Prevention of Money Laundering (GDPML): Develops and implements AML/CTF policies.
  • Coordination Committee for the Fight Against Money Laundering (CCFML): Plans and directs AML/CTF policy, meeting annually to discuss strategies.
  • Albanian State Police (ASP): Responsible for investigating crimes and maintaining law and order.
  • General Prosecutor’s Office (GPO): Conducts criminal prosecution and supervises trials on behalf of the state.

Compliance Obligations

To comply with AML/CTF regulations in Albania, financial institutions must:

  1. Implement customer due diligence (CDD) procedures: Verify clients’ identities and assess their risk profiles.
  2. Apply a risk-based approach: Develop policies and procedures to detect, evaluate, monitor, and reduce risks related to money laundering and terrorism financing.
  3. Install suitable AML/CTF systems: Implement relevant policies, procedures, structures, training, and control systems to manage risk exposure.
  4. Continuously assess clients’ business connections: Evaluate transactions based on the client’s profile, transactional profile, and regional risk exposure.

Reporting Obligations

Financial institutions have a responsibility to immediately report suspicious transactions to the appropriate authorities if they suspect that a transaction may involve proceeds of crime or funds derived from criminal conduct used to finance terrorism.