ALBANIA TIGHTENS BELTS ON ANTI-MONEY LAUNDERING, TERRORISM FINANCING REGULATIONS

Strengthening Banking Regulations in Albania

TIRANA - In a bid to stem the flow of illicit funds through its financial system, Albania has strengthened its banking regulations to combat money laundering and terrorism financing.

The Role of Bank of Albania

At the heart of these efforts is the country’s central bank, Bank of Albania, which now plays a critical role in ensuring that financial institutions operating within its jurisdiction adhere to strict anti-money laundering (AML) and combating the financing of terrorism (CFT) guidelines.

Understanding Money Laundering and Terrorism Financing

• Money laundering refers to the process by which proceeds from illicit activities are laundered into seemingly legitimate assets.
• Terrorism financing, on the other hand, involves securing funds to support terrorist activities.

Key Channels of Illicit Activity in Albania

Financial institutions such as banks, non-bank financial institutions, and foreign exchange bureaus have been identified as key channels through which money laundering and terrorism financing can occur. Involvement in these processes, even when unintentional, can tarnish the reputation of an institution, its regulatory body, the entire financial system, and the country at large.

Bank of Albania’s Mandate

To address this challenge, Bank of Albania has been mandated to supervise licensed institutions and assess their compliance with AML/CFT laws and regulations. The central bank’s role is crucial in maintaining a robust financial system that is resilient to illicit activities.

Strengthening Banking Regulations for Economic Stability and Security

By strengthening its banking regulations, Albania aims to reduce the risk of money laundering and terrorism financing within its borders, ultimately contributing to the country’s economic stability and security.