Albania Tightens Banking Industry Regulations with New Law on Payment Accounts
A Landmark Law for Consumer Protection and Financial Inclusion
Tirana, Albania - The Albanian Parliament has approved a groundbreaking law aimed at strengthening consumer protection and promoting financial inclusion in the country’s banking sector. The “Law No. 100/2023 On Payment Accounts with Basic Features” came into effect on January 3, 2024, following its publication in the Official Gazette.
Aligning Regulations with EU Standards
The new legislation is designed to align Albania’s regulations with EU standards, specifically Directive 2014/92/EU on the comparability of fees related to payment accounts, payment account switching, and access to payment accounts with basic features. This alignment will facilitate easier financial transactions between Albania and European countries.
Essential Banking Services for All
A payment account with basic features is a fundamental bank account that allows consumers to perform various transactions, including:
- Opening, maintaining, and closing the account
- Depositing funds
- Withdrawing cash at ATMs or counters
- Executing direct debits
- Making online payments through cards (excluding credit card transactions)
- Transferring credits through bank terminals, counters, or online platforms
Compliance Requirements for Banks
Banks operating in Albania are required to either open a payment account with basic features for consumers or reject their application within 15 working days. However, there are exceptions when opening such an account would breach anti-money laundering and terrorist financing provisions or if the customer already has an active payment account providing similar services with another bank.
Consequences of Non-Compliance
Banks that fail to comply with the regulations outlined in the new law may face fines ranging from ALL 50,000 to ALL 250,000. The Bank of Albania will be responsible for overseeing the enforcement of these regulations.
Promoting Financial Inclusion and Consumer Protection
The introduction of this law is expected to enhance consumer protection and promote financial inclusion in Albania by providing access to essential banking services for all individuals, including those with no fixed address, refugees, stateless persons, and asylum seekers.