Financial Crime World

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Albania Tightens Screws on Banking Regulations for Anti-Money Laundering

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The Albanian government has implemented stringent measures to combat money laundering and terrorist financing in the country’s banking sector. As part of these efforts, a range of regulatory bodies have been established to oversee and enforce anti-money laundering (AML) and combating the financing of terrorism (CTF) policies.

Key Regulatory Bodies

At the forefront of AML/CTF supervision is the Financial Supervisory Authority (FSA), an independent public organization responsible for policing, approving, and monitoring organizations involved in insurance, securities, and voluntary pension fund industries. The FSA plays a crucial role in ensuring that these institutions comply with AML/CTF regulations.

Another key player is the General Directorate for the Prevention of Money Laundering (GDPML), which develops and carries out AML/CTF policies on behalf of the government. The GDPML works closely with other regulatory bodies, including the Albanian State Police (ASP) and the General Prosecutor’s Office (GPO), to investigate and prosecute money laundering cases.

The Bank of Albania (BOA), the country’s central bank, also plays a significant role in enforcing AML/CTF regulations. The BOA regulates, licenses, and supervises Albanian banks, ensuring that they comply with AML/CTF requirements.

Compliance Requirements for Businesses and Individuals

In addition to these regulatory bodies, businesses and individuals operating in Albania must adhere to strict AML/CTF guidelines. Reporting entities, including financial institutions, exchange offices, and law firms, are required to implement customer due diligence (CDD) measures, apply a risk-based approach to detect and prevent money laundering and terrorist financing, and continuously assess client relationships based on transactional profiles.

Failure to comply with these regulations can result in severe penalties, including fines and even imprisonment. As such, it is essential for businesses and individuals operating in Albania to familiarize themselves with the country’s AML/CTF laws and regulations.

Who Must Comply with AML/CTF Regulations in Albania?

  • Financial institutions, including banks and non-banking financial institutions
  • Exchange offices
  • Savings and credit cooperatives and their affiliated unions
  • Postal services that handle payments
  • Stock exchanges
  • Businesses offering life insurance or reinsurance
  • Gambling and casinos
  • Law firms
  • Public notaries
  • Authorized independent accountants

Key AML/CTF Reporting Obligations

  • To immediately report to the relevant authorities whenever there is suspicion that a transaction may include proceeds of crime or funds derived from criminal conduct used to finance terrorism.