ALBANIA TIGHTENS GRIP ON FINANCIAL INSTITUTIONS WITH NEW REGULATIONS

TIRANA, ALBANIA - In a move aimed at bolstering financial stability and integrity in the country, Albania’s Supervisory Council has approved a new set of regulations governing financial institutions.

New Regulations to Enhance Transparency and Accountability

The rules, which come into effect on January 1st, 2022, will regulate the licensing of payment institutions and electronic money institutions in Albania. According to the regulations, entities seeking licenses must meet strict requirements, including submitting comprehensive documentation and adhering to a rigorous approval process.

Key Requirements for License Holders

• Submitting comprehensive documentation
• Adhering to a rigorous approval process

Notable Changes to Existing Regulations

• Payment service providers who benefit from exemptions under specific articles of the Law on Payment Services will be required to register in the public registry of payment service providers maintained by the Bank of Albania.
• Entities must notify the central bank during the execution of their activities.

Enhancing Transparency and Accountability in Albania’s Financial Sector

The Supervisory Council’s decision is seen as a major step towards enhancing transparency and accountability within Albania’s financial sector, which has faced criticism for lax regulation in the past. By imposing stricter controls on financial institutions, authorities aim to prevent illicit activities such as money laundering and ensure that entities operating in the country adhere to international standards.

Far-Reaching Implications for Albania’s Financial Landscape

The new regulations are expected to have far-reaching implications for Albania’s financial landscape, with industry experts predicting a significant increase in regulatory compliance among payment service providers and electronic money institutions.