Albania Tightens Anti-Money Laundering Legislation to Comply with EU Directive

The Albanian Parliament has adopted a new law aimed at strengthening the country’s anti-money laundering (AML) framework, bringing it in line with European Union standards.

Key Changes Introduced

• A new definition of “politically exposed persons” (PEPs) and their associates, excluding middle-ranking management or junior-ranking officials who are not obliged to declare their assets.
• PEPs will be considered as such for up to three years after leaving office.
• Revised definitions of beneficial owner and obliged entities under the AML Law.
• New services added to the list of those requiring AML compliance, including:
  • Lawyers
  • Notaries
  • Professionals providing fiscal advice
• New categories of obliged entities, such as:
  • Auditors
  • Chartered accountants
  • Tax advisors

Enhanced Customer Due Diligence Measures

The law introduces enhanced customer due diligence measures for transactions with high-risk countries, in line with the EU Directive on the prevention of the use of the financial system for the purpose of money laundering or terrorist financing.

Stricter Penalties for Serious Contraventions

• Obliged entities found to have committed serious breaches can face fines of up to twice the amount gained from the illegal activity, or a maximum of ALL 125 million (approximately €850,000).
• Banks and financial institutions may also be subject to a penalty of up to 10 percent of their annual turnover.

Effective Date and Expected Impact

The new law comes into effect on January 5, 2022, and is expected to strengthen Albania’s efforts to combat money laundering and terrorist financing. The move is seen as a positive step towards improving the country’s financial sector governance and compliance with international standards.