Financial Crime World

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Albania Takes Steps to Prevent Financial Crime

Tirana, Albania - In its efforts to combat financial crime, Albania has established a robust regulatory framework aimed at preventing money laundering and terrorist financing. The country’s Financial Intelligence Unit (FIU-Albania) plays a crucial role in supervising Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CTF) activities.

Regulatory Compliance Framework

Albania has enacted Law No. 9917, “On The Prevention Of Money Laundering And Financing Of Terrorism”, which sets out specific customer due diligence requirements for entities operating in the country. These requirements include:

  • Rigorous identification and verification of customer identities
  • Understanding the purpose of business relationships
  • Continuous monitoring of transactions
  • Updating customer records

Customer Due Diligence

Entities must adhere to strict customer due diligence standards, including:

  • Transaction thresholds
  • Validity of previous data
  • Suspicions of illicit activities
  • Simplified due diligence measures (for low-risk cases)

If the risk increases during monitoring, entities must shift to full due diligence measures.

Documentation for Customer Identification

The law requires entities to collect specific identification data from customers, including:

  • Name
  • Date and place of birth
  • Residences
  • Employment
  • Identification document details
  • Personal numbers

Entities must also verify the authenticity of documents and retain them within their validity period.

Regulations and Penalties

Albania has enacted various regulations aimed at preventing financial crime, including:

  • Regulation on Customer Due Diligence (CDD)
  • Regulation on Reporting and Record Keeping
  • Regulation on Politically Exposed Persons (PEPs)
  • Regulation on Sanctions and Penalties

Failure to comply with AML/CFT regulations can result in penalties, including:

  • Administrative penalties
  • Civil penalties
  • Criminal penalties

Recommendations and Clauses

Albania has made significant progress in addressing technical compliance issues, as demonstrated by the Mutual Evaluation Report (MER) adopted in July 2018. The country continues to work towards strengthening its AML/CFT framework, with a focus on customer due diligence and record-keeping obligations.

Trustees’ Obligations

Trustees operating in Albania are required to:

  • Maintain crucial information about founders, beneficiaries, trustees, and de-facto control persons
  • Disclose their status when establishing business relationships or conducting occasional transactions
  • Identify the beneficial owner of foreign trusts and take appropriate steps to verify their identity using reliable sources

Conclusion

Albania’s efforts to prevent financial crime are a significant step towards ensuring transparency and integrity in the country’s financial system. The regulatory framework, including customer due diligence requirements and penalties for non-compliance, demonstrates the country’s commitment to combating money laundering and terrorist financing.