Financial Crime World

Albania’s Financial Intelligence Unit Urges Enforcement of AML/CTF Compliance

Background

The Financial Intelligence Unit (FIU) of Albania has issued a stern warning to financial institutions and other reporting entities to strictly adhere to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CTF) regulations.

Requirements for Customer Identification

According to Law No. 9917, Prevention of Money Laundering and Financing of Terrorism, financial institutions are required to conduct rigorous customer due diligence procedures to identify and verify customer identities, as well as report suspicious transactions and activities to the FIU-Albania. The law outlines specific requirements for customer identification, including:

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

Entities must also capture information on legal representatives, founders, beneficiaries, and trustees.

Consequences of Non-Compliance

Failure to comply with these regulations can result in severe penalties, including:

  • Administrative penalties
  • Civil penalties
  • Criminal penalties

Implementation of AML/CTF Compliance Software

The FIU-Albania has urged financial institutions to implement effective AML/CTF compliance software to ensure accurate and timely reporting of suspicious transactions and activities.

Monitoring Customer Relationships

In addition, the FIU-Albania has emphasized the importance of monitoring customer relationships and updating records regularly to detect unusual or suspicious transactions.

Identification of Politically Exposed Persons (PEPs)

Regulatory bodies in Albania have also highlighted the need for entities to identify and monitor PEPs and apply enhanced due diligence measures when dealing with them.

Progress Made by Albania

The Albanian government has taken significant steps to strengthen its AML/CTF framework, including:

  • Implementation of regulations on customer due diligence
  • Reporting and record-keeping
  • Sanctions and penalties

In 2018, Albania approved the Mutual Evaluation Report (MER), which examined the country’s progress in resolving technical compliance issues. The report highlighted several areas where Albania needed to improve its AML/CTF framework.

Since then, Albania has made significant progress in addressing these shortcomings, including the implementation of new regulations and guidelines on customer due diligence and reporting obligations.

Conclusion

Financial institutions and other reporting entities are urged to take immediate action to ensure full compliance with AML/CTF regulations. Failure to comply can result in severe penalties and reputational damage. Regulatory bodies in Albania are urging financial institutions and other reporting entities to implement effective AML/CTF compliance software to ensure accurate and timely reporting of suspicious transactions and activities.

  • Take immediate action to ensure full compliance with AML/CTF regulations
  • Implement effective AML/CTF compliance software
  • Monitor customer relationships regularly
  • Identify and monitor PEPs
  • Ensure accurate and timely reporting of suspicious transactions and activities