Financial Crime World

AML/CFT Obligations Extended to New Businesses and Professions

The Albanian government has recently extended Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) obligations to new businesses and professions, including real estate agents, dealers in precious metals and stones, lawyers, notaries, other independent legal professionals, accountants, gambling clubs, financial advisors, transportation companies, forwarding activities, construction industry, travel agencies, and administration of third-party property.

Extending AML/CFT Obligations

According to the Financial Action Task Force (FATF) 40 Recommendations and the second EU Directive, these entities are now required to implement AML/CFT measures to prevent money laundering and terrorist financing. The new regulations aim to strengthen Albania’s financial system and ensure compliance with international standards.

Real Estate Agents and Dealers in Precious Metals and Stones

The real estate sector has been identified as a potential risk area for money laundering and terrorist financing, due to the high volume of cash transactions involved in property sales and purchases. Real estate agents are now required to:

  • Conduct customer due diligence
  • Monitor transactions
  • Report suspicious activity to the Financial Intelligence Unit (FIU)

Dealers in precious metals and stones are also subject to AML/CFT regulations, as their businesses often involve large cash transactions. These dealers must ensure that they have adequate systems in place to detect and prevent money laundering and terrorist financing.

Lawyers, notaries, and other independent legal professionals play a crucial role in the financial system, as they often provide services related to property transactions, company formations, and trust management. These professions are now required to implement AML/CFT measures to prevent money laundering and terrorist financing.

National and International Cooperation

The National Committee on Coordinating the Fight Against Money Laundering coordinates national efforts in AML/CFT, while an Inter-Institutional Technical Working Group for the prevention of money laundering provides technical support. Albania has also ratified several international conventions, including the Council of Europe’s 1990 Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime.

However, the evaluators noted that there is room for improvement in the coordination mechanisms, with inconsistent sharing of information and no concerted view on money laundering problems. The government has committed to addressing these issues and strengthening Albania’s AML/CFT framework.

Trust Services

Three banks have received licenses to provide trust services, including investment and administration of funds received in trust. However, there is limited information available on the importance of this sector or clientele, and no information on other trusts or legal arrangements operating in Albania.

The examiners recommended that the issue of trust services be addressed in the AML/CFT regulations and other relevant texts to ensure that these entities are subject to adequate AML/CFT measures.