Financial Crime World

Anti-Money Laundering Regulations in Albania: A Comprehensive Guide

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Albania has been at the forefront of combating money laundering and terrorism financing, with its anti-money laundering (AML) regulations being some of the most stringent in the region. In this article, we will explore the key aspects of these regulations, including know your customer (KYC) requirements, national regulatory framework, and due diligence measures.

KYC Requirements

The AML Law in Albania requires financial institutions to verify the identity, suitability, and risks involved with maintaining a business relationship. This involves collecting specific data from customers, including:

  • Identification documents
  • Ultimate beneficiaries’ information
  • Transaction data

National Regulatory Framework

Albania’s AML regulations are primarily governed by Law No. 9917, dated May 19, 2008, “On Prevention of Money Laundering and Terrorism Financing,” which has undergone several amendments since its inception. The law is supplemented by Regulation No. 44/2009, “On Prevention of Money Laundering and Terrorism Financing,” which focuses on the banking and financial sector.

General Directorate on Prevention of Money Laundering

The General Directorate on Prevention of Money Laundering is responsible for overseeing Albania’s AML regulations.

Due Diligence Measures

Financial institutions in Albania are required to conduct due diligence measures, including:

  • Verifying customer identity before establishing a business relationship
  • Conducting thorough background checks on customers and their ultimate beneficiaries
  • Monitoring transactions for suspicious activity
  • Reporting any suspected money laundering or terrorism financing to the relevant authorities

Outsourcing Customer Due Diligence

While Albania’s AML regulations do not explicitly prohibit outsourcing customer due diligence, it is generally recommended that financial institutions conduct these measures in-house. However, it may be possible to engage professional advisors such as:

  • Notaries
  • Attorneys
  • Financial consultants

to assist with verification.

Entities That Can Be Relyed Upon to Comply with AML Regulations

The following entities are specifically recognized by law as being able to comply with AML regulations:

  • Credit institutions
  • Financial institutions
  • Auditors, external accountants, and tax advisors
  • Notaries and other independent legal professionals
  • Estate agents

Conclusion

Albania’s anti-money laundering regulations provide a robust framework for combating money laundering and terrorism financing. By understanding the key requirements and due diligence measures outlined above, financial institutions can ensure compliance with these regulations and contribute to a safer and more secure financial environment.