Financial Crime World

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AML/CFT Regulatory Updates in Albania: A Comprehensive Review

TIRANA, ALBANIA - As the global fight against money laundering and terrorist financing continues to intensify, Albania has made significant strides in strengthening its regulatory framework to combat these illicit activities.

Financial Intelligence Unit (FIU-Albania)

At the heart of this effort is the Financial Intelligence Unit (FIU-Albania), which serves as the central authority for receiving, analyzing, and disseminating reports related to suspicious transactions, money laundering, and terrorist financing. Under its purview, entities operating in Albania are required to adhere to specific customer due diligence requirements.

Customer Due Diligence Requirements

According to Law No. 9917, entities operating in Albania must conduct rigorous identification and verification of customer identities, understand the aim of the business relationship, and continuously monitor transactions. This process includes:

  • Verifying customer information
  • Ensuring the accuracy of previously acquired data
  • Addressing doubts about the accuracy of such data

The regulation also allows for simplified due diligence measures to be applied in low-risk cases, based on risk assessments by relevant authorities and internal processes. However, ongoing monitoring is necessary even when simplified diligence is applied to detect unusual or suspicious transactions.

Documentation Requirements

Entities are required to maintain accurate records of customer identification, including:

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

Legal persons must provide additional documentation, such as:

  • Registration details
  • Activity certification
  • Taxpayer Identification Number (TIN)
  • Addresses

Regulatory Framework

Albania’s regulatory framework is comprised of several key articles, including:

  • Article 4/2: Simplified due diligence measures
  • Article 5: Customer identification guidelines
  • Article 287 of the Albanian Criminal Code: Laundering proceeds of a criminal offense

Additionally, the country has implemented regulations on:

  • Customer due diligence (Article 7)
  • Reporting and record-keeping (Article 18)
  • Politically exposed persons (PEPs) (Article 12)
  • Sanctions and penalties (Article 23)

Recent Developments

Albania recently approved its Mutual Evaluation Report (MER) in July 2018, which examined the country’s progress in resolving technical compliance issues. As a result, re-ratings were granted where sufficient development had been accomplished.

In conclusion, Albania has made significant strides in strengthening its regulatory framework to combat money laundering and terrorist financing. Entities operating in the country must adhere to specific customer due diligence requirements and maintain accurate records of customer identification.