Financial Crime World

Banks’ Net Stable Financing Ratio Under Scrutiny: Minimum Level Required

In the Republic of Albania, banks are subject to strict regulations aimed at ensuring financial stability and preventing money laundering and terrorist financing. According to Law no. 9917 dated May 19, 2008, “On the prevention of money laundering and terrorism financing”, banks must maintain a robust anti-money laundering (AML) program that includes four key areas:

Key Areas of AML Program

  • Know Your Customer (KYC)
  • Customer Due Diligence (CDD)
  • Customer and Transaction Screening
  • Suspicious Activity Reporting

As part of their AML program, banks are required to:

Identifying and Verifying Customers

  • Implement measures such as simplified CDD, standard CDD, and enhanced CDD to identify and verify permanent or occasional customers
  • Have policies and procedures in place for accepting, identifying, recording, monitoring, risk management, and reporting customer transactions

Banks must also report suspicious transactions to the Albanian Financial Intelligence Unit (FIU) if they suspect that a transaction may be related to money laundering or terrorist financing. This includes reporting cash transactions exceeding ALL 1 million (approximately USD 10,000) or its equivalent in foreign currency.

Reporting Suspicious Transactions

  • Use standardized reporting forms and terms as set out by Instruction no. 28 of 2012
  • Continuously monitor business relationships with customers and report any suspicious activities immediately to the FIU

As a minimum requirement, banks must have an effective AML compliance program that:

Minimum Requirements

  • Meets regulatory requirements
  • Manages money laundering risks
  • Failure to comply can result in penalties from the Bank of Albania or the FIU

In conclusion, banks in the Republic of Albania are subject to strict regulations aimed at preventing money laundering and terrorist financing. By implementing robust AML programs and reporting suspicious transactions, banks can help maintain financial stability and prevent illegal activities.