Financial Crime World

Albania Intensifies Efforts to Combat Money Laundering and Terrorism Financing

Tirana, Albania - In an effort to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime, Albania has introduced various regulatory bodies and frameworks aimed at detecting and preventing suspicious transactions.

Financial Intelligence Unit of Albania (FIU-Albania)

At the forefront of this effort is the FIU-Albania, which serves as the central authority for receiving, analyzing, and disseminating reports related to suspicious transactions, money laundering, and terrorist financing. The FIU plays a crucial role in ensuring compliance with AML/CFT regulations and preventing illegal activities.

Customer Due Diligence Requirements

Entities operating in Albania are required to adhere to specific customer due diligence (CDD) requirements to prevent money laundering and terrorist financing. These include:

  • Transaction Thresholds: Transactions equal to or exceeding 100,000 Lek for specific entities or those providing transfer services, foreign exchange, or gaming services.
  • Validity of Previous Data: Doubts about the accuracy of previously acquired identification data must be addressed.
  • Suspicion of Illicit Activities: Suspicion of money laundering or terrorist financing, regardless of transaction values, requires attention.

Simplified Due Diligence Measures

In low-risk cases, simplified due diligence processes can be applied based on risk assessments by relevant authorities and internal processes. However, entities must still monitor client relationships to detect unusual or suspicious transactions.

Documentation for Customer Identification

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

  • Name
  • Date/Place of Birth
  • Residences
  • Employment
  • Identification document details
  • Personal numbers

Regulations and Penalties

Albania has implemented several regulations aimed at preventing money laundering and terrorist financing, including:

  • Law No. 9917 - Prevention of Money Laundering and Financing of Terrorism
  • Regulation on Customer Due Diligence (CDD)
  • Regulation on Reporting and Record Keeping
  • Regulation on Politically Exposed Persons (PEPs)
  • Regulation on Sanctions and Penalties

Entities found in violation of AML/CFT regulations can face penalties, including administrative, civil, and criminal sanctions.

Progress and Recommendations

Albania has made significant progress in resolving technical compliance issues and addressing shortcomings identified by the Mutual Evaluation Report (MER). The country is recommended to continue strengthening its AML/CFT regime and implementing effective measures to prevent money laundering and terrorist financing.