Banks in Albania Must Adhere to Stringent Compliance Procedures

Strict Regulations to Prevent Money Laundering and Terrorist Financing

Tirana, Albania - The Albanian banking sector has been reminded of its obligation to adhere to strict compliance procedures in order to prevent money laundering and terrorist financing, as well as ensure the enforcement of embargos.

Compliance Procedures: A Key Aspect of Banking in Albania

Banks operating in Albania are subject to a range of regulations and laws designed to protect clients’ interests and maintain the reputation of the financial sector. These include requirements to:

• Respect all banking and financial regulations, legal and regulatory provisions
• Adhere to professional and ethical standards
• Follow group procedures

Know Your Client (KYC): Understanding Customer Origin of Funds

A key aspect of compliance for Albanian banks is knowledge of their customers. Institutions are required to understand the origin of funds by checking the consistency of banking and financial transactions with the customer’s business and financial situation.

Preventing Money Laundering and Terrorist Financing

American Bank of Investments, a leading banking institution in Albania, has established policies requiring implementation of an anti-money laundering and terrorist financing system. These include:

• Rules for identifying and obtaining information about customers or their beneficial owners
• Reporting suspicious transactions to the Albanian Financial Intelligence Unit (FIU)

Supervision by the Central Bank of Albania

American Bank of Investments is subject to supervision by the Central Bank of Albania, which ensures that it complies with regulations in force. The bank has also drawn up rules designed to guarantee customer protection, covering:

• Advertising and the validation of products sold to customers

Commitment to Compliance: Regular Monitoring and International Standards

The Compliance function at American Bank of Investments regularly monitors complaints using a set of quality indicators, such as processing times. The bank’s commitment to compliance is reflected in its efforts to adhere to international standards, including:

• FATCA (Foreign Account Tax Compliance Act)
• The Wolfsberg Group Questionnaire

Regulators’ Stresses: Maintaining the Integrity of the Albanian Banking Sector

Regulators have stressed that compliance procedures are essential for maintaining the integrity of the Albanian banking sector and protecting the interests of clients.