Combating Terrorist Financing and Money Laundering: The Bank of Albania’s Proactive Approach

Introduction

The Bank of Albania has taken a proactive stance in combating money laundering and terrorist financing within its borders, in an effort to curb the flow of illegal funds.

The Threats of Money Laundering and Terrorist Financing

• Money Laundering: The process by which criminal proceeds are transformed into legitimate assets poses a significant threat to Albania’s financial system.
• Terrorism Financing: Securing funds to support terrorist activities is a growing concern for authorities worldwide.

The Bank of Albania’s Role in Combating Illicit Activities

The Bank of Albania, responsible for supervising licensed institutions and enforcing anti-money laundering (AML) and counter-terrorist financing (CFT) regulations, plays a crucial role in preventing these illicit activities. Pursuant to the Law “On the prevention of money laundering and terrorism financing” and the Law “On banks in the Republic of Albania”, the Bank works tirelessly to assess the compliance of financial institutions with AML/CFT requirements.

The Importance of Vigilance

Even seemingly innocuous institutions, such as:

• Banks
• Non-bank financial institutions
• Foreign exchange bureaus

can have severe consequences for their reputation and that of the country as a whole. Therefore, it is essential for these entities to remain vigilant in their efforts to prevent money laundering and terrorist financing.

The Bank of Albania’s Commitment to Combating Illicit Activities

By taking a proactive approach to combating these illicit activities, the Bank of Albania aims to:

• Safeguard the integrity of the financial system
• Protect the interests of its citizens

In doing so, it reinforces its commitment to upholding international standards and best practices in AML/CFT regulations.