Financial Crime World

Fintech Companies in Albania Must Comply with Strict Identification Services Regulations

Tirana, Albania: Navigating a Complex Regulatory Landscape

As the Albanian government continues to adopt digital tools to facilitate business operations, fintech companies operating in the country are being forced to navigate a complex regulatory landscape to provide identification services.

The EU-Accordant Electronic Identification Law

In 2015, the Albanian Parliament passed the law “on electronic identification and trusted services”, which brought Albania’s regulations into line with EU standards. This law laid the foundation for the widespread adoption of electronic identification among businesses, particularly banks, during the COVID-19 pandemic.

Requirements for Trust Service Providers (TSPs)

To provide identification services, fintech companies must be registered and accredited as TSPs by the National Authority for Electronic Certification and Cyber Security (AKCESK). This involves submitting detailed financial, technical, and legal documentation within 30 days of commencing operations. Some key requirements include:

  • A minimum financial guarantee of 100 million Albanian leks (approximately €850,000), which must be held throughout the TSP’s activity
  • Insurance against damages resulting from qualified certificates issued to signature holders

Competition in a Regulated Market

Currently, there are only two registered TSP operating in Albania: the National Agency for Information Society and ALEAT Sh.p.k. As a result, fintech companies looking to enter this market face stiff competition and must ensure they meet all regulatory requirements.

Quote from Industry Expert

“Fintech companies operating in Albania must be aware of the complex regulations surrounding identification services,” said a senior industry expert. “Those that fail to comply risk facing significant penalties and reputational damage.”

Conclusion

The Albanian government has made significant strides in embracing digital technologies, but fintech companies must adapt quickly to changing regulations to remain competitive.