Financial Crime World

Here is the rewritten article in Markdown format:

Improving Financial Access and Inclusion in Albania

==============================================

Expanding Financial Services through Regulatory Reform

The National Payment System Committee (NPSC) plays a crucial role in shaping financial access and inclusion policies in Albania. To enhance its effectiveness, the report suggests broadening the NPSC’s composition to include non-bank providers as voting members through representation.

Key Recommendations for Improving Access Policies

  • Transposing PSD2: The transposition of PSD2 provides an opportunity to reconsider access policies to the BoA-operated automated clearinghouse (AECH) in parallel with credit risk management.
  • Credit Risk Management: A well-structured credit risk management framework is essential for ensuring that financial institutions can accurately assess and manage their exposure to potential losses.

Enhancing Identity Verification

Reliable identity verification is critical for expanding financial services. Albania has made significant progress in modernizing its National Civil Status Registry and issuing smart ID cards. However, authorities must ensure that these can be used effectively across different sectors and industries.

Improving Financial Literacy

Existing financial education initiatives in Albania are commendable but lack a clear long-range strategy. To address this, efforts should focus on:

  • Coordinating Stakeholders: Improved coordination among stakeholders is essential for developing a comprehensive financial literacy program.
  • Addressing Individual Needs: Efforts should focus on addressing individual’s payment and store-of-value needs.

Improving Government Disbursements and Collections

A coherent approach to government disbursements and collections can improve financial access and inclusion. To achieve this, efforts to enable government disbursements to accounts should be broadened beyond public sector employees.

Expanding Electronic Payment Services

The expansion of electronic and online payment services should be encouraged to reduce reliance on cash-based transactions.

  • Reducing Cash-Based Transactions: By promoting electronic and online payment services, Albania can move towards a more digital and efficient financial system.
  • Increased Financial Inclusion: This will enable greater financial inclusion, as more individuals will have access to convenient and secure payment options.