Financial Crime World

KYC Procedures for Financial Institutions in Albania: A Comprehensive Guide

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The financial services industry in Albania is subject to Know Your Customer (KYC) guidelines and regulations aimed at preventing money laundering and terrorist financing by verifying the identity, suitability, and risks involved in maintaining business relationships. The legal foundation of these requirements lies in the Anti-Money Laundering (AML) Law (Law no. 9917, dated May 19, 2008) and the AML Regulation (Regulation no. No. 44/2009), with the latest amendments made in 2019.

Overview of KYC Requirements

The General Directorate on Prevention of Money Laundering is responsible for overseeing compliance with AML regulations in Albania, ensuring that financial professionals adhere to mandatory procedures for customer due diligence. This involves collecting and verifying specific information from customers before establishing a business relationship or engaging in certain transactions.

Information Required for New Customers

For newly identified customers, financial institutions in Albania must obtain the following information:

  • Business identification data, including:
    • Name
    • Registration details
    • Entity type
    • Tax ID
    • etc.
  • Ultimate beneficiary details and identification data
  • Transactional data, such as:
    • Parties involved
    • Transaction value
    • Execution date
    • etc.

This information must be provided before establishing a business relationship or engaging in specific transactions, such as transferring money within or outside Albania, or conducting transactions exceeding certain thresholds.

High-Risk Relationships

In high-risk relationships, face-to-face identification is necessary before establishing a legal relationship. While third-party verification is not explicitly prescribed in the AML Law, Albanian entities may engage professional advisors for verification under certain circumstances, including:

  • Credit institutions
  • Financial institutions
  • Auditors
  • External accountants and tax advisors
  • Notaries
  • Other independent legal professionals

Important Notes

Entities cannot rely solely on other trust or company service providers for KYC procedures, as they must ensure their own compliance to minimize risk.

If you have any questions regarding KYC procedures and AML regulations in Albania, feel free to ask, and we’ll be happy to help clarify any ambiguities or complexities you might encounter.