Financial Crime World

Albania’s Financial Institutions Face New Regulatory Requirements

Introduction

The Bank of Albania has approved a set of regulations outlining the conditions, requirements, deadlines, and documentation procedures for licensed institutions under its supervision. These new regulations aim to provide a clear framework for financial institutions operating in the country.

Regulation Updates

  • Regulation 14/2009 “On Granting the License and Exercise of Banking Activity of Banks and Branches of Foreign Banks in the Republic of Albania” has been integrated into a single version, including any subsequent amendments made over the years.
  • Regulations 1/2013 “On Licensing, Exercise of Activity, Revocation of the Licence and Liquidation of Credit Portfolio Created from Financial Activity of Non-Bank Financial Institutions”, 31/2007 “On Licensing, Organisation, Activity and Supervision of Foreign Exchange Bureaus”, 104/2016 “On Licensing and Activity of Savings and Loan Associations and Their Unions”, and 59/2021 “On Licensng of Payment Institutions and Electronic Money Institutions and Registration of Payment Service Providers” have also been updated with integrated versions.

New Regulation: Public Register of Payment Service Providers

The Bank of Albania has approved Regulation 7/2022 “On the Public Register of Payment Service Providers”, which aims to enhance transparency and oversight in the payment services sector. This new regulation requires payment service providers to register with the public register, providing key information about their activities and operations.

Compliance Requirements

Financial institutions operating in Albania are expected to comply with these regulations, which provide a clear framework for:

  • Licensing
  • Approval of additional activities
  • Obligation for informing the Bank of Albania
  • Prior approvals for exercising activity
  • Legal reorganisations

The Bank of Albania will closely monitor compliance with these regulations, ensuring that financial institutions operate in a safe and sound manner.

Strengthening the Regulatory Framework

These new regulations are seen as a major step forward in strengthening the regulatory framework for financial institutions in Albania, enhancing stability and confidence in the country’s financial system.