Financial Crime World

Here is the rewritten article in Markdown format:

Financial Crime Prevention Measures in Albania: A Strong Regulatory Framework

Albania’s relentless pursuit of combating financial crime has led to the establishment of a robust regulatory framework that prioritizes prevention and detection of money laundering (ML) and countering the financing of terrorism (CTF). At the forefront of this effort is the Financial Intelligence Unit (FIU-ALBANIA), which plays a crucial role in analyzing and disseminating reports related to suspicious transactions.

The Prevention of Money Laundering and Financing of Terrorism Law, enacted in 2008, provides the legal foundation for Albania’s financial system regulations. The law mandates customer due diligence (CDD) requirements and threshold transaction identification guidelines for entities operating within the country.

Customer Due Diligence Requirements

  • Entities must take immediate measures to identify transactions worth 100,000 Lek or more.
  • Entities providing transfer services, foreign exchange, or gaming services must also conduct threshold transactions.
  • Transactions exceeding 1,000,000 Lek require identification once the threshold is met, and any doubts regarding previously acquired identification data must be addressed.

Simplified Diligence Procedures

  • Entities can apply simplified diligence procedures for low-risk cases based on risk assessments and internal processes.
  • Ongoing monitoring is crucial for financial compliance.

Proper Customer Identification Documentation

  • Natural persons require documentation with name, personal details, and identification document details.
  • Legal persons need documentation of name, registration details, activity certification, taxpayer identification number, and addresses.

Consequences of Non-Compliance

  • Failing to comply with due diligence and record-keeping obligations can result in significant penalties.
  • The importance of due diligence is underscored by the severe consequences for ignoring these requirements.

Trustees and Reporting Entities

  • Trustees must maintain key information about founders, beneficiaries, and trustees.
  • Failure to disclose status when establishing a business relationship can lead to severe consequences.
  • Reporting entities (REs) are obligated to identify key individuals when dealing with legal arrangement customers, determining the trustee’s residence essential for transparency and compliance with AML/CTF measures.

Key Regulations

  • Article 287 of the Albanian Criminal Code
  • Regulation on Customer Due Diligence and Reporting
  • Regulation on Reporting and Record Keeping
  • Regulation on Politically Exposed Persons
  • Regulation on Sanctions and Penalties

Conclusion

By implementing these measures, Albania has demonstrated its commitment to preventing financial crime and ensuring a safe and secure financial environment for its citizens.