Albania

Last updated: 19/02/2007

CENTRAL AUTHORITY FOR REPORTING

Directorate of Combating Money Laundering

National efforts in the fight against money laundering are coordinated by the National Committee, which is directed by the Prime Minister of the country.

ARE LAWYERS COVERED BY ANTI-MONEY LAUNDERING LEGISLATION?

Attorneys, notaries, and representatives with power of attorney are covered by Money Laundering Legislation.

LAWS REGARDING ANTI-MONEY LAUNDERING PROCEDURES

Law No. 8610, dated 17.05.2000 on the Prevention of Money Laundering (the 'Law’).
In June 2003 Law No. 9084, came into effect, strengthening Law No. 8610. Law 9084 refines the legal definition of money laundering, making it consistent with EU recommendations.
Article 287 of the Criminal Code has criminalised money laundering.
Law No.7895 amended by Law No.9275, dated 16/09/2004.

The Albanian Government is presently preparing a new draft law for anti money laundering.

IN ADDITION TO THESE LAWS, IS THERE ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS CURRENTLY IN PLACE?

No information available.

UNDER WHAT CIRCUMSTANCES IS A LAWYER UNDER THE OBLIGATION TO REPORT?

According to article 5 of the Law, the subjects of this Law (attorneys, notaries, and representatives with power of attorney) shall record all customers’ transactions in cash of amounts greater than 2.000.000 (two million) Lek or the counter value in foreign currencies.

After recording the transaction, if rational suspicion for money laundering arises as defined under this Law (Article 2, item 1), the subject shall report to the Responsible Authority no later than 48 hours.

The subjects of this Law shall report to the Responsible Authority all transactions in cash and or transfers of funds for amounts greater than 70.000.000 (seventy million) Lek or the counter value in foreign currencies.

The subjects of this Law shall report to the “Responsible Authority” all customers’ transactions exceeding the amount of 2.000.000 (two million) Lek or the counter value in foreign currencies in cases when they discern:

abnormalities in customer transactions defined in the Article 2 item 1, especially in deposits, transfers and/or currency exchanges, as well as the issuance of negotiable instruments (check, bill and promissory note);
unjustified, complex, and unusual circumstances in the transactions;
transactions that do not appear to have a legal or economic justification;
information that the funds are derived from criminal activity;
suspicions of money laundering that arise after the transaction has been performed and any other case not provided above, when elements of committing the penal offence of money laundering exist.

The Subjects of this Law should notify the Responsible Authority when they come into possession of information that either confirms or denies the suspicion.

Information to the Responsible Authority is given only by the Administrators, officials, or authorised personnel of the subjects.

For the purpose of this Law and other by-laws, the Responsible Authority will determine the form and procedure of investigating and reporting the information.

LAWYER RESPONSIBILITY/LIABILITY

In addition to those obligations arising under Articles 3, 4, 5 & 12 of the Law:

Article 7

In order to support and implement this Law and other bylaws, the subjects of this Law shall:

appoint an official of high level in the head office, affiliate, branch, agency or representative office (if any) to whom all officers and other personnel report sufficient information that may constitute elements of the definitions made in Article 5 of this Law;
establish a central unit responsible for collecting information;
compile and implement interior regulations and instructions for the prevention of money laundering;
inform periodically their employees and personnel about the legal procedures related to the penal offence of money laundering;
organise periodically staff qualification programs;
charge the Internal Auditor to enforce the provisions of this Law.
ensure that the affiliates, branches, and their agencies outside the territory of the Republic of Albania act in compliance with this Law.

In case the number of staff of the subjects of this law is less than 3 (three), the requirements determined in Article 7 item 1, as above, shall be carried out by the administrator himself or the authorized person, employee of the subject.

Article 14: Administrative Infringement

When the performance of the operations or non-operations by high level directors of the authorised subjects according to the Article 7 item 1 of this law do not constitute penal offence, they are administrative infringement and fines are imposed on the subjects from 50 000 (fifty thousand) Lek up to 100 000 (one hundred thousand) Lek.

(The Prevention of Money Laundering Law; Article 7; Article 14, item 2.)

CLIENTS IDENTIFICATION AND VERIFICATION

Article :4 Identification Procedures

All the subjects of this Law should identify the customers before making a transaction over the amounts defined in Article 5 of this Law.

Customer identification by the subjects, is performed by registering and recording the following information in a special file:

For the natural non business person (individuals): name, surname, date of birth, place of birth, his temporary and permanent address, as well as type and number of the official ID card and the issuing organisation, as well as all changes made up to the moment of performing the transaction.
For the natural business person: name, surname, number and date of the Court decision to perform his business activity, tax identification number and the issuance date by the taxation authorities for performing the activity as well as all changes made, up to the moment of performing the transaction.
For the juridical person: name, number and date of the Court decision with respect to its registration as a legal person, tax identification number issued by the taxation authorities for performing the activity, temporary and permanent head office, nature of the business and the purpose, type, date, amount and the currency of the transaction, as well as all changes made, up to the moment of performing the transaction.
For the legal representative of the customer: name, surname, date and place of birth, official ID number and the issuance institution, proof of power of attorney granted to him to act on behalf of the customer as well as all changes made, up to the moment of performing the transaction.

For the purpose of this Law and other by-laws, the “Responsible Authority” will determine the form and procedure of recording the data.

Identification documentation of all the customers should be in original and is valid within the term of its legal validity. If the amount is not declared at the time the transaction is performed, the above subjects have to identify the customer, as soon as the amount is declared. All the customers requiring to make a transaction of an amount greater than the one defined in Article 5 of this Law, shall provide a declaration on the final beneficiaries of the fruit of ownership, the source, nature and the income benefited from currency circulation, excluding payments made with respect to social security.

LAWYERS PROSECUTED FOR MONEY LAUNDERING SITUATIONS

No information available.