Bank of Albania approach on client identification Deniz

Bank of Albania approach on client identification Deniz Deralla Bank of Albania Tirana, October 1, 2019

CONTENT New Payments Law AML/FT law in force Bo. A regulatory framework on AML/FT

National Law on payments services REASONS FOR THE NEW FRAMEWORK q Need for a new comprehensive framework q Government strategy on small payments/reduction of cash transactions q Open the market for entities other than banks to increase competition q Further alignment with aquis communitaire and integration on Single Euro Payment Area q Increase access to transaction accounts and financial services, while safeguarding the consumer rights.

AML/FT law in force In accordance with the provision of the Law on AML/FT, the entities in order to implement the enhanced due diligence, should require the physical presence of customers and their representatives: a) prior to establishing a business relationship with the customer; b) prior to executing transactions on their behalf.

Bo. A regulatory framework on AML/FT In accordance with the provision of the regulation no. 44, dated 10. 06. 2009 “On prevention of money laundering and terrorist financing”, of the Bank of Albania: • Opening of a banking account, even in case it shall be used for transactions carried out electronically (e-banking account), shall be conducted only upon the physical presence of the customer; • Subjects shall adopt and implement specific procedures of risk management, in cases of transactions or business relationships, carried out without the physical presence of the customer.

Steps ahead • After the approval of the new law by the parliament, the respective sublegal acts should be drafted by Bank of Albania in accordance with the new provision of this law; • The new guidelines will consider, among other requirements, the rules on strong customer identification and common and secure communication (Regulatory Technical Standards EBA/RTS/2017/02 of 23 February 2017 under Article 98 of PSD 2). • The AML/FT regulation (no. 44) will be ammended accordingly, to provide necessary flexibility and allow wider access to transaction accounts and financial services.

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