Law 8610

Unofficial translation

 

LAW

No. 8610 dated May 17, 2000


FOR THE PREVENTION OF MONEY LAUNDERING


Based on articles 78 and 83 paragraph 1 of the Constitution, with the proposal of the Council of Ministers,


People’s Assembly


Of the Republic of Albania

Decided:


Article 1

Scope


This law aims at prevention of money laundering, which derive from the criminal activity, as well as the fight against financial crime.


Article 2

Definitions


The following terms, when this law provides otherwise, will have the correspondent meaning:

1. “Money Laundering” is the circulation or the re-circulation of money deriving from criminal activity, which are called” unclean”

Money laundering consists of:

a. deposit, transformation , transfer and/or exchange of the money, aiming at the masking, concealing or negation of the belonging or the property origin, which derives from the criminal activity;

b. gain the property right when the subject has knowledge over any kind of property deriving from the criminal activity or by use of unclean money;

c. negotiation in favor of another person for money depositing, transformation, transfer and/or exchange, aiming at the masking, concealing or negation of the belonging or the property origin, which derives from the criminal activity;

d. participation as a shareholder to the juridical person aiming at the masking, concealing or negation of the belonging or the property origin, which derives from the criminal activity;

e. collaboration in the commitment of the above operations, which are already committed or remained in tentative, done by direct or indirect, acts, as well as the concealment of the criminal act consequences. This includes also the cooperation between the subject and the criminal client who commits the money laundering crime, by impeding the information giving by the subjects based on the determinations set out by this law.

2. “Client”, for the effects of this law, is the physical person (trader or non-trader-individual), juridical person, resident or not, Albanian or foreign, public or private.

3. “Responsible Authority” basing and implementing this law and other normative acts, is the “Agency for the coordination of fight against Money Laundering, next to the Ministry of Finance. The juridical status and its position of the “Responsible Authority” are determined by Council of Ministers’ Decision.

4. “Cash” basing and implementing this law and other normative acts, is the currency in circulation including the national and/or foreign currency in letter and metallic forms.

5. “Suspension of the financial operation” in compliance and implementation of this law and other normative acts, is the interruption of financial operations from the "Responsible Authority”.


Article 3

Subjects


1. Subjects are the physical and juridical person, foreseen in the Civil Code of the Republic of Albania, that basing and in full implementation of this law and other normative acts, perform activities defined in this law.

Such subjects are as follows:

  • Banks and other subjects which carry out financial and banking activity, being licensed by the Albanian National Bank.

  • Exchange money bureau;

  • Stock Exchange;

  • Investment Funds;

  • Insurance and/or re-insurance Institutions and other legal entities, which, exercise insurance and/or re-insurance activity, authorized by Insurance Supervisory Commission;

  • Responsible institutions in the Privatization Process;

  • Postal Services and other intermediaries fulfilling money transfer activities;

  • Associations carrying out business activities such as casinos, fortune games;

  • Authorized accounting experts;

  • Each physical and juridical person whose business activity is linked with:

    1. Trade of the transport equipment;

    2. The transport and dispatch activity;

    3. Trade of valued and/or antic goods;

    4. The evaluation of the real estate;

    5. The third party property administration;

    6. The precious metal and stones trading activity;

    7. The traveling Agencies;

  • The advocates, public notary offices and the legal representatives by letter of attorney;

  • Tax and customs organs;

  • Filial, branches, agencies or representative offices of the foreign subject, in or out of Republic of Albania territory;

  • The offices legalizing the transfer of change of the property ownership.


Article 4

Identification Procedures


1. All the subjects of this law identify the clients before the completion of the financial operation over the amounts determined in article 5 of this law.

The subjects identify the clients even in the cases when there is data for money laundering activity profitable from the criminal activity, even though the amount of the financial operation can be lower the limit defined in article 5 of this law.

2. The identification of the clients from the subjects is realized through the registration and keeping in special dossier of the following data:

a) for the non-trader physical person(individual): name, surname, date of birth, place of birth, current and permanent address as well as the number and the kind of official identification document and the issuing organ, and all the other changes carried out up to the moment the financial operation is completed;

b) for the trade physical person; name, surname, number and date of the tribunal court for the exert of subject trade activity, number and date of the activity leave by the tax organs, as well as all the other changes carried out up to the moment the financial operation is completed;

c) for the juridical person: name, number and date of the tribunal court registration as juridical person, number and date of the activity leave by the tax organs, current and permanent residence, nature of trade activity, scope, kind, date, amount of the currency in which the financial operation is carried out, as well as all the other changes carried out up to the moment the financial operation is completed;

d) For the client’s legal representative: name, surname, date of birth, place of birth, number of official identification cart, and the issuing authority, act of representation (the letter of attorney), as well as all the other changes carried out up to the moment the financial operation is completed.

By basing and full implementation of this law and other normative acts ”Responsible Authority” determines the form and procedures of data registration.

3. Identification documentation of all clients is kept in original and is valid within its legal validity deadline. If in the case of the financial operation completion, the amount is not declared, the above subjects identify the client at the moment the amount is declared.

4. All the clients, seeking to perform financial operations over the amount defined in article 5 of this law, declare the ultimate profitable persons of property right, the source, nature and the profited revenues from money circulation, excluding the social security payments.


Article 5

Reporting to the “Responsible Authority”


1. Subjects defined in this law register all the financial operation performed in cash of all the clients for amount over 2 000 000 (two million) leke or its equivalent in other foreign currencies.

After the registration of the operations, in case there are elements of doubts for money laundering, according to the definition mentioned in this law, the subject reports to the “Responsible Authority” not later than 8 hours.

2. The subjects defined in this law, report to the “Responsible Authority” for all the cases of financial operations performed in cash and/or funds transfer for amount over 70 000 000 (seventy million leke) or its equivalent in other foreign currencies.

3. The subjects defined in this law, report to the ‘Responsible Authority, for all clients financial operations for the amounts over 2 000 000(two million leke) or its equivalent in other foreign currencies, in case when they distinguish:

a) irregularities during client’s financial operation, defined in article 2 paragraph 1, especially during depositing, transfer, and/or money exchange, as well as the emission of negotiable instruments (check, bill of exchange, promise for payment);

b) complicated, unusual and unjustifiable circumstances in the financial operations;

c) that the financial operations of the clients are not economically and legally justified;

d) information that the money comes from criminal activity;

e) There are data for money laundering, which have come up after the accomplishment of the financial operation, as well as in any other case not included above, but which confirm the existence of the elements of the accomplishment of the penal act of money laundering.

4. The subjects of this law inform the "Responsible Authority" for any data that verifies or negates the doubts.

5. Only administrators, officials or other subject authorized employees give the data to the “Responsible Authority”.

6. By basing and in implementing this law and other normative acts, the “Responsible Authority” determine the forms and procedures of verification and reporting of the data.


Article 6

Subjects’ Obligations and Rights


1. The subjects, determined in this law, are prohibited to inform the client as to the procedures of doubt verification for money laundering, basing and implementing this law and other normative acts.

Subjects, determined in this law, are obliged to keep and conserve the:

a) all the data for client’s identification, for a period not less than 5 years from the date of the accomplishment of the civil-juridical relations with the subject;

b) Data information reports of the financial operation on behalf of the client for a period not less than 5 years from the date of the financial operation accomplishment.

2. basing and implementing this law and other normative acts, the subjects have the right to not accomplish the financial operation in case:

a) the client or the clients do not assure their full identity;

b) their anonymity of the faked identity is proven;

c) When there are reasons (evidences) which lead to believe that the financial operation is connected with money laundering, based on the definition done by article 2 paragraph 1 of this law.


Article 7


Basing and implementing this law and other normative acts, the subjects are obliged to:

a) Determine a manager of high level in center, filial, branch, agency or representative office(if there is any) where all the employees and other staff report sufficient data that can be element of determination done in article 5 of this law;

b) assure the creation of data accumulating center;

c) prepare and carry out internal rules and instructions necessary for money laundering prevention;

d) Periodically inform the employees and other staff for the legal procedures of money laundering criminal act;

e) Periodically organize qualification programs for the employees;

f) charge the internal control for the implementation of the dispositions of this law;

g) Take care that filial and agencies outside the Republic of Albania territory operate in conformity with this law.

3. If the personnel number of the subjects, determined in this law, is less than 3 (three) persons, the requests foreseen in article 7 paragraph 1, mentioned above, are fulfilled from the administrator himself or from the authorized person, who is subject’s employee.


Article 8

“Responsible Authority” Rights


1. In compliance and implementing the provisions of this law and other relevant legal acts, the “Responsible Authority”:

a). Gathers all the reports coming sent from the subjects mentioned in this law;

b). Verifies all the information reported by the subject determined by the law;

c). Audits the procedures related to the reported information by the subjects mentioned in this law;

ç). Requires additional data from the subjects mentioned in this law, if it is necessary;

d). Manages, evaluates, points out and safeguards the information and the data presented;

dh). Fines, suspends aiming at preventing any activity, transfer or the handing over of property, deriving from the criminal activity;

e). Takes the verifiable needed measures;

f). Coordinates the activity with national and international authority, so as to inform them on the identification, source finding, blockage and sequestration of the property;

g). Takes measures for the utilization of verifiable techniques in the identification and the source finding of the revenues as well as gathers information on them;

gj). Evaluates the risk of the penal offence of the money laundering in compliance with technological developments, which favors the anonymity of financial activity, and takes necessary measures to prevent money laundering, by using these technologies;

2. The “Responsible Authority” operates within 30 days from the date of having received the subject’s report.

With operation of “Responsible Authority” is understood the evaluation of the report which is presented by the subject and the identification of the possible risk in banking and financial field.

The “Responsible Authority” after having gathered and evaluated sufficient facts for the existence of the penal offence, denounces this fact to the Attorney's Office.

3. The “Responsible Authority” keeps and conserves the data as well as the other legal documentation for the financial operations, for a period not less than 5 years.

4. The employees and staff of the “Responsible Authority” use the information and conserve the confidentiality of the data taken in function of the their job exert and the attributes determined in this law.

5. The “Responsible Authority” dedicates a special attention to the danger of the money laundering crime, when the technological developments can favor the conservation of the anonymity of the financial operation and takes necessary measures for the prevention of money laundering by means of these technologies.


Article 9

Cooperation with Law-implementing Authorities


In compliance and implementing the provisions of this law and other relevant legal acts, the subjects cooperate with the judicial organs, in the quantity the respective law permits in the field of confidentiality of client’s financial operations.


Article 10

Report of the Transactions in the Border Crossing Points


1. The individuals, residents or not, who enter or get out of the Republic of Albania territory, compulsory declare the amount in cash or traveler’s check, in or above the amount of 10 000 (ten thousand) USD or the equivalent in other currencies.

2. Individuals, foreign citizens who temporarily visit Albania, can get out of the Republic of Albania territory cash in foreign currency or traveler’s checks up to the amount already declared, when they have come in, which is justified with the presentation to the customs of the relevant declaration.

3. Custom organs immediately report to the ”Responsible Authority” in the same form or manner as it is provisioned for other subjects included in this law, in case when they:

a) are informed on the money laundering activity;

b) see non-implementation of this law.


Article 11

Report for the Banking Activity


Banking activity, which includes transactions, transfers, and other international operations from the Albanian banks or licensed subjects, which carry out financial and banking activity in Albania, is done in conformity with relevant legal acts issued by the Bank of Albania.


Article 12

Protection of Subjects’ Rights


Subjects determined in this law, or the subjects’ representative persons as well as their employees, who report in good faith, are excluded from the legal responsibility (penal or civil) of conserving the secrecy (including the banking one) and the client’s confidential trading data.


Article 13

Supervisory Authorities Responsibilities


Supervisory Authorities of all the subjects determined in this law, inform the “Responsible Authority”, so as to prevent money laundering, based on the form and manner foreseen for all the other subjects determined in this law, if, during the fulfillment of their institutional activity, they distinguish elements of money laundering.


Article 14

Administrative Infringements


1. The carrying out of operations or non-operations from the subjects who act in contrary with article 5 and article 6 paragraph 1 of this law, when don not constitute a penal offence, are considered administrative infringements and are fined from 1.000.000 (one million) lek to 20.000.000(two million) lek.

2. The accomplishment of acts or not from the high managers of authorized subjects according to article 7 paragraph 1 of this law, when do not constitute penal offence, are considered administrative infringements and are fined with 50.000 (fifty thousand) up to 100.000 (one-hundred thousand) lek.

3. The accomplishment of acts or not from the subject’s employees, determined in this law, who intentionally:

a) cooperate in the masking and concealment of financial operation nature, of its origin, of changing money source definition which directly or indirectly derive from the criminal activity;

b) try to admit a faked identity;

c) Consciously destroy and change the registers or do not report on the funds and bonds international transfer;

which do not constitute penal offence, are considered administrative infringements and fined with 100.000 (one hundred thousand) up to 300.000 (three-hundred thousand) lek.

4. in any case the fine is applied by the “Responsible Authority”

The appeal and execution procedures of the administrative infringement decisions are done in conformity with law No. 7697 dated April 07, 1993 “ For Administrative Infringements”.


Article 15

Cooperation with International Organizations and Institutions


1. in compliance and implementation of this law and other normative acts, the “Responsible Authority” and other international institutions and organizations cooperate and exchange data aiming at:

a) investigating and taking legal measures so as to confiscate the means and the revenues deriving from the criminal activity;

b) According the maximum assistance in the identification and source finding of the revenues and other properties, which will undergo confiscation procedures. This assistance will be concluded in conformity with each country respective laws.

2. The “Responsible Authority” and other international organizations and institutions help each other maximally in the exchange of the legal documentation, on persons who have underwent legal procedures and confiscation procedures.

3. The procedures of cooperation with other international organizations as to the extradition of persons involved in money laundering activity and property confiscation, will be in compliance with Republic of Albanian Penal Code and Penal Procedure Code dispositions.

4. All the requests in exertion of this article will be done in a written form. Other means of communication will be used, which the “Responsible Authority” may find suitable.

5. The “Responsible Authority compiles fruitful programs. In which is included the cooperation and mutual assistance in the field of money laundering prevention with other countries.

6. The “Responsible Authority” has the right to take part and sign agreements


Article 16


This law enters into force 6 month after its publication in the Official Gazette. Promulgated with the decree No. 2636 dated May 26, 2000 of the President of the Republic of Albania, Rexhep Mejdani.