A Comparative Analysis of Albanian Banking Privacy Legislation

Abstract

Legislation on the protection of banking information (banking secrecy) was established in Albania in early 1990. The rationale behind this legal framework was motivated by economic factors, i.e. the flow of deposits into the Albanian banking sector as well as other legislation related to personal data protection. Indeed the abovementioned legal framework binds all banking entities to respect their clients' personal and account-related information, and provides that banking secrecy can be lifted in only limited circumstances. However, since the enactment of this legal framework, a new era has dawned, in which the need to combat money laundering, tax evasion and other forms of criminal activity as well as the new challenge to comply with the US Foreign Account Tax Compliance Act (FATCA), requires a reassessment of the legal framework aforementioned. Along the lines of the regulatory elements mentioned above, the Central Bank of Albania has issued several decisions imposing cautious measures and anti-money laundering obligations on banks with a view to prevent reputational risks related to the objectives of these acts. In addition, the Central Bank seems inclined to adopt a constructive approach towards a well-structured implementation of FATCA in accordance with Albanian legislation, always without compromising on banking secrecy.