The bank informs you that you must wait. Or, they request an additional document you hadn't anticipated. Perhaps your international transfer is put on hold, and no representative provides a comprehensive explanation.
These situations do not occur by chance, nor are they necessarily an indication that something is wrong. Nations and financial institutions worldwide adhere to harmonized international regulations for transaction verification and client identification (KYC). Albania operates under these same standards. What varies from case to case is not the system itself, but rather your level of preparedness.
This guide is designed to help you understand what happens behind the scenes when opening an account, processing payments, or receiving funds from abroad."
How the Financial Verification System Works
Banks and many other institutions—including notaries, accountants, and real estate agents—operate within an international framework for client verification. This framework is consistent across all European countries, and Albania implements it through Law No. 9917, dated 19.5.2008, as amended by subsequent legislation, including the 2026 updates.
The system is built upon two core principles. The first principle is identification. Every financial institution must know with certainty who they are working with, the source of funds, and the purpose of the transaction. The second principle is ongoing monitoring. Performed transactions must be consistent with the client’s profile and their declared activity.
When both these conditions are met, the process is swift. When one of them is missing, verification is delayed until the situation is clarified.
This system is implemented not only by banks. Notaries, accountants, real estate agents, lawyers when performing financial actions for their clients, and many other categories are subject to the same verification obligations. This means that the control over the source and destination of funds does not only occur when you visit the bank.
Opening a bank account
Opening a bank account is the first moment where you feel the concrete effects of the system and, often, the moment where businesses and individuals encounter unnecessary surprises. These surprises stem from a lack of documentation and not from the complexity of the system.
Individuals
The bank requires a valid identity card or passport, a document of residence, and, depending on the institution, evidence of the source of income such as an employment contract or tax declaration. Some banks also require account statements from previous institutions if you have a prior banking history.
Legal Entities
The documentation is more extensive. It requires a National Business Center (QKB) extract not older than 30 days, the company’s statute, the NIPT (Tax ID), the administrator's identification document, and the documentation of the ultimate beneficial owner.
The beneficial owner is the physical person who, directly or indirectly, owns or controls the company. If your company has other companies as shareholders, the bank follows the ownership chain up to the final individual. If this structure is not clearly documented, the process stalls, regardless of how good your relationship with the bank is.
If you have foreign shareholders, include their notarized identification documents and, if required, with an apostille.
Processing time varies. Individual accounts are usually opened within the day. Those for legal entities, especially with an international ownership structure, may require 3 to 7 business days.
Read also: 10 Steps Businesses Must Follow After Initial Registration.
Inbound International Payments
When you receive funds from abroad, the bank evaluates the transfer based on several criteria: the sender's identity, the country of origin, the value of the transfer, and its compliance with your declared activity.
If you are a business with foreign clients and have a transaction history, the bank recognizes you as a profile with international activity, and most payments pass without interruption. If you receive funds for the first time, with a high value and no transaction history, the bank will request justifying documentation.
What you should have ready: the contract or agreement with the foreign party, the corresponding issued invoice, and commercial correspondence proving the relationship. If it concerns personal income such as honorariums, dividends, or capital gains from the sale of property, the justifying document of the source is essential.
When expecting a large or first-time transfer from a foreign partner, notify your bank in advance and present the contract or invoice. This action significantly shortens the verification time.
If the bank decides to suspend the transfer, the suspension can last up to 72 hours. After this period, in the absence of a formal blocking decision from the competent authority, the transfer continues automatically.
Read also: Zero Tax until 2029 in Albania: Who Benefits and How It Works.
Outbound International Payments
When transferring funds abroad, the bank examines the destination, the value, and the reason for the transaction.
For business payments, the basic document is the tax invoice and the contract with the foreign party. If the payment concerns the import of goods, customs documents complete the file. If the payment concerns services received, the contract and invoice are sufficient in most cases.
There is no general formal limitation on the value of outbound transfers. Every bank applies verification procedures proportional to the value and destination. Large transfers toward high-risk countries pass through additional layers of control and require more complete documentation.
Individuals transferring significant values must be prepared to explain the source. If the funds come from a property sale, inheritance, or accumulated savings, justifying documentation makes the process clear and fast.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsCash Deposits
Large deposits in physical currency are the category with the strictest control. Every cash deposit with a value equal to or over 1,500,000 ALL automatically activates the bank's reporting procedure to the competent authority. This does not mean the deposit is rejected. It means the bank has a legal obligation to report it and, if there are questions, to request an explanation on the source.
If you are a business with physical cash flow, such as restaurants, retail trade, gas stations, or any other activity with direct payments, over time the bank recognizes you as a profile with cash activity and verification becomes routine. The key is to keep regular collection records and the cash book updated.
If you deposit cash on rarer occasions and with unexpected values, the bank will ask. The justifying document of the source, whether an invoice, sales contract, or any other evidence, resolves the situation quickly.
Keeping accumulated cash and depositing it all at once, without evidence of collection, is precisely the scenario that creates delays and unnecessary questions.
Property Purchase
Real estate transactions are subject to enhanced verification, and this often surprises buyers who think the process ends with the agreement between the parties.
The State Authority for Geospatial Information (ASHK/Cadastre) reports within 72 hours any alienation contract with a value equal to or over 6,000,000 ALL. The notary, as a subject of the verification system, has similar obligations.
When you buy or sell property, you must be ready to explain the source of funds. If the purchase is financed by a bank loan, the process is straightforward because the bank has performed its own verification. If the payment is made with personal funds, you must prove they were accumulated regularly. Typical documents are tax declarations from recent years, bank account extracts, the previous property sales contract, or inheritance documentation.
If the buyer is a foreign citizen or a company with foreign ownership, the verification is even more detailed and requires full documentation of the ownership chain.
Do not leave the financial documentation for the day of signing. Start collecting documents 2-3 weeks in advance and consult your accountant to ensure tax declarations are up to date.
Read also: How Foreigners Start a Business, Work, and Reside Legally in Albania.
Countries of Origin and High-Risk Zones
The system evaluates not only the amount and source of funds but also the country they originate from.
There are two categories of countries that activate additional procedures. The first category consists of high-risk countries according to the international lists of organizations such as the FATF (Financial Action Task Force). Transactions with these countries are not automatically blocked, but they are subject to stricter verification and require full documentation. The second category consists of countries against which international sanctions have been imposed by the European Union or the United Nations. For these, transactions may be blocked entirely.
If your trading partner is located in a high-risk country, this does not make the cooperation impossible. It makes full documentation mandatory and the process slightly longer.
Albania Today: Where We Stand Internationally
This point is of direct importance to Albanian businesses with international activities and to foreign investors.
Albania was added to the FATF (Financial Action Task Force)list of jurisdictions under increased monitoring in February 2020. This had concrete consequences: several international banks applied additional procedures for transactions involving Albania, and some foreign partners showed hesitation.
This chapter is now closed. In June 2023, Albania was officially removed from this list. Today, Albania is not classified as a high-risk jurisdiction. This change has tangible positive effects: Albanian businesses engaged in international trade now face oversight equivalent to that of other European countries.
It remains a fact that some European banks, particularly those in Northern regions, continue to exercise extra caution for institutional reasons. This is expected to normalize as the country's reputation solidifies and legal reform projects yield full results.
Cryptocurrencies
Cryptocurrencies are a regulatory area that is still developing in Albania and elsewhere. Albanian banks do not accept direct transactions with cryptocurrencies.
If you have profits from cryptocurrency and wish to deposit them as ALL or EUR, you must use legal conversion platforms and possess full documentation regarding the source, the date of initial purchase, and the conversion value. Without this documentation, the bank cannot accept the funds.
Businesses operating with cryptocurrency as a payment method must consult a financial expert before opening a bank account or performing such transactions.
Read also: The Crypto-Asset Market: Benefits, Risks, and Why It Is Being Regulated in Albania
When the Bank Requests More: Enhanced Due Diligence
Not every client and every transaction is treated with the same procedure. There are situations where the bank automatically applies an additional layer of verification.
Enhanced due diligence is primarily activated in four cases. The first is when the client is classified as a politically exposed person, meaning a high-level public official or someone closely related to them. The second is when transactions are performed with non-resident clients. The third is when complex or unusual transactions are carried out without a clear economic purpose. The fourth is when the client originates from countries with increased international risk.
In these cases, the bank requires the physical presence of the client, a declaration of the source of wealth, and continuous monitoring of the relationship. The institution cannot continue the relationship if these conditions are not met.
If you are or have been a public official, or if your trading partner belongs to this category, inform yourself in advance regarding the additional documentation and account for the added processing time.
What documentation you should have
Regardless of whether you are opening an account, receiving international payments, or purchasing property, you should always have certain documents organized.
Businesses must have ready active contracts with clients and suppliers, issued and received tax invoices, bank statements from the last 12 months, annual tax declarations, full documentation of the beneficial owner, and any updated changes in the QKB.
Individuals need a valid identification document, evidence of the source of income, and bank statements.
If you have an international structure, add notarized and, if required, apostilled identification documents of foreign shareholders, the ownership chain structure, and cooperation contracts with foreign partners.
Updated tax declarations are the foundation of every verification. If declarations have not been submitted or are deficient, the process of every transaction becomes many times more complicated.
Also, when organizational changes occur, such as a change of administrator, address, or ownership structure, notify the bank immediately. Outdated data is among the main causes of unnecessary delays.
Read also
Read also: Avoiding double taxation: a guide for businesses with international activity.
Frequently Asked Questions (FAQ)
Below are the questions that businesses and individuals most frequently ask us regarding bank accounts, payments, and financial documentation.
Why does the bank request documents even though I am an old client?
The verification system is ongoing, not just initial. When your profile changes, transaction values increase, or the type of activity shifts, the bank re-evaluates automatically. This is not a sign of suspicion. It is a standard procedure.
How long can a transfer be suspended?
Up to 72 hours. After this period, if there is no formal blocking decision from the competent authority, the transfer continues automatically. The law provides this timeframe as a protection for both parties.
If I pay tax obligations regularly, am I automatically protected?
Compliance with tax obligations is an important indicator of regular activity, but it does not replace the documentation of each specific transaction. The bank evaluates the source of funds on a case-by-case basis.
Can the bank refuse to open my account?
Yes. If the documentation requirements are not met, the bank has the right to refuse the opening. It has the obligation to tell you in general terms what is missing, even if it cannot disclose further details.
If the funds come from inheritance, what is needed?
Inheritance is a legitimate and documentable source. You need the court decision of inheritance or a notarized will and the appraisal of the inherited property. With this documentation, the process is standard.
Can I send money abroad as an individual without restrictions?
There is no formal restriction on the value. However, significant transfers activate the verification procedure and you will be asked to explain the source and purpose. Ready documentation makes the process fast.
What happens if I change the company administrator and do not notify the bank?
The bank will discover the change during periodic verification and will request updated documentation. In the meantime, transactions may stall. Proactive notification of the bank when organizational changes occur saves time and avoids unnecessary bureaucracy.