Decisions by the Supervisory Council, 7 August 2024

On 7 August 2024, in addition to the decision to keep the policy rate unchanged, at 3.0%, and the overnight deposit and the overnight lending rates unchanged, at 2.0% and 4.0%, respectively, the Supervisory Council of the Bank of Albania reviewed and approved:

• Amendments in the Regulation "On licensing, exercise of activity, revocation of the licence and liquidation of credit portfolio created from the financial activity of non-bank financial institutions".

These amendments stipulate the change of the legal form of non-bank financial institutions: from companies with limited responsibility, to joint stock company, for entities to be granted a license after these amendments enter into force, also for those that operate currently in the market, by giving to the latter sufficient available time to change the legal form and establish the relevant managing bodies. These amendments aim at improving the performance and governance framework and the management of these entities, as well as promoting the best practices in administering and governing the non-bank financial institutions in Albania.

The amendments also include some added/improved regulatory requirements regarding the aspects of capital increase and changes in the capital structure of non-bank financial institutions, as well as the documentation for the approval of the chair of the management/supervisory board, administrator and chair of the audit committee.

• Regulation "On the information accompanying transfers of funds"

The approval of the Regulation "On information accompanying transfers of funds" comes in the wake of the Bank of Albania's work in the framework of meeting the regulatory framework and the conditions for the participation of Albania's in the Single Euro Payments Area (SEPA). These Regulation approximates the requirements laid down in the Regulation (EU) 2023/1113, regarding the transfers of funds.

This Regulation lays down rules on the information on payers and payees accompanying transfers of funds, in euro, in the framework of participation in the Single Euro Payments Area (SEPA), for the purposes of preventing, detecting and investigating money laundering and terrorist financing, where at least one of the payment service providers involved in the transfer of funds is registered in the Republic of Albania. In addition, this Regulation lays down rules on internal policies, procedures and controls for payment service providers, to ensure implementation of restrictive measures, despite the involved transfer or the used currency, as well as requirements regarding the obligation on data protection and record-retention.

The Supervisory Council was also informed on the daily functional and operational activities of the Bank of Albania.