The Bank of Albania has drafted amendments to the Law “On Banks”, which aim to bring about a clearer and more unified regulatory framework for the financial sector, facilitating the functioning of banks and payment institutions and increasing security and clarity for citizens and businesses in the use of financial services and electronic payments.

According to the accompanying report of the draft law, which has been released for public consultation, the interventions aim to further align Albanian legislation with European Union directives, specifically Directive (EU) 2015/2366 on payment services and Directive 2009/110/EC on electronic money institutions.

The main changes consist of repealing the definition of “electronic money institution” from the current law on banks, as well as reformulating the definition of “electronic money”, referring to the special legislation on payment services.

According to the draft law, the regulation of electronic money institutions will be fully addressed in the law “On Payment Services”, which sets out the requirements for licensing, the exercise of activity, and the supervision of these entities.

Meanwhile, the term “electronic money” will continue to be used in the law on banks, as its issuance remains one of the activities that banks can exercise, but without repeating the legal definition, which will be taken from special legislation.

The Bank of Albania argues that these changes increase legal clarity, avoid overlaps, and improve the coherence of the legal framework in the financial sector, while simultaneously strengthening harmonisation with European standards.

The draft law, drafted by the Bank of Albania, is part of Albania’s commitments within the framework of the European integration process and the fulfilment of the milestones for Chapter 4 “Free movement of capital”.