PRESS RELEASE
Approval of the Law “On Payment Services”

On 30 April, the Assembly of the Republic of Albania approved the Law drafted by the Bank of Albania and proposed by the Ministry of Finance and Economy “On Payment Services”. The adoption of this Law considered as multidimensional achievement and fulfilment of a series of commitments of the Bank of Albania. More concretely, the adoption of the Law marks a significant progress in the process of the integration of Albania with European Union by approximating the Second Directive “On payment services in the domestic market” as well as the integration with the Single Euro Payment Area, thus creating the foundation for the interconnection of the Albanian and the European payment markets. Also, this Law fulfils a series of objectives foreseen in the action plan of the National Retail Payments Strategy as well as the commitments of the Bank of Albania in the Diaspora National Strategy.

In addition to the above-mentioned objectives, it is worth highlighting that this law will significantly help in the efficient modernisation and development of the domestic payment market. The purpose of the Law is the creation of the legal framework for the functioning of payment services in the Republic of Albania. In more details, the Law creates the conditions and rules for: a) creation, licensing, organisation, activity and supervision of payment institutions; b) transparency of the terms and requirements for information on payment services; as well as c) the rights and obligations of users and providers of payment services in relation to the provision of these services.

The new rules enacted by the Law aim to promote and expand the financial inclusion of the population, reduce the costs of these services and consequently also encourage the use of electronic payment instruments. These objectives are intended to be achieved through a legal framework that aims: (i) impartiality and proportionality in licensing and regulating payment services providers; (ii) promotion of innovative business models, which facilitate the access for third parties (e.g. agent services) and external resources; (iii) strengthening the supervisory legal basis of BoA for payment services; (iv) and last but not least, the creation of a framework for consumer protection, including monitoring and enforcement mechanisms, for the effective resolution of dispute as well.

In conclusion, the Bank of Albania conveys its thanks to the World Bank, the Central Bank of Italy and the other institutions included in the drafting, consultation and approval of this Law, which supported the Bank of Albania in this project.