The number of foreign exchange offices has decreased by 8% since the beginning of the year.

2025-09-23 07:15:08, Ekonomi CNA

The number of foreign exchange offices has decreased by 8% since the beginning

The number of active foreign exchange offices is declining this year.

According to the latest official information from the Bank of Albania, 592 foreign exchange offices are active in the register of entities licensed for this activity, out of 642 such as was the official figure reported at the end of 2024.

Figures show that the market has shrunk by 50 entities (approximately 8%) since the beginning of the year.

The revocation of licenses does not necessarily mean their closure by the Bank of Albania, but in most cases it is related to the voluntary cessation of activity by these offices.

The decline in the number of foreign exchange offices indicates a slowdown in the rapid upward trend that was noted in previous years.

Between 2017 and 2024, the number of offices increased by 50%. It is estimated that the growth in tourism, especially in the post-pandemic period, has increased the volume of foreign exchange transactions and consequently seems to have driven the demand for the opening of more foreign exchange offices.

This trend seems to be slowing down this year, while the Bank of Albania has just approved several changes to the regulation "On the licensing, organization, operation and supervision of foreign exchange offices".

The main changes relate to the increase in initial capital, documentation of the source of capital and requirements for the exercise of activity, with the aim of strengthening regulatory requirements, which, among other things, address the entry and operation in the market of entities that meet the necessary conditions of financial stability, adequacy and integrity of capital holding structures, responsible management, as well as the implementation of the regulatory framework.

The regulation provides that the minimum capital required for licensing these offices will be doubled, from 2.5 million lek to 5 million lek. Any payment of the minimum initial capital, any subsequent addition to it, as well as any change in the capital structure must be accompanied by the submission to the Bank of Albania of information regarding the source of creation of this capital.

The regulation also sets limits for the first time on physical cash transactions carried out by exchange offices. The licensed entity, while carrying out foreign exchange activities, will not be allowed to keep in cash on a daily basis monetary values ??(cash) higher than the minimum initial capital. Exchange offices will also not be allowed to carry out physical cash transactions exceeding an amount of 2.5 million lek or its equivalent in other foreign currencies, carried out in a single transaction or in several transactions connected to each other. Transactions exceeding this amount must be carried out through bank accounts or payment accounts.

In addition to the requirements of the previous regulation, the new regulation provides that when reviewing the application for licensing a foreign exchange office, the Bank of Albania will assess the suitability, good reputation and integrity of the shareholder/partner, beneficial owner and administrator of the entity at the time of licensing, as well as whenever there are changes in the composition of the ownership structure and management bodies during the exercise of the activity.

A shareholder, beneficial owner or administrator will be considered to have good reputation if he complies with the applicable legal and regulatory framework, including those related to the prevention of money laundering and the financing of terrorism; has no criminal record related to financial crimes, illegal activities or serious legal violations; has financial stability and is not involved in significant financial or legal matters that may damage reputation or credibility and is not subject to investigations or sanctions for non-compliance with the applicable legal and regulatory framework.

The regulation also provides for an increase in the maximum fine for violations of the legal and regulatory framework. In the previous regulation, fines for the entity or administrator were provided for from 20 thousand lek to 100 thousand lek, while with the new regulation, fines can reach up to 1 million lek./ Monitor.al