10 How Money Was Cleaned in Albania in 2021, From Construction to Medicine

Money laundering has remained problematic over the past year, where the number of reportings at the General Directorate of Money Laundering Prevention was on the rise.

During the year 2021, what stands out is an increase in the number of typeologies in how this money laundering is done in the economy, where the DPPPP has managed to bring in some models based on cases encountered concretely. In last year's annual report, The DPPPP has clarified that there are in total 10 typology, and the names of businesses or persons placed in these types are fictional.

We're bringing in these typeologies for which the directorate explains that they're the typeology of cases sent to the law enforcement agencies and they include sectors like construction, subjects in the field of medicine, IT, criminal or political groups. “within the context of presenting these types of technologies, we state that the names used are frequent and do not relate to specific names or subjects” are said in the report.

Typeology 1

Transitions by individuals involved in criminal groups

Albanian citizen A citizen has returned to Albania after a long stay in a South American state, of which he had evidence that he was involved in trafficking narcotics.

This citizen enrolled in Albania, commercial society DEF) with field activities ?import export of various goods, declaring goods would be imported from the country where they have been for many years.

For the development of this citizen trade event A borrowed 300,000 UR by citizen B, which revealed negative findings for involvement in criminal fraud.

From the verifications conducted by citizen A had linked several contracts for investments in real estate and an mediation agreement with the X citizen, for the sale of the latter's real estate, where citizen A would benefit in many significant funds, from his role as mediator.

As for the X citizen, it proved to be the wife of citizens named Y, where data is available for the latter on involvement in criminal activities.

Testing the activities of X nationals found some abnormalities as follows:

• X citizens had benefited through granting a real estate of high market value, owned by some citizens, family members among them. The property was located in an administrative unit whose manager was citizen C, which issued the relevant confirmation to enable the removal of property. From data generated by open sources, citizens C resulted in close family ties with the Y (BiH citizen's wife X) citizen.

The X citizen turns out to have conducted several successive transactions of the sale of real estate, against the parties about whom there are doubts about involvement in criminal activities;

Based on doubts:

• Recording a trade activity by persons involved in trafficking narcotics and doubts about their actual activity;
• Involving in trade transactions, donating real estate in high value citizens suspected of involvement in criminal activities;
• The role of the suspected A citizens, as mediator in the trading of property; the case has been sent for further investigation into law enforcement bodies.

Heading 2

Including people with criminal precedents in construction society

Citizens A, in 2016, has registered a construction society, beta '%s', as one partner. This society in 2019 has obtained permission to build a complex in a coastal area in our country.

From the verification conducted resulted that citizen A, is sister of citizens B, who is accused of international trafficking of narcotics.

The analysis of society's activity found that over three years this society had declared minimum profits or financial losses near tax organs.

For the realisation of the constructions, the company made it into a funding agreement with the company Alphaj at 2,000,000 Mmm. Based on the funding contract, they were transferred from the company Alpha to the company beta '%s' at shpk, 20% of the value (over 400,000 The euroUR, which was used to pay off service contracts linked to the construction function to be carried out. A month after the signing, the deal was revoted by both sides.

From further verifications, the company '%Beta' shpk has received funding and suspicious loans from third parties as follows:

• 2,000,000 Total success from 2 societies Gamaé shpk (1.5 million EUR) and ÉZeta shpk (500.000 EUR) operating in the trade field;
• 200,000 UR by the commercial subject Mega shpk, owned 100% by citizen B;
• 200,000 EURO out of three different citizens, given in foreign form;
• 800,000 EURO from an Albanian citizen “The X's that he had a loan contract with.

Loand funds (of 800,000 EUR) by citizen CHAXU were benefited by the sale of two assets

Real estate to the buyer. Regarding the citizen '%XX' it was found that there were close friendly ties with the citizen B (brother of the only society partner beta) suspected of being the owner and real sponsor of the construction society.

All these funds (3.2 million EUR) were used by Beta's basket for tax payments linked to the construction process.

Based on doubts:

• High investment value and the lack of economic capacities of the society, beta '%s' at large;
• The suspicious securing of funds by third parties for making investment;
• Links to people with criminal precedents;

Typeology 3

Loan and suspicious sponsorship by an EPP

 In August 2021, the business - profile citizen A lent the sum 70,000 The USSD a state official citizen B, who has guaranteed repayment of the loan on the mortgage of a real estate type of land owned by it. In open sources, there is evidence that citizen A was arrested several years ago charged with criminal acts in the fiscal field. An indirect connection (conflict interest) was also established between the object of citizens A's business subject activity and the scope of activity

The institution where citizen B exercises office.

In September 2021, national B has withdrawn the borrowed funds (70.000 USD) from its bank account and given it to a retired relative, the citizens of X in financial support. The latter, within the same day, has deposited the funds in the bank account of a construction society with which several months earlier, the X citizen had linked a custom errand contract aimed at buying a trade unit in Tirana. The value of the contract is 150,000 The USSD and parties have agreed that the payment of the total value of property would be made in installments.

Based on doubts:

• The vague nature of the loan deliberately borrowed investment in real estate by third persons linked to the EPP;
• The unclear link between the parties involved in these transactions; the case has been submitted for further investigation into law enforcement bodies.

Typeology 4:

Real estate purchase under value and reevaluation within a short time

In February 2021, citizen A (who owns a physical type of business) has purchased a real estate of the 1,500m2-wide type of land, at 30,000 USD. Two months later, the citizen has initially made re-evaluation of property2 at 240,000 The USSD and then sold the land to a businessman who operates in the construction field at the same price of (240,000 USD).

So within two months, the property bought for only 30,000 The USD has sold it at an eight-fold higher price, while it did not result in investment on this site that could have increased the value of wealth.

Also under way, in April 2021, citizen A borrowed 80,000 EUR by citizen B ( engage in private activity in the field of services), with the goal of acquiring a playable property (automs). Citizens B has generated the funds borrowed from the sale of a real estate of the type of land area 30,000 m2, to the citizen C (business in the field) at the price of 150,000. After borrowing, state A bought a auto for 80,000. EUR to citizen C and a few days later he sold the word to citizens B, which was previously financed by loans.

From above, considering:

• Selling property of type CHAtrualʹ at a price eight times higher than the purchase price;
• The complexities of bilateral transactions between the three sides, where citizens B initially sell land to citizens C and a portion of the profitable funds (80,000 EUR) lends citizens A who use these funds for autoveal purchases to C and then sells the autoveture to B;
• The financial results of citizens A and his family do not justify the high sums circulated by him; the case has been sent for further investigation into law enforcement bodies.

Typeology 5:

Financial fraud cases carried out by a legal subject

The company '%X' has been registered in our country in March 2021 by foreign citizens A and B (owned by 50% of quotas), and its object of activity consists of providing services in the field of information.

A few days after its establishment, society has opened accounts to four commercial banks operating in our country. By analyzing the banking activity of society, several transfers were identified in anomalies and not in line with the social activity profile.

These transfers from various European countries, such as Croatia, Romania, Bulgaria, Cyprus, Austria, Poland, Germany, Denmark, France, Spain, United Kingdom, and so on.

• They're sent by various commercial subjects with descriptions of billing.
• They're mostly concentrated in July, November 2021;
• They're almost the same, and they swing at 2,000 borders. Other than 2,500:

From further verifications, the society ʹX) did not result in declaring activity during this period.

Based on the above, further research was carried out, resulting in:

• For a significant portion of arriving transfers in favour of this society, there have been reports of/reports of returns of funds denounced as fraud by senders

transfers.

• In open sources, one of society's partners XC turned out to have been involved in an abuse scheme in the fiscal/tegary field.
• An international organization had also reported m.
• And the name of the company "XX." The scheme used is to present the switch receipts to the clientts / concerned against the various services in the field of information.

• By comparing the bills, it was found to be the same with bills used by the company JX. Given the above allegations of information, further investigation into law enforcement agencies has been sent out, and a deadlock order from the DPSPPPPPPP has been issued further with sequential funding.

Typeology 6:

Use of Third Persons for Investments in Construction

Citizens A, who for a long period of about eight years was employed by warehouse duty with a minimum wage on a trading subject, was involved as a partner in two companies in the construction field.

Concretically, this citizen in 2018 bought 50% of society's quotas at 900,000 UR look

It declared that the payment would be realised by the future profits of the society it had purchased the stake. In terms of the X society profile, it turns out to be familiar in the domestic market for 20 years with high earnings.

A year later the citizen A bought 100 %s of the quotas in another construction company HINA, worth 150,000.

A few months before buying quotas from citizen A, this company (‘Y’) had obtained permission to build one

The palace complex, even though it had declared financial losses in recent years.

After buying quotas of construction societies, it was noted that this citizen received ever higher salaries from X and Y societies that reached up to 10,000 THE previous month, even though second society (‘Y’) continued to declare losses.

On the other hand, other than investment in businesses, citizen A along with

His wife, citizen B, over a period of two years, invested in real estate (entirely, land, cottage) the sum of 3 million EUR, out of which a piece covered in bank loans.

Based on doubts:

• Investments in high value in businesses and real estate by an individual without a previous business profile;
• Unknown source of invested funds;
• Use credit suspected as a front for paying investment real estate as villas and so forth. ;
• The possibility that this citizen was being used by other persons for investing their funds;

The case was submitted for further investigation into law enforcement bodies.

Typeology 7:

Stock exchange of assets and suspicious use of loans

In 2021, citizen A (competitive of citizens B) and citizen B (ish The EPP has linked a swimming contract to a construction company for the exchange of 2 real estates of the apartment on their common name to a villa in a construction complex in a popular residential area.

The apartments (a total attendance of 130 m2 m) were in a suburb purchased two years ago while citizen B was still in office. The declared value of their purchase was 80,000 GBP, where 80% of the amount financed with bank credits and the rest of the savings. After buying the apartments, 110,000 GBP market was re-evaluated.

Under this exchange of assets between citizens A, B and the construction society had agreed that additional value of 120,000 GBP would be paid, which would be covered with receiving a bank loan with 1,000 GBP monthly installments.

Meanwhile, the villa seized from the exchange by an area of 350 m2 was established collateral in the function of obtaining the new loan and was assessed at the market price of 400,000 GBP.

From verifications carried out on the source of their funds, personal incomes and

and the trade activity of fellow citizens B.

Based on doubts:

• The profit through the exchange of a real estate under the real market price;
• The use of credit instrument also known as typology in investment cases by PEP/ish PEP aimed at covering the real source of funds;

• Do not excuse the payment of high loan installments from legitimate sources declared by them. The case was submitted for further investigation into law enforcement bodies.

Typeology 8:

High-value investment in real estate not directly

X citizen aged 80 in the quality of the purchasing party has signed, a contract for property purchase.

Realism at 2,000,000 Mmm. From the verifications carried out by the X citizen resulted to be the relative of senior public citizen Y (PEP).

Regarding the way the payment was paid, the total purchase price would be covered by society DXA who, in turn, had obtained loans from the bank AEF.

In agreement between the parties, after full repayment of the obligation, the X citizen would further carry out procedures for transition of ownership in favour of society DX.

From further verifications conducted proved that partner in society DXA was a citizen named F, for which a criminal prosecution resulted, as well as negative indifference to open sources for criminal activity. Indies administered by open sources pointed to links between citizens F and former Y-functionor, reinforced and a loan contract.

tie it forward through two societies EXU of citizens F and society LM) of citizens of Y) owned by them.

Based on doubts:

• Investment in real estate, in unjustified high values;
• Including people with criminal precedents;
• The use of third persons as the X citizen, relative to an EPP;

The case was submitted for further investigation into law enforcement bodies.

Typeology 9:

Suspected Transitions From Law Subjects to M courtFineness

X-boy citizen of Y former The EPP, in 2016, established in one of the countries of the region the society“Alpha” with the object: “The equipment trade”. Since the early days of establishing society “Alpha” linked a contract to “Size of devices” at the value of 2,000,000 USSD with Medical Laboratory “AB” operating in the same state as “Alpha”.

In the agreement between the parties it agreed that the payment would be carried out in installments by applying interest rates and making the total value to be paid by the medical laboratory “AB” against society “Alpha” to be 4,000,000 USD, so 2 times the value of equipment.

During a six-year period of society “Alpha” has benefited from this contract through multiple monthly transfers of the total of 4,000,000 USS. Benefited value has been used for transfers to:

• The company “Alpha-S” registered but in the same place as society “Alpha” and with partner citizen Z
• The personal account of the X citizens in Albania with a description of foreign relations or passing away.
• Travel fee;
• Low-value billing per s
• Various plants in our country;

From verifications it turns out that the company “Alpha” has not made any import for the sold equipment, and from the books of commerce it turns out that products are purchased at a total value of 2,000,000 USD from the two subjects as follows:

• Company “AT” which has had earlier co-operation with Medical Laboratory “AB” (paid according to bills 1,500,000 USD);
• Society “Alpha-S”, whose associate citizen Z had previous co-operation with the Medical Laboratory “AB”; Based on the fact that a commercial subject without experience in the relevant field owned by relatives of the former The EPP, buying equipment from two organ companies to sell later another dual-priced trade subject, while equipment could be bought directly from the latter, suspicions arose that these transactions are aimed at covering suspicious funds generated in Albania, resulting in information has been sent for further investigation into the enforcement law.

Typeology 10:

Investments in Property by PEP with declared Value Under Market Price

X citizens have exercised duty as EPP in the field of justice for a long period of time. In this regard citizens from open sources resulted in data for possible corrupt activities during the exercise of office.

Further verifications were carried out on our part regarding her and her family as far as it turns out:

• X citizens for a long period of about 12 years did not withdraw or use its salary, profited by the position of EPP but invested it in deposits on deadlines by accumulated about 130,000 EUR;
• This citizen in her personal account had performed cash deposits on values ranging from 3,000 EURO to 30,000 EURO, declared income from the family business;
• Her husband resulted in minimum wage as self-employed by family business, while children were involved in employment relations only in recent years.

Also, the X citizen's husband had during these years made investments in some real estate (servatively low value), compared to the market price to then connect venture contracts to conduct residential construction, which would benefit 50% of the construction area.

The verification of declared businesses proved that her husband had registered two commercial subjects of the type "Person physics," in which from time to time investment/enhancing facilities were conducted. Business accounts for annual profits ranging from 400,000 LEK to 2,000,000 LEK. There are no circulations of such funds in these businesses to justify their activity.

Based on doubts:

• Deposit created by no use for years of wages,
• Unjustified cash claims on personal account;
• Investments made on low-value surfaces aimed at providing them for construction, this scheme known in the area of money laundering; the case was sent for further investigation into law enforcement bodies.

This is an exclusive article from the Monitor Journal.