Financial Crime World

Albania Upgrades AML/CFT Standards, MONEYVAL Report States

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Albania has made significant improvements in combating money laundering and terrorist financing, resulting in upgraded ratings according to a new report by the Council of Europe’s anti-money laundering body, MONEYVAL. The country’s compliance with FATF standards has also been boosted.

Improvements in Transparency and Beneficial Ownership

  • Albania’s compliance with FATF standards has been upgraded from “partially compliant” to “largely compliant” in two areas:
    • Transparency and beneficial ownership of legal persons
    • Regulation and supervision of financial institutions
  • The country has moved from “partially compliant” to “compliant” in the area of mutual legal assistance regarding freezing of assets and confiscation.

Legislative and Institutional Measures

The report examined Albania’s beneficial ownership register, market entry requirements for financial institutions, and mutual legal assistance concerning confiscation. MONEYVAL assessed a range of legislative, regulatory, and institutional measures introduced in these areas.

Positive Developments

  • The adoption of the Law “On the Beneficial Ownership Register” has established a mechanism to obtain and keep accurate BO information.
  • Albania has enhanced its legislation to ensure the accuracy of basic information of legal persons submitted to the Commercial register and introduced new sanctions for non-compliance with registration requirements.
  • Necessary steps have been taken in licensing non-banking financial institutions to prevent criminals from holding significant or controlling interests or management functions.

Remaining Deficiencies

  • There are still minor deficiencies in implementing 29 recommendations where Albania is “largely compliant”.
  • The country remains “partially compliant” with four recommendations relating to:
    • Targeted financial sanctions on proliferation financing
    • New technologies
    • Transparency and beneficial ownership of legal arrangements
    • Supervision of designated non-financial businesses and professions

Outlook

Albania will remain under MONEYVAL’s enhanced follow-up and is expected to report back on progress in strengthening its implementation of AML/CFT measures in two years’ time.