Albania Makes Progress in Combating Terrorist Financing, Upgrades Ratings

Tirana - A New Era in Anti-Money Laundering Efforts

According to a recent report by the Council of Europe’s anti-money laundering body MONEYVAL, Albania has made significant improvements in its efforts to combat money laundering and terrorist financing. The country has upgraded its ratings from “partially compliant” to “largely compliant” in several areas.

Key Areas of Improvement

• Transparency and Beneficial Ownership of Legal Persons: Albania has established a beneficial ownership register and introduced new sanctions for non-compliance with registration requirements.
• Regulation and Supervision of Financial Institutions: The country has enhanced its legislation to ensure the accuracy of basic information of legal persons submitted to the Commercial register.
• Mutual Legal Assistance: Albania has taken steps to prevent criminals from holding significant or controlling interests in non-banking financial institutions, and has established mechanisms for executing foreign confiscation orders and sharing confiscated assets with foreign countries.

Remaining Challenges

Although Albania has made significant progress, there are still some minor deficiencies. The country remains “partially compliant” with four recommendations relating to:

• Targeted Financial Sanctions on Proliferation Financing: Albania needs to improve its sanctions regime to combat the financing of proliferation activities.
• New Technologies: The country must ensure that its anti-money laundering and combating the financing of terrorism (AML/CFT) measures are adapted to new technologies, such as cryptocurrencies.
• Transparency and Beneficial Ownership of Legal Arrangements: Albania needs to improve transparency in legal arrangements, such as trusts and foundations.
• Supervision of Designated Non-Financial Businesses and Professions: The country must strengthen its supervision of designated non-financial businesses and professions, such as lawyers and accountants.

Next Steps

Albania will remain under MONEYVAL’s enhanced follow-up and is expected to report back on its progress in two years’ time. The country has achieved full compliance with seven of the 40 FATF Recommendations constituting the international AML/CFT standard, and remains “largely compliant” with 29 recommendations.

Conclusion

The improvements made by Albania are a significant step forward in the fight against terrorist financing and money laundering. The country’s commitment to strengthening its financial system demonstrates its dedication to combating these serious threats.