Albania Steps Up Fight Against Financial Crime, Shows Good Progress

Albania has made significant strides in combating money laundering and terrorist financing, according to a new report by MONEYVAL, the Council of Europe’s anti-money laundering body. The report highlights improvements in several key areas, leading to upgraded ratings for the country.

Key Areas of Improvement

• Establishment of Beneficial Ownership Register: Albania has established a beneficial ownership register, which enhances transparency and helps prevent money laundering.
• Enhanced Legislation: The country has strengthened its laws to ensure accurate information on legal persons, making it easier to identify and track suspicious transactions.
• New Sanctions for Non-Compliance: Albania has introduced new sanctions for non-compliance with registration requirements, increasing the consequences for those who fail to comply.

Progress in Mutual Legal Assistance

The report also commends Albania’s progress in mutual legal assistance, including:

• Execution of Foreign Confiscation Orders: Albania has strengthened its ability to execute foreign confiscation orders, demonstrating a commitment to international cooperation.
• Sharing of Confiscated Assets: The country has improved its sharing of confiscated assets with other countries, further enhancing its reputation as a trusted partner in the fight against financial crime.

Areas for Continued Improvement

While Albania has made significant progress, it still faces minor deficiencies in implementing 29 out of 40 FATF recommendations. It remains “partially compliant” with four recommendations, including:

• Targeted Financial Sanctions on Proliferation Financing: Albania needs to improve its targeted financial sanctions on proliferation financing.
• Supervision of Designated Non-Financial Businesses and Professions: The country must strengthen its supervision of designated non-financial businesses and professions.

Conclusion

Albania’s improved measures have earned it upgraded ratings from “partially compliant” to “largely compliant” in two areas related to transparency and beneficial ownership of legal persons and regulation and supervision of financial institutions. It has also been upgraded from “partially compliant” to “compliant” in the area of mutual legal assistance regarding freezing of assets and confiscation.

The country is expected to report back on its progress in two years’ time, as it remains under MONEYVAL’s enhanced follow-up. Albania’s commitment to addressing technical compliance deficiencies has led to a significant improvement in its overall rating, demonstrating good progress in the level of compliance with global standards.