Financial Crime World

Combating Terrorist Financing in Albania: Country Makes Progress, Upgraded Ratings from MONEYVAL Report

======================================================

Albania has made significant improvements in combating money laundering and terrorist financing, leading to upgraded ratings from the Council of Europe’s anti-money laundering body MONEYVAL. The country has demonstrated good progress in compliance with Financial Action Task Force (FATF) standards, according to MONEYVAL’s new follow-up report.

Progress in Three Key Areas

The positive steps taken by Albanian authorities have resulted in upgrades in three areas:

  • Transparency and Beneficial Ownership of Legal Persons: Albania has moved from “partially compliant” to “largely compliant” in this area, reflecting significant progress.
  • Regulation and Supervision of Financial Institutions: The country has also upgraded its ratings in this area, demonstrating improved regulation and supervision of financial institutions.
  • Mutual Legal Assistance regarding Freezing of Assets and Confiscation: Albania has established necessary mechanisms for executing foreign confiscation orders and sharing confiscated assets with foreign countries.

Positive Developments

The MONEYVAL report highlighted several positive developments, including:

  • The adoption of a law establishing the necessary mechanism for obtaining and keeping accurate and up-to-date beneficial ownership information.
  • Enhancement of legislation to ensure the accuracy of basic information submitted to the Commercial register.

Areas for Improvement

However, MONEYVAL noted that some measures still fall short of being considered proportionate. Additionally, more work is needed to prevent criminals from holding or controlling interests in financial institutions.

Albania has made significant progress in addressing technical compliance deficiencies within three years after the adoption of its mutual evaluation report. The country now meets MONEYVAL’s general expectation by addressing most, if not all, technical compliance deficiencies.

Overall Compliance with FATF Recommendations

Albania has achieved full compliance with seven of the 40 FATF Recommendations and is “largely compliant” with 29 others. However, it 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

Future Plans

Albania will continue under MONEYVAL’s enhanced follow-up and is expected to report back on progress in strengthening its implementation of anti-money laundering and combating the financing of terrorism measures in two years’ time.