Albania Fails to Meet Expectations in Financial Sanctions Regulations

Albania’s latest report on financial sanctions regulations has revealed significant shortcomings, with only a handful of recommendations met in full. According to the Financial Action Task Force (FATF), Albanian authorities have made little progress in implementing effective measures to combat money laundering and terrorist financing.

Key Findings

• Albania received a “largely compliant” rating for its efforts to assess risk and apply a risk-based approach, as well as its cooperation with international partners.
• However, the country failed to meet expectations in several key areas:
  • Confiscation of assets related to terrorism and terrorist financing
  • Regulation and supervision of non-profit organizations
  • Prevention of misuse of new technologies for money laundering and terrorist financing

Shortcomings

• Albania’s financial intelligence unit failed to meet international standards, with limited capacity to analyze and share financial information.
• The country also lacked progress in implementing measures to:
  • Implement effective customer due diligence measures
  • Regulate correspondent banking relationships
  • Establish a robust system for reporting suspicious transactions

FATF Warning

The FATF has called on Albanian authorities to take immediate action to address these shortcomings, warning that failure to do so could result in further action being taken against the country.

International Response

The report’s findings have been met with concern from international partners, who are urging Albania to take its anti-money laundering and counter-terrorism financing obligations seriously. The full report can be found on the FATF website.