Assessment of Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Framework in Albania

Progress Made by Albania

The AML/CFT framework in Albania has shown significant progress, as evidenced by a re-rating of Recommendation 35 (R.35) from “Partially Compliant” to “Largely Compliant”. This change suggests that the country has made considerable strides in addressing some of the previously identified deficiencies related to sanctions for non-compliance with AML/CFT requirements.

Areas Requiring Improvement

The report highlights several areas where Albania needs to improve its AML/CFT framework:

• Lack of Provisions for Casinos: There is a lack of explicit provisions regarding criminal associates and indirect shareholders/business owners in the casino sector.
• Insufficient Measures for DNFBPs: Limited measures are in place to prevent criminals or their associates from controlling or managing designated non-financial businesses and professions (DNFBPs).
• Inadequate Sanctions Framework: The sanctions framework is insufficient, not proportionate, and not dissuasive enough.
• Link Between Sanction Powers and Requirements: There is no clear link between sanction powers and requirements covered by other documents.

Remedial Actions Needed

Although Albania has taken limited actions to remedy some of these deficiencies, more work needs to be done to strengthen its AML/CFT framework. The report emphasizes the need for sustained efforts to address the identified weaknesses and improve the country’s ability to prevent and combat money laundering and terrorist financing.

Conclusion

The comprehensive assessment provided by this report highlights areas where improvements are needed to strengthen Albania’s AML/CFT framework. By addressing these deficiencies, the country can further enhance its ability to prevent and combat financial crimes, ultimately contributing to a safer and more secure financial environment.