Financial Crime World

Albania’s Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Efforts: Areas for Improvement

Risk Assessment Overview

The international community has assessed Albania’s AML/CFT efforts, highlighting several areas where improvement is needed to effectively combat money laundering and terrorist financing.

Key Findings

1. Risk of Financing Terrorism

There remains a risk that Albania could be used for financing terrorist activities.

2. Asset Freezing and Expulsions

The government has taken steps to freeze assets, curtail suspect Islamic non-profit organizations (NPOs), and expel individuals linked to terrorism.

3. Money Laundering Criminalization

Albania has largely criminalized money laundering in line with international requirements but lacks convictions due to demanding evidentiary standards.

4. Criminalizing Financing of Terrorism

While provisions have improved, they still fall short of meeting the Financial Action Task Force (FATF) standard.

5. Financial Intelligence Unit (FIU)

The Albanian FIU has enhanced analytical processes but lacks operational independence and clear responsibility for disseminating suspicious transaction information.

6. Preventive Measures

Albania’s legal framework falls short of international standards in identifying beneficial owners and customer due diligence measures, particularly for foreign politically exposed persons (PEPs).

7. Designated Non-Financial Businesses and Professions (DNFBPs)

Implementation of AML/CFT measures by DNFBPs is limited, with some supervisors showing little engagement.

8. Supervisory Authorities

While the legal framework for supervisory authorities’ power is sound, there should be clarity on their role, and more inspections are needed.

9. Domestic and International Cooperation

Domestic and international cooperation in Albania is good but underutilizes mechanisms between supervisory agencies.

Albania has fully criminalized money laundering largely in line with international requirements but lacks convictions due to evidentiary demands, and provisions for financing terrorism still fall short of international standards.

Conclusion

These findings highlight areas where Albania needs improvement in its AML/CFT efforts, including asset freezing, expulsions, money laundering criminalization, financing of terrorism, FIU independence, preventive measures, DNFBPs implementation, supervisory authorities’ role, and domestic/international cooperation.