Financial Crime World

Albania’s Anti-Money Laundering Laws Under Scrutiny as Country Remains on FATF Grey List

Controversy Surrounds Fiscal Amnesty Initiative

Tirana, Albania - Amidst controversy surrounding its fiscal amnesty initiative, Albania’s parliament has begun examining proposed amendments to anti-money laundering laws. The Albanian parliament’s Laws Commission is reviewing changes to the law “On the Prevention of Money Laundering and Financing of Terrorism,” which would rename the General Directorate of Money Laundering Prevention as the Financial Intelligence Agency.

Proposed Amendments

  • Rename the General Directorate of Money Laundering Prevention as the Financial Intelligence Agency
  • Operate separately from the civil service, with a salary scale comparable to that of the judicial system
  • Facilitate investigations into cryptocurrency transactions, currency exchanges, and IP tracking
  • Authorize the Financial Intelligence Agency to request data and documentation from telecom operators to identify subscribers and customers
  • Require operators to respond within 10 days or face penalties in urgent cases

Concerns Surrounding Fiscal Amnesty Initiative

  • Critics argue that criminals could use this scheme to launder proceeds of crime without fear of penalty or consequence
  • The government maintains that adequate measures would be in place to prevent such instances, but critics argue that the initiative would weaken controls against money laundering
  • The EU delegation in Tirana has raised concerns about the draft law, stating that it would “weaken Albania’s anti-money laundering controls while doing little to enhance the tax administration’s ability to improve future compliance with tax requirements”

FATF Grey List

  • Albania has been on the FATF grey list since 2020 due to inadequate measures against money laundering and terrorist financing
  • The country must revise its draft law to comply with FATF standards and practices, according to the 2023 review

Prime Minister’s Response

  • Prime Minister Rama maintains that the government will not withdraw from the initiative, citing the need to support hundreds of thousands of Albanian immigrants who have worked illegally abroad and cannot bring their earnings back to the country