Albania’s Anti-Money Laundering Policies Under Scrutiny

A recent report has shed light on Albania’s efforts to implement the Financial Action Task Force (FATF) Recommendations, which aim to prevent money laundering and terrorist financing. The country scored a mixed bag in various areas, with some significant gaps remaining.

Risk Assessment and National Cooperation

Albania was found largely compliant (LC) in assessing risk and applying a risk-based approach (R.1), as well as national cooperation and coordination (R.2). However, more work is needed to strengthen its capacity in these areas.

Assessing Risk: Albania has made significant progress in assessing risk and applying a risk-based approach.
National Cooperation: The country has also strengthened its national cooperation and coordination efforts.

Money Laundering Offence and Confiscation Measures

The country also received an LC rating for having a money laundering offence in place (R.3) and provisional measures to confiscate assets (R.4).

Money Laundering Offence: Albania has established a clear money laundering offence, which is essential for preventing financial crimes.
Confiscation Measures: The country’s provisional measures to confiscate assets are also in place, helping to prevent the flow of illicit funds.

Terrorist Financing and Targeted Financial Sanctions

In contrast, Albania was found partially compliant (PC) with targeted financial sanctions related to terrorism and terrorist financing (R.6), as well as proliferation (R.7). The country has made some progress in these areas but needs to do more.

Terrorist Financing: Albania’s efforts to prevent terrorist financing are ongoing, but more work is needed to strengthen its capacity.
Targeted Financial Sanctions: The country has also implemented targeted financial sanctions related to terrorism and proliferation.

Financial Institution Secrecy Laws and Customer Due Diligence

Albania’s financial institution secrecy laws (R.9) and customer due diligence requirements (R.10) were found largely compliant, with some minor issues remaining.

Financial Institution Secrecy: Albania has implemented financial institution secrecy laws to prevent the misuse of financial information.
Customer Due Diligence: The country’s customer due diligence requirements are also in place, helping to identify and prevent potential financial crimes.

Correspondent Banking and Wire Transfers

The country was also found largely compliant in correspondent banking relationships (R.13) and wire transfers (R.16), but needs to improve its oversight of these areas.

Correspondent Banking: Albania’s correspondent banking relationships are an essential part of its financial system.
Wire Transfers: The country’s wire transfer systems are also critical for facilitating international trade and finance.

Higher-Risk Countries and Reporting of Suspicious Transactions

Albania received a PC rating for reporting suspicious transactions (R.19) and identifying higher-risk countries (R.19). While progress has been made, more work is needed in these areas.

Reporting Suspicious Transactions: Albania’s efforts to report suspicious transactions are ongoing.
Identifying Higher-Risk Countries: The country also needs to improve its capacity to identify higher-risk countries.

Transparency and Beneficial Ownership

The country was found partially compliant with transparency requirements for beneficial ownership of legal persons (R.24) and legal arrangements (R.25).

Beneficial Ownership: Albania’s efforts to promote transparency in beneficial ownership are ongoing.
Legal Arrangements: The country also needs to improve its capacity to regulate legal arrangements.

Regulation and Supervision of Financial Institutions

Albania’s regulation and supervision of financial institutions (R.26) were also found partially compliant, with some areas in need of improvement.

Financial Institution Regulation: Albania’s regulatory framework for financial institutions is essential for maintaining stability.
Supervision: The country needs to improve its supervisory capacity to ensure that financial institutions operate safely and soundly.

International Cooperation and Extradition

The country was found largely compliant with international cooperation requirements, including mutual legal assistance (R.37), extradition (R.39), and other forms of cooperation (R.40).

Mutual Legal Assistance: Albania’s efforts to provide mutual legal assistance are ongoing.
Extradition: The country also needs to improve its capacity for extradition.

Overall, Albania’s anti-money laundering policies have shown some progress but require significant improvements in several areas to meet the FATF Recommendations. The country will need to address these gaps to prevent money laundering and terrorist financing effectively.