Financial Crime World

Albania: A Complex Development Environment

Justice System: A Key Challenge

The justice system in Albania faces significant challenges that hinder its ability to deliver fair and efficient justice.

  • Lack of Independence, Efficiency, and Professionalism: The justice system lacks the independence, efficiency, and professionalism required to provide effective justice.
  • Corruption Remains a Concern: Corruption remains a significant concern, with heavy sentences for ordinary citizens and light sentences for organized crime groups or corrupt officials.
  • Investigations and Prosecutions Need Improvement: Investigations and prosecutions often fail to target upper echelons of criminal organizations.

Crime and Security: Persistent Threats

Organized crime and smuggling continue to pose significant challenges to Albania’s security and development.

  • Limited Progress Against Organized Crime: Despite efforts, organized crime remains a significant challenge, with limited progress made in the fight against it.
  • Smuggling Continues at Land Borders: Smuggling of illicit goods and people persists at the country’s land borders.
  • Cybersecurity Infrastructure Lacking: The country lacks necessary cybersecurity infrastructure and technical capacities to protect its digital infrastructure.

Economic and Financial Environment: Vulnerabilities

Albania is vulnerable to money laundering and other economic challenges due to corruption, weak institutions, and a significant informal economy.

  • Money Laundering Risks: Albania is vulnerable to money laundering due to corruption, weak institutions, and a significant informal economy.
  • Informal Economy Hinders Development: At least a third of the GDP comes from the informal economy, making it difficult to introduce labor protection and competition rules.
  • Business Regulations Need Improvement: Business-relevant regulations remain cumbersome, and shortcomings in the rule of law continue to hamper businesses and deter investments.

Civil Society and Social Protection: Opportunities for Growth

Civil society organizations play a crucial role in providing support to victims of crime and trafficking, but they rely heavily on external funding.

  • Progress in Victim Support Legislation: The government has made progress in passing legislation on victims’ rights, but implementation remains a challenge.
  • Limited Victim Support Services: Victim support programs are lacking, and only a limited number of public and private actors offer services.
  • Civil Society Organizations Rely on External Funding: Civil society organizations rely heavily on external donors for financial support.

Challenges and Opportunities

Corruption, organized crime, and the informal economy remain significant challenges to Albania’s development, but there are opportunities for improvement in various areas.

  • Opportunities for Improvement: There are opportunities for improvement in victim support, crime prevention, and business regulation, which could contribute to Albania’s overall development.
  • Government Efforts to Strengthen Justice System: The government has taken steps to strengthen the justice system and combat corruption, but more work is needed.