Albania’s Efforts in Preventing and Combating Money Laundering and Terrorist Financing

Introduction

Albania has been working to prevent and combat money laundering and terrorist financing, but there are still areas that require improvement. This article highlights key points about Albania’s efforts in this regard and provides recommendations for policymakers.

Money Laundering Efforts

Seizure and Confiscation

Despite an increase in seized assets, the available statistics do not seem to be proportional to the level of criminality in the country. The non-conviction confiscation regime is applied more often than the mandatory criminal confiscation regime.

Key statistic: 36 cases of cash transportation identified by the General Directorate of Customs in 2021
Challenges: Limited information on further proceedings or confiscations

Albania has legislation that allows for the social reuse of confiscated assets, with a dedicated fund for crime prevention and legal education projects.

Legislation: Allows for the social reuse of confiscated assets
Funding: Dedicated fund for crime prevention and legal education projects

Influence of Illicit Financial Flows (IFFs) on the Economy

Some media and civil society sources link the strengthening of the national currency (lek) since 2014 to the influence of IFFs in the economy, which cannot be explained by economic factors alone.

Key statistic: Strengthening of the national currency (lek) since 2014
Challenges: Unexplained economic growth attributed to IFFs

Terrorist Financing Efforts

Anti-Terrorist Financing Law

Albania has had an anti-terrorist financing law in place since 2013, updated in 2019 to meet UN requirements for implementing financial sanctions against terrorist financing.

Legislation: Anti-terrorist financing law
Update: Updated in 2019 to meet UN requirements

Targeted Financial Sanctions

The country implements targeted financial sanctions promptly, with a domestic designation system aligned with UNSC Resolution 1373 and foreign requests.

Implementation: Prompt implementation of targeted financial sanctions
Alignment: Domestic designation system aligned with UNSC Resolution 1373 and foreign requests

Recommendations for Policymakers

Reviewing Money Laundering Cases

Review the reasons behind poor performance in money laundering cases and address shortcomings identified in the investigative process.

Key recommendation: Reviewing money laundering cases
Shortcomings: Investigative process weaknesses to be addressed

Enhancing Risk Analysis

Enhance analysis of money laundering and terrorist financing risks to implement appropriate mitigation measures.

Key recommendation: Enhancing risk analysis
Mitigation measures: Implementing measures to mitigate identified risks

Pursuing Indictments in Money Laundering Cases

Pursue more indictments in money laundering cases involving foreign proceeds.

Key recommendation: Pursuing more indictments
Foreign proceeds: Focus on cases involving foreign proceeds

Identifying and Confiscating Criminal Proceeds

Ensure adequate efforts are made to identify criminal proceeds located abroad and take appropriate actions for their confiscation.

Key recommendation: Identifying and confiscating criminal proceeds
Abroad: Focusing on proceeds located outside the country