Financial Crime World

Albania Urged to Enhance Efforts in Preventing Money Laundering and Terrorist Financing

A recent evaluation report by MONEYVAL has called on Albania to intensify its efforts in preventing money laundering (ML) and terrorist financing (TF). The report, published on December 17, 2018, highlights the significant risks posed by corruption and organized crime activities in the country.

Corruption: A Major Risk Factor for Money Laundering

According to the report, corruption is a major risk factor for ML in Albania, generating substantial criminal proceeds that undermine the effectiveness of the country’s criminal justice system. Despite being aware of these risks, law enforcement agencies have so far failed to target corruption-related ML effectively.

Recommendations for Enhancing Efforts

MONEYVAL praised Albania for having a good understanding of its ML and TF risks, as well as national coordination mechanisms in place to address them. However, the report recommends enhancing the analysis of these risks to implement more effective mitigation measures, including:

  • Conducting a more detailed TF risk assessment
  • Understanding the impact of corruption on ML/TF risks
  • Assessing the risk posed by legal persons

Improving Asset Seizure and Confiscation

The report notes that while Albania has a robust legal framework for confiscating criminal proceeds, the number and value of seized assets do not match the level of criminality in the country. MONEYVAL recommends ensuring that adequate efforts are made to identify and seize criminal proceeds located abroad.

Addressing Terrorist Financing Risks

In terms of terrorist financing, MONEYVAL expressed concerns about the perception and understanding of TF risks in Albania, noting that there is no systematic approach to identifying and investigating financing aspects of terrorism-related offenses. The report recommends:

  • Conducting a more detailed risk assessment
  • Improving cooperation with foreign authorities
  • Enhancing public awareness campaigns

Banking Sector Improvement Needed

The report also highlighted areas for improvement in the country’s banking sector, including:

  • Implementing high standards for licensing financial institutions
  • Assessing criminal records beyond convictions
  • Introducing ongoing mechanisms to check the integrity status of exiting licenses

Finally, the report notes that Albania has provided mutual legal assistance with an appropriate level of cooperation. However, MONEYVAL recommends simplifying the existing legal framework for executing foreign requests and introducing a case management system.

By implementing these recommendations, Albania can significantly improve its efforts in preventing money laundering and terrorist financing, ultimately strengthening its financial integrity and combating organized crime activities.