Financial Crime World

Albania’s Efforts Against Money Laundering and the Financing of Terrorism

Assessment Report Highlights Concerns and Recommendations

The implementation of measures against money laundering (ML) and the financing of terrorism (FT) in Albania has been assessed, revealing several areas where improvements are needed.

Key Areas for Improvement

  • Prosecuting Money Laundering Cases: Despite an increase in ML cases, there have been few convictions. Strengthening the Financial Intelligence Authority’s (FIA) resources is essential to improve investigations and prosecutions.
  • Analyzing ML and FT Risks: Albania lacks a comprehensive understanding of the risks associated with ML and FT, hindering the implementation of appropriate mitigation measures.
  • Asset Confiscation: Although legislation exists for asset confiscation, there is a lack of information on actual seizures and confiscations.
  • Supervising Non-Profit Organizations (NPOs): Albania lacks a framework for risk-based supervision of NPOs. The government should develop and implement such a framework to prevent FT through these organizations.
  • Strengthening Financial Institutions’ Controls: Supervisory authorities must ensure that financial institutions have robust controls in place to prevent criminal infiltration.

Recommendations for Improvement

  • Review the reasons behind poor prosecution performance and address identified shortcomings.
  • Enhance analysis of ML and FT risks, particularly considering the impact of the informal economy and corruption on these risks.
  • Increase indictments in cases involving foreign proceeds and ensure adequate efforts to confiscate criminal assets located abroad.
  • Implement high standards for supervisory authorities to prevent criminal infiltration of financial institutions and designated non-financial businesses or professions.

Conclusion

While Albania has made progress in addressing ML/FT risks, there is still much work to be done to strengthen its ML/FT regime. Addressing these concerns will require a concerted effort from the government, regulatory bodies, and other stakeholders to ensure that Albania’s financial system remains secure and compliant with international standards.