Albania’s Money Laundering and Terrorist Financing Risk Assessment

Overview

The country profile for Albania highlights several key points regarding its risk assessment in the context of money laundering and terrorist financing.

Key Challenges

• Low Prosecution Rate: Albania has a low conviction rate for money laundering cases, with many cases lacking robust circumstantial evidence.
• Lack of Trained Personnel: The General Prosecutor’s Office faces challenges due to a lack of trained personnel and adequate equipment.
• Limited Confiscation: Despite progress in asset seizures, actual confiscations remain low.

Informal Economy Influence

The country’s informal economy is believed to contribute to money laundering risks, with some sources linking the strengthening of the national currency to the influence of illicit financial flows (IFFs).

Terrorist Financing Risk Assessment

Albania assesses its risk of terrorist financing as “low” due to minimal terrorist threats.

Domestic Designation System

The country has a domestic designation system aligned with UNSC Resolution 1373 and foreign requests, but has not proposed any individuals for UNSC designation.

Recommendations for Policymakers

To address these issues, policymakers are recommended to:

• Review Prosecution Performance: Review the reasons behind poor prosecution performance.
• Enhance Risk Analysis: Enhance risk analysis in money laundering cases.
• Pursue More Indictments: Pursue more indictments in money laundering cases.
• Identify Criminal Proceeds: Ensure adequate efforts to identify criminal proceeds located abroad.
• Implement High Standards: Implement high standards by supervisory authorities.