Albania Fails to Meet International Anti-Money Laundering Standards

Albania’s Struggle to Combat Money Laundering

In a move that has sparked concern among international financial regulators, Albania’s efforts to combat money laundering have been deemed inadequate by a leading global watchdog. The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) released its 2nd Enhanced Follow-up report on Albania in April, highlighting significant shortcomings in the country’s anti-money laundering framework.

Key Shortcomings in Albania’s Anti-Money Laundering Regime

• Lack of coordination and cooperation among institutions
• Failure to implement key recommendations aimed at strengthening the anti-money laundering regime
• Inadequate resources and legislative backing for combating money laundering

International Pressure on Albania to Strengthen its Anti-Money Laundering Framework

The Financial Action Task Force (FATF), a global authority on anti-money laundering standards, has taken steps to tighten regulations following the COVID-19 pandemic and the increasing use of virtual assets. However, Albania’s failure to adapt its legislation to these changes has raised concerns among international regulators.

Consequences of Albania’s Failure to Meet International Anti-Money Laundering Standards

• Money laundering remains a significant threat to Albania’s financial stability
• Lax laws and enforcement mechanisms make it an attractive destination for illicit funds
• The Albanian government has been urged to take immediate action to address these shortcomings and strengthen its anti-money laundering framework in line with international standards.

Institutions Involved in Combating Money Laundering in Albania

• Financial Intelligence Unit
• State Police
• Tax Authority
• Other institutions hampered by inadequate resources, lack of coordination, and insufficient legislative backing.