Risk-Based Approach to Financial Crime in Albania: A Progress Report
Albania has made significant strides in implementing a risk-based approach to combating financial crime, according to a recent assessment by international authorities. However, there are still areas where improvement is needed.
Progress in Implementing FATF Recommendations
The country’s efforts have been praised for their commitment to tackling money laundering and terrorist financing. Albania has made progress in implementing several key measures, including:
Risk-Based Approach
- Implementing a risk-based approach to assessing and managing risks related to money laundering and terrorist financing
- Establishing a national coordination mechanism to enhance cooperation among various stakeholders
- Strengthening laws and regulations related to money laundering offenses
Areas for Improvement
However, the report also identifies areas where Albania needs to improve its compliance with FATF Recommendations. These include:
Transparency and Beneficial Ownership
- Enhancing transparency and beneficial ownership of legal persons
- Improving regulation and supervision of financial institutions and designated non-financial businesses and professions (DNFBPs)
Supervision and Law Enforcement Authorities
- Strengthening the powers of supervisors and law enforcement authorities
- Improving regulation and supervision of DNFBPs
Report Assessment
The report assesses Albania’s implementation of the FATF Recommendations in various areas related to combating money laundering and terrorist financing. The ratings reflect the extent to which the country has implemented these international standards.
| Recommendation | Rating |
|---|---|
| R.1 - Assessing risk & applying risk-based approach | Largely Compliant (LC) |
| R.2 - National cooperation and coordination | Largely Compliant (LC) |
| R.3 - Money laundering offense | Largely Compliant (LC) |
| … | … |
Conclusion
Overall, while Albania’s efforts to combat financial crime have shown promise, more work is needed to ensure full compliance with international standards. The country must continue to strengthen its AML/CFT framework, including through improved regulation, supervision, and cooperation among stakeholders.
Sources:
- Report on the implementation of FATF Recommendations in Albania
- International authorities’ assessment of Albania’s progress in combating financial crime