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Albania: Declaration and Audit of Assets and Conflict of Interest

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A recent report by the National Bureau of Investigation (NBI) has highlighted several concerns regarding Albania’s declaration and audit of assets, as well as its handling of conflict of interest cases.

Investigation and Prosecution of Money Laundering and High-Level Corruption Cases

According to the report, Albania’s investigation and prosecution of money laundering and high-level corruption cases are low. Financial investigations need significant improvement. The report also notes that while asset seizures have increased, actual confiscations remain low.

Anti-Money Laundering (AML) Regime Shortcomings

The NBI has identified several shortcomings in Albania’s AML regime, including:

  • Lack of clear national strategy and operational procedures
  • Foreign predicate money laundering cases rely heavily on evidence from foreign counterparts
  • Domestic cases often lack robust circumstantial evidence

Asset Confiscation Regime Concerns

The report highlights concerns regarding the effectiveness of Albania’s asset confiscation regime, which has resulted in few actual confiscations despite significant seizures. The NBI notes that:

  • The non-conviction confiscation regime is applied more frequently than the mandatory criminal confiscation regime
  • Social reuse of confiscated assets is often hampered by a lack of trained personnel and adequate equipment

Recommendations for Policymakers

The report makes several recommendations, including:

  • Reviewing the reasons behind poor performance in terms of prosecuting money laundering cases
  • Addressing shortcomings identified in the investigative process
  • Enhancing analysis of money laundering and terrorist financing risks
  • Pursuing more indictments in money laundering cases involving foreign proceeds
  • Ensuring adequate measures are in place to initiate financial investigations in a systematic manner

Key Findings

  • Albania’s investigation and prosecution of money laundering and high-level corruption cases are low.
  • Financial investigations need significant improvement.
  • Asset seizures have increased, but actual confiscations remain low.
  • Foreign predicate money laundering cases rely heavily on evidence from foreign counterparts.
  • Domestic cases often lack robust circumstantial evidence.
  • The non-conviction confiscation regime is applied more frequently than the mandatory criminal confiscation regime.

Country Profile

Albania has made significant progress in recent years in strengthening its AML regime, including the passage of anti-terrorism financing legislation and the establishment of a risk-based approach to supervision. However, further improvements are needed to effectively combat money laundering and terrorist financing.