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Criminal Case Highlights Failures in Background Checks and Professional Sanctions
A recent criminal case has exposed weaknesses in background checks and professional sanctions for various industries in Albania.
The Case
The case centers around a real estate agent who was found to have been involved in money laundering (ML) and terrorist financing (TF) activities. Despite having previously been convicted of similar crimes, the agent was still able to obtain a license to practice his profession due to lax background checks.
Background Checks
According to Law No. 9/2022 “On the Profession of Real Estate Broker,” applicants must meet strict conditions, including verification of their judicial status and criminal offenses. However, the scope of the criminal behavior against which candidates are checked is limited to ML, TF, or weapons of mass destruction.
Concerns about Effectiveness
The case has sparked concerns about the effectiveness of background checks and professional sanctions in Albania. Experts say that the country’s laws and regulations require improvement to prevent similar cases from occurring.
National Risk Assessment Report
A report by the National Risk Assessment (NRA) revealed that certain industries, such as real estate agents, accountants, and notaries, are more vulnerable to ML/TF risks than others. The NRA also found that some supervisory authorities have failed to conduct adequate risk assessments and inspections.
Poor Supervision and Inadequate Sanctions
The report highlights several instances of poor supervision and inadequate sanctions for professionals who fail to comply with anti-money laundering (AML) and combating the financing of terrorism (CFT) requirements.
- Auditors/Accountants: Termination of practicing privileges
- Lawyers: Revocation of licenses, but unclear what sanctions can be applied for non-compliance
- Real Estate Agents: Suspension or revocation of licenses
- Notaries: Legal liability, with potential for revocation of licenses
Reforms Needed
Experts say that the country must strengthen its laws and regulations to prevent similar cases from occurring in the future. Additionally, there is a need to:
- Improve transparency in the revocation of licenses for professionals who fail to comply with AML/CFT requirements
- Increase accountability in Albania’s financial sector
- Implement risk-based supervision consistently across all industries
The case has led to calls for reform and greater accountability in Albania’s financial sector. It is essential that the country addresses these weaknesses to prevent similar cases from occurring in the future.