Financial Crime World

Combating Money Laundering and Terrorist Financing: Challenges and Recommendations for Albania

Asset Confiscation: A Key Component in Combating Financial Crimes

Albania has legislation in place for the social reuse of confiscated assets, which includes a dedicated fund for crime prevention. However, there are concerns regarding the lack of information on confiscations.

  • Legislation and Enforcement: Albania has laws in place to confiscate assets related to financial crimes.
  • Seized Assets: In 2022, €16 million worth of assets were seized based on a freezing order issued by the Financial Intelligence Authority (FIA).
  • Information Gap: There is a lack of information on confiscations, highlighting the need for more transparency.

Addressing Terrorist Financing Risks in Albania

Albania has an anti-terrorist financing law that was updated in 2019 to meet UN requirements. The country assesses its risk of terrorist financing as “low” due to minimal terrorist threats.

  • Legislation: Albania has laws in place to prevent and combat terrorist financing.
  • Risk Assessment: The country’s risk of terrorist financing is considered low, with minimal terrorist threats.
  • Non-Profit Organizations: A 2022 risk assessment for non-profit organizations showed minimal impact of terrorism in the country.

Recommendations for Policymakers

To improve Albania’s efforts in combating money laundering and terrorist financing, we recommend:

Enhance Asset Confiscation Regime

  • Review reasons behind poor performance in prosecuting money laundering cases and address shortcomings in the investigative process.
  • Pursue more indictments in money laundering cases involving foreign proceeds.

Improve Understanding of Terrorist Financing Risks

  • Enhance analysis of money laundering and terrorist financing risks to implement appropriate mitigation measures.
  • Identify criminal proceeds located abroad and take actions for their confiscation.

Prevent Criminal Infiltration of Financial Institutions

  • Implement high standards by supervisory authorities to prevent criminal infiltration of financial institutions and designated non-financial businesses or professions.