Financial Crime World

Macedonia’s Anti-Money Laundering Efforts Under Scrutiny

The European Union has released its annual report on Macedonia’s progress in implementing anti-money laundering measures, highlighting concerns over the country’s slow pace of reform and inadequate awareness among the public.

Progress and Challenges

While there has been some progress in enforcing laws combating money laundering and terrorist financing, significant challenges remain. The country still lacks a fully functional framework for implementing anti-money laundering legislation, with many implementing institutions not yet established or operational.

  • Enforcing laws combating money laundering and terrorist financing
  • Implementing anti-money laundering legislation
  • Establishing and operating implementing institutions

Custom Union Acquis

The report notes that Macedonia’s customs union acquis is almost exclusively composed of directly binding legislation on the EU side, requiring the country to have implementing capacities, particularly connectivity with the EU’s computerized customs systems. However, customs authorities lack sufficient capacity for implementation and compliance with specific provisions established in related fields of the acquis.

  • Customs union acquis
  • Implementing capacities
  • Connectivity with EU’s computerized customs systems

Company Law and Intellectual Property Rights

Good progress has been made in further legislative alignment with the acquis in company law, but the legal framework for auditing remains only partially aligned. Similarly, intellectual property rights have seen some progress, although awareness among the public remains low and the track record on investigation, prosecution, and judicial handling of piracy and counterfeiting is unsatisfactory.

  • Company law
  • Legislative alignment with acquis
  • Intellectual property rights
  • Awareness among the public

Institutional Reform

The report highlights concerns over institutional reform in areas such as freedom of movement for workers, freedom to provide services, and right of establishment. Few preparations have been made concerning these issues, with significant efforts required to align the country’s legislation with the acquis and implement it effectively.

  • Institutional reform
  • Freedom of movement for workers
  • Freedom to provide services
  • Right of establishment

Recommendations

The report makes several recommendations for Macedonia, including:

  • Strengthening institutional capacities, particularly in the areas of customs, financial intelligence, and law enforcement
  • Improving awareness among the public about intellectual property rights and the risks associated with money laundering and terrorist financing
  • Enhancing cooperation between authorities and international organizations to combat organized crime and terrorism
  • Implementing measures to prevent and detect money laundering and terrorist financing

Timeline

  • November 2008: EU report highlights concerns over Macedonia’s slow pace of reform and inadequate awareness among the public.
  • 2009: Macedonia begins working towards EU membership.
  • 2010: Report outlines uneven progress made by the country, with institutional reform required in areas such as freedom of movement for workers and right of establishment.
  • 2011: Report highlights concerns over slow pace of anti-money laundering reforms and inadequate awareness among the public.

Sources

  • European Commission Enlargement Strategy and Progress Reports 2011
  • Directorate-General for Enlargement website

Last updated: December 21, 2011