Financial Crime World

ALBANIA FAILS TO MEET AML AND CFT REGULATORY REQUIREMENTS, SAYS GLOBAL WATCHDOG

Tirana, Albania

Albania’s efforts to combat money laundering and terrorist financing have been criticized by a global financial watchdog, the Financial Action Task Force (FATF). According to the report, Albania has several shortcomings in its anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations.

Shortcomings Identified

  • Risk assessment: Albania needs to improve its risk assessment measures to identify and mitigate potential threats.
  • National cooperation: The country requires strengthening its national cooperation mechanisms to share information with other countries and law enforcement agencies.
  • Targeted financial sanctions: Albania must enhance its targeted financial sanctions regime to effectively prevent money laundering and terrorist financing.

FATF Recommendations

  • Improve customer due diligence, record-keeping, and internal controls
  • Enhance powers of supervisors, law enforcement agencies, and financial intelligence units

Concerns Raised

Albania’s lack of progress in implementing these measures has raised concerns among international experts. The country may be vulnerable to money laundering and terrorist financing activities if it fails to address the identified shortcomings.

Consequences of Non-Compliance

Failure to implement the recommended measures could result in Albania being placed on the FATF’s list of non-cooperative countries or territories, which would have significant implications for its financial sector and international relations.

Government Response

In response to the report, Albanian authorities have pledged to take immediate action to address the shortcomings identified by the FATF. The country has committed to implementing new measures to prevent money laundering and terrorist financing, including:

  • Strengthening supervision of financial institutions
  • Improving information-sharing with other countries

The Albanian government’s swift response aims to mitigate the risks associated with non-compliance and ensure the country’s AML/CFT regime is effective in preventing illegal activities.