Macedonia’s Fight Against Money Laundering Falters

A recent assessment by a global anti-money laundering (AML) body has revealed that Macedonia is struggling to effectively combat money laundering and terrorist financing.

Shortcomings in Efforts to Prevent Financial Crimes

The report highlights several shortcomings in Macedonia’s efforts to prevent these financial crimes. One of the main issues is the lack of updated information provided by authorities, making it difficult for financial institutions to identify suspicious transactions.

Lack of Awareness Among Non-Financial Businesses

Despite expanded reporting obligations, which now include attempted transactions, the number of suspicious transaction reports (STRs) submitted by non-banking financial sectors remains low. Many designated non-financial businesses and professions (DNFBPs), such as lawyers and accountants, have demonstrated a lack of awareness about AML/CFT requirements.

Insufficient Compliance Functions in Other Sectors

The report also noted that while banks have established AML/CFT compliance functions, other sectors, including insurance companies and savings houses, are not adequately addressing these issues. Additionally, there is no direct obligation to appoint an AML/CFT compliance officer, which can lead to a lack of expertise in this area.

Fit and Proper Requirements Not Fully Aligned with International Standards

Furthermore, the assessment found that fit and proper requirements for financial institutions’ shareholders and directors are not fully aligned with international standards. While supervisory authorities have identified some technical deficiencies in the reporting system, they seem to be working effectively in practice.

Limited Sanctions for AML/CFT Breaches

The report concluded that Macedonia’s sanctions for AML/CFT breaches are limited, with only a few fines imposed in recent years. This lack of enforcement can undermine efforts to deter financial crime.

Call to Action: Strengthen Efforts to Combat Money Laundering and Terrorist Financing

The global anti-money laundering body urged Macedonia to address these issues and strengthen its efforts to combat money laundering and terrorist financing.