Financial Crime World

Financial Action Task Force (FATF) Assessment Visit Report - April 2014

Introduction

This report summarizes the key findings and recommendations of the Financial Action Task Force (FATF) assessment visit to “the former Yugoslav Republic of Macedonia” in April 2014.

Key Areas of Assessment

The report covers several key areas, including:

Technical Compliance

  • While there have been some improvements in technical compliance with FATF Recommendations, there are still some gaps and deficiencies.

  • Technical Compliance Gaps

    • Despite improvements, there are still gaps and deficiencies in technical compliance with FATF Recommendations.

Reporting Obligations

  • The authorities have expanded reporting obligations to cover attempted transactions.

  • However, the number of Suspicious Transaction Reports (STRs) submitted by non-banking financial sectors is limited.

  • Reporting Obligations

    • Expanded reporting obligations to cover attempted transactions
    • Limited number of STRs submitted by non-banking financial sectors

Fit and Proper Requirements

  • While fit and proper requirements are in place for certain sectors, they do not fully align with international standards.

  • Checks are carried out to a very limited extent in practice.

  • Fit and Proper Requirements

    • Inadequate alignment with international standards
    • Limited checks in practice

Supervisory System

  • The supervisory system consists of five primary responsible authorities, which carry out prudential supervision.

  • The Financial Intelligence Office (FIO) acts as an additional supervisor for AML/CFT purposes.

  • Supervisory System

    • Five primary responsible authorities
    • FIO acts as an additional supervisor

Preventive Measures - Designated Non-Financial Businesses and Professions

The report also covers the following areas related to preventive measures for designated non-financial businesses and professions (DNFBPs):

Coverage

  • All DNFBPs are covered by the AML/CFT Law, with the exception of internet casinos.

  • Coverage

    • All DNFBPs except internet casinos

CDD Measures

  • Casinos and real estate representatives have satisfactory CDD measures in place.

  • However, other DNFBPs demonstrate lower awareness of beneficial owners and Politically Exposed Persons (PEPs).

  • CDD Measures

    • Satisfactory CDD measures for casinos and real estate
    • Lower awareness among other DNFBPs

STRs

  • The number of STRs received by the FIO from DNFBPs is very low.

  • STRs

    • Very low number of STRs received by the FIO

Conclusion

The report highlights some progress made by “the former Yugoslav Republic of Macedonia” in implementing AML/CFT measures, but also notes that there are still areas where improvements are needed to ensure full compliance with FATF Recommendations.