Macedonia Takes a Major Step Towards Financial Transparency with New Anti-Money Laundering Regulations
As part of its effort to comply with the EU Directive 2018/843, Macedonia has recently implemented new anti-money laundering (AML) and combating terrorist financing (CFT) measures in its crypto sphere. The amended law aims to address the risks associated with virtual or crypto assets, which are often characterized by pseudo- anonymity.
New Regulations for Service Providers
Under the new regulations, service providers related to virtual assets will be required to implement control mechanisms to prevent money laundering and terrorist financing. Key provisions include:
- Implementing measures to prevent money laundering and terrorist financing
- Limiting cash transactions involving virtual assets to a value of EUR 500
- Prohibiting the use of fully anonymous virtual assets, also known as privacy coins
- Banning software tools designed to anonymize and manipulate virtual asset transactions
Supervisory Authority and Reporting Requirements
The Financial Intelligence Office (FIO) has been designated as the supervisory authority responsible for monitoring the operation of service providers related to virtual assets from an AML/CFT perspective. Each provider will be required to:
- Notify the FIO within 30 days of adopting by-laws prescribed by this law
- Report any exchange of virtual assets or money worth EUR 1,000
Transitional Period and Additional Changes
The new regulations provide a nine-month transitional period for service providers related to virtual assets to fully comply with the provisions. Additionally, the law introduces several other key changes:
- New obligations for individuals trading or acting as intermediaries in art transactions
- Enhanced measures of analysis applied to non-profit organizations determined by national risk assessment and specific risk assessments
- More detailed provisions regarding client identification, Ultimate Beneficial Owner (UBO) analysis, registration on the UBO registry, and enhanced AML/CFT analysis
Promoting Digitized Work Processes
The law promotes digitized work processes and exchange of information and data via protected electronic means or through the National Platform for Interoperability. This aims to enhance cooperation with other competent authorities and financial intelligence units.
Conclusion
These significant changes aim to enhance Macedonia’s efforts in combating money laundering and terrorist financing, while also promoting a more transparent and secure financial environment. The new regulations demonstrate the country’s commitment to implementing international standards and best practices in the fight against financial crime.