Financial Crime World

Macedonia’s Strides in Anti-Money Laundering Measures: Progress Report to MONEYVAL

The former Yugoslav Republic of Macedonia (FYROM) has submitted its second round of written progress reports to the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), detailing the significant steps taken to address deficiencies in its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) system.

Adoption of the Progress Report

The FYROM’s progress report was examined and adopted by MONEYVAL during its 36th Plenary meeting held in Strasbourg on September 26-30, 2011. This report follows the third evaluation round visit in March 2007, the adoption of the mutual evaluation report (MER) in July 2008, and the first progress report in September 2009.

Analysis of FYROM’s Progress

The document includes a written analysis by the MONEYVAL Secretariat of FYROM’s progress in addressing the deficiencies identified in relation to the core Recommendations R.1, SR.II, R.5, R.10, R.13, and SR.IV.

Current Situation and Developments

Since the adoption of the MER and the First Progress Report, FYROM has made considerable efforts to strengthen its AML/CFT framework. Some of the improvements include:

  • Further amendments to the AML/CFT Act to provide for both simplified and enhanced customer due diligence
  • Stricter measures for the identification of beneficial owners and record keeping
  • Harmonization of legislation with national legislation regulating inspections
  • Introduction of a separate criminal offence for terrorist financing
  • Amendments to the Criminal Code to allow for ratification of the Warsaw Convention

Addressing Deficiencies

The FYROM’s progress report also discusses measures taken to address deficiencies in relation to the key and other Recommendations, though these topics fall outside the scope of the present report.

Assessment of the Measures

The analysis shows that FYROM has taken considerable steps to address the issues identified in the MER. However, the effectiveness of the measures will be further evaluated during the next assessment.

Scope of the Assessment

It is important to note that the present analysis focuses only on the core Recommendations, R.1, SR.II, R.5, R.10, R.13, and SR.IV. Thus, only part of the AML/CFT system has been assessed.

Effectiveness of the Measures

The assessment of the effectiveness of these measures was based on the information and statistics provided by the FYROM. The assessment does not confirm full effectiveness.

Publication of the Full Progress Report

The full progress report, including supporting materials, is subject to peer review by the plenary, assisted by the rapporteur country and the secretariat, and is scheduled for publication following adoption.