Financial Crime World

Macedonia’s Anti-Money Laundering Regulations Under Scrutiny

The Former Yugoslav Republic of Macedonia’s efforts to combat financial crimes have been assessed by global regulators, yielding mixed results. A recent report from the Financial Action Task Force (FATF) highlights both progress and areas for improvement.

Progress in Implementing Technical Requirements

According to the FATF report, Macedonia has made significant strides in implementing technical requirements to combat money laundering and terrorist financing. The country has demonstrated:

  • Improved risk assessment and risk-based approach: Macedonia has enhanced its ability to identify and mitigate risks associated with financial crimes.
  • National cooperation and coordination: The country has improved its collaboration among law enforcement agencies, regulatory bodies, and other stakeholders to prevent and investigate financial crimes.
  • Targeted financial sanctions related to terrorism and terrorist financing: Macedonia has implemented effective measures to freeze and seize assets linked to terrorism.

Areas for Improvement

Despite progress in some areas, Macedonia still faces challenges in others. The FATF report notes that the country is:

  • Partially compliant in areas such as:
    • Confiscation and provisional measures
    • Terrorist financing offence
    • Money or value transfer services
  • Non-compliant in areas including:
    • Non-profit organizations
    • Customer due diligence for designated non-financial businesses and professions (DNFBPs)
    • Transparency and beneficial ownership of legal persons and arrangements

Recommendations for Improvement

The FATF report makes several recommendations to enhance Macedonia’s anti-money laundering and counter-terrorism financing regime, including:

  • Improving regulation and supervision of financial institutions, DNFBPs, and financial intelligence units
  • Enhancing powers of supervisors, law enforcement, and investigative authorities
  • Strengthening statistics and guidance mechanisms
  • Increasing transparency and beneficial ownership of legal persons and arrangements
  • Enhancing customer due diligence for DNFBPs

Response from Macedonian Authorities

Macedonia’s authorities have welcomed the report and pledged to continue working towards implementing FATF Recommendations. The country has already taken steps to address some of the concerns raised in the report, including strengthening its anti-money laundering regime and improving cooperation with international partners.

Overall, while Macedonia still faces challenges in implementing effective anti-money laundering regulations, the country is committed to continuing its efforts to combat financial crimes and improve its compliance with international standards.