Financial Crime World

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EU Committee Evaluates North Macedonia’s Anti-Money Laundering and Terrorism Financing Efforts

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism has assessed North Macedonia’s progress in combating money laundering and terrorist financing. While acknowledging some successes, the committee has identified several challenges that need to be addressed.

Successes and Good Practices

North Macedonia has made significant strides in strengthening its anti-money laundering (AML) and counter-terrorism financing (CFT) framework. The country has adopted a specific law, the Law on Whistleblower Protection, which ensures the protection of individuals who report suspected money laundering or terrorist financing activities.

  • The State Commission for Prevention of Corruption (SCPC) has established cooperation with the private sector and civil society organizations to prevent corruption and conflicts of interest.

Challenges in Implementation

Despite these successes, the committee has identified several areas where North Macedonia needs to improve its AML/CFT framework. The country is recommended to:

  • Ensure that SCPC has operational capacity and adequate resources to fulfill its broad mandates.
  • Consider introducing an appeal mechanism for unsuccessful candidates applying for public positions.
  • Adopt a clear definition of public positions considered vulnerable to corruption and establish rules on the rotation of such officials.
  • Enhance the asset declaration system, including through electronic means and methods.
  • Strengthen enforcement mechanisms for ethical codes or relevant behavior standards for public officials.
  • Establish effective risk management systems in all government agencies.
  • Narrow the grounds for denying access to information, with a view to facilitating public participation in decision-making processes.

Asset Recovery

The committee has also evaluated North Macedonia’s asset recovery regime, which is still in its infancy. The country lacks a clear domestic policy and procedure for asset recovery, making it difficult to apply the Convention on Laundering, Search, Seizure and Confiscation of Proceeds, Financial Instruments and other Things linked thereto.

The committee recommends that North Macedonia strengthen its institutional framework for asset recovery, including establishing a national institution specialized in tracing, securing, and confiscating assets.

Conclusion

While North Macedonia has made progress in strengthening its AML/CFT framework, there are still several challenges that need to be addressed. The country needs to ensure operational capacity and adequate resources for SCPC, establish effective risk management systems, and strengthen enforcement mechanisms for ethical codes or relevant behavior standards for public officials.

North Macedonia also needs to enhance its asset recovery regime, including establishing a national institution specialized in tracing, securing, and confiscating assets. By addressing these challenges, North Macedonia can further improve its efforts to combat money laundering and terrorist financing.