Suspicious Transaction Raises Red Flags in Former Yugoslav Republic of Macedonia

A recent assessment by a global financial watchdog has uncovered several suspicious transactions and weaknesses in the country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.

Increased Suspicious Transactions Reports

According to the report, the number of suspicious transaction reports (STRs) increased significantly, indicating a positive trend. However, the review also identified several deficiencies, including:

• Incomplete definitions of beneficial ownership
• Lack of verification measures for customers

Implementation Deficiencies in Financial Institutions

The report highlighted that the country’s financial institutions are still struggling to implement record-keeping requirements, with some failing to maintain accurate records on transactions and customer identification data.

Transparency of Wire Transfers Needs Improvement

Moreover, the assessment revealed that the transparency of wire transfers has improved, but there is still room for improvement. The supervisory authorities were also criticized for their lack of effective sanctions and fit-and-proper criteria.

Non-Compliance with International Standards

The report also pointed out that the country’s DNFBPs (designated non-financial businesses and professions) are not fully compliant with international standards, and some have been subject to sanctions.

Beneficial Ownership Concept Missing from Legislation

Additionally, the assessment noted that the concept of beneficial ownership is missing from the legislation governing corporate entities, making it difficult to identify the true owners of companies.

Conclusion

The report concluded that while “the former Yugoslav Republic of Macedonia” has made progress in implementing AML/CFT measures, there are still several areas that require attention.