Financial Crime World

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Macedonia’s Efforts to Combat Money Laundering and Terrorist Financing Praised, but Room for Improvement Remains

Skopje, Macedonia - A recent report from the international community has commended Macedonia’s progress in implementing measures to combat money laundering and terrorist financing. However, the country still faces challenges in ensuring that financial institutions and non-financial businesses are adequately equipped to prevent these illicit activities.

Progress Made

According to the report, Macedonia has made significant strides in strengthening its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime since the last assessment. The country’s authorities have implemented measures to:

  • Enhance customer due diligence
  • Improve wire transfer rules
  • Expand suspicious transaction reporting obligations

Awareness among Financial Institutions

The report notes that Macedonia’s financial institutions are generally aware of AML/CFT requirements, with some notable exceptions. Notaries, lawyers, and accountants demonstrated a higher level of awareness compared to other non-financial businesses and professions (DNFBPs).

Challenges Remain

However, the evaluation team found that DNFBPs such as real estate agents, auditors, and legal/natural entities engaged in the sale/purchase of vehicles lacked sufficient knowledge of AML/CFT requirements. This lack of awareness may be contributing to a low number of suspicious transaction reports received by the country’s financial intelligence unit.

Recommendations

To address these challenges, Macedonia is recommended to:

  • Strengthen its sanctions regime by imposing more severe penalties on individuals and entities found guilty of money laundering and terrorist financing
  • Continue raising awareness among DNFBPs of AML/CFT requirements and encourage them to adopt a risk-based approach in conducting customer due diligence
  • Improve the quality of suspicious transaction reports, including those received from non-financial businesses and professions
  • Encourage financial institutions to share best practices in implementing AML/CFT measures with their counterparts in other countries

Contact

For further information, please contact Name at [Phone].