Financial Crime World

Title: Macedonia’s Progress in Financial Compliance Regulations: A Report by Moneyval

Overview

The former Yugoslav Republic of Macedonia (FYROM), a member of Moneyval since 2009, has shown considerable progress in the implementation of anti-money laundering measures and countering the financing of terrorism. Below is a summary of Moneyval’s report on FYROM’s progress, highlighting significant achievements and upcoming initiatives.

Major Achievements

  • Entry into force of the Law on Prevention of Money Laundering and Other Proceeds of Crime and Financing Terrorism (AML/CFT Law): Implemented in January 2008, the new law aligns FYROM’s regulations with European Directive 2005/60/EC, the Financial Action Task Force (FATF) Recommendations, the UN Convention for the Suppression of the Financing of Terrorism, and the Council of Europe’s Convention on the Laundering, Search, Seizure, and Confiscation of Proceeds from Crime and on Financing of Terrorism.
  • Extension of the competency of the Office for Prevention of Money Laundering and Financing of Terrorism: The Office’s responsibilities now include measures regarding terrorism financing.
  • Customer due diligence procedures: Implemented to enhance the effectiveness of AML/CFT controls.
  • Units for Prevention of Money Laundering and Terrorism Financing: Established to ensure consistent application of AML/CFT measures.

Ongoing Initiatives

  • Drafting a Draft-Law: Intended to further harmonize FYROM’s regulations with Commission Directive 2005/60/EC, the FATF Recommendations, and the 9 Special FATF Recommendations concerning the prevention of financing terrorism. The draft law includes provisions for stricter client due diligence measures, monitoring suspicious transactions, and record-keeping requirements.
  • National Strategy for Prevention of Money Laundering and Financing Terrorism: In development to arrange the implementation of planned measures and activities between 2009 and 2011. Objectives include harmonizing regulations, institutional upgrading, improving inter-institutional cooperation, raising awareness, and enhancements to the prevention system in FYROM.

Capacity Building and Challenges

Institutions such as the Office for Prevention of Money Laundering and Financing of Terrorism, Ministry of Interior, Ministry of Finance, and Ministry of Justice have taken steps to build their capacities and enhance international cooperation. Nonetheless, challenges persist, with the implementation and enforcement of these measures being a critical priority for the government and authorities in FYROM.

Subheadings

  1. Background: FYROM’s Membership with Moneyval
  2. Moneyval’s Progress Report on FYROM
    • Key Achievements
    • Ongoing Initiatives
    • Institutional Capacity Building and Challenges
  3. Conclusion: Continued Efforts and Priorities

Bullet Points

  • Background

    • FYROM joined Moneyval in 2009.

  • Moneyval’s Progress Report

    • The Law on Prevention of Money Laundering and Other Proceeds of Crime and Financing Terrorism was enacted in January 2008.
    • Competency of the Office for Prevention of Money Laundering and Financing of Terrorism expanded.
    • Customer due diligence procedures and Units for Prevention of Money Laundering and Terrorism Financing established.
    • The drafting of a Draft-Law for further harmonization and the development of a National Strategy for Prevention of Money Laundering and Financing Terrorism underway.
    • Ongoing capacity building and prioritizing implementation and enforcement are essential.

  • Conclusion

    • Significant strides in FYROM’s financial compliance regulations.
    • Ongoing efforts to harmonize regulations, strengthen institutions, and improve inter-institutional cooperation.
    • Continued focus on enforcement and implementation of measures.