Financial Crime World

Title: Macedonia’s Anti-Money Laundering Legislation: Progress Report from Moneyval

Date: September 21, 2009

The Former Yugoslav Republic of Macedonia (FYROM) presented its first progress report to Moneyval, the Council of Europe’s committee responsible for assessing member states’ anti-money laundering (AML) and counter-terrorism financing (CTF) measures. The report was adopted during Moneyval’s 30th Plenary meeting held in Strasbourg on September 21-24, 2009.

Background

FYROM joined Moneyval in 2003, marking the beginning of evaluations of its efforts towards implementing the necessary legislative framework to combat money laundering and terrorist financing. Moneyval’s assessment influences the European Commission’s assessment of FYROM’s progress towards meeting the EU’s AML and CTF standards.

Key Developments

New Legislation

Since the last evaluation in 2007, significant developments include the enactment of a new Law on Prevention of Money Laundering and Other Proceeds of Crime and Financing Terrorism, which came into force in January 2008. The law aligns with:

  1. European directives
  2. The 40 FATF Recommendations
  3. The 9 Special FATF Recommendations on countering terrorism financing
  4. The UN Convention against the Financing of Terrorism

Legislation Changes

Key changes in the new legislation include:

  1. Office for Prevention of Money Laundering and Financing of Terrorism (OFLP) status modifications
  2. Introduction of client due diligence obligations
  3. Establishment of Units for Prevention of Money Laundering and Terrorism Financing
  4. Specification of competencies related to monitoring authorities

Initiatives and Structures

National Strategy

The government adopted the National Strategy for Prevention of Money Laundering and Financing Terrorism in 2009. The strategy outlines plans to:

  1. Increase efficiency
  2. Harmonize regulations
  3. Strengthen international cooperation
  4. Raise public awareness about the importance of AML and CTF efforts

Government Agencies

The Ministry of Interior has introduced new structures to combat financial crimes, including:

  1. Unit for Fight Against Money Laundering and Economic Organized Crime
  2. Department for Criminal Intelligence

Ministries’ Initiatives

The Ministries of Finance, Justice, and Interior have launched initiatives to strengthen their capacities for AML and CTF.

Office for Prevention of Money Laundering and Financing of Terrorism

OFLP has improved its IT capabilities through the introduction of new software, encrypted links with banks and other institutions, and employee trainings. Additionally, the Office has signed Memorandums of Understanding with other countries’ financial intelligence units (FIUs) to facilitate information exchange and increase cooperation in the fight against financial crimes.

Financial Sector

The financial sector has also taken steps to improve AML and CTF controls. The National Bank adopted a decision on a bank’s program for prevention of money laundering and financing terrorism, which strengthens the efficiency of banks’ anti-money laundering programs and requires risk profiles based on all relevant information and data.

Conclusion

FYROM has made significant progress in implementing a legislative framework to combat money laundering and terrorist financing. However, continuous efforts are necessary to ensure effective implementation and enforcement of the new legislation. Additionally, increased coordination between different agencies and the international community is essential to further enhance the country’s AML and CTF capabilities.