Albania’s Anti-Money Laundering Regime: Areas of Improvement

Introduction

A recent international evaluation has assessed the effectiveness of Albania’s anti-money laundering (AML) regime. The report highlights several areas where improvement is needed to strengthen Albania’s AML efforts.

Key Findings and Recommendations

Deficiencies in Supervision and Customer Identification

• The Law on Prevention of Money Laundering has been passed, but its implementation is lacking due to insufficient supervision by regulatory bodies.
• Improvement recommendations:
  • Enhance oversight and monitoring of financial institutions
  • Increase capacity building for regulatory bodies to effectively supervise AML compliance

Insufficient Training for Financial Institutions and Law Enforcement Agencies

• Some staff training programs have been put in place, but not all subjects of the Law have received adequate training.
• Improvement recommendations:
  • Develop comprehensive training programs for financial institutions and law enforcement agencies
  • Provide regular updates and refresher courses to ensure ongoing competence

Lack of Effective Action Against Illegal Foreign Exchange Operations

• The police have taken some action, but there is still much exchange activity going on in public places.
• Improvement recommendations:
  • Increase enforcement efforts against illegal foreign exchange operations
  • Collaborate with regulatory bodies to implement effective measures to eliminate this practice

Poor Results from Law Enforcement and Judicial System

• Only one conviction for money laundering has been reached since the first evaluation.
• Improvement recommendations:
  • Enhance training in modern financial investigation techniques for law enforcement agencies
  • Improve coordination between law enforcement and judicial systems to ensure effective prosecution of money laundering cases

Limited Involvement of Customs in AML Efforts

• While Customs is involved in the general anti-money laundering co-ordination scheme, it still faces lack of training and expertise.
• Improvement recommendations:
  • Provide targeted training for Customs officials on AML and related issues
  • Enhance capacity building to improve Customs’ contribution to AML efforts

Insufficient Regulation of Special Investigative Techniques

• Some techniques such as interception of telephone communications are brought into legislation, but others like controlled deliveries are not regulated.
• Improvement recommendations:
  • Develop clear guidelines and regulations for special investigative techniques
  • Ensure transparency and oversight regarding the use of these techniques in money laundering cases

Conclusion

Albania has made significant progress since the first evaluation, but there is still room for improvement. Implementing the proposed amendments and adjustments would contribute to making Albania’s AML regime more effective.