Financial Crime World

Albania Country Profile: Effectiveness in Preventing and Combating Money Laundering (ML) and Terrorist Financing (TF)

Key Issues

Several key issues have been identified regarding Albania’s effectiveness in preventing and combating ML and TF.

Low Prosecution Rate

  • Inconsistent prosecution rate: Albania has a low rate of prosecuting ML cases, which is inconsistent with the level of underlying criminality.
  • Impact on ML cases: This inconsistency may hinder effective counter-measures against ML.

Limited Confiscation

  • Actual confiscations remain low: Despite an increase in asset seizures, actual confiscations remain low.
  • Need for improvement: Policymakers should aim to enhance confiscation efforts in the next national risk assessment.

Insufficient Resources

  • Lack of trained personnel and equipment: The General Prosecutor’s Office lacks trained personnel and adequate equipment to effectively investigate ML cases.
  • Impact on investigation effectiveness: This shortage may hinder effective investigations and prosecution of ML cases.

Poor Understanding of Financing Risks

  • Limited understanding of TF risks: Intelligence and law enforcement agencies lack an understanding of TF risks, which may hinder effective counter-measures.
  • Need for enhanced analysis: Policymakers should aim to enhance analysis of ML and TF risks in the next national risk assessment.

Inadequate Supervision

  • Inadequate supervision by supervisory authorities: Supervisory authorities have not implemented high standards in licensing or other controls to prevent criminal infiltration of financial institutions and designated non-financial businesses or professions.
  • Need for improvement: Policymakers should aim to implement high standards by supervisory authorities in the next national risk assessment.

Positive Developments

Several positive developments have been identified regarding Albania’s effectiveness in preventing and combating ML and TF.

Improved Asset Seizures

  • Increase in asset seizures: Albania has seen an increase in asset seizures, including €16 million seized in the last five years based on a freezing order originally issued by the Financial Intelligence Authority (FIA).
  • Impact on ML cases: This increase may hinder effective counter-measures against ML.

Social Reuse of Confiscated Assets

  • Establishment of a dedicated fund for crime prevention: Albania has established a dedicated fund for crime prevention using funds from confiscated assets.
  • Positive impact on the community: This initiative may have a positive impact on the community by reducing the influence of criminal activity.

Risk Assessment Methodology

  • Development of a risk assessment methodology: The FIA and General Directorate of Taxes have developed a risk assessment methodology to identify non-profit organizations with a risk of TF.
  • Impact on TF risks: This methodology may help to enhance analysis of TF risks and prevent TF activities.

Recommendations

To address the identified shortcomings, policymakers are recommended to:

  1. Review the investigative process: Policymakers should aim to review the investigative process and address shortcomings in the next national risk assessment.
  2. Enhance analysis of ML and TF risks: Policymakers should aim to enhance analysis of ML and TF risks, including understanding the impact of the informal economy and corruption on these risks.
  3. Pursue more indictments in ML cases involving foreign proceeds: Policymakers should aim to pursue more indictments in ML cases involving foreign proceeds.
  4. Ensure adequate efforts to identify criminal proceeds located abroad: Policymakers should ensure adequate efforts to identify criminal proceeds located abroad and take appropriate actions for their confiscation.
  5. Implement high standards by supervisory authorities: Policymakers should aim to implement high standards by supervisory authorities in licensing or other controls to prevent criminal infiltration of financial institutions and designated non-financial businesses or professions.

These recommendations aim to improve Albania’s effectiveness in preventing and combating ML and TF, aligning with international standards and best practices.