The report identifies illegal gambling establishments and exchange bureaus, as well as the vulnerabilities that relate to cross-border transportation of currency as illegal practices
Tirana Times
TIRANA, July 25 – The relative size of the Albanian cash-based informal economy facilitates the laundering and integration of proceeds of crime, says a recently released report by the International Monetary Fund (IMF). The report identifies illegal gambling establishments and exchange bureaus, as well as the vulnerabilities that relate to cross-border transportation of currency as illegal practices which put Albania at risk of money laundering activity. “The use of the informal economy has an impact on the overall effectiveness of preventive measures as transactions facilitated through these channels circumvent the preventive measures established by the authorities,” says the IMF report on Observance of Standards and Codes- Financial Action Task Force (FATF) – Recommendations for Anti-Money Laundering and Combating the Financing of Terrorism.
The report also describes Albania as remaining at risk regarding possible financing of terrorism activities. “There is a record in the first half of the 2000s of the government freezing assets of terrorist financiers, curtailing activities of suspect Islamic NPOs, and expelling individuals suspected of having links to terrorism. However, there have been few convictions for money laundering and demanding evidentiary requirements have had a negative impact upon Albania’s ability to make effective use of the provisions,” says the report.
The IMF also stressed the need to clarify the supervisory role of the Financial Intelligence Unit (FIU). “The legal framework underpinning the supervisory authorities’ power is sound but the supervisory role of the Financial Intelligence Unit (FIU) should be clarified. Moreover, the Financial Supervisory Authority (FSA) has not undertaken any inspection of the securities and insurance sectors.”
Albania has fully criminalized money laundering largely in line with the requirements under the Vienna and Palermo Conventions. However, the Albanian provisions that criminalize the financing of terrorism, although significantly enhanced in recent years, still fall short of meeting the FATF (Financial Action Task Force) standard. Last year, government made some changes to the money laundering and terrorism financing law obliging commercial banks and other non-banking financial institutions operating in Albania to declare all their customers’ bank accounts to the Directorate General of Money Laundering Prevention.
Under the new changes all banks will have to periodically report data on their customers to the money laundering directorate despite the amount in their customers’ accounts.
The current law obliges banks to report only accounts or transaction over 1.5 million lek (some 15,000 dollars). Courts and prosecutor’s offices have also been included in the list of institutions which should report suspected cases along with the existing tax, real estate, customs offices and NGOs.
