Money laundering - Harmonization of Albanian legislation in the framework of EU membership

The 2022 strategic report on international narcotics control of the United States Department of State, estimates that Albania remains a country susceptible to money laundering, due to corruption, the presence of organized crime networks, as well as deficiencies in legislation and supervision.¹ Whereas, according to the Basel Index for the risks of money laundering and terrorist financing, Albania ranks 93rd out of 152 jurisdictions, with 4.75 out of 10 points.²

The main sources of money laundering are related to drug trafficking and other organized crime activities, while the most widespread methods of money laundering are construction, real estate and business development projects.³ Despite the reform of justice and efforts to improve the fight against money laundering, the country faces challenges in terms of capacities, insufficient supervision of some sectors, as well as the lack of cooperation between law enforcement and supervisory bodies. Albania is in the conditions of insufficient control mechanisms, in relation to the size of informal money.

Referring to the report of the European Commission for Albania of 2023, the problems related to money laundering in the country remains an area that requires attention and further results.⁴ Also, the report shows that Albania has made progress in terms of implementing the recommendations of the Committee of Experts for the Evaluation of Measures against Money Laundering and the Financing of Terrorism (hereinafter: Moneyval),⁵ as well as the action plan of the Special Financial Action Task Force (hereinafter: FATF),⁶ with the aim of improving effectiveness in the field of money laundering. Also, since February 2020, Albania is part of a political commitment to engage with the FATF and Moneyval, in the framework of the fight against money laundering and the financing of terrorism.