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Sanctions:
Albania is regarded as being part of the geographical region of
the Western Balkans and therefore falls under the US sanction
order as follows: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/balkans.aspx
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011
Albania is not considered an important regional financial or
offshore center. As a transit country for trafficking in narcotics,
arms, contraband, and humans, Albania remains at significant risk
for money laundering. The major sources of criminal proceeds in
the country are trafficking offenses, official corruption and fraud.
Corruption and organized crime are likely the most significant
sources of money laundering, but the exact extent to which these
various illegal activities contribute to overall crime proceeds and
money laundering is unknown.
Criminals frequently invest tainted money in real estate and
business development projects. Albania has a significant black
market for certain smuggled goods, mainly tobacco, jewelry, and
mobile phones because of its high level of consumer imports and
weak customs controls. Organized crime groups use Albania as a
base of operations for conducting criminal activities in other
countries and often return their illicit gains to Albania. The
proceeds from these activities are easily laundered in Albania
because it is still fundamentally a cash economy and money flows
from abroad in the form of remittances are common.
The Albanian cash-based economy is particularly vulnerable to
money laundering activity. According to the Bank of Albania, the
Central Bank, about 20 percent of the money in circulation is
outside of the banking system. However, the use of cash cards
and Point of Sales Terminals (POS) is growing. In October 2009
there were 670,000 cash and debit cards and 4,800 POS. The
monthly transaction totals of these cards have reached $100
million, or about 1.4% of the retail bank deposits. Despite the
expansion of the banking sector, a significant portion of
remittances enters the country through unofficial channels. It is
estimated that only half of total remittances enter Albania through
banks or money transfer companies. The Bank of Albania
estimated that in 2009 remittances comprised nearly nine percent
of Albania’s annual gross domestic product (GDP). Similarly, the
Government of Albania (GOA) estimated that proceeds from the
informal sector account for approximately 30-60 percent of
Albania’s GDP.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, agricultural credit institutions, life
insurance companies, money exchangers, accountants, notaries,
lawyers, gaming centers, casinos, auto dealers, postal services,
securities dealers, real estate agents and travel agencies
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: commercial banks; non-banking financial
institutions; foreign exchange offices; savings and credit
companies and their unions; postal services that perform payment
services; every person who issues or manages debit and credit
cards, checks, traveller’s checks, payment orders, electronic
money or other similar instruments; stock markets, agents, and
brokers; life insurance or re-insurance companies, their agents or
intermediaries; pension funds; the State Authority Responsible for
the Administration and Sale of Public Property; games of chance,
casinos and hippodromes of any form; lawyers, notaries and other
legal representatives; real estate agents and appraisers;
accountants, and financial consultants; and the Agency of
Legalisation, Urbanisation and the Integration of Informal
Constructions/Zones
Number of STRs received and time frame: 146 January -
November 2010
Number of CTRs received and time frame: 821,696 January -
November2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 15 from January to October 2010
Convictions: 0
Assets forfeited: criminally: $0 in 2010 civilly: $160,000 January to
December 2010
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Albania is a member of MONEYVAL, a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Albania_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Some Albanian courts require a conviction for the predicate
offense before issuing an indictment for money laundering.
Currently, no law criminalizes negligence by financial institutions in
money laundering cases.
Albania places suspicious transaction reporting (STR)
requirements on both financial institutions and individuals.
Individuals and entities reporting transactions are protected by
law if they cooperate with and provide financial information to the
financial intelligence unit (FIU) and law enforcement agencies.
Reportedly, however, leaks of financial disclosure information
from other agencies compromise the entities’ client confidentiality.
It is the responsibility of the licensing authority to supervise
intermediaries for compliance. Although regulations also cover
nonbank financial institutions, enforcement remains poor in
practice. The Bank of Albania has established a task force to
confirm banks’ compliance with customer verification rules. While
the Albanians have established a registry, there is no legislation
providing for supervision of the non-profit sector.
Individuals must report to customs authorities all cross-border
transactions that exceed approximately U.S. $10,000. Albania
provides declaration forms at border crossing points, and the law
does not distinguish between an Albanian and a foreign visitor.
However, customs controls on cross-border transactions lack
effectiveness due to a lack of resources, poor training and,
reportedly, corruption of customs officials.
In an effort to increase corruption and money laundering
prosecutions, in May 2007, Albania established the Joint
Investigative Unit to Fight Economic Crime and Corruption (JIU) in
the Tirana District Prosecution Office. This unit focuses efforts
and builds expertise in the investigation and prosecution of
financial crimes and corruption cases by bringing together
members of the General Prosecutors Office, the Albanian State
Police Financial Crimes Sector, the Ministry of Finance’s Customs
Service and Tax Police, and the National Intelligence Service. The
JIU also has liaisons for cooperation from the FIU, High State
Audit, and the High Inspectorate for the Declaration and Audit of
Assets. The JIU prosecutes money laundering cases within the
District of Tirana. Six additional regional JIUs were established
and began operation in the fall of 2009. These units have
jurisdiction over corruption, money laundering, and other types of
economic crime.
In 2010, Albania had its first conviction in a terror finance case
against the administrator of designated terrorist financier Yassin
Al-Kadi on charges of hiding funds used to finance terrorism.
Although there are continuing initiatives to improve Albania’s
capacity to deal with financial crimes and money laundering, the
lack of positive results and apparent inability to adequately
address the deficiencies in the programs continue to hamper
progress. Albania should ensure that those charged with pursuing
financial crime increase their technical knowledge to include
modern financial investigation techniques. Albania should provide
its police force with a central database. Investigators and
prosecutors should implement case management techniques, and
prosecutors and judges need to become more conversant with
the nuances of money laundering. Albania should clarify the law
to make clear that conviction for the predicate offense is not a
prerequisite for a conviction for money laundering. The
Government of Albania should also improve the enforcement and
enlarge the scope of its asset seizure and forfeiture regime,
including fully funding and supporting the Agency for the
Administration of the Sequestration and Confiscation of Assets.
Albania should also incorporate into anti-money laundering
legislation specific provisions regarding negligent money
laundering, comprehensive customer identification procedures,
and the adequate oversight of money remitters and charities.
Albania should enact the draft laws on terrorist financing and
money-laundering.
Extract from Moneyval Follow - Up Report (2009) -
General overview since the last evaluation in 2006 and
first progress report in 2007.
During 2008 and the first half of 2009, major changes have taken
place and important reforms accomplished by the General
Directorate for the Prevention of Money Laundering and other
Albanian institutions involved in the fight against money
laundering and financing of terrorism. These reforms have aimed
at enhancing the professional capacities of the Albanian Financial
Intelligence Unit, as well as those of other agencies such as the
Unit for the Investigation of Economic Crimes and Corruption in
the Prosecutor’s Office, Albanian State Police. Meanwhile inter
institutional co-operation and the exchange of information among
GDPML and other law enforcement agencies has improved
significantly. According to the police data during this reporting
period the predominant criminal offences consist of serious crimes
against individuals, property, smuggling, drug trafficking,
economic and financial crimes, corruption, money laundering,
fraud, illegal border crossing, extortion, etc. Concerning terrorist
financing the situation there were no major changes during this
period. Nevertheless the Albanian authorities remain alert to the
risks associated with the ever evolving inherent danger that this
phenomenon poses internationally and the implications it could
have for our country and the region.
Upon the signature of the Stabilisation and Association
Agreement (SAA) in 2006, the consolidation of rule of law, the
strengthening of institutions in all levels and in particular that of
the law enforcement and the administration of justice system are
of a particular importance. Some of the priorities set by the
Albanian Government are geared towards the fulfillment of the
obligations assumed in the SAA, such as the more effective
implementation of anti money laundering legislation with respect
to prosecutions, asset freezing and forfeiture, improvement of the
financial sector oversight, reduction of cash usage in the national
economy, harmonising the anti money laundering legislation with
the 40+9 FATF (Financial Action Task Force) Recomendations,
the recommendations of the MONEYVAL Committee as well as the
EU standards, expanding the level of co-operation with partner
institutions abroad by especially using the regional financial
intelligence network and the improvement of the capabilities, for
GDPML, Prosecutor’s Office and the Economic Crimes Unit within
the police by furthering the coordination of their activities. Along
with the fulfillement of daily tasks and confronting the
aforementioned challenges the GDPML during this reporting
period assumed a leading role the Twinning Project with
colleagues of the German Federal Criminal Office (BKA). Experts
from GDPML have actively participated in the activities of this
project as well as other activities such as those organised by the
EGMONT Group, the Committee of Experts MONEYVAL of Council
of Europe and those held at the regional level.
Based on the recommendations of MONEYVAL, the Albanian
institutions have drafted a new law “On the Criminal Liability of
Legal Entities”, which was approved by the Albanian Parliament
on June 14, 2007.
The Third Round evaluation by the MONEYVAL Committee of
Albania’s progress in the field of revention of money laundering
and terrorism financing was held in the summer of 2006. During
this round the need and the importance of radical changes of the
Albanian legislation, became apparent. Based on the
recommendations of the MONEYVAL in the Council of Europe as
well as those by other institutions such as the IMF, preparations
for the formulation of the new law on Prevention of Money
Laundering started in earnest in November of 2006. The first draft
was put together by the Legal Office of the IMF and was
discussed for over a year by a working group of experts from:
- The Ministry of Finance and the General Directorate for the
Prevention of MoneyLaundering.
- Bank of Albania as the supervisory and regulatory authority for
the banking and nonbanking activities.
- General Prosecutor’s Office and the State Police as the main law
enforcement institutions in the Republic of Albania.
Participants from OSCE, EU Delegation in Albania, World Bank,
OPDAT, PAMECA II, US Treasury Department adviser at the
GDPML, had an observer status in the working Group. After the
final version was prepared, the Group continued deliberations
and exchange of opinions with interest groups and entities
regulated by this law, their Oversight Authorities and other
institutions (General Directorate of Customs, Tax Authority,
Central Office for the Registration of Real Estate, High
Inspectorate for the Declaration and Control of Assets, etc).
On March 26, 2008 the draft law was presented by the Council of
Ministers for deliberation to the Albanian Parliament. The law was
debated in the National Security and Defense Committee, the
Economy and Finance Committee and the Legal Committee.
Several important changes were proposed and were included in
the draft law following the discussions in the committees.
The Law No. 9917 “On the prevention of Money Laundering and
Terrorism Financing” was approved by the Albanian Parliament on
May 19, 2008 based on the decree (Decree No.5746 June 9,
2008) of the President of the Republic, and became effective on
September 10, 2008.
The new law, is an expression of the necessity for sweeping
improvements in these areas and demonstrates the willingness of
the Albanian government in the fight against money laundering,
by tackling this important challenge of our times. Some of the
major changes introduced in the new legislation compared to the
existing one, are:
- The introduction for the first time of the obligation for the
reporting of all cash transactions above 1.5 Million Lek. This
brings the Albanian legislation a step closer to the European one,
and namely the Third EU Directive on the prevention of money
laundering in the financial systems. This stipulation is expected to
further reduce the amount of cash transactions.
- Inclusion of pre-emptive measures with regard to terrorism
financing in addition to those that address prevention of money
laundering.
- Threshold reduction for all transactions reports, from 20 milion
lek to 6 million lek.
- An increase in the number of reporting entities.
- An expansion of preventive measures to be undertaken by
financial and non-financial institutions with respect to AML/CFT
prevention policies.Such measures should also be taken by the
oversight authorities - Introduction of the obligation to perform
Enhanced Due Diligence and ongoing monitoring of business
relations that the obliged entities of this law establish and conduct
with PEP clients and Non Profit Organizations. Significant efforts
have been directed by GDPML towards the formulation of by-laws.
The inclusion in the drafting process of entities such as banks,
notaries, attorneys and their supervisory authorities, Justice
Ministry, Chamber of Notaries and the Albanian Banker’s
Association has contributed towards the creation of a spirit of co-
operation that will lead to more results in the prevention of money
laundering.
GDPML had completed all the by-laws that have been aproved by
the Ministry of Finance and the Council of Ministers during the first
half 2009. The Committee for the Coordination of the Fight
Against Money Laundering is the highest authority in the country
that engages in general governmental policy making in the area
of prevention of money laundering and the fight against terrorism
financing. The Committee is chaired by the Prime Minister and it
counts among its members: the Minister of Finance, the Minister
of Foreign Affairs, the Minister of Defense , the Interior Minister,
the Minister of Justice, the General Prosecutor, the Governor of
the Bank of Albania, the Director of Intelligence Service and the
General Inspector of HIDAA.In the meeting of this committee in
December 16, 2008, each member reported on the measures
taken towards implementing the National Program “On the control
of cash in the Republic of Albania”, approved by the Prime
Minister in August of 2006. Within the scope of the reduction of
use of cash several measures have been undertaken by the
Albanian institutions, some of which are listed below:
- A more effective implementation of a regulatory and oversight
regime for bureaux de change, that has contributed towards
formalizing this segement of the Albanian economy.
- Strengtheninng of the controls in the border crossings with
regard to undeclared cash or other valuables.
- Increase of information exchange regarding,prosecutions and
penal proceedings related to persons conducting unlicensed
currency exchange transactions, or those attempting to transport
cash illegally across the border.
- Modification of taxation procedures that make it obligatory the
execution of all private sector transactions above 300 thousand
lek through the banking system.
The Prime Minister Berisha emphasized the obligation for an ever
increasing commitment against this challenging phenomenon, by
labeling money laundering a extremely dangerous phenomenon
and a highway of crime.The Prime Minister pointed out the fact
that the organised crime cannot be fought successfully without an
unfaltering fight against money laundering and therefore he
demanded zero tolerance in the fight against money laundering
and organised crime.
The strengthening of the inter institutional co-operation in the
fight against money laundering and terrorism financing was also
an important topic during the reporting period.To this end it was
demanded to provide to GDPML access to all government
databases and public registers.
During 2008, despite the limited human resources, GDPML was
involved in the implementation of two projects and has also
actively participated in the definition of terms of reference as well
as technical specifications for a third project regarding the
analytical software. All these projects were made possible thanks
to the support of the European Delegation.
The acquirement of an analytical software will enable the
collection, detection and the analysing of the reports received by
the reporting entities. During the year 2008 the terms of reference
and technical specifications were designed in co-operation with
the colleagues of BKA and experts of EU Delegation in Tirana.
The implementation of the analytical software project commenced
in November 2008 and was completed in six months.
During 2008, a significant increase has been observed in the
number of referrals to the Prosecution and the reports sent to the
police. The total number of referrals to the law
enforcement/General Prosecutor’s Office during the 2008 was 72
and during the first of half of 2009 the number of referrals
reached 93. The total amount of proceeds frozen in 2008 was 1
192 721 EUR while for the first half of 2009 the total amount of
proceeds frozen 2 250 000 EUR is and the amount seized is 2
million EUR.
The above mention results have been achieved through the
increase of commitment and accountability from the staff of
GDPML, the introduction of the use of information of technology,
the increase of the level of management and the improvement of
co-operation in the exchange of information with partner
institutions and LEA.
Institutional development
The Joint Investigation Unit against economic crime and
corruption attached to the Prosecution Office was created on 22
May, 2007 by joint order of the Minister of Finance, Prosecutor
General, the Minister of Interior and State Information Service.
This unit includes in its ranks prosecutors, members of Judicial
Police, specialists from Tax and Customs authorities, State
Information Service and GDPML. Since its creation, this unit has
played an increasing role in investigating a wide range of crimes
in general and in particular those with an economic background.
Its experts have received ongoing training in the framework of
OPDAT technical service. Six additional units have been created
recently in several districts in Albania.
National Co-operation
In the framework of the Technical Working Group, the
representatives from the General Directorate of Taxation, from
the General Directorate of Customs, General Prosecution Office,
State Informative Service, Bank of Albania, have organised eight
meetings in which the following issues were discussed:
Co-operation in the framework of the National Program for the
control of the movement of cash in the Republic of Albania and
the reduction of the use of physical money, co-operation with
police and coordination with the Prosecutor’s Office, the increase
of reporting from CORIP and the Notary Offices, organizing joint
onsite inspections of the financial institutions including staff form
the GDPML and the Bank of Albania, ongoing information on the
progress of twinning project with the BKA, the increase of the
transmission and accuracy of the exchange of information with all
Law Enforcement Agencies and beyond, the provision of access
for FIU in various data bases of the Law Enforcement Agencies,
state institutions and public registers, preparation of a medium
term and long term national strategy regarding the investigation of
financial crime The frequent meetings (which have often been
held fortnightly) with representatives of the Money Laundering
Sector in the Directorate of the Economic and Financial Crime at
the General Directorate of the State Police, have resulted to be
very productive bearing in mind the fact that the majority of cases
sent by GDPML for further inquiries have been finalized by these
institutions with referrals to the Prosecution.
International Co-operation
The General Directorate of the Prevention of Money Laundering
has been since July 23, 2003 a full member of EGMONT Group.
This has contributed in a significant way in accessing fully all the
different forums and activities of the Working Groups as well as
the increase of the information exchange with other FIUs. To
advance further the level of co-operation GDPML has signed to
date 31 Memorandums of Understanding (MoU).
In the framework of the regional co-operation, the Albanian FIU
has established good relations and has exchanged information on
a continuous basis with Croatia, Bosnia and Herzegovina,
Kosovo, Macedonia, Montenegro, Serbia and Slovenia,. The
regional co-operation has been enhanced, with the signing on
April 29, 2008, in Podgorica, of the Regional Protocol of the war
against money laundering and financing of terrorism, by the
Directors of FIU Albania, Bosnia and Herzegovina, Croatia,
Montenegro, Serbia, and Slovenia. This protocol is expected to be
signed by other FIUs in the region.
The enhancement of the co-operation at the national, regional
and international level, the strengthening of the AML/CFT regime,
the consolidation of the supervisory role of the various institutions
as well as the advancement of the professional and technical
capabilities will continue to provide a solid foundation for the
effectiveness of the Law Enforcement Agencies and the
Government Institutions in Albania to both prevent and suppress
acts of Money Laundering and Terrorism Financing.
The Albanian Government in the framework of the Stabilization
and Association Agreement and visa liberalization process is also
commited to further strengthen the civil confiscation regime. To
this end the National Strategy for the Investigation of Financial
Crime has formulated clear measures and actions to be
undertaken by Law Enforcement Institutions and government
institutions. The implementation of these measures would further
enhance such regime.
(Click here for link to full report.)
Albania is regarded as being part of the geographical region of
the Western Balkans and therefore falls under the US sanction
order as follows: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/balkans.aspx
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011
Albania is not considered an important regional financial or
offshore center. As a transit country for trafficking in narcotics,
arms, contraband, and humans, Albania remains at significant risk
for money laundering. The major sources of criminal proceeds in
the country are trafficking offenses, official corruption and fraud.
Corruption and organized crime are likely the most significant
sources of money laundering, but the exact extent to which these
various illegal activities contribute to overall crime proceeds and
money laundering is unknown.
Criminals frequently invest tainted money in real estate and
business development projects. Albania has a significant black
market for certain smuggled goods, mainly tobacco, jewelry, and
mobile phones because of its high level of consumer imports and
weak customs controls. Organized crime groups use Albania as a
base of operations for conducting criminal activities in other
countries and often return their illicit gains to Albania. The
proceeds from these activities are easily laundered in Albania
because it is still fundamentally a cash economy and money flows
from abroad in the form of remittances are common.
The Albanian cash-based economy is particularly vulnerable to
money laundering activity. According to the Bank of Albania, the
Central Bank, about 20 percent of the money in circulation is
outside of the banking system. However, the use of cash cards
and Point of Sales Terminals (POS) is growing. In October 2009
there were 670,000 cash and debit cards and 4,800 POS. The
monthly transaction totals of these cards have reached $100
million, or about 1.4% of the retail bank deposits. Despite the
expansion of the banking sector, a significant portion of
remittances enters the country through unofficial channels. It is
estimated that only half of total remittances enter Albania through
banks or money transfer companies. The Bank of Albania
estimated that in 2009 remittances comprised nearly nine percent
of Albania’s annual gross domestic product (GDP). Similarly, the
Government of Albania (GOA) estimated that proceeds from the
informal sector account for approximately 30-60 percent of
Albania’s GDP.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, agricultural credit institutions, life
insurance companies, money exchangers, accountants, notaries,
lawyers, gaming centers, casinos, auto dealers, postal services,
securities dealers, real estate agents and travel agencies
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: commercial banks; non-banking financial
institutions; foreign exchange offices; savings and credit
companies and their unions; postal services that perform payment
services; every person who issues or manages debit and credit
cards, checks, traveller’s checks, payment orders, electronic
money or other similar instruments; stock markets, agents, and
brokers; life insurance or re-insurance companies, their agents or
intermediaries; pension funds; the State Authority Responsible for
the Administration and Sale of Public Property; games of chance,
casinos and hippodromes of any form; lawyers, notaries and other
legal representatives; real estate agents and appraisers;
accountants, and financial consultants; and the Agency of
Legalisation, Urbanisation and the Integration of Informal
Constructions/Zones
Number of STRs received and time frame: 146 January -
November 2010
Number of CTRs received and time frame: 821,696 January -
November2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 15 from January to October 2010
Convictions: 0
Assets forfeited: criminally: $0 in 2010 civilly: $160,000 January to
December 2010
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Albania is a member of MONEYVAL, a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Albania_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Some Albanian courts require a conviction for the predicate
offense before issuing an indictment for money laundering.
Currently, no law criminalizes negligence by financial institutions in
money laundering cases.
Albania places suspicious transaction reporting (STR)
requirements on both financial institutions and individuals.
Individuals and entities reporting transactions are protected by
law if they cooperate with and provide financial information to the
financial intelligence unit (FIU) and law enforcement agencies.
Reportedly, however, leaks of financial disclosure information
from other agencies compromise the entities’ client confidentiality.
It is the responsibility of the licensing authority to supervise
intermediaries for compliance. Although regulations also cover
nonbank financial institutions, enforcement remains poor in
practice. The Bank of Albania has established a task force to
confirm banks’ compliance with customer verification rules. While
the Albanians have established a registry, there is no legislation
providing for supervision of the non-profit sector.
Individuals must report to customs authorities all cross-border
transactions that exceed approximately U.S. $10,000. Albania
provides declaration forms at border crossing points, and the law
does not distinguish between an Albanian and a foreign visitor.
However, customs controls on cross-border transactions lack
effectiveness due to a lack of resources, poor training and,
reportedly, corruption of customs officials.
In an effort to increase corruption and money laundering
prosecutions, in May 2007, Albania established the Joint
Investigative Unit to Fight Economic Crime and Corruption (JIU) in
the Tirana District Prosecution Office. This unit focuses efforts
and builds expertise in the investigation and prosecution of
financial crimes and corruption cases by bringing together
members of the General Prosecutors Office, the Albanian State
Police Financial Crimes Sector, the Ministry of Finance’s Customs
Service and Tax Police, and the National Intelligence Service. The
JIU also has liaisons for cooperation from the FIU, High State
Audit, and the High Inspectorate for the Declaration and Audit of
Assets. The JIU prosecutes money laundering cases within the
District of Tirana. Six additional regional JIUs were established
and began operation in the fall of 2009. These units have
jurisdiction over corruption, money laundering, and other types of
economic crime.
In 2010, Albania had its first conviction in a terror finance case
against the administrator of designated terrorist financier Yassin
Al-Kadi on charges of hiding funds used to finance terrorism.
Although there are continuing initiatives to improve Albania’s
capacity to deal with financial crimes and money laundering, the
lack of positive results and apparent inability to adequately
address the deficiencies in the programs continue to hamper
progress. Albania should ensure that those charged with pursuing
financial crime increase their technical knowledge to include
modern financial investigation techniques. Albania should provide
its police force with a central database. Investigators and
prosecutors should implement case management techniques, and
prosecutors and judges need to become more conversant with
the nuances of money laundering. Albania should clarify the law
to make clear that conviction for the predicate offense is not a
prerequisite for a conviction for money laundering. The
Government of Albania should also improve the enforcement and
enlarge the scope of its asset seizure and forfeiture regime,
including fully funding and supporting the Agency for the
Administration of the Sequestration and Confiscation of Assets.
Albania should also incorporate into anti-money laundering
legislation specific provisions regarding negligent money
laundering, comprehensive customer identification procedures,
and the adequate oversight of money remitters and charities.
Albania should enact the draft laws on terrorist financing and
money-laundering.
Extract from Moneyval Follow - Up Report (2009) -
General overview since the last evaluation in 2006 and
first progress report in 2007.
During 2008 and the first half of 2009, major changes have taken
place and important reforms accomplished by the General
Directorate for the Prevention of Money Laundering and other
Albanian institutions involved in the fight against money
laundering and financing of terrorism. These reforms have aimed
at enhancing the professional capacities of the Albanian Financial
Intelligence Unit, as well as those of other agencies such as the
Unit for the Investigation of Economic Crimes and Corruption in
the Prosecutor’s Office, Albanian State Police. Meanwhile inter
institutional co-operation and the exchange of information among
GDPML and other law enforcement agencies has improved
significantly. According to the police data during this reporting
period the predominant criminal offences consist of serious crimes
against individuals, property, smuggling, drug trafficking,
economic and financial crimes, corruption, money laundering,
fraud, illegal border crossing, extortion, etc. Concerning terrorist
financing the situation there were no major changes during this
period. Nevertheless the Albanian authorities remain alert to the
risks associated with the ever evolving inherent danger that this
phenomenon poses internationally and the implications it could
have for our country and the region.
Upon the signature of the Stabilisation and Association
Agreement (SAA) in 2006, the consolidation of rule of law, the
strengthening of institutions in all levels and in particular that of
the law enforcement and the administration of justice system are
of a particular importance. Some of the priorities set by the
Albanian Government are geared towards the fulfillment of the
obligations assumed in the SAA, such as the more effective
implementation of anti money laundering legislation with respect
to prosecutions, asset freezing and forfeiture, improvement of the
financial sector oversight, reduction of cash usage in the national
economy, harmonising the anti money laundering legislation with
the 40+9 FATF (Financial Action Task Force) Recomendations,
the recommendations of the MONEYVAL Committee as well as the
EU standards, expanding the level of co-operation with partner
institutions abroad by especially using the regional financial
intelligence network and the improvement of the capabilities, for
GDPML, Prosecutor’s Office and the Economic Crimes Unit within
the police by furthering the coordination of their activities. Along
with the fulfillement of daily tasks and confronting the
aforementioned challenges the GDPML during this reporting
period assumed a leading role the Twinning Project with
colleagues of the German Federal Criminal Office (BKA). Experts
from GDPML have actively participated in the activities of this
project as well as other activities such as those organised by the
EGMONT Group, the Committee of Experts MONEYVAL of Council
of Europe and those held at the regional level.
Based on the recommendations of MONEYVAL, the Albanian
institutions have drafted a new law “On the Criminal Liability of
Legal Entities”, which was approved by the Albanian Parliament
on June 14, 2007.
The Third Round evaluation by the MONEYVAL Committee of
Albania’s progress in the field of revention of money laundering
and terrorism financing was held in the summer of 2006. During
this round the need and the importance of radical changes of the
Albanian legislation, became apparent. Based on the
recommendations of the MONEYVAL in the Council of Europe as
well as those by other institutions such as the IMF, preparations
for the formulation of the new law on Prevention of Money
Laundering started in earnest in November of 2006. The first draft
was put together by the Legal Office of the IMF and was
discussed for over a year by a working group of experts from:
- The Ministry of Finance and the General Directorate for the
Prevention of MoneyLaundering.
- Bank of Albania as the supervisory and regulatory authority for
the banking and nonbanking activities.
- General Prosecutor’s Office and the State Police as the main law
enforcement institutions in the Republic of Albania.
Participants from OSCE, EU Delegation in Albania, World Bank,
OPDAT, PAMECA II, US Treasury Department adviser at the
GDPML, had an observer status in the working Group. After the
final version was prepared, the Group continued deliberations
and exchange of opinions with interest groups and entities
regulated by this law, their Oversight Authorities and other
institutions (General Directorate of Customs, Tax Authority,
Central Office for the Registration of Real Estate, High
Inspectorate for the Declaration and Control of Assets, etc).
On March 26, 2008 the draft law was presented by the Council of
Ministers for deliberation to the Albanian Parliament. The law was
debated in the National Security and Defense Committee, the
Economy and Finance Committee and the Legal Committee.
Several important changes were proposed and were included in
the draft law following the discussions in the committees.
The Law No. 9917 “On the prevention of Money Laundering and
Terrorism Financing” was approved by the Albanian Parliament on
May 19, 2008 based on the decree (Decree No.5746 June 9,
2008) of the President of the Republic, and became effective on
September 10, 2008.
The new law, is an expression of the necessity for sweeping
improvements in these areas and demonstrates the willingness of
the Albanian government in the fight against money laundering,
by tackling this important challenge of our times. Some of the
major changes introduced in the new legislation compared to the
existing one, are:
- The introduction for the first time of the obligation for the
reporting of all cash transactions above 1.5 Million Lek. This
brings the Albanian legislation a step closer to the European one,
and namely the Third EU Directive on the prevention of money
laundering in the financial systems. This stipulation is expected to
further reduce the amount of cash transactions.
- Inclusion of pre-emptive measures with regard to terrorism
financing in addition to those that address prevention of money
laundering.
- Threshold reduction for all transactions reports, from 20 milion
lek to 6 million lek.
- An increase in the number of reporting entities.
- An expansion of preventive measures to be undertaken by
financial and non-financial institutions with respect to AML/CFT
prevention policies.Such measures should also be taken by the
oversight authorities - Introduction of the obligation to perform
Enhanced Due Diligence and ongoing monitoring of business
relations that the obliged entities of this law establish and conduct
with PEP clients and Non Profit Organizations. Significant efforts
have been directed by GDPML towards the formulation of by-laws.
The inclusion in the drafting process of entities such as banks,
notaries, attorneys and their supervisory authorities, Justice
Ministry, Chamber of Notaries and the Albanian Banker’s
Association has contributed towards the creation of a spirit of co-
operation that will lead to more results in the prevention of money
laundering.
GDPML had completed all the by-laws that have been aproved by
the Ministry of Finance and the Council of Ministers during the first
half 2009. The Committee for the Coordination of the Fight
Against Money Laundering is the highest authority in the country
that engages in general governmental policy making in the area
of prevention of money laundering and the fight against terrorism
financing. The Committee is chaired by the Prime Minister and it
counts among its members: the Minister of Finance, the Minister
of Foreign Affairs, the Minister of Defense , the Interior Minister,
the Minister of Justice, the General Prosecutor, the Governor of
the Bank of Albania, the Director of Intelligence Service and the
General Inspector of HIDAA.In the meeting of this committee in
December 16, 2008, each member reported on the measures
taken towards implementing the National Program “On the control
of cash in the Republic of Albania”, approved by the Prime
Minister in August of 2006. Within the scope of the reduction of
use of cash several measures have been undertaken by the
Albanian institutions, some of which are listed below:
- A more effective implementation of a regulatory and oversight
regime for bureaux de change, that has contributed towards
formalizing this segement of the Albanian economy.
- Strengtheninng of the controls in the border crossings with
regard to undeclared cash or other valuables.
- Increase of information exchange regarding,prosecutions and
penal proceedings related to persons conducting unlicensed
currency exchange transactions, or those attempting to transport
cash illegally across the border.
- Modification of taxation procedures that make it obligatory the
execution of all private sector transactions above 300 thousand
lek through the banking system.
The Prime Minister Berisha emphasized the obligation for an ever
increasing commitment against this challenging phenomenon, by
labeling money laundering a extremely dangerous phenomenon
and a highway of crime.The Prime Minister pointed out the fact
that the organised crime cannot be fought successfully without an
unfaltering fight against money laundering and therefore he
demanded zero tolerance in the fight against money laundering
and organised crime.
The strengthening of the inter institutional co-operation in the
fight against money laundering and terrorism financing was also
an important topic during the reporting period.To this end it was
demanded to provide to GDPML access to all government
databases and public registers.
During 2008, despite the limited human resources, GDPML was
involved in the implementation of two projects and has also
actively participated in the definition of terms of reference as well
as technical specifications for a third project regarding the
analytical software. All these projects were made possible thanks
to the support of the European Delegation.
The acquirement of an analytical software will enable the
collection, detection and the analysing of the reports received by
the reporting entities. During the year 2008 the terms of reference
and technical specifications were designed in co-operation with
the colleagues of BKA and experts of EU Delegation in Tirana.
The implementation of the analytical software project commenced
in November 2008 and was completed in six months.
During 2008, a significant increase has been observed in the
number of referrals to the Prosecution and the reports sent to the
police. The total number of referrals to the law
enforcement/General Prosecutor’s Office during the 2008 was 72
and during the first of half of 2009 the number of referrals
reached 93. The total amount of proceeds frozen in 2008 was 1
192 721 EUR while for the first half of 2009 the total amount of
proceeds frozen 2 250 000 EUR is and the amount seized is 2
million EUR.
The above mention results have been achieved through the
increase of commitment and accountability from the staff of
GDPML, the introduction of the use of information of technology,
the increase of the level of management and the improvement of
co-operation in the exchange of information with partner
institutions and LEA.
Institutional development
The Joint Investigation Unit against economic crime and
corruption attached to the Prosecution Office was created on 22
May, 2007 by joint order of the Minister of Finance, Prosecutor
General, the Minister of Interior and State Information Service.
This unit includes in its ranks prosecutors, members of Judicial
Police, specialists from Tax and Customs authorities, State
Information Service and GDPML. Since its creation, this unit has
played an increasing role in investigating a wide range of crimes
in general and in particular those with an economic background.
Its experts have received ongoing training in the framework of
OPDAT technical service. Six additional units have been created
recently in several districts in Albania.
National Co-operation
In the framework of the Technical Working Group, the
representatives from the General Directorate of Taxation, from
the General Directorate of Customs, General Prosecution Office,
State Informative Service, Bank of Albania, have organised eight
meetings in which the following issues were discussed:
Co-operation in the framework of the National Program for the
control of the movement of cash in the Republic of Albania and
the reduction of the use of physical money, co-operation with
police and coordination with the Prosecutor’s Office, the increase
of reporting from CORIP and the Notary Offices, organizing joint
onsite inspections of the financial institutions including staff form
the GDPML and the Bank of Albania, ongoing information on the
progress of twinning project with the BKA, the increase of the
transmission and accuracy of the exchange of information with all
Law Enforcement Agencies and beyond, the provision of access
for FIU in various data bases of the Law Enforcement Agencies,
state institutions and public registers, preparation of a medium
term and long term national strategy regarding the investigation of
financial crime The frequent meetings (which have often been
held fortnightly) with representatives of the Money Laundering
Sector in the Directorate of the Economic and Financial Crime at
the General Directorate of the State Police, have resulted to be
very productive bearing in mind the fact that the majority of cases
sent by GDPML for further inquiries have been finalized by these
institutions with referrals to the Prosecution.
International Co-operation
The General Directorate of the Prevention of Money Laundering
has been since July 23, 2003 a full member of EGMONT Group.
This has contributed in a significant way in accessing fully all the
different forums and activities of the Working Groups as well as
the increase of the information exchange with other FIUs. To
advance further the level of co-operation GDPML has signed to
date 31 Memorandums of Understanding (MoU).
In the framework of the regional co-operation, the Albanian FIU
has established good relations and has exchanged information on
a continuous basis with Croatia, Bosnia and Herzegovina,
Kosovo, Macedonia, Montenegro, Serbia and Slovenia,. The
regional co-operation has been enhanced, with the signing on
April 29, 2008, in Podgorica, of the Regional Protocol of the war
against money laundering and financing of terrorism, by the
Directors of FIU Albania, Bosnia and Herzegovina, Croatia,
Montenegro, Serbia, and Slovenia. This protocol is expected to be
signed by other FIUs in the region.
The enhancement of the co-operation at the national, regional
and international level, the strengthening of the AML/CFT regime,
the consolidation of the supervisory role of the various institutions
as well as the advancement of the professional and technical
capabilities will continue to provide a solid foundation for the
effectiveness of the Law Enforcement Agencies and the
Government Institutions in Albania to both prevent and suppress
acts of Money Laundering and Terrorism Financing.
The Albanian Government in the framework of the Stabilization
and Association Agreement and visa liberalization process is also
commited to further strengthen the civil confiscation regime. To
this end the National Strategy for the Investigation of Financial
Crime has formulated clear measures and actions to be
undertaken by Law Enforcement Institutions and government
institutions. The implementation of these measures would further
enhance such regime.
(Click here for link to full report.)
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
___________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Albania’s counternarcotics efforts continue to be mixed in 2011. Drug
seizures and prosecutions remained consistent at last year’s rate, but
the effort continues to be hampered by lack of resources, corruption and
political will. Albania is primarily a transit country to Western Europe.
Organized crime groups take advantage of Albania's strategic location,
porous borders and uneven law enforcement. With the exception of
cannabis, Albania is not a significant producer of illicit drugs. Albania is
also not a producer of significant quantities of precursor chemicals or
synthetic drugs. Due to other pressing issues, the GOA is unable to
devote much time or resources to drug abuse. One result is that no clear
picture of the extent of domestic drug abuse exists, although anecdotal
evidence suggests growing usage, especially among younger Albanians.
There is some evidence that Albania is making modest progress in the
counternarcotics arena. The main area of improvement is in anti-
trafficking operations as better law enforcement and border controls led
to an increase in arrests and seizures at points of entry through the first
nine months of 2011. This can be attributable to increased use of risk
analysis, community policing practiced in the target areas, and better
use of donated equipment.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2)
Albania is a source country for men, women, and children subjected to
sex trafficking and forced labor, including the forced begging of children.
Albanian victims are subjected to conditions of forced labor and sex
trafficking within Albania and Greece, Italy, Macedonia, Kosovo, and
Western Europe. Approximately half of the victims referred for care
within the country in 2010 were Albanian women and girls subjected to
sex trafficking in hotels and private residences in Tirana, Durres, and
Vlora. Children were primarily exploited for forced begging and other
forms of forced labor; some girls were subjected to prostitution or forced
labor after arranged marriage. There is evidence that Albanian men
have been subjected to forced labor in the agricultural sector of Greece
and other neighboring countries. NGOs continue to report re-trafficking
of Albanian victims as a problem.
The Government of Albania does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. During the year, the government took several
concrete steps to improve its overall anti-trafficking strategy. Specifically,
the government earmarked funds for NGOs and provided economic
reintegration assistance directly to victims. The government also
appointed a victim-witness coordinator and two specialized anti-
trafficking prosecutors to improve the litigation of trafficking cases and
treatment of victims who agree to serve as state witnesses. These efforts
portend well for future results. During the reporting period, however, one
government ministry attempted to unilaterally revoke the shelter licenses
of three specialized anti-trafficking NGOs, but rescinded this order after
repeated interventions by the international community. NGOs continued
to report gaps in the implementation of the government’s National
Referral Mechanism (NRM). Further, widespread corruption, particularly
within the judiciary, continued to hamper overall anti-trafficking law
enforcement and victim protection efforts.
Recommendations for Albania: Continue to improve implementation of
the NRM and ensure the full participation of all signatories; aggressively
prosecute law enforcement officials who are complicit in human
trafficking; vigorously investigate and prosecute sex and labor trafficking
offenders; empower the new victim-witness coordinator and specialized
prosecutors to help create a more case-based, multidisciplinary
response to trafficking; improve the functioning of regional anti-
trafficking committees to improve the identification of and response to
domestic trafficking cases; follow through on promised funding to NGOs
providing critical care and reintegration assistance to victims; ensure
proactive identification at border points and among persons exploited
within Albania’s sex trade and labor sectors while intensifying
partnerships with NGOs to increase detection and referral of all
trafficking victims; and improve identification and specialized services for
child trafficking victims.
For full report click here
US State Dept Terrorism Report 2010
Overview: The Government of Albania worked on amendments to the
terrorism statutes on the Criminal Code, maintained asset freezes
against two individuals and thirteen foundations and companies on the
UN Security Council's list of identified financers of terrorism, and
established a law on the civil forfeiture of assets acquired through
criminal activity. The Albania Border Police consistently improved
security at border crossing points.
Legislation and Law Enforcement: The Government of Albania sought to
revise terrorism statutes of the Criminal Code and established a law on
the civil forfeiture of assets acquired through criminal activity. The draft,
pending approval by Parliament since November 2010, contains statutes
covering acts with terrorist purposes, financing of terrorism, and money
laundering. The amendments are based on Financial Action Task Force
(FATF) and Committee of Experts on the Evaluation of Anti-Money
Laundering Measures and the Financing of Terrorism (MONEYVAL)
recommendations, as well as several UN conventions ratified by Albania.
On December 10, local imam Artan Kristo, who in 2002 worked with the
al-Qa’ida-linked charity al Haramain Foundation, was found guilty by a
court in Durres and sentenced to five years in prison for "publicly inciting
and propagating terrorist acts" in the AlbSelafi.net online forum. Kristo,
also known as Muhamed Abdullah, appealed the decision and remained
in detention.
On December 22, 2009, the First Instance Court for Serious Crimes
found Hamzeh Abu Rayyan guilty of hiding funds used to finance
terrorism. Rayyan was sentenced to four years of imprisonment and
ordered to pay a fine of US $6000. Rayyan appealed to the Supreme
Court and on March 24, 2010, the Chief Justice suspended execution of
the sentence pending a hearing of the case.
The Albania Border Police (ABP) consistently improved security at
border crossing points and the vast areas between the formal crossings,
and implemented roving patrols in the mountains along the border
resulting in arrests and narcotics seizures.
Countering Terrorist Finance: Albania maintained asset freezes against
two individuals and 13 foundations and companies listed under UNSCR
1267. There were no new cases of asset seizure or confiscation for
2010. In total, by the end of Fiscal Year 2010, the government was
administering seized assets having a value of US$ 6,848,893, and had
confiscated assets valued at US$ 851,998.
The government of Albania has continued to try and improve its Anti-
Money Laundering/Counterterrorist Financing (AML/CTF) Regime. In
2010, the Albanian government proposed amendments to the AML/CTF
legislation in order to address deficiencies that had been previously
identified by MONEYVAL, the FATF style regional body to which Albania
belongs. Albania recently underwent its fourth round of mutual
evaluation in April 2011. The report stated that Albania has made
“significant progress” in its AML/CTF regime since its last mutual
evaluation in 2006, but noted that further progress was required to
ensure that its terrorist financing law fully meets international standards,
that the FIU has complete operational independence, and that more
cases are developed, investigated, and prosecuted.
Regional and International Cooperation: Albania continued to cooperate
with regional and multilateral organizations focused on countering
terrorism.
_________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
General Directorate for the Prevention of Money Laundering (GDPML)
US State Dept Narcotics Report 2012 (introduction):
Albania’s counternarcotics efforts continue to be mixed in 2011. Drug
seizures and prosecutions remained consistent at last year’s rate, but
the effort continues to be hampered by lack of resources, corruption and
political will. Albania is primarily a transit country to Western Europe.
Organized crime groups take advantage of Albania's strategic location,
porous borders and uneven law enforcement. With the exception of
cannabis, Albania is not a significant producer of illicit drugs. Albania is
also not a producer of significant quantities of precursor chemicals or
synthetic drugs. Due to other pressing issues, the GOA is unable to
devote much time or resources to drug abuse. One result is that no clear
picture of the extent of domestic drug abuse exists, although anecdotal
evidence suggests growing usage, especially among younger Albanians.
There is some evidence that Albania is making modest progress in the
counternarcotics arena. The main area of improvement is in anti-
trafficking operations as better law enforcement and border controls led
to an increase in arrests and seizures at points of entry through the first
nine months of 2011. This can be attributable to increased use of risk
analysis, community policing practiced in the target areas, and better
use of donated equipment.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2)
Albania is a source country for men, women, and children subjected to
sex trafficking and forced labor, including the forced begging of children.
Albanian victims are subjected to conditions of forced labor and sex
trafficking within Albania and Greece, Italy, Macedonia, Kosovo, and
Western Europe. Approximately half of the victims referred for care
within the country in 2010 were Albanian women and girls subjected to
sex trafficking in hotels and private residences in Tirana, Durres, and
Vlora. Children were primarily exploited for forced begging and other
forms of forced labor; some girls were subjected to prostitution or forced
labor after arranged marriage. There is evidence that Albanian men
have been subjected to forced labor in the agricultural sector of Greece
and other neighboring countries. NGOs continue to report re-trafficking
of Albanian victims as a problem.
The Government of Albania does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. During the year, the government took several
concrete steps to improve its overall anti-trafficking strategy. Specifically,
the government earmarked funds for NGOs and provided economic
reintegration assistance directly to victims. The government also
appointed a victim-witness coordinator and two specialized anti-
trafficking prosecutors to improve the litigation of trafficking cases and
treatment of victims who agree to serve as state witnesses. These efforts
portend well for future results. During the reporting period, however, one
government ministry attempted to unilaterally revoke the shelter licenses
of three specialized anti-trafficking NGOs, but rescinded this order after
repeated interventions by the international community. NGOs continued
to report gaps in the implementation of the government’s National
Referral Mechanism (NRM). Further, widespread corruption, particularly
within the judiciary, continued to hamper overall anti-trafficking law
enforcement and victim protection efforts.
Recommendations for Albania: Continue to improve implementation of
the NRM and ensure the full participation of all signatories; aggressively
prosecute law enforcement officials who are complicit in human
trafficking; vigorously investigate and prosecute sex and labor trafficking
offenders; empower the new victim-witness coordinator and specialized
prosecutors to help create a more case-based, multidisciplinary
response to trafficking; improve the functioning of regional anti-
trafficking committees to improve the identification of and response to
domestic trafficking cases; follow through on promised funding to NGOs
providing critical care and reintegration assistance to victims; ensure
proactive identification at border points and among persons exploited
within Albania’s sex trade and labor sectors while intensifying
partnerships with NGOs to increase detection and referral of all
trafficking victims; and improve identification and specialized services for
child trafficking victims.
For full report click here
US State Dept Terrorism Report 2010
Overview: The Government of Albania worked on amendments to the
terrorism statutes on the Criminal Code, maintained asset freezes
against two individuals and thirteen foundations and companies on the
UN Security Council's list of identified financers of terrorism, and
established a law on the civil forfeiture of assets acquired through
criminal activity. The Albania Border Police consistently improved
security at border crossing points.
Legislation and Law Enforcement: The Government of Albania sought to
revise terrorism statutes of the Criminal Code and established a law on
the civil forfeiture of assets acquired through criminal activity. The draft,
pending approval by Parliament since November 2010, contains statutes
covering acts with terrorist purposes, financing of terrorism, and money
laundering. The amendments are based on Financial Action Task Force
(FATF) and Committee of Experts on the Evaluation of Anti-Money
Laundering Measures and the Financing of Terrorism (MONEYVAL)
recommendations, as well as several UN conventions ratified by Albania.
On December 10, local imam Artan Kristo, who in 2002 worked with the
al-Qa’ida-linked charity al Haramain Foundation, was found guilty by a
court in Durres and sentenced to five years in prison for "publicly inciting
and propagating terrorist acts" in the AlbSelafi.net online forum. Kristo,
also known as Muhamed Abdullah, appealed the decision and remained
in detention.
On December 22, 2009, the First Instance Court for Serious Crimes
found Hamzeh Abu Rayyan guilty of hiding funds used to finance
terrorism. Rayyan was sentenced to four years of imprisonment and
ordered to pay a fine of US $6000. Rayyan appealed to the Supreme
Court and on March 24, 2010, the Chief Justice suspended execution of
the sentence pending a hearing of the case.
The Albania Border Police (ABP) consistently improved security at
border crossing points and the vast areas between the formal crossings,
and implemented roving patrols in the mountains along the border
resulting in arrests and narcotics seizures.
Countering Terrorist Finance: Albania maintained asset freezes against
two individuals and 13 foundations and companies listed under UNSCR
1267. There were no new cases of asset seizure or confiscation for
2010. In total, by the end of Fiscal Year 2010, the government was
administering seized assets having a value of US$ 6,848,893, and had
confiscated assets valued at US$ 851,998.
The government of Albania has continued to try and improve its Anti-
Money Laundering/Counterterrorist Financing (AML/CTF) Regime. In
2010, the Albanian government proposed amendments to the AML/CTF
legislation in order to address deficiencies that had been previously
identified by MONEYVAL, the FATF style regional body to which Albania
belongs. Albania recently underwent its fourth round of mutual
evaluation in April 2011. The report stated that Albania has made
“significant progress” in its AML/CTF regime since its last mutual
evaluation in 2006, but noted that further progress was required to
ensure that its terrorist financing law fully meets international standards,
that the FIU has complete operational independence, and that more
cases are developed, investigated, and prosecuted.
Regional and International Cooperation: Albania continued to cooperate
with regional and multilateral organizations focused on countering
terrorism.
_________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
General Directorate for the Prevention of Money Laundering (GDPML)
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| Last Updated: 16 April 2012 |