Albania Country Summary
Medium-High Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Albania is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies.
Compliance with FATF Recommendations
The latest Follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Albania was undertaken in 2023. According to that Evaluation, Albania was deemed Compliant for 6 and Largely Compliant for 31 of the FATF 40 Recommendations. It remains rated Highly Effective for 0 and Substantially Effective for 2 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
As of October 2023, Albania is subject to international sanctions under Executive Order 14033, which targets individuals and entities involved in activities threatening the peace and stability of the Western Balkans. Additionally, Albania aligns itself with EU sanctions against Russia and Iran, although weak enforcement and corruption present challenges in fully adhering to these measures.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 42 |
| World Bank: Control of Corruption Percentile Rank | 43 |
Albania continues to grapple with significant challenges related to crime and corruption, despite having a legal framework aimed at combating these issues. Corruption remains pervasive, particularly within the judiciary and government sectors, undermining economic development and deterring foreign investment, while organized crime networks are deeply embedded in various illicit activities, including drug trafficking and human smuggling.
Efforts to reform the judicial system, supported by international partners, have led to some progress, including the ongoing vetting of judges and prosecutors and the establishment of specialized anti-corruption bodies. However, the effectiveness of these reforms is hindered by a culture of impunity and the need for greater cooperation among government agencies, highlighting the importance of sustained efforts to enhance governance and resilience against crime in Albania.
Economy
Albania is classified as an upper middle-income country with a GDP of approximately USD 24 billion and a population of around 2.8 million. The nation has demonstrated resilience in its economy, recovering from shocks such as the 2019 earthquake and the COVID-19 pandemic, with growth rates of 8.9% in 2021 and 4.9% in 2022, although projections for 2023 indicate a slowdown to 3.4%. Despite its macroeconomic stability, Albania faces challenges including corruption, a large informal sector, and labor shortages due to emigration, which hinder its investment climate and economic development prospects.
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