North Macedonia Country Summary
Sanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Medium Concern
Corruption
Medium Concern
US State ML Assessment
Lower 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
North Macedonia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in North Macedonia was undertaken in 2023. According to that Evaluation, North Macedonia was deemed Compliant for 6 and Largely Compliant for 22 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 1 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
North Macedonia, as a UN member, must support sanctions measures imposed by the United Nations to maintain international peace and security. The UN Security Council has established 31 sanctions regimes since 1966, which include economic sanctions, arms embargoes, and travel bans, with a focus on protecting the rights of those targeted. Currently, there are 15 ongoing sanctions regimes aimed at political settlements, nuclear non-proliferation, and counter-terrorism, administered by sanctions committees.
In June 2021, Executive Order 14033 expanded the scope of sanctionable conduct in the Western Balkans to include threats to peace, democratic processes, and human rights abuses. This order prohibits US persons from engaging in transactions with designated parties and includes Albania in the definition of the Western Balkans. Additionally, candidate countries for EU accession, including North Macedonia, align with EU sanctions policies regarding Iran and Russia.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 40 |
| World Bank: Control of Corruption Percentile Rank | 42 |
North Macedonia has established laws to combat corruption, requiring officials to disclose their assets, but enforcement is often weak and selectively targets critics. Despite the adoption of a National Strategy for the Prevention of Corruption, recent amendments to the criminal code may lead to the dismissal of numerous corruption cases, raising concerns about the judiciary's effectiveness. Corruption remains a significant issue in various sectors, including law enforcement and public procurement, with businesses frequently reporting challenges related to government tenders and licensing.
Economy
North Macedonia's economy, an EU candidate since 2005 and a NATO member since 2020, faced challenges in 2023, with GDP growth at only 1.4 percent due to high energy prices, inflation, and disrupted supply chains. The government aims to double the average annual GDP growth rate to 5 percent by 2026 while reducing unemployment from 13.1 percent to 8.6 percent through its Growth Acceleration Plan, which also emphasizes green growth initiatives.
North Macedonia's investment climate is generally favorable for foreign direct investment, with no laws discriminating against foreign investors and a legal framework aligned with international standards. However, challenges such as corruption, a complex regulatory environment, and inconsistent enforcement of laws create an unpredictable business atmosphere. The government has made efforts to attract foreign investments, particularly in public projects related to transportation and energy infrastructure, but overall engagement with investors has been limited in 2023.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings