North Macedonia Country Summary

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.

North Macedonia faces significant challenges related to crime and corruption, with persistent issues in law enforcement, the judiciary, and various sectors of government. Despite the adoption of a National Strategy for the Prevention of Corruption and ongoing efforts by the State Commission for the Prevention of Corruption, enforcement remains weak, often targeting low-level offenders while high-profile cases languish due to legal loopholes and amendments that reduce penalties for corrupt practices.

The country is also a transit hub for human trafficking and drug smuggling, with criminal networks operating in various illicit markets and often collaborating with state actors. While there have been improvements in governance and international cooperation, the judiciary struggles with politicization and resource limitations, and civil society organizations face challenges in supporting victims and combating misinformation, highlighting the need for continued resilience and reform in the fight against crime and corruption.

The economy of North Macedonia, an EU candidate and NATO member, has faced challenges in 2023, including high energy prices, inflation, and disrupted supply chains due to geopolitical tensions, resulting in a modest GDP growth of only 1.4%. Despite government efforts to stimulate recovery and ambitious targets set in its Growth Acceleration Plan, the business environment remains complicated by corruption and regulatory unpredictability, although large foreign companies in Technological Industrial Development Zones report positive experiences. While the country welcomes foreign direct investment and has a legal framework aligned with international standards, ongoing issues such as corruption, complex regulations, and a lack of transparency hinder its investment climate, despite the potential for growth in sectors like digitalization and green energy.