Albania Country Summary

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.

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.

Albania is positioned as an upper middle-income country with a GDP of approximately $25 billion and a population of 2.4 million, demonstrating stable macroeconomic growth driven by sectors such as tourism and real estate. The government is actively pursuing EU accession, having opened negotiations on four clusters, with a goal to complete the process by the end of the decade. Despite these positive developments, the investment climate is challenged by issues such as corruption, a large informal economy, and labor shortages due to emigration, which hinder Albania's economic convergence with the EU and deter foreign investment.