On 1 July 2021 in Vlora, Albania, the Economic Crime and Cooperation Division (ECCD) of the Council of Europe (CoE) conducted a workshop on good supervisory practices for the implementation of a risk -based approach to anti-money laundering/countering terrorist financing (AML/CFT) supervision of high-risk designated non-financial businesses and professions (DNFBPs).

The event gathered over 50 representatives of state institutions, such as the Ministry of Justice, the Public Oversight Body, the National Chamber of Notaries, the National Chamber of Advocates, the General Directorate for the Prevention of Money Laundering, the Albanian Financial Supervisory Authority and the Bank of Albania. It was also attended by lawyers, notaries, and accountants.

The purpose of the workshop was to present and discuss the findings of the Technical Paper “Good supervisory practices for the implementation of the risk-based approach for high-risk DNFBPs”. The paper was prepared within the framework of the project “EU/CoE Horizontal Facility Action against Economic Crime in Albania”, upon the request of the Albanian authorities. Based on the analysis of the current AML/CFT risk-based supervision of DNFBPs in Albania, the paper points out that that the supervisory activities and information available to the supervisory authorities for the purposes of risk-based supervision are fragmented, and do not provide a clear picture of money laundering and terrorist financing (ML/TF) risks to which the DNFBPS may be exposed. This is in line with international comparison which shows that in most countries the biggest risk in AML/CFT supervision of DNFBPs is the lack of comprehensive and effective risk-based approach.

In order to address the identified deficiencies regarding the risk-based approach, the Technical Paper proposes an “Analysis tool for reviewing the risk-based supervision of DNFBPs”. This tool aims to assist the Albanian authorities in reviewing supervisory approaches for DNFBPs and in identifying if the risk-based approach is comprehensive enough, whether it includes a differentiation by risks, whether it adequately satisfies international standards, and if there are any areas for further upgrades and training.

As a follow up to the workshop, the project “EU/CoE Horizontal Facility Action against Economic Crime in Albania” will organise further outreach activities for the reporting entities on the implementation of AML/CFT requirements.