Enhancing North Macedonia's Capacity to Combat Money Laundering and Terrorism Financing

This project, spearheaded by the Financial Intelligence Office (FIO) of North Macedonia with support from Democracy Lab, aimed to enhance the nation's capacity to combat money laundering and terrorism financing. Below is a summary of the main activities and accomplishments:

Key Activities and Achievements

Website Upgrade to a Dynamic Platform

The FIO's static website was transformed into a dynamic, restricted-access platform to aid entities in compliance. This platform provides essential resources, including consolidated sanctions lists, typologies, indicators, and risk country data. To date, 1920 entities (e.g., banks, notaries, law firms) have registered, ensuring improved adherence to anti-money laundering (AML) and counter-terrorism financing (CTF) laws.

Terrorism Financing Indicators

Indicators for identifying suspicious activities linked to terrorism financing were updated. Expert Yehuda Shaffer conducted workshops with financial and non-financial sector representatives, resulting in a refined indicator list and practical case examples. These resources will support entities in recognizing and reporting potentially suspicious transactions.

Virtual Currency Regulation

To align with FATF standards, the project engaged experts to draft risk assessments and regulatory frameworks for virtual currencies. This foundational work supports North Macedonia’s compliance efforts, especially in light of upcoming evaluations by the MONEYVAL Committee.

Strategic Analysis Methodology

A new methodology for conducting strategic analysis was developed with the guidance of expert Tommaso Di Ruzza. This methodology, supported by updates to FIO’s IT system, helps the office conduct sector-wide strategic analysis, fostering a more informed approach to AML/CTF.

Study Visit to FIO Netherlands

A North Macedonian delegation visited the Netherlands to exchange best practices in AML/CTF. Topics included public-private partnerships, cryptocurrency monitoring, and strategies for handling complex cases such as migrant smuggling. This visit provided the FIO team with invaluable insights to strengthen their operations.

ISO 9001:2015 Certification

The FIO's Quality Management System was certified, ensuring high standards in AML/CTF operations. This certification process involved comprehensive training, strategic planning, and risk management to establish a robust framework for ongoing compliance and process improvement.

Outreach and Visibility

A series of regional events engaged over 140 participants from various sectors, promoting awareness about restrictive measures and compliance obligations. A closing event celebrated the project's success, emphasizing the collaboration between Democracy Lab, the FIO, and the Netherlands Embassy in North Macedonia.

Project Impact

This initiative successfully strengthened North Macedonia’s institutional and regulatory framework, aligning with international standards to combat financial crime. The upgraded FIO platform, enhanced regulatory tools, and strengthened stakeholder collaboration are pivotal steps toward a resilient AML/CTF environment, fostering transparency and security.

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