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Albania comes out of the gray list, did the Albanian government agree to withdraw from the Fiscal Amnesty?
Albania has left the money laundering gray list, which it entered in February 2020. Minister Ervin Mete gave the news at the conference with the IMF and BSH.
" The decision was taken today by the Plenary Assembly of the FATF and comes as a result of the progress made by our country in implementing the recommendations. This is a decision with a number of positive impacts, both in terms of reputation and in easing the costs of financial transactions in the banking system inside and outside the country," he declared, among other things, today in front of the media.
But how did this decision come about and did it condition Albania to withdraw from the initiative of the Albanian government for Fiscal Amnesty?
Minister Mete did not give a direct answer as to whether the government has withdrawn from this initiative or not, but emphasized that they will not take any measure that contradicts the principles of the FTFA (Financial Action Task Force).
" The answer is that we will not undertake any measure that contradicts the principles in this field, FATF recommendations or similar practices taken in other countries. Every measure is compatible with other practices", said Mete.
It seems that the reason for this decision-making is not the fulfillment of the recommendations.
We recall that in May of this year, the Council of the European Union warned the Albanian government not to flirt with fiscal amnesty, as this would have serious consequences for the country. In the report of the joint conclusions of the economic and financial dialogue with the countries of the Western Balkans, the Council of Ministers of the EU emphasized that the amnesty project is contrary to the EU framework for the fight against money laundering
" Albania must avoid any other scheme or measure, such as the law on fiscal and criminal amnesty, which would compromise or undermine alignment with European Union policies, including EU procedures and measures aimed at preventing money laundering and fiscal evasion. " says the report.
Instead of relaxing fiscal laws, EU ministers called on the Albanian government to move in the opposite direction, that of strengthening the fight against money laundering.
"The amnesty law would also undermine the fulfillment of the criteria necessary to delist Albania from the money laundering gray list," the report states.
In the document, the Council suggests the government to increase revenues in the state budget through fiscal measures that are friendly to economic growth. According to the report, the increase in income in relation to the Gross Domestic Product is critical to finance the necessary increase in productive investments in human and physical capital.
The Albanian government temporarily withdrew from the adoption of the law on fiscal amnesty after international pressure. But Prime Minister Edi Rama has publicly stated several times that the amnesty will be approved, as it is necessary to support the economy and relieve Albanian citizens, especially immigrants from an unfair legal burden.
What is Fiscal Amnesty?
Fiscal and criminal amnesty is a legal initiative undertaken by the Albanian government to forgive all fines, arrears of property that is declared, if the registration of the property available in the last 30 years is carried out, carried out until the date of entry into force of the law . Persons who apply for fiscal amnesty are kept anonymous and do not initiate criminal prosecution procedures.
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