We are happy to present you the latest BCSDN policy paper, shedding light on the complex interplay between Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations and CSO operations.
Titled AML/CFT Regulations and Implications on CSOs in the Western Balkans and Türkiye, the paper discusses the international regulations and standards related to AML/CFT and analyzes their legal and practical implications on CSO operations in the region. The AML/CFT regulations in the WBT have been reflected in many areas: the reporting requirements by the state, the registration of CSOs and related administration requirements, the access to financial services, as well as the supervision, monitoring and control over the sector. It presents challenges faced by CSOs related to the risk-based approach, beneficial ownership definition, and the treatment of CSOs by financial institutions, but also discusses cases of misuse of legislation and international standards in some of the countries.
The paper also highlights best practices and solutions through examples from the region. It discusses how North Macedonia improved FATF compliance through collaboration between various stakeholders and implemented appropriate measures for CSOs. Similarly, it showcases Serbia’s efforts in building national coalitions with international support to push back against overregulation. The report also explores CSOs’ self-regulation initiatives in the region, highlighting their importance in ensuring compliance and fostering greater CSOs effectiveness, governance, accountability, and transparency.
In conclusion, the research paper synthesizes key findings and presents comprehensive recommendations, tailored to regulatory authorities, financial institutions, and CSOs, as well as international bodies like FATF, MONEYVAL, and EU institutions.
Read the full document HERE.