Combating transnational organised crime and money laundering phenomena. A focus on Albania

Abstract

From the 1990s the problem of organised crime groups has acquired even more importance in the international field. Organised crime groups are usually more powerful than the state, because states underestimated or did not worry about the phenomenon. Many criminal associations have now become transnational organised crime groups and have created international networks, not only inside a single organised crime group, but also among other organised crime groups. The presence of the phenomenon influences the economics of the state: organised crime produces alterations in the market trends and as a consequence alters the policy responses of governments. One of the activities that most influences the economics of the state is money laundering. Money laundering is a fundamental activity for organised crime to take advantage of the proceeds from crime and invest the money gained through illicit activities in the legal market without being recognised. The presentation of the transnational organised crime phenomenon and its main characteristics and activities is only an introduction to the other important phenomenon: money laundering. Money laundering is analysed from the point of view of organised crime and describes the institutions criminal associations use to put into practice this fundamental activity for the exploitation of the proceeds from crime in the legal market. Both phenomena – organised crime and money laundering – are then tackled from the international instruments point of view: the dissertation analyses the international instruments to combat organised crime, such as the UN Convention against transnational organised crime and Interpol, as well as the international instruments to combat money laundering, FATF. Also the European regional instruments to combat money laundering are taken into consideration: a solid example of the functioning of the European instruments, alongside the 1990 Council of Europe Convention, the 2005 Warsaw Convention, the 2005 European Union Directive and Europol, is MONEYVAL. Albania is the country where both the phenomenon of transnational organised crime and money laundering are put into practice. MONEYVAL reports help with the definition of the phenomenon and the understanding of the engagement of the Albanian government in the cause of combating organised crime and money laundering. Although Albania has made visibly progress in combating money laundering activities, the problem remains a high priority for the government, which cannot control all the operations in the informal economy. Fears concern also the possibility of financing terrorism due to the less effective controls on the money trail in Albania.