North Macedonia Country Summary
Sanctions
Limited US sanctions
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF status
North Macedonia is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in North Macedonia was undertaken in 2023. According to that Evaluation, North Macedonia was deemed Compliant for 6 and Largely Compliant for 22 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 1 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.
Sanctions
North Macedonia, as a UN member, must adhere to sanctions imposed by the United Nations to maintain international peace and security. The UN Security Council has established various sanctions regimes since 1966, which include economic sanctions, arms embargoes, and travel bans, with a focus on protecting the rights of those targeted.
In June 2021, the US expanded its sanctions authority in the Western Balkans through Executive Order 14033, addressing threats to peace and democratic processes. North Macedonia and other EU candidate countries align with EU sanctions policies, demonstrating their commitment to regional stability.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 42 |
| World Bank: Control of Corruption Percentile Rank | 44 |
North Macedonia has established laws to combat corruption, requiring officials to disclose their assets, but enforcement remains weak, often targeting critics and low-level offenders. Despite the adoption of a National Strategy for the Prevention of Corruption, recent amendments to the criminal code may lead to the dismissal of numerous corruption cases, raising concerns about the judiciary's effectiveness. Corruption persists in various sectors, particularly in public procurement and the judiciary, with businesses frequently reporting issues related to bribery and bureaucratic inefficiencies.
Economy
North Macedonia's economy faced challenges in 2023, with GDP growth at only 1.4 percent, hindered by high energy prices, inflation, and supply chain disruptions due to geopolitical tensions. The government aims to double the average annual GDP growth rate to 5 percent by 2026 and reduce unemployment from 13.1 percent to 8.6 percent through its Growth Acceleration Plan. Despite these efforts, corruption remains a significant issue, impacting the overall business environment.
North Macedonia's investment climate is generally favorable, with a legal framework aligned with international standards, although corruption remains a significant challenge. The government has made efforts to attract foreign direct investment, particularly in Technological Industrial Development Zones (TIDZ), where large foreign companies report positive experiences. However, the regulatory environment is complex and unpredictable, which can deter potential investors.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
