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, which are designed to maintain international peace and security. The UN Security Council has established 31 sanctions regimes since 1966, which include various measures such as economic sanctions and travel bans, focusing on the rights of those targeted and ensuring fair procedures for sanctions imposition and lifting.
In June 2021, the US expanded its sanctions authority in the Western Balkans through Executive Order 14033, targeting individuals involved in activities that threaten peace and stability. North Macedonia, along with other EU candidate countries, aligns itself with EU sanctions policies, including those related to Iran and Russia.
Bribery & Corruption
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 40 |
| World Bank: Control of Corruption Percentile Rank | 42 |
North Macedonia has established laws to combat corruption, requiring officials to disclose their assets, but enforcement remains weak and often targets critics rather than high-level offenders. Despite the adoption of a National Strategy for the Prevention of Corruption, recent amendments to the criminal code may hinder progress by allowing many cases to be dismissed and reducing penalties for corrupt practices. Corruption is prevalent in various sectors, including public procurement and the judiciary, leading to concerns about the effectiveness of anti-corruption measures and the overall integrity of the government.
Economy
North Macedonia's economy has faced challenges in 2023, with GDP growth at only 1.4 percent, hindered by high energy prices, inflation, and disrupted supply chains due to geopolitical tensions. The government aims to double the average annual GDP growth rate to 5 percent by 2026 while reducing unemployment to 8.6 percent through its Growth Acceleration Plan. Despite a generally favorable environment for foreign investment, issues such as corruption and a complex regulatory framework continue to pose challenges.
North Macedonia's investment climate is generally favorable for foreign direct investment, with no discriminatory laws against foreign investors and substantial incentives available in free economic zones. However, challenges such as corruption, a complex regulatory environment, and inconsistent enforcement of laws can create an unpredictable business atmosphere. The government has made limited efforts to attract new investments in 2023, focusing instead on mitigating the impacts of the energy crisis and inflation.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
