The MONEYVAL review holds critical importance for both North Macedonia and Romania, albeit for different reasons. As North Macedonia continues its journey toward European Union membership, demonstrating solid anti-money laundering and counter-terrorist financing systems is an essential step in meeting EU accession requirements. For Romania, which has been an EU member since 2007, maintaining strong compliance with evolving European standards is crucial to uphold its credibility and safeguard its financial sector. The results of the MONEYVAL review not only reflect each country’s commitment to fighting financial crime, but also play a key role in their broader European integration goals and reputational standing within the EU.

Money Laundering Compliance Trends in North Macedonia

Money laundering compliance has become a central topic in European financial crime policy, especially for countries under the close watch of MONEYVAL, the Council of Europe’s specialist body. North Macedonia’s progress in the 2025 follow-up assessment stands out as a case of cautious optimism. The country has managed to align more closely with international anti-money laundering (AML) standards, particularly those developed by the Financial Action Task Force (FATF). However, some persistent weaknesses continue to hamper the effectiveness of its AML framework.

Since its previous evaluation in 2023, North Macedonia has pushed forward on several fronts. The country’s regulatory regime around wire transfers now mirrors FATF’s expectations, thanks to new rules targeting transparency in payment chains and beneficial ownership. Internal control requirements within financial institutions, including the oversight of foreign branches and subsidiaries, have also been improved, aiming to ensure that parent companies maintain standards abroad. Furthermore, North Macedonia has taken steps to clarify the transparency of trusts and other legal arrangements, a critical area often exploited for concealing illicit assets.

This upward trajectory is visible in the ratings: of the 40 FATF recommendations, 31 are now classed as either compliant or largely compliant. These ratings indicate meaningful progress, but do not equate to full effectiveness in practice. For instance, despite the legislative enhancements, the effectiveness of on-the-ground supervision still requires more attention, as highlighted in Recommendation 26, which relates to the supervision of financial institutions. North Macedonia’s rating here remains only partially compliant, signaling gaps in enforcement, resource allocation, and regulatory consistency.

The significance of these developments is not just procedural. Enhanced compliance improves North Macedonia’s reputation within the international financial system, reducing the risk of being used as a conduit for illicit funds. Yet, partial compliance in supervision and oversight leaves open the potential for abuse, especially as criminal networks adapt quickly to loopholes. North Macedonia is due to report further progress to MONEYVAL within the next year, reflecting the ongoing nature of the improvement process.

Romania’s Money Laundering Deficiencies: Limited Progress and Ongoing Challenges

While North Macedonia’s report reflects incremental improvement, Romania’s 2025 MONEYVAL assessment reveals a more challenging picture. Despite being an EU member and possessing an established legal AML framework, Romania has struggled to address several moderate shortcomings that undermine its system’s effectiveness.

One of the main hurdles for Romania is the effective implementation of targeted financial sanctions, particularly those linked to the proliferation of weapons of mass destruction. This area demands robust controls for freezing assets and enforcing United Nations Security Council Resolutions, but the current system displays gaps in technical compliance. Additionally, Romania’s approach to regulating virtual assets and virtual asset service providers (VASPs) has yet to fully meet the FATF’s evolving standards, a concern given the rapid growth of crypto-related money laundering risks.

A further complication arises from Romania’s record-keeping and data collection practices. Accurate and comprehensive statistics are vital for understanding money laundering trends and adapting enforcement strategies. The MONEYVAL follow-up report highlights that deficiencies remain in Romania’s ability to gather and analyze meaningful AML/CFT data, limiting its capacity to track progress or recalibrate its efforts.

Looking at the overall picture, Romania is rated compliant with only seven FATF recommendations and largely compliant with 18. The remaining 15 recommendations are still only partially compliant. This spread reveals a system that, while not entirely deficient, still exhibits many weak points. As a result, Romania will continue under MONEYVAL’s enhanced follow-up procedure and is expected to provide an update on its AML/CFT efforts in 2026.

Comparative Analysis: FATF Recommendations and Regional AML Effectiveness

A direct comparison between North Macedonia and Romania through the lens of the FATF’s 40 recommendations underscores broader patterns in regional AML effectiveness. Both countries have made progress since their last assessments, but the speed and substance of these improvements vary.

North Macedonia has demonstrated more rapid advancement, especially in the technical compliance of wire transfers, beneficial ownership transparency, and internal controls for financial institutions. These improvements have moved three recommendations from “partially compliant” to “largely compliant,” providing a sense of momentum and an improved international standing. This progress reflects not only legislative change but also the growing capacity and awareness within the public and private sectors.

Romania, on the other hand, faces persistent headwinds. Its technical compliance with targeted financial sanctions and virtual asset regulation has not improved enough to warrant a higher rating. The country’s challenge is twofold: bridging the gap between legislation and effective implementation, and keeping pace with emerging risks such as digital assets and complex corporate structures used to mask illicit activity.

Both countries still struggle in critical areas. For North Macedonia, supervision and enforcement lag behind legislative progress, especially in relation to Recommendation 26. Romania’s Achilles heel remains the effective oversight of virtual asset activities and the implementation of financial sanctions, both of which are increasingly central to international AML efforts.

These comparative outcomes point to a recurring challenge in global AML compliance. While drafting laws and regulations is essential, their real-world application depends on resources, institutional capacity, and the willingness of authorities to act decisively. Technical compliance alone does not guarantee effective prevention, detection, or disruption of money laundering activities.

Implications for Financial Institutions and Policy Makers

The mixed results from North Macedonia and Romania have practical implications for banks, financial service providers, and policy makers in the region. International standards, particularly those established by the FATF, have become the yardstick for evaluating AML and CFT frameworks, with compliance ratings closely watched by investors, correspondent banks, and multinational organizations.

Financial institutions operating in North Macedonia can expect increased scrutiny on the effectiveness of their internal controls, especially regarding wire transfers and beneficial ownership. Regulators are likely to maintain a strong focus on these areas to ensure the recent legislative gains translate into practical safeguards. For those institutions with cross-border operations, the requirement for consistent group-wide AML standards is now more urgent, given the ongoing pressure to close any regulatory arbitrage opportunities.

In Romania, financial sector actors face continued regulatory uncertainty. Institutions providing virtual asset services or managing accounts with international exposure will need to bolster their compliance functions, even as the broader legal environment catches up with international expectations. The ongoing enhanced follow-up procedure signals a higher degree of regulatory engagement and possible intervention if shortcomings persist.

Policy makers in both countries must focus not only on drafting new rules but also on investing in supervisory capacity, developing specialist expertise, and improving data collection. The FATF’s recommendations provide a clear roadmap, but their adoption must be coupled with effective monitoring and robust enforcement actions.

For other European countries and neighboring states, the experiences of North Macedonia and Romania highlight the importance of incremental progress, regular assessment, and international cooperation. The landscape of financial crime is continually shifting, demanding both agility and resilience in national AML strategies.

Conclusion: The Road Ahead for AML Compliance in North Macedonia and Romania

North Macedonia and Romania are at different points in their journey toward effective AML compliance. North Macedonia has made notable advances in technical compliance, especially around wire transfers, beneficial ownership, and internal controls, yet still needs to improve its supervision and enforcement mechanisms. Romania faces a tougher climb, with persistent deficiencies in targeted financial sanctions, oversight of virtual assets, and comprehensive data collection.

These assessments by MONEYVAL and the FATF show that achieving technical compliance is a necessary, but not sufficient, condition for effective anti-money laundering regimes. Real progress depends on the ability of countries to translate improved legislation into operational results—through better supervision, timely enforcement, and continuous adaptation to new risks.

As financial crime grows more sophisticated and transnational, both North Macedonia and Romania must continue their efforts to meet the highest standards. This will require sustained political will, investment in expertise and technology, and a commitment to ongoing international cooperation. The road ahead may be challenging, but the stakes for financial integrity, economic stability, and international reputation make it an imperative for both countries.

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Related Links

• Romanian National Office for Prevention and Control of Money Laundering
• MONEYVAL Official Website
• FATF Recommendations
• European Union Anti-Money Laundering Directive
• North Macedonia Financial Intelligence Office

Other FinCrime Central Articles About MONEYVAL

• Global AML Fight Strengthened by FATF MONEYVAL Joint Decisions
• MONEYVAL Progress Reports Highlight Anti-Money Laundering Efforts in Estonia and Slovakia

Source: Council of Europe

Some of FinCrime Central’s articles may have been enriched or edited with the help of AI tools. It may contain unintentional errors.

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