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Moldova's AML/CFT Progress and Challenges

· 2 min read
Alexander Petrov
Financial Crime Investigator

Overview of AML/CFT Measures and Compliance in Moldova​

The latest evaluation report by the Council of Europe's Moneyval offers an insightful look into the anti-money laundering (AML) and counter-terrorist financing (CTF) measures in the Republic of Moldova and examines its compliance with the Financial Action Task Force (FATF) 40 Recommendations.

  • FATF 40 Recommendations: Moldova's adherence to these recommendations is analyzed, with some strengths and improvements identified.
  • Effectiveness of AML/CFT System: The report assesses the effectiveness of Moldova's AML/CFT system and outlines areas requiring enhancement.

Key Findings​

National Risk Assessment (NRA) and Action Plan:

  • Conducted in 2017: The NRA identified threats, vulnerabilities, and risks to Moldova.
  • Moderate limitations: Had some limitations but led to significant improvements.
  • Communication: The authorities should improve communication of NRA results to reporting entities and expand its scope regarding Financing of Terrorism (FT) related risks.

Financial Intelligence Unit (FIU) and Law Enforcement Agencies (LEAs):

  • Analysis: The FIU's (Service for Prevention and Fight of Money Laundering – SPCML) analysis procedure is thorough.
  • FT Investigations: Use of financial intelligence for FT-related investigations is improving.
  • Cooperation: Domestic authorities' cooperation is generally satisfactory.

Investigations, Prosecutions, and Convictions:

  • Increasing trend: The number of ML investigations has been on the rise.
  • Convictions: The overall trend for convictions is growing.
  • Prosecutions: A limited number of investigations result in prosecutions.

Strategic Documents and MONEYVAL Evaluation:

  • Commitment: Moldova has adopted and implemented several strategic documents to combat financial crimes.
  • Fifth Round Mutual Evaluation Report: Provides a detailed analysis of Moldova’s AML/CFT system.

Effectiveness of AML/CFT Measures in Moldova: An In-depth Analysis​

The report acknowledges that Moldova has shown a substantial level of effectiveness in:

  • Assessing ML/FT risks
  • Domestic coordination
  • FT investigation and prosecution
  • Engaging in international cooperation

However, improvements are needed in:

  • Supervision of financial and designated non-financial business professionals (DNFBPs)
  • Application of proliferation financing (PF) related financial sanctions
  • Other areas

Challenges and Priority Actions​

Despite these progresses, Moldova faces challenges including:

  • Limited resources
  • Insufficient training
  • Complex legal structures

To address these challenges, the report suggests the following priority actions:

  • Use of legislative framework: Consistently employ the legislative framework to its fullest extent.
  • Resources for LEAs: Provide LEAs with sufficient resources.
  • Quality of international cooperation: Improve the quality of international cooperation, particularly regarding beneficiary ownership information.