Financial Crime World

Banks Take AML/CFT Issues Seriously Amid Supervisory Pressure

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In recent years, banks in Moldova have been giving higher priority to anti-money laundering and counter-terrorism financing (AML/CFT) regulations by implementing compliance functions and training programs. However, internal controls beyond the banking sector are still underdeveloped.

Improved Transparency among Supervised Entities

According to a recent report, the National Bank of Moldova (NBM) and the National Commission for Financial Markets (NCFM) have taken measures to improve transparency among most supervised entities, including financial institutions (FIs). Background checks are conducted by both supervisors to identify beneficial owners (BOs) and shareholder structures. Additionally, on-site and off-site controls are performed, which include a review of FIs’ applications and efficiency in meeting certain obligations under the AML/CFT Law.

Supervisory Actions

  • Licenses have been withdrawn from some FIs, but not due to AML/CFT infractions.
  • Supervisors have an adequate understanding of money laundering risks in most sectors they supervise.

While supervision of FIs has improved, there are concerns regarding the supervision of designated non-financial businesses and professions (DNFBPs), such as notaries, lawyers, casinos, and dealers in precious metals and stones. The main measures adopted by supervisory authorities were related to awareness-raising activities regarding the new AML/CFT requirements established by the current legislation.

  • The National Registration Agency (NRA) does not provide a comprehensive analysis of money laundering/terrorist financing risks related to legal entities.
  • Limited measures were applied by the Public Services Agency (PSA) to track down fictitious entities.

International Cooperation

Moldova has a well-developed legal framework for providing assistance, with only moderate shortcomings noted regarding mutual legal assistance on freezing and confiscation. The authorities actively seek international assistance for money laundering and predicate offense cases, with satisfactory quality and timeliness of responses.

Priority Actions

  • Ensure that reporting entities prioritize the assessment of their business-specific ML/FT threats and vulnerabilities.
  • Implement a suspicion-based transaction reporting system.
  • Challenge courts to make more effective use of financial intelligence.