Financial Crime World

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Financial Institutions Face Stricter Anti-Money Laundering Regulations in Moldova

The Moldovan government has introduced stricter regulations for financial institutions to combat money laundering and terrorist financing. According to the new laws, reporting entities must adopt internal policies and procedures to prevent and detect suspicious transactions.

Key Changes

  • Financial institutions are required to conduct enhanced due diligence on customers from high-risk countries or industries.
  • Reporting entities must identify and verify the ultimate beneficial owner of companies and trusts.
  • Failure to comply with these regulations can result in severe penalties, including fines up to MDL equivalent of €5 million (approximately $5.7 million) and suspension of business activities.

Penalties for Non-Compliance

  • Fines up to MDL equivalent of €5 million (approximately $5.7 million)
  • Suspension of business activities
  • Temporary ban on management functions for senior management personnel
  • Public statement identifying the natural or legal person and the nature of the breach

Key Requirements for Reporting Entities

  • Adopt internal policies and procedures to prevent and detect suspicious transactions
  • Conduct enhanced due diligence on customers from high-risk countries or industries
  • Identify and verify the ultimate beneficial owner of companies and trusts
  • Implement strict customer due diligence measures
  • Report suspicious transactions to the National Agency for Combating Money Laundering and Terrorist Financing

Gaps in Legislation

Despite the introduction of these new regulations, there are still gaps in the legislation regarding:

  • Politically exposed persons
  • Improved due diligence measures
  • Information sharing between financial institutions

These gaps need to be addressed to ensure that Moldova’s anti-money laundering regime is effective and efficient.

Sources