Financial Crime World

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Technical Solution Created for LEAs to Access BO Register

A significant breakthrough has been made in the fight against financial crime as a technical solution has been developed to enable law enforcement agencies (LEAs) and the Specialised Police and Customs Management Law (SPCML) to directly access the Business Owners (BO) register. However, difficulties have been identified in relation to complex legal structures under International Organisation 4 (IO.4), which may hinder accurate and current BO information.

Challenges Remain

The Public Services Agency (PSA) has created a BO register containing data on newly-registered legal entities, but lacks the necessary resources, expertise, and mechanisms to verify accuracy and ensure timely updates.

Moldova has a comprehensive legal framework for international cooperation, including mutual legal assistance (MLA) and extradition, which is regularly used by LEAs, the Financial Intelligence Unit (FIU), supervisory authorities, and other competent bodies. The country’s membership in international organisations such as Europol, Interpol, and the Egmont Group has facilitated cooperation.

Risks and General Situation

Moldova is not a significant financial centre, with its banking sector accounting for 70% of GDP. The main risk of financial crime stems from predicate offences generating illicit revenues, including drug trafficking, corruption, human trafficking, tax evasion, and smuggling.

Technical Compliance and Effectiveness

Moldova has introduced changes to its AML/ CFT framework since the last evaluation. The new law sets out measures for detecting and preventing ML/ FT and governs inspections of implementation. However, technical deficiencies remain regarding politically exposed persons (PEPs), enhanced due diligence (EDD) measures, and BO information on legal persons.

Assessment of Risks

The country has demonstrated a substantial level of effectiveness in assessing ML/FT risks, domestic coordination, FT investigation and prosecution, and international cooperation. However, it could not demonstrate sufficient effectiveness on the application of proliferation financing-related financial sanctions.

Action Plan

Following the adoption of the National Risk Assessment (NRA), an Action Plan was developed to address identified risks. While progress has been made, implementation could be further improved. Steps have been taken to address shortcomings regarding confiscation, demonstrating consideration for NRA outcomes and action plan objectives.

Conclusion

The development of a technical solution to enable direct access to the BO register is a significant step forward in the fight against financial crime. However, challenges remain regarding complex legal structures and the need for accurate and current BO information. Moldova’s legal framework for international cooperation is comprehensive, but technical deficiencies persist. Efforts to improve AML/ CFT measures and address identified risks are ongoing.