Financial Crime World

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Preventing and Combating Money Laundering and Terrorist Financing in Moldova

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This document outlines the legislation and regulations related to preventing and combating money laundering (ML) and terrorist financing (TF) in Moldova.

Sanctionable Violations

The following are violations that can lead to sanctions:

Failure to Impose Precautionary Measures

  • Failure to impose precautionary measures in cross-border banking relations

Prohibition on Opening Anonymous Accounts

  • Violation of the prohibition on opening anonymous accounts

Non-Compliance with Information Requirements

  • Non-compliance with information requirements for fund transfers

Failure to Identify Politically Exposed Persons (PEPs)

  • Failure to identify PEPs and their associates

Establishing Business Relationships with PEPs

  • Establishing business relationships with PEPs without approval from senior management

Sanctions

For violating ML/TF legislation, sanctions may include:

Public Statement

  • Public statement in the media identifying the natural or legal person and the nature of the breach

Prescription

  • Prescription ordering cessation of illicit behavior and abstention from repetition

Suspension of Activity

  • Suspension of activity or withdrawal of authorization for a period of 3 months to 1 year

Temporary Ban on Exercising Management Functions

  • Temporary ban on exercising management functions for a period of 3 months to 1 year

Fine

  • Fine up to €5 million

Mitigating Circumstances

The following mitigating circumstances may lead to reduced sanctions:

Effective Collaboration with Authorities

  • Effective collaboration with authorities in controls

Express Recognition of the Act Committed

  • Express recognition of the act committed until the issuance of the decision

Cessation of the Violation

  • Cessation of the violation and implementation of remedial actions

Aggravating Circumstances

The following aggravating circumstances may lead to increased penalties:

Previous Infringements of ML Legislation

  • Previous infringements of ML legislation

Non-Cessation of the Violation

  • Non-cessation of the violation and non-implementation of remedial measures

Significant Nature of the Damage

  • Significant nature of the damage

Recommendations

Reporting entities are advised to adopt internal policies and procedures to prevent ML/TF, including:

Adoption of Internal Policies and Methods for Working with Clients

  • Adoption of internal policies and methods for working with clients

Storage of Client Data

  • Storage of client data

Internal Control Systems

  • Internal control systems

Risk Management and Evaluation Procedures

  • Risk management and evaluation procedures

Communication Protocols

  • Communication protocols

Appointment of Responsible Persons and Reporting to OPFML/FIU

  • Appointment of responsible persons and reporting to OPFML/FIU

Approval of AML/TF Prevention and Combating Programs

  • Approval of AML/TF prevention and combating programs

Gaps in Legislation

The legislation has gaps regarding:

PEPs

  • Improved due diligence measures (KYC)

Preventive Measures for Designated Businesses and Non-Financial Professions

  • Preventive measures for designated businesses and non-financial professions

Information on Ultimate Beneficial Owners (UBOs)

  • Information on ultimate beneficial owners (UBOs)