Combating the Financing of Terrorism: Best Practices in Moldova, Republic of

Moldova, Republic of has made significant progress in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations to combat the financing of terrorism (CFT).

Compliance with FATF Recommendations

According to a recent assessment, Moldova has achieved compliance with 21 out of the 40 FATF recommendations. This demonstrates the country’s commitment to combating terrorist financing and implementing effective measures to prevent the misuse of its financial system.

Risk-Based Approach and National Cooperation

Moldova has excelled in assessing risk and applying a risk-based approach, earning it a “largely compliant” rating under Recommendation R.1. The country’s national cooperation and coordination efforts have also been recognized as effective, receiving a similar rating under Recommendation R.2.

Targeted Financial Sanctions and Financial Institution Secrecy

Moldova has made progress in implementing targeted financial sanctions related to terrorism and terrorist financing, earning a “largely compliant” rating under Recommendation R.6. Additionally, the country’s financial institution secrecy laws have been commended for their compliance with international standards, earning a “compliant” rating under Recommendation R.9.

Challenges and Areas for Improvement

However, Moldova still faces challenges in implementing certain recommendations. For instance:

• The non-profit organizations sector has been identified as needing improvement, earning a “non-compliant” rating under Recommendation R.8.
• The country’s efforts to regulate and supervise financial institutions and DNFBPs have received mixed ratings, with some areas requiring further attention.

Prevention of Misuse of New Technologies

Moldova has implemented various measures to prevent the misuse of new technologies, including a “partially compliant” rating under Recommendation R.15. The country has also made progress in reporting suspicious transactions and relying on third parties, earning ratings of “partially compliant” and “largely compliant”, respectively.

International Cooperation and Technical Assistance

Moldova’s efforts to combat terrorist financing have been recognized by the international community, with the country having received technical assistance from various organizations to strengthen its CFT framework. As the country continues to work towards full compliance with FATF Recommendations, it is essential that it addresses remaining gaps and deficiencies to prevent the financing of terrorism.

Conclusion

While Moldova still faces challenges in implementing certain FATF recommendations, its commitment to combating terrorist financing is evident in its progress in various areas. The country’s efforts to strengthen its CFT framework and address remaining gaps will be crucial in preventing the financing of terrorism and maintaining international cooperation on this critical issue.