Financial Crime World

Preventing and Combating Money Laundering and Terrorist Financing in the Republic of Moldova

Regulations and Guidelines

The following regulations and guidelines outline the measures to be taken by entities in the Republic of Moldova to prevent and combat money laundering and terrorist financing.

Sanctionable Violations

  • Failure to impose precautionary measures
  • Violation of confidentiality obligations
  • Non-compliance with information requirements

Consequences of Violations

If a person or entity is found guilty of violating the regulations, they may face:

  • Public Statements: Official announcements regarding the violation
  • Prescriptions: Orders to take specific actions to correct the violation
  • Suspension of Activities: Temporary cessation of business operations
  • Temporary Bans on Management Functions: Restrictions on management and decision-making responsibilities
  • Fines: Monetary penalties up to €5 million

Mitigating Circumstances

In certain cases, mitigating circumstances may lead to a reduction in sanctions, including:

  • Effective Collaboration with Authorities: Cooperating fully with investigations and law enforcement
  • Express Recognition of Wrongdoing: Acknowledging and taking responsibility for the violation
  • Implementation of Remedial Actions: Taking corrective measures to prevent future violations

Aggravating Circumstances

Aggravating circumstances may result in increased penalties, including:

  • Previous Infringements: A history of similar violations
  • Non-Cessation of Violations: Failure to correct the violation after being notified
  • Significant Damage Caused: Substantial harm or financial loss resulting from the violation

Recommendations

To ensure compliance with regulations, reporting entities are advised to:

  • Adopt internal policies and procedures for working with clients
  • Implement adequate methods for data storage and management
  • Establish effective internal control measures
  • Regularly evaluate and assess risks
  • Develop strategies for managing and mitigating identified risks

Additional Resources

For further information, please refer to:

  • Annual Activity Report of the Money Laundering Prevention and Combating Service (2019)
  • MONEYVAL Mutual Evaluation Report (2019)