Financial Crime World

Financial Crime Investigation Techniques in Moldova Under Scrutiny

The Council of Europe’s anti-money laundering body, MONEYVAL, has recently published a report highlighting several areas where Moldovan authorities can improve their fight against money laundering and terrorist financing.

Money Laundering Threats

Moldova faces significant threats from money laundering, primarily driven by corruption, tax evasion, smuggling, drug trafficking, and human trafficking. The country has a national risk assessment (NRA) in place, but MONEYVAL notes that it does not fully explore the risks associated with organized crime groups and non-profit organizations.

National Risk Assessment

Moldova’s NRA covers a wide range of subjects, but MONEYVAL recommends that it be updated to include more comprehensive information on the risks posed by organized crime groups and non-profit organizations.

Investigation and Prosecution Efforts

The report praises Moldova’s efforts to conduct ML investigations and prosecutions, including cases involving autonomous ML and foreign predicates. However, only a limited number of investigations have led to prosecutions, and the figures on confiscated assets remain low.

Confiscation Regime

Moldovan authorities were able to validate various forms of confiscations, including instrumentalities, foreign proceeds, equivalent value, and proceeds located abroad. Nevertheless, the report notes that the effectiveness of the country’s confiscation regime is still lacking, with a limited number of cases leading to the recovery of criminal assets.

Terrorist Financing

MONEYVAL concludes that Moldova faces a low risk of terrorist financing, and no evidence suggesting otherwise has been found. The country has conducted two FT investigations but was unable to prove any aspect of FT.

The report highlights areas where improvement is needed in Moldova’s legal framework, including the prevention and combating of proliferation of weapons of mass destruction. Additionally, MONEYVAL notes that the country has not made any targeted financial sanctions designations under UN Security Council Resolutions and has not requested other countries to give effect to actions initiated under freezing mechanisms.

Positive Notes

On a positive note, the report acknowledges Moldova’s robust licensing framework and its ability to supervise financial institutions effectively. However, it notes that the supervision of designated non-financial businesses and professions is an area for improvement.

International Cooperation

MONEYVAL commends Moldova for having a sound legal and procedural framework for exchanging information with foreign partners in a comprehensive, proactive, and timely manner. The country has actively sought international cooperation, which has resulted in convictions and the seizure and confiscation of criminal assets.

Conclusion

Based on its evaluation, MONEYVAL has invited Moldova to report back in 2021 as part of an enhanced follow-up procedure. The report provides a comprehensive assessment of Moldova’s efforts to combat money laundering and terrorist financing, highlighting areas for improvement and providing recommendations for strengthening the country’s fight against these threats.

Recommendations

  • Strengthen national risk assessment to include more comprehensive information on risks posed by organized crime groups and non-profit organizations
  • Improve confiscation regime to increase effectiveness in recovering criminal assets
  • Enhance supervision of designated non-financial businesses and professions
  • Increase international cooperation and information exchange with foreign partners