Financial Crime World

Moldova’s Fintech Sector Set to Expand, But Compliance Issues Lurk in the Waters

Chisinau, Moldova - A Digital Financial Journey Unfolds

Moldova is navigating its digital financial journey, with regulatory challenges and opportunities emerging in equal measure. The country’s fintech sector is poised for growth, with the National Bank of Moldova (NBM) and the National Commission for Financial Market (NCFM) playing crucial roles in shaping the industry.

Significant Progress Since 2020

According to a recent report by PwC Legal, Moldova has made significant strides in adopting digital financial products and services since 2020. The country’s National Development Strategy “Moldova Europeană 2030” and Digital Transformation Strategy of the Republic of Moldova for 2023-2030 have provided a roadmap for the industry’s development.

Open Banking Reforms

The NBM, which regulates credit and insurance companies, is leading the charge in Open Banking reforms, with the aim of consolidating the financial market and providing equal opportunities to all players. The regulator has transposed PSD2 into its legal framework through the Law on Payment Services and Electronic Money No 114/2012, aligning Moldova’s payment services with European regulations.

Key Players in the Payment Services Market

  • Banks
  • Payment service providers (PSPs)
  • Electronic money institutions
  • Postal service providers

Since July 2023, PSPs licensed in the EU can operate in Moldova without obtaining a licence from the NBM, facilitating cross-border payments and stimulating competition and innovation.

Compliance Issues Emerge

However, compliance issues are emerging as the industry expands. The NBM is formulating bylaws regulating common, open, and secure standards of communication to be approved until 2024, while developing a technical platform allowing all PSPs to create application programming interfaces (APIs).

SEPA Implementation

The Single Euro Payments Area (SEPA) has also been implemented in Moldova, with the NBM overseeing the automated interbank payment system. The country is set to join the SEPA by February 2024.

Crowdfunding on the Horizon

In addition, crowdfunding is set to become a major player in the Moldovan fintech sector, with the Law on Crowdfunding No 181/2023 coming into force in March 2024. The National Commission for Financial Market (NCFM) will play a pivotal role in shaping the industry.

Collaboration Key to Success

Despite the challenges and opportunities, experts agree that forging successful collaborations among all stakeholders is essential to strike an optimal balance between fostering innovation and protecting consumer interests.

As Moldova’s fintech sector continues to evolve, it remains to be seen how regulators and industry players will navigate the complex landscape of compliance issues. One thing is certain: the country’s digital financial journey has only just begun, and the stakes are high.