Financial Crime World

Financial Institution Fraud Prevention in Moldova Requires Further Improvement

The Republic of Moldova has made significant progress in strengthening its legal and institutional framework to combat money laundering and terrorist financing, but still needs to address several shortcomings, according to a recent report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL).

Progress Made

The report welcomes Moldova’s efforts in addressing most technical compliance deficiencies impacting the application of targeted financial sanctions related to terrorism, terrorism financing, and the proliferation of weapons of mass destruction and its financing. However, MONEYVAL finds that the country has made limited progress in remedying shortcomings affecting the application of FATF standards on virtual assets and virtual asset service providers.

Shortcomings Identified

As a result, Moldova’s compliance with several Financial Action Task Force (FATF) recommendations remains incomplete. Recommendations 6 and 7 have been re-rated as Largely Compliant, while Recommendation 15 is now rated Partially Compliant. MONEYVAL urges the Moldovan authorities to address these shortcomings by June 2025.

Current Compliance Status

Moldova has made progress in remedying technical compliance deficiencies impacting six of the 12 recommendations assessed as partially compliant since the adoption of the mutual evaluation report in July 2019 and the first follow-up in May 2022. However, MONEYVAL expects the country to achieve further improvement within the next year.

Here is Moldova’s current compliance status with FATF Recommendations:

  • Compliant: 9 recommendations
  • Largely Compliant: 25 recommendations
  • Partially Compliant: 6 recommendations
  • Non-Compliant: None

Next Steps

The report concludes that Moldova remains in enhanced follow-up and is expected to report back to MONEYVAL within one year. The full report can be accessed at [link].

MONEYVAL’s recommendations aim to strengthen Moldova’s financial institution fraud prevention measures, ensuring a safer and more secure financial environment for its citizens and international partners alike.