Moldova Makes Progress in Combatting Financial Crimes

Overview of Moldova’s AML/CFT Measures

The Republic of Moldova has taken significant strides in enhancing its anti-money laundering and combating the financing of terrorism (AML/CFT) measures. This improvement is reflected in a recent report, which highlights the country’s upgraded technical compliance with global standards.

Key Areas of Improvement

• International Cooperation: Moldova has made notable progress in implementing Recommendation 6 of the Financial Action Task Force (FATF), which covers international cooperation. The country has been re-rated from “Partially Compliant” to “Largely Compliant”.
• Prevention of Terrorist Financing: Similarly, Recommendation 7 of FATF, which deals with the prevention of terrorist financing, has also seen an upgrade, moving from “Partially Compliant” to “Largely Compliant”.
• Supervision of Non-Profit Organizations: Recommendation 15, relating to the supervision of non-profit organizations, has been upgraded from “Non-Compliant” to “Partially Compliant”.

Outstanding Recommendations

While Moldova’s progress is commendable, six recommendations remain outstanding. These include:

• Customer Due Diligence: Recommendation 8 requires improvement in customer due diligence.
• Prevention of Misuse of Companies and Legal Arrangements: Recommendation 15 still needs attention to prevent the misuse of companies and legal arrangements.

Enhanced Follow-Up

As a result of this assessment, Moldova will continue to be subject to enhanced follow-up by MONEYVAL, an international body responsible for evaluating AML/CFT measures in member states. The country is expected to report back on its progress within the next 12 months, providing further insight into its ongoing efforts to strengthen its anti-financial crime regime.

Moldova’s commitment to improving its AML/CFT measures demonstrates a positive step towards enhancing financial stability and reducing the risk of financial crimes.