Financial Crime World

Moldova Takes a Major Step Forward in Fight Against Money Laundering with Beneficial Ownership Disclosure Law

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A Significant Move Towards Transparency and Financial Crime Prevention

The Republic of Moldova has made a significant move towards boosting transparency and curbing financial crimes by introducing a new law requiring Ultimate Beneficial Owners (UBOs) of newly incorporated companies to be effectively identified and registered with the Trade Registry. The law, known as Law no. 150, was adopted on October 28, 2021, and came into force on December 5, 2021.

Key Provisions of the New Law

  • Registrars at the Moldovan Trade Registry are now empowered to obtain crucial information about UBOs, including:
    • Certified copies of identification documents
    • Certified excerpts from public registers
    • Power of attorney documents
  • This data is essential in verifying the true ownership structure of companies and detecting potential money laundering and terrorist financing activities

Strengthening Moldova’s Anti-Money Laundering Framework

The introduction of beneficial ownership disclosure requirements marks a significant milestone in Moldova’s efforts to strengthen its anti-money laundering (AML) framework and comply with international standards. The new law sends a strong message that the country is committed to maintaining transparency and accountability in its business environment, which will ultimately benefit local investors, foreign partners, and the broader economy.

Improved Transparency for Better Financial Sector Integrity

With this new regulation in place, Moldovan companies must now provide complete information about their UBOs as part of the registration process. This increased transparency is expected to improve the overall integrity of the financial sector, making it more attractive to international investors and businesses seeking to operate in the region.

Conclusion

Moldova’s new beneficial ownership disclosure law is a significant step forward in the country’s fight against money laundering and financial crimes. The increased transparency and accountability brought about by this regulation will ultimately benefit the local economy and make Moldova a more attractive destination for international investors and businesses.