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Moldova Faces Continued Challenges in Combatting Financial Crimes
MONEYVAL Report Reveals Significant Shortcomings in Country’s Approach to Virtual Assets
By Paul O’Donoughue
Chisinau - A recent report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has found that the Republic of Moldova continues to face significant challenges in combatting financial crimes.
Progress Made, but Significant Shortcomings Remain
The MONEYVAL report notes that Moldova has made some progress in strengthening its measures to prevent terrorist financing. However, the country still faces technical deficiencies in its money laundering prevention efforts. Specifically, the report highlights that Moldova’s regulatory framework for virtual assets is inadequate and lacks clear definitions and guidelines for the sector.
Key Concerns
- Inadequate regulation of virtual assets: The MONEYVAL report has identified a significant risk to Moldova’s financial system due to its failure to effectively regulate virtual assets.
- Lack of clear definitions and guidelines: The country’s regulatory framework for virtual assets is unclear, making it difficult to prevent financial crimes.
- Inadequate AML/CFT infrastructure: Regulatory bodies and financial institutions in Moldova have long argued that the country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) measures are inadequate.
International Community’s Response
The MONEYVAL report is expected to prompt further calls for reform and increased investment in AML/CFT infrastructure. As the international community continues to grapple with the challenges of financial crimes and compliance, Moldova’s experience serves as a reminder of the need for continued vigilance and cooperation between governments, regulatory bodies, and financial institutions.
The Way Forward
Moldova must take concrete steps to address the concerns raised by the MONEYVAL report. This includes:
- Strengthening its regulatory framework for virtual assets
- Developing clear definitions and guidelines for the sector
- Investing in AML/CFT infrastructure to prevent financial crimes