Moldova Makes Progress in Fighting Money Laundering and Terrorist Financing

Progress Recognized by International Authorities

Chisinau, Moldova - A recent assessment by international authorities has acknowledged significant progress made by Moldova in combating money laundering (ML) and terrorist financing (TF).

Efforts to Combat ML/TF

The report highlights the country’s efforts to reform its suspicious transaction reporting system, which has led to a reduction in the number of reports submitted and improved analysis. Additionally, the authorities have taken steps to strengthen the licencing framework for financial institutions and implement measures to prevent the misuse of legal entities.

Vulnerabilities Remain

While Moldova is not considered an important regional financial center, it remains vulnerable to ML risks due to its geographical location and the potential transit nature of the country for terrorist groups. However, the authorities have recognized corruption as a significant problem in the country and are working to address it.

Assessment Commendations

The assessment also commends Moldova’s efforts in assessing ML/TF risks and domestic coordination, as well as international cooperation. The country has demonstrated moderate effectiveness in supervising financial institutions and non-financial businesses and professions (DNFBPs), preventing the misuse of legal persons and arrangements, and implementing targeted financial sanctions.

Areas for Improvement

However, there are still areas for improvement, including the application of proliferation financing-related financial sanctions and strengthening domestic operational cooperation.

Government Commitment

“We are committed to combating ML/TF and will continue to work towards improving our AML/CFT framework,” said a government spokesperson. “We appreciate the international community’s recognition of our efforts and look forward to continuing our cooperation.”

Ongoing Evaluation Process

The assessment is part of an ongoing process to evaluate Moldova’s compliance with international standards on ML/TF prevention. The country is expected to continue making progress in this area, particularly in addressing its weaknesses and improving its effectiveness.

Background

Moldova has been working to improve its AML/CFT framework since 2017, when it adopted a new law aimed at detecting and preventing ML and TF. The country’s authorities have taken steps to strengthen the Financial Intelligence Unit, establish a risk-based approach in the application of preventive measures, and improve customer due diligence.

Conclusion

Moldova’s progress in combating ML/TF is a positive development for the international community. While there are still areas for improvement, the country has demonstrated its commitment to addressing these risks and improving its AML/CFT framework. Further cooperation between domestic authorities and international partners will be essential in achieving this goal.

Moldova’s National Risk Assessment (NRA)
Action Plan 2017
International Cooperation on Combating Money Laundering and Terrorist Financing