Financial Crime World

Moldova Urged to Boost Efforts Against Terrorist Financing

Chisinau, Moldova - A Call for Improved Anti-Money Laundering Measures

The Council of Europe’s anti-money laundering body, MONEYVAL, has published a report expressing concerns over Moldova’s lackluster performance in combating terrorist financing and money laundering. The organization urges the country to improve its efforts in confiscating proceeds from crime, despite having a robust legislative framework.

Concerns Over Money Laundering and Terrorist Financing

Moldova faces significant threats from:

  • Money laundering: Despite having a robust legislative framework, the number of confiscated assets remains low.
  • Tax evasion: The country’s economy is vulnerable to tax evasion and corruption.
  • Organized crime groups: Both domestically and internationally, organized crime groups pose a significant threat to Moldova.

Key Findings

While Moldova has made progress in investigating and prosecuting these cases, only a limited number of investigations have led to convictions. The report highlights concerns over the country’s ability to prevent and combat the proliferation of weapons of mass destruction, with its legal framework deemed inadequate. Additionally, Moldova has not made any targeted financial sanctions designations under United Nations Security Council Resolutions.

Positive Developments

However, MONEYVAL praises Moldova for:

  • Robust licensing framework: The country’s licensing framework is effective in regulating financial institutions.
  • Active international cooperation: Moldova actively cooperates with other countries to combat money laundering and terrorist financing.

Recommendations

MONEYVAL recommends that Moldova:

  • Improve confiscation regime: Effectively tackle proceeds from crime
  • Enhance supervision of designated non-financial businesses and professions: Strengthen oversight of these sectors
  • Strengthen legal framework: Prevent and combat the proliferation of weapons of mass destruction
  • Increase international cooperation on targeted financial sanctions designations

Moldova has 12 months to address these concerns and implement the recommended measures. The country’s ability to effectively combat terrorist financing and money laundering will be closely monitored by MONEYVAL in the coming year.