Moldovan Financial Institution Compliance Officer Role: A Guide to Understanding the Complexities

The role of a financial institution compliance officer in Moldova is often shrouded in mystery, with many wondering what exactly their duties entail. The country’s financial inspection directorate and supreme audit institution have similar yet distinct responsibilities, leaving some scratching their heads.

Financial Inspectors: Protecting Government Interests

According to Diana Grosu, Financial Inspection Director at the Ministry of Finance:

• The key function of a financial inspector is to protect government interests by ensuring compliance with laws, budgetary rules, and accounting standards.
• Inspectors conduct regular checks on public organizations and state-owned companies, detecting irregularities and imposing sanctions where necessary.

Internal Auditors: Assessing Internal Controls

While inspectors focus on governmental control, internal auditors assess internal controls in all processes. They report to managers and are responsible for:

• Evaluating the effectiveness of internal controls
• Identifying risks and opportunities for improvement
• Providing recommendations for corrective actions

Supreme Audit Institution (SAI): Promoting Transparency and Accountability

The SAI is responsible for performing external audits, assessing the regularity, legality, and efficiency of public financial resources and property. Its objectives include:

• Promoting transparency in public financial management
• Ensuring accountability in the use of public funds
• Certifying accounts

Key Differences and Similarities

Despite similarities in scope, tradition, and control functions, inspectors, internal auditors, and the SAI have distinct reporting lines, planning procedures, and working standards. The main differences are:

• Inspectors are accountable to the Ministry of Finance
• Internal auditors report to managers
• The SAI is independent and responsible only to Parliament

Collaboration for Harmonious Financial Control

Diana Grosu emphasizes the importance of collaboration between inspectors, internal auditors, and the SAI to ensure a harmonious system of financial control. She highlights that if roles are not separated and defined, there may be a “fight for survival,” where inspectors and internal auditors are forced to investigate individual transactions or suspions of fraud.

Conclusion

Understanding the role of a financial institution compliance officer in Moldova requires grasping the intricacies of the country’s financial inspection directorate, supreme audit institution, and internal audit function. By recognizing the differences and similarities between these entities, stakeholders can work together towards a more effective system of financial control, ultimately benefiting the public interest.

Date: July 24, 2012