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KYC Guidelines for Financial Institutions in Moldova Receive Final Approval

The Parliament of the Republic of Moldova has given its final approval to legislative amendments aimed at preventing and combating money laundering and terrorist financing (AML/CFT). These changes, developed with the support of the U.S. Agency for International Development (USAID) Moldova Financial Sector Transparency Activity (FSTA), will enable financial institutions to conduct all transactions online.

Key Features of the New Guidelines

The new guidelines allow financial entities to utilize customer identification procedures through “non-face-to-face” methods, such as:

  • Qualified electronic signatures
  • Photo/video identification

This move is expected to facilitate the digitization of the financial sector and save customers valuable time and resources while streamlining their interactions with financial institutions.

Benefits of e-KYC

According to Vladimir Munteanu, First Deputy Governor in charge of the AML/CFT sector, e-KYC enables an efficient way to check a customer’s identity by digital means. However, there are potential risks and concerns that should be addressed through effective regulation to ensure the safe use of financial services and products.

Approved Amendments

The approved package of amendments includes new provisions related to:

  • Customers’ due diligence
  • Source-of-wealth determination
  • Transaction record-keeping measures

Additionally, enhanced due diligence measures will be applied for residents of jurisdictions being monitored by relevant international organizations.

Implementation Timeline

The new guidelines are set to take effect on July 1, 2023. The National Bank of Moldova (NBM) has been working closely with the USAID FSTA Project to implement cutting-edge IT solutions that enable the monitoring of money laundering risks and supervision of bank shareholders. As of next year, NBM will also supervise the insurance and microfinance sectors.

Expected Benefits

The implementation of these new guidelines is expected to bring significant benefits to the financial sector in Moldova, including:

  • Improved customer experience
  • Increased efficiency
  • Enhanced risk management