Financial Crime World

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Moldovan Financial Institutions Improve Due Diligence Procedures, But Minor Deficiencies Remain

A recent follow-up report released by MONEYVAL, the Council of Europe’s anti-money laundering body, has upgraded Moldova’s ratings in four areas related to combating money laundering and terrorist financing. The country has made significant progress in implementing measures to prevent financial crimes, but some minor deficiencies still need to be addressed.

Progress Made

Moldova has improved its due diligence procedures in the following areas:

  • Designated non-financial businesses and professions: The authorities have expanded the scope of entities obliged to carry out customer due diligence requirements.
  • Customer due diligence: Moldova has implemented measures to address previously identified deficiencies regarding enhanced due diligence for high-risk countries.
  • Politically exposed persons: Financial institutions have enhanced requirements for identifying and verifying the identity of politically exposed persons.
  • Higher-risk countries: The country has taken steps to address previously identified deficiencies regarding enhanced due diligence for higher-risk countries.

Minor Deficiencies Remain

Despite the progress made, some minor deficiencies still need to be addressed:

  • Definition of close associates of politically exposed persons: There is a lack of clarity on the definition of close associates.
  • Customer due diligence requirements in some sectors: Some sectors do not have customer due diligence requirements in place.

Virtual Assets

Moldova has also been evaluated on its implementation of new international requirements for virtual assets, which cover prominent virtual currencies and providers of these assets. Unfortunately, identified deficiencies have led to a downgrade of Moldova’s rating on the implementation of this updated Recommendation from “largely compliant” to “non-compliant”.

Next Steps

Moldova is expected to report back to MONEYVAL on further progress in strengthening its anti-money laundering and counter-terrorist financing measures within one year.

Full Report Available Online

The full report is available online, highlighting the country’s efforts to improve due diligence procedures for financial institutions.