Moldova’s Billion-Dollar Heist: A Look into the Largest Financial Crime in Moldova’s History

Between 2012 and 2014, the small European nation of Moldova experienced a financial crisis of unprecedented proportions, resulting in the theft of approximately $1 billion from its banking system. This fraud, now referred to as “Theft of the Century,” left deep scars on Moldova’s economy and democratic institutions, leaving its citizens in a state of shock and disbelief.

A Complex Money Laundering Scheme

About $2.9 billion passed through three Moldovan banks: Banca de Economii, Banca Socială, and Unibank
Scheme involved issuing loans to front companies that returned money for new loans, and laundered the remaining funds
Approximately $1.85 billion was laundered using a technique called the Core Laundering Mechanism

Role of Latvian Banks

A significant portion of the funds, approximately $1.85 billion, were laundered using Latvian banks
Around $2 billion of these funds were returned to Moldova, and the remaining $600 million is believed to have been stolen

Questions Raised About Moldovan Authorities’ Role

From 2013 to 2019, Moldova was considered a “captured state” with de facto control held by Moldovan oligarch Vladimir Plahotniuc and his Democratic Party of Moldova (PDM)
Investigation was delayed, and efforts to recover stolen funds met with resistance

Companies Identified in the Scheme

At least 77 companies, collectively referred to as the “Shor Group,” received around $2.9 billion in loans from the three implicated banks
Of the total loans, approximately $2.6 billion went through an intricate money laundering process known as the Core Laundering Mechanism

Current Progress and Concerns

In December 2017, Kroll handed over their second report to the National Bank of Moldova, revealing Vladimir Plahotniuc as the suspected final beneficiary
Recovering stolen funds has been a slow process
Concerns that the statute of limitations may prevent perpetrators from being held accountable

Looking Forward

With a new general prosecutor and elected president, Moldova now has an opportunity to make significant strides in the investigation and recovery process
Cooperation and support from relevant international organizations, including the EU, is crucial in ensuring justice is served and allowing citizens of Moldova to rebuild their country