Financial Crime World

Moldova set to Revolutionize KYC Procedures with New AML/CFT Amendments

The Moldovan Parliament has approved legislative amendments in the field of Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), paving the way for wider use of electronic methods for customer identification.

Addressing the Challenges of Current Regulatory Framework

The new amendments are aligned with the recommendations of the MONEYVAL Committee and EU’s 5th AML Directive. With these changes, financial entities in Moldova will be able to use non-face-to-face customer identification methods.

Advantages of Remote Customer Identification (eKYC)

  • Speeds up the digitization process
  • Allows all customer operations to transpire online
  • Saves time and resources
  • Increases accessibility

Vladimir Munteanu, First Deputy Governor in charge of the AML/CFT sector, emphasized the significance of eKYC, stating, “eKYC represents an efficient, digital method of customer identification. Despite its advantages, it is crucial that this technology is effectively regulated to ensure the safe use of financial services and products.”

Other Key Provisions

The parliamentary approval also includes provisions for:

  • Customer due diligence
  • Determining the source of wealth
  • Transaction record-keeping measures
  • Enhanced due diligence for residents of jurisdictions under international monitoring

These new provisions are expected to take effect on July 1, 2023, giving supervisory authorities six months to adjust their subordinate normative acts and create new ones to implement these amendments.

Strengthening AML/CFT Framework

In pursuit of strengthening its AML/CFT framework, the National Bank of Moldova (NBM) is implementing several measures, including:

  • Implementing a state-of-the-art IT solution for monitoring money laundering risks and supervising bank shareholders
  • Organizing thematic trainings for its employees and reporting entities, in collaboration with the USAID FSTA Project

Expanded Responsibilities

From July 1, 2023, the NBM will assume responsibility for overseeing AML/CFT compliance by:

  • Insurance sector
  • Microfinance sector