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Assessment of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Framework in Moldova
Moldova has made significant progress in strengthening its AML/CFT framework, but still faces challenges related to technical deficiencies and effectiveness in certain areas.
Group Facilitated International Cooperation
- Requesting and Requested Party: Moldova has facilitated international cooperation in both capacities.
- Limitations: However, cooperation related to beneficial owners (BOs) is limited due to difficulties within the BOs framework.
Risks and General Situation
Moldova’s financial sector poses high risks due to its composition and reliance on exports and imports. The main risks stem from predicate offenses such as:
- Drug Trafficking
- Corruption
- Human Trafficking
- Tax Evasion
- Smuggling
Assessment of Risks, Coordination, and Policy Setting
Moldova has introduced changes to its AML/CFT framework since the last evaluation. The new AML/CFT Law (2017) sets out measures for detecting and preventing money laundering/financing of terrorism, governing inspections, and establishing a risk-based approach.
However, technical deficiencies remain regarding:
- Politically Exposed Persons
- Enhanced Due Diligence
- Preventive Measures for DNFBPs
- BO Information
Effectiveness
Moldova has demonstrated substantial effectiveness in:
- Assessing ML/FT Risks
- Domestic Coordination
- FT Investigation, Prosecution, and International Cooperation
- Supervision of the Financial Sector
Moderate effectiveness is observed in:
- Preventive Measures by FIs and DNFBPs
- Collection and Use of Financial Intelligence
Recommendations
To further strengthen its AML/CFT framework, Moldova should:
- Further Strengthen Domestic Operational Cooperation Framework
- Develop Coordination on Combating Proliferation Financing (PF)
- Improve Implementation of PF-related Financial Sanctions