Financial Crime World

Title: Moldova’s Anti-Money Laundering and Counter-Terrorist Financing Measures: A MONEYVAL Report

Introduction

The Republic of Moldova has made notable progress in fortifying its financial crime prevention measures, specifically in the realms of anti-money laundering (AML) and countering the financing of terrorism (CFT), according to the latest report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL).

Key Findings

The report, which spans the period up to October 2018, underscores Moldova’s advancements in implementing the directives set by the Financial Action Task Force (FATF) and evaluates the functionality of the nation’s AML/CFT system.

Risk Assessment

  • Moldova executed a National Risk Assessment (NRA) in 2017, spotlighting threats, susceptibilities, and risks the country encounters.
  • The comprehensive NRA could benefit from a more systematic approach when addressing FT-related perils.

Financial Intelligence

  • The Service for Prevention and Fight of Money Laundering (SPCML) boasts a modestly effective financial intelligence analysis procedure.
  • The involvement of financial intelligence in FT-related inquiries warrants improvement.

Investigations and Prosecutions

  • A series of strategic documents have been adopted to bolster a resilient AML/CFT infrastructure, leading to a rising number of ML and proceeds-yielding offenses investigations and convictions.
  • Despite the progress, challenges linger in formulating effective investigation and prosecution strategies.

Confiscation and Asset Recovery

  • Moldova possesses a comprehensive legal structure for confiscating criminal proceeds or property of equivalent value.
  • The productivity of confiscation and asset recovery measures could be heightened with the implementation of a unified, centralized database system.

Terrorist Financing

  • The Moldovan authorities acknowledged TF risks, but displayed scant evidence of FT investigations or prosecutions.
  • The country’s comprehension and cognizance of TF risks require augmentation.

Recommendations

MONEYVAL has proffered suggestions for enhancing Moldova’s AML/CFT system, which include:

  1. Intensifying the comprehension of ML/FT threats and vulnerabilities, notably in the sectors of organized crime, NPOs, and FT.
  2. Amplifying international cooperation, primarily in ML and CF investigations and asset recovery.
  3. Improving the efficacy of ML/FT investigations and prosecutions, including:
    • Utilization of targeted financial sanctions (TFS)
    • Designation procedures for TF and proliferation financing (PF)
    • Employing a risk-based approach in all sectors
  4. Reinforcing the supervision of the financial sector and DNFBPs concerning ML/FT risks.
  5. Updating and strengthening existing legal frameworks to address the evolving nature of ML/FT perils.

Conclusion

Moldova’s endeavors to bolster its AML/CFT framework have yielded some encouraging results, yet substantial hurdles persist. Overcoming these obstacles, notably through enhanced collaboration and information sharing, can assist Moldova in constructing a more robust and effective financial crime prevention apparatus.