Financial Crime World

Title: Moldova’s Anti-Money Laundering Laws under Scrutiny: A Fourth Assessment Visit by Moneyval

Subtitle: Evaluating Progress and Challenges in the Republic of Moldova

The Moneyval committee of experts, an affiliate of the Council of Europe, conducted a fourth assessment visit from November 26 to December 7, 2012, to evaluate the effectiveness of Moldova’s anti-money laundering (AML) and counter-terrorist financing (CTF) measures. The report was adopted on December 4, 2012, at the 40th Plenary in Strasbourg.

Background

Moldovan government has made significant strides in strengthening its AML/CTF framework since their last assessment in 2007. Notable progress includes:

  • Adoption of a national strategy for 2010–2012 focusing on international compliance and collaboration between law enforcement and regulatory bodies

Key Findings

1. Criminal Legislation

  • Amendments to criminal legislation to align with international standards
  • Challenges: clarify the term “acquisition” to avoid hindering ML investigations

2. Confiscation and Provisional Measures

  • Criminal procedure code regulates seizure and sequestration
  • Further improvements needed for freezing and unfrectzing assets related to designated persons and organizations

3. Independence and Functionality of the FIU (OPFML)

  • Current situation: situated within Centre for the Combating of Economic Crimes and Corruption (CCECC)
  • Legislative amendments to increase independence and autonomy
  • Concerns persist regarding operational role and cooperation with other law enforcement agencies

4. Capacity and Cooperation Among Law Enforcement Agencies

  • Criminal Investigation Directorate (CID) within CCECC has limited knowledge of financial crimes
  • Improve expertise, establish relationships, and foster international cooperation required

5. Awareness and Reporting

  • STRs primarily originate from banks
  • Lack of awareness and knowledge among designated non-financial businesses and professions regarding reporting obligations and non-compliance consequences

Conclusion

This latest evaluation provides a snapshot of Moldova’s progress in AML/CTF and the challenges that lie ahead in further strengthening its framework. Key areas that need improvement include resolving issues related to FIU’s independence, enhancing expertise among law enforcement agencies, and promoting awareness and reporting among non-financial businesses and professions.