Financial Crime World

Anti-Money Laundering and Counter-Terrorism Financing Regulatory Framework in Moldova

International Commitments

The Republic of Moldova has ratified several international conventions related to combating terrorism and money laundering. These include:

  • Council of Europe Convention on Laundering, Search, Seizure and Confiscation of Proceeds from Crime (1990)
  • Additional Protocol to the Council of Europe Convention on the Prevention of Terrorism (2015)
  • Decision of the Council of Heads of State of the Commonwealth of Independent States (CIS) on Combating Terrorism and Other Violent Expressions of Extremism

Legislative Framework

The AML/CFT legal framework in Moldova consists of several key laws, including:

  • Law No. 202/2002 on Money Laundering
  • Law No. 224/2018 on Combating Money Laundering and Terrorist Financing
  • Criminal Code of Moldova

Corporate Liability

The Republic of Moldova has introduced corporate liability for legal entities and broadened the notion of “terrorism financing” to include consumption of crime that does not depend on perpetration or use of funds.

Terrorism Offense

Any action of making available or collecting assets or rendering financial services with the purpose of using them upon organization, preparation for, or perpetration of a terrorism offense is punishable as “terrorism financing.”

Anti-Bribery and Corruption Laws

The legislative framework related to corruption has evolved significantly in recent years. This includes laws such as:

  • Law No. 133 on the Declaration of Wealth and Personal Interests
  • Law No. 25-XVI on the Code of Conduct of the Public Officer
  • Law No. 82 on Integrity
  • Law No. 239-XVI on Transparency in Decision-Making
  • Law No. 271-XVI on Verification of Candidates to Public Offices

Forthcoming Legislation

The Moldovan Government has issued a draft Law on Procedure of Detecting Violations in Preventing Money Laundering and Terrorist Financing and Sanctioning for public consultation. This draft law contains provisions on:

  • Compliance check
  • Liability
  • Individualization of sanctions
  • Sanctionable wrongdoings
  • Harsh pecuniary and non-pecuniary sanctions

Recommendation

It is recommended that the Criminal Code be amended to replace the term “illicit income” with “illicit assets,” as used in the AML Law, to prevent non-uniform law enforcement.