Financial Crime World

Moldova’s Anti-Money Laundering Laws: A Progress Report

Moldova, a small European nation, has taken significant strides in implementing anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations. This article provides a brief overview of Moldova’s AML legal framework, focusing on the Money Laundering Offence, the financing of terrorism offence, and the role of the Financial Intelligence Unit (FIU).

Money Laundering Offence

  • Introduced in 2002: Moldova’s money laundering offence (Article 243 of the Criminal Code) has undergone several revisions since its introduction in September 2002.
  • International Standards: The current law adequately reflects international standards. All designated predicate offences are covered, except for insider dealing, which is penalized since November 2006.
  • Penalties: Penalties for both natural and legal persons are in line with international practices.

Financing of Terrorism Offence

  • Legislation: Article 279 of the Criminal Code addresses financing of and materials support for terrorist acts, covering both domestic and international terrorism.
  • Coverage: The Moldovan criminal substantive law appears to cover all offenses within the scope of the nine treaties listed in the Annex to the TF convention.
  • Provisional Measures and Confiscation: Provisional measures and confiscation are provided for by the newly adopted Criminal Procedure Code.

Role of Financial Intelligence Unit (FIU)

  • Responsibility: The Centre for Combating Economic Crimes and Corruption (CCCEC), now renamed the National Anticorruption Center (NAC), is responsible for AML enforcement and coordination of activities.
  • Establishment of OPCML: The Office for Prevention and Control of Money Laundering (OPCML) was established in September 2003 and has taken over the function of the FIU.
  • Cooperation: The NAC cooperates closely with law enforcement authorities during ML/FT investigations, including the Customs Service and the Anti-corruption Prosecutor’s Office.

International Cooperation and Memberships

  • Organizations: Moldova is a member of international organizations like the MONEYVAL Committee of Experts and maintains observer status in the Eurasian Group.
  • Egmont Group: The OPCML was accepted as a member of the Egmont Group in May 2008, facilitating secure information exchange with FIUs.

Impact on Financial Institutions

  • Regulations: Moldova’s financial institutions, banks, and non-bank financial institutions are subject to AML/CFT regulations, including identifying customers and beneficial owners, monitoring transactions, and maintaining records.

Future Endeavors

  • Training and Exchange Programs: Despite the progress, there is a need for additional training, seminars, and experience exchange programs for law enforcement and judicial authorities to strengthen and improve these measures.