Moldova’s Struggle with Reporting Suspicious Transactions

Chisinau, Moldova - The Republic of Moldova has been facing criticism for its inadequate efforts in reporting suspicious transactions, a crucial aspect of combating money laundering and terrorist financing.

FATF Report Highlights Concerns

A recent report by the Financial Action Task Force (FATF) has painted a mixed picture of Moldova’s progress in implementing anti-money laundering and combating financing terrorism (AML/CFT) regulations. While the country has made some strides, there are still several areas that require improvement.

Issues with Suspicious Transaction Reports

• Quality concerns: The FIU receives and analyzes a significant number of suspicious transaction reports (STRs), but their quality is often lacking.
• Difficulty in investigation: Inadequate reporting can hinder authorities’ ability to effectively investigate and prevent money laundering and terrorist financing.

Lack of Transparency in Beneficial Ownership Registry

Moldova’s lack of transparency in its beneficial ownership registry has been identified as a significant concern. This deficiency can facilitate money laundering and other illicit activities, making it challenging to identify and track the true owners of companies.

International Scrutiny and Concerns

Moldova’s strategic location between Europe and Eastern Europe makes it a potential hub for illicit financial flows. The country’s efforts to combat money laundering and terrorist financing have been deemed insufficient, resulting in a “partially compliant” rating from the FATF.

Commitment to Reforms

To address these concerns, Moldova has committed to implementing several reforms, including:

• Strengthening STR reporting system
• Improving transparency in beneficial ownership registries

However, progress remains slow, leaving many experts concerned about the country’s ability to effectively combat money laundering and terrorist financing.

International Community’s Call for Action

The international community is urging Moldova to accelerate its efforts to improve its AML/CFT regime, emphasizing that a strong and effective framework is essential for maintaining financial stability and preventing illicit activities.