Financial Crime World

Here is the converted article in Markdown format:

Moldova’s Financial Institutions Urged to Enhance Compliance Training Following MONEYVAL Report

============================================================

The Republic of Moldova has made significant progress in its efforts to combat money laundering and terrorist financing, according to a follow-up report by the Council of Europe’s anti-money laundering body, MONEYVAL. The report highlights several areas where the country’s financial institutions have improved their compliance with Financial Action Task Force (FATF) standards.

Key Areas of Improvement

Moldova has been upgraded from “partially compliant” to “largely compliant” in four key areas:

  • Designated non-financial businesses and professions
  • Customer due diligence
  • Politically exposed persons
  • Higher-risk countries

Minor Deficiencies Identified

The report also identifies some minor deficiencies, including:

  • Lack of customer due diligence requirements in certain sectors
  • Downgraded rating on the implementation of new international requirements for virtual assets (from “largely compliant” to “non-compliant”)

Positive Developments

MONEYVAL’s report highlights several positive developments in Moldova’s anti-money laundering (AML) and counter terrorist financing (CFT) efforts, including:

  • Expansion of customer due diligence requirements
  • Addressing previously identified deficiencies regarding high-risk countries
  • Enhancing requirements for financial institutions when dealing with politically exposed persons

Remaining Shortcomings

Despite these improvements, some minor issues remain, including:

  • Lack of clarity on the definition of close associates of politically exposed persons

Call to Action

MONEYVAL has urged Moldova to address these shortcomings and strengthen its implementation of AML/CFT measures. The report serves as a wake-up call for financial institutions in Moldova to enhance their compliance training and ensure that they are meeting international standards.

Consequences of Non-Compliance

Failure to comply with AML/CFT regulations can have serious consequences, including fines and reputational damage.

Next Steps

Moldova’s progress will be closely monitored by MONEYVAL, which has called on the country to report back on its implementation of AML/CFT measures within the next year. The country must now demonstrate its commitment to combating money laundering and terrorist financing by addressing the remaining deficiencies identified in the report.