Financial Crime World

Moldova’s Financial Crime Investigation Techniques Under Scrutiny

In its latest assessment, Moldova’s financial crime investigation techniques have been put to the test. The country has implemented several measures to combat money laundering and terrorist financing, but some areas still require improvement.

Progress Made

  • Risk Assessment: Moldova has made significant progress in assessing risk and applying a risk-based approach to identify potential threats (R.1).
  • National Cooperation: The country demonstrates strong national cooperation and coordination among its law enforcement agencies (R.2).

Challenges Ahead

  • Legal Framework: Moldova still needs to strengthen its legal framework for money laundering and terrorist financing offences (R.3-5).
  • Confiscation and Provisional Measures: Improvement is needed in this area as well (R.4).
  • Financial Institution Secrecy Laws: The country’s financial institution secrecy laws may hinder international cooperation (R.9).

Compliance

  • Customer Due Diligence, Record Keeping, and Reliance on Third Parties: Moldova is largely compliant in these areas (R.10-12 and R.17).
  • Internal Controls and Foreign Branches and Subsidiaries: Improvement is needed in internal controls and foreign branches and subsidiaries (R.18).

Progress in Regulation and Supervision

  • Financial Institutions: Moldova has made significant progress in regulating and supervising financial institutions (R.26).
  • DNFBPs: The country’s regulation of DNFBPs (designated non-financial businesses and professions) is also improving (R.28).
  • Financial Intelligence Unit: A financial intelligence unit has been established (R.29).

Challenges Remaining

  • Targeted Financial Sanctions: Moldova still faces challenges in implementing targeted financial sanctions related to terrorism and terrorist financing (R.6).
  • Transparency and Beneficial Ownership: Improvement is needed in transparency and beneficial ownership requirements for legal persons and arrangements (R.24-25).
  • Regulation of Non-Profit Organizations: The country’s regulation of non-profit organizations requires improvement (R.8).
  • Higher-Risk Countries: Moldova’s regulation of higher-risk countries also needs attention (R.19).

Conclusion

While Moldova has made significant progress in implementing financial crime investigation techniques, there is still much work to be done. The country must continue to strengthen its legal framework, improve its coordination with international partners, and enhance transparency and beneficial ownership requirements to effectively combat money laundering and terrorist financing.