Moldova’s Financial Crisis: Fines and Penalties for Financial Crimes Remain in Questionable State
Moldova is currently facing a severe financial crisis, with billions of dollars laundered through EU banks and over one billion stolen from the National Bank of Moldova. Despite the gravity of these crimes, authorities have remained tight-lipped on the investigation, leading to public frustration.
The Need for Action
Experts are urging European institutions to take action to help Moldova recover from this economic, political, and social crisis. A recent policy brief by CPR Moldova suggests that EU institutions can contribute to moving forward with investigations, given Moldovan authorities’ lack of progress.
Proposed Tax Amnesty Raises Concerns
NGOs have expressed concerns over a proposed tax amnesty, which they fear will undermine efforts to investigate financial crimes. Experts recommend European Union supervision of technical and financial assistance provided to Moldova.
Progress on Investigations
In April, CPR Moldova requested the Ministry of Finance to correct official information on the website regarding stolen assets, citing biased public opinion. In May, a fact-checking article was published on the www.sic.md platform.
Development Partners Urge Action
In October, development partners were urged by Moldovan CSOs to temporarily halt financial support in sectors where reforms show no results until clear assessments and performance indicators are imposed.
EU’s Response
The European Union announced that it would not transfer further funds to the Moldovan state budget to support justice sector reforms due to insufficient commitment from authorities. The EU had allocated EUR 28 million for justice reform, but progress has been insufficient.
Report Highlights Delays in Investigations
Transparency International Moldova and IDIS “Viitorul” presented a report on monitoring developments in the financial and banking sector between December 2016 and October 2017. The report highlights delays in investigations and concludes that authorities are deliberately slowing down efforts to recover stolen funds.
Calls for Decisive Action
CPR Moldova urges authorities to take decisive action in investigating these crimes, providing justice, punishing the guilty, and recovering stolen money. As the country struggles to rebuild trust with its citizens and development partners, it remains unclear whether authorities will take concrete steps towards reform.
- Key recommendations:
- EU institutions should contribute to moving forward with investigations
- European Union supervision of technical and financial assistance provided to Moldova is necessary
- Development partners should temporarily halt financial support in sectors where reforms show no results until clear assessments and performance indicators are imposed
- Authorities must take decisive action in investigating these crimes, providing justice, punishing the guilty, and recovering stolen money