Financial Crime World

Title: Moldova’s Battle Against Money Laundering and Terrorist Financing: A Close Look at the Republic’s Progress

Introduction

The Republic of Moldova, a small European country, has been making significant strides in the fight against money laundering (ML) and terrorist financing (TF). In this article, we will examine the country’s progress in combating these illicit activities based on the latest assessment report by the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (Moneyval).

Moldova’s Anti-ML and Counter-TF Measures

According to the Moneyval assessment report (released in 2019), Moldova identified significant threats, vulnerabilities, and risks to the country in its 2017 National Risk Assessment (NRA). The adoption of an Action Plan responding to the NRA led to mitigating measures, such as improved communication of results to reporting entities.

Financial Intelligence Unit

Moldova’s financial intelligence unit, the Service for Prevention and Fight of Money Laundering (SPCML), has a reasonably thorough procedure for developing financial intelligence, which is used in a limited extent for ML and proceeds-generating offenses’ criminal investigations. The SPCML faced challenges with an unusually high number of suspicious transaction reports and adopted methodological measures to address the situation. International cooperation with domestic authorities was deemed generally satisfactory.

Financial Terrorist investigations and Asset Confiscation

Despite a low TF risk level, Moldova conducted two financial terrorist investigations, though no prosecutions or convictions were achieved due to a lack of evidential proof. Competent authorities responsible for FT investigations, such as the Security and Intelligence Service (SIS) and the Prosecutor’s Office for Combating Organized Crime and Special Causes (PCCOCS), showed a correct understanding of TF risks and possess broad powers to obtain financial intelligence and other necessary information. However, there are areas requiring improvement, such as limited resources and insufficient awareness among non-bank reporting entities.

In terms of asset confiscation, the report emphasizes the importance of depriving criminals of the proceeds of crime. Moldova has several forms of asset confiscation, including instrumentalities, foreign proceeds, equivalent value, and proceeds located abroad. However, the number and value of confiscated assets are low and disproportionate to the scale of proceeds-generating crime in the country.

Strategic Documents against ML and TF

Moldova has demonstrated its commitment to combating ML and TF by adopting and implementing several strategic documents:

  1. The National Anti-Money Laundering and Countering the Financing of Terrorism Strategic Framework (2016-2020)
  2. The National Action Plan against Money Laundering and Terrorist Financing (2017-2020)
  3. The National Strategy for Countering Terrorism Financing (2016-2020)

Conclusion

Moldova has made progress in preventing and combating ML and TF, but there is still room for improvement. Effective implementation of the FATF Recommendations, focusing on enhancing communication and awareness among financial institutions, and strengthening international cooperation will be essential for Moldova to maintain an effective anti-ML and anti-TF system.