Moldova’s Stolen Billion: Unraveling the Complex Web of Financial Fraud

Overview

• Theft of over one billion USD from Moldova’s banking system between 2012-2014
• Equivalent to 12% of its GDP
• Trail of damage to the economy and people’s trust in the government

Uncovering the Financial Crime

• Money laundering schemes and political manipulation
• Involved three Moldovan banks and two Latvian banks
• Approximately USD 2 billion laundered, USD 600 million lost
• Additional USD 100 million stolen through other methods

Challenges in the Investigation

• Slow actions by Moldovan authorities
• Efforts to conceal involvement by former regime and its leader, Vladimir Plahotniuc
• Delayed public disclosure of findings

The ‘Captured State’ Phase

• Plahotniuc’s de facto control over legislative, executive, and judicial powers
• Manipulation of media and information space
• Financial assets estimated at around 30% of Moldova’s GDP

Identification of Principal Beneficiaries

• Kroll’s findings presented in December 2017
• Plahotniuc and Ilan Shor identified as beneficiaries
• Both men currently at large

Slow Progress in the Case

• Recovering all stolen funds an impossible feat
• Justice for organizers and perpetrators at risk due to statute of limitations

New Hope for Resolution

• New general prosecutor, Alexandr Stoianoglo
• Commitment from newly elected President Maia Sandu
• Cooperation with external partners for an international investigation

EU’s Role in the Investigation

• Exercising its role through Article 18 of the EU-Moldova Association Agreement
• Joint action between the EU and Moldova
• Significantly bolster efforts to bring perpetrators to justice and reunite stolen funds with their rightful owners