Financial Crime World

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Combating Terrorist Financing Methods in Moldova: Progress Made, But Shortfalls Remain

Strasbourg, June 11, 2024

The Republic of Moldova has made significant strides in strengthening its legal and institutional framework to combat money laundering and the financing of terrorism. However, according to a follow-up report released today by MONEYVAL, several shortcomings remain.

Progress in Combating Terrorist Financing

Moldova has shown progress in addressing technical compliance deficiencies related to targeted financial sanctions against terrorism. The country has also made some improvements in its standing regarding virtual assets and service providers. As a result, MONEYVAL’s rating of Moldova’s implementation of Financial Action Task Force (FATF) Recommendations 6 and 7 has been revised from “Partially Compliant” to “Largely Compliant.”

Key Improvements

  • Remedied six out of 12 partially compliant recommendations since the adoption of MONEYVAL’s mutual evaluation report in July 2019.
  • Met nine FATF Recommendations with “Compliant” ratings and 25 with “Largely Compliant” designations.

Shortfalls Remain

Despite some progress, Moldova has failed to meet expectations in addressing technical compliance deficiencies within a three-year timeframe. MONEYVAL urges the Moldovan authorities to rectify this situation by June 2025.

Outstanding Recommendations

  • Six recommendations are rated as “Partially Compliant,” while none fall under the non-compliant category.
  • Recommendation 15 remains “Partially Compliant.”

Enhanced Follow-up Measures

As a result of this latest evaluation, Moldova will continue to be subject to enhanced follow-up measures and is expected to provide an update to MONEYVAL within one year.

Conclusion

Moldova’s efforts have yielded positive results, but the country still requires attention to several shortcomings. By addressing these technical compliance deficiencies, Moldova can further strengthen its legal and institutional framework to combat money laundering and the financing of terrorism.