Financial Crime World

Moldova’s Financial Sector Takes Step Towards Strengthening Anti-Money Laundering and Counter-Terrorist Financing Measures

Chisinau, Moldova - The Republic of Moldova has made a significant move towards enhancing its anti-money laundering (AML) and counter-terrorist financing (CFT) measures by accepting the Special Permanent Commission for Combating Money Laundering and Financing of Terrorism (SPCML) as a permanent member.

Strengthening Anti-Money Laundering and Counter-Terrorist Financing Measures

The SPCML’s membership is seen as a crucial step in strengthening Moldova’s financial sector, which has been facing challenges in preventing the misuse of its financial system for illicit activities. The country’s supervisory authorities have demonstrated some awareness regarding the risks posed by shell companies and UN sanctions lists, but there is a need for more guidance and regular communication towards reporting entities.

Challenges in Preventing Money Laundering and Terrorist Financing

The lack of understanding among designated non-financial businesses and professions (DNFBPs) about AML/CFT risks has been identified as a major concern. As a result, these entities only screen customers against designation lists and do not take additional measures to prevent money laundering and terrorist financing.

Recommendations for Improving AML/CFT Measures

To address this issue, Moldova’s authorities have been advised to:

  • Prioritize the assessment of business-specific ML/FT threats and vulnerabilities by reporting entities (REs)
  • Apply customer due diligence (CDD) and other risk-mitigating measures that are appropriate in view of the identified risks
  • Ensure the effective implementation of its new suspicion-based transaction reporting system
  • Test and supervise REs’ internal processes aimed at identifying and reporting ML/FT suspicions for effectiveness and quality of STRs produced

Strengthening Law Enforcement Agencies

Moldova’s law enforcement agencies (LEAs) need to be provided with sufficient resources and capacities to make more effective use of financial intelligence. This includes employing forensic accountants, information technology hardware and software, as well as other specialized expertise.

Improving Confiscation of Proceeds from Crime

The country has also been advised to consistently employ its legislative framework to the fullest extent to raise the effectiveness of confiscation of proceeds from crime.

Commitment to Strengthening AML/CFT Regime

By accepting the SPCML’s membership, Moldova is demonstrating its commitment to strengthening its AML/CFT regime and preventing the misuse of its financial system for illicit activities. The country’s authorities are working towards implementing a range of priority actions to address the identified weaknesses in its AML/CFT framework.

Full Report Available

The full report on Moldova’s AML/CFT measures can be accessed at [link].