Financial Crime World

Moldovan Authorities Introduce Tougher AML Regulations

Combating Money Laundering and Terrorist Financing

In a bid to combat money laundering and terrorist financing, the Moldovan authorities have introduced stricter regulations for financial institutions and designated businesses.

New Requirements for Financial Institutions

Under the new rules, financial institutions are required to:

  • Adopt internal policies and procedures to prevent the use of their services for illegal activities
  • Implement Know Your Client (KYC) rules, identifying complex and unusual transactions, and reporting suspicious activity to the authorities
  • Appoint an internal anti-money laundering (AML) officer
  • Implement a program of continuous training for employees

New Requirements for Designated Businesses

Designated businesses, such as lawyers, accountants, and real estate agents, are also required to:

  • Adopt AML procedures
  • Report suspicious activity to the authorities

Effective Date and Enforcement

The new regulations come into effect on [date] and will be enforced by the Moldovan Financial Intelligence Unit (FIU).

Sanctions for Non-Compliance

Financial institutions that fail to comply with the new regulations may face severe penalties, including:

  • Fines of up to 5 million euros
  • Suspension or withdrawal of their license
  • Individuals found guilty of violating the AML regulations may also be subject to:
    • Public statements in the media
    • Prescription orders
    • Temporary bans on exercising management functions

Mitigating Circumstances

Financial institutions that cooperate with authorities during controls and implement remedial measures after a violation may have their sanctions reduced.

Aggravating Circumstances

Previous violations of AML legislation, failure to cease illegal activities, and significant damage caused by a violation may lead to increased penalties.

Experts’ Views

Experts say the new regulations are a step in the right direction, but some gaps remain. “The legislation needs to be improved regarding politically exposed persons, due diligence measures, and information on ultimate beneficial owners,” said [expert’s name].

The EU has also called for improvements in Moldova’s AML regime. “The EU will continue to monitor Moldova’s progress in implementing its AML/CFT regime and expects further improvements,” said a spokesperson.

Sources