Strengthening Moldova’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Measures
Moldova has made significant strides in combating money laundering and terrorist financing, but there are still areas that require improvement. To address the identified weaknesses, the following recommendations aim to enhance the country’s AML/CFT measures.
Improve Understanding of Money Laundering Risks
Effective AML/CFT efforts rely on a thorough understanding of the risks involved. To improve Moldova’s comprehension of money laundering risks:
- Provide comprehensive training: Offer regular and specialized training sessions for supervisors and Financial Institutions (FIs) on Money Laundering (ML) risks, focusing on the most material areas in Moldova.
- Enhance sectoral analysis: Conduct thorough analyses to better understand ML risks in various sectors.
Enhance Supervision of Designated Non-Financial Businesses and Professions (DNFBPs)
DNFBPs, such as notaries, lawyers, casinos, and dealers in precious metals and stones (DPMs), play a crucial role in preventing money laundering. To ensure their compliance with AML/CFT obligations:
- Develop a robust supervisory framework: Establish clear guidelines and regulations for DNFBPs to follow.
- Conduct regular audits and risk assessments: Regularly evaluate the compliance of DNFBPs with AML/CFT regulations.
Address Legal Entity Risks
Legal entities (LEs), such as shell companies, can be misused in money laundering schemes. To address these risks:
- Analyze ML/FT risks related to LEs: Develop strategies to prevent the misuse of LEs.
- Improve Beneficial Ownership information: Enhance collaboration with banks and the Public Services Agency (PSA) to ensure accurate and timely Beneficial Ownership (BO) information.
Improve International Cooperation
Effective AML/CFT efforts require cooperation among countries. To enhance international cooperation:
- Enhance Mutual Legal Assistance on freezing and confiscation: Address moderate shortcomings in the legal framework.
- Strengthen statistical analysis of incoming/outgoing requests for international assistance: Improve data analysis to better understand international cooperation needs.
Capacity Building and Resource Allocation
To effectively combat money laundering, Law Enforcement Agencies (LEAs) require sufficient resources and capacities:
- Provide necessary resources and capacities: Ensure LEAs have access to forensic accountants, information technology hardware and software, and other necessary tools.
- Ensure effective use of financial intelligence: Provide LEAs with the skills and knowledge needed to properly utilize financial intelligence.
Enhance Confiscation of Proceeds
To effectively combat money laundering, confiscation of proceeds must be consistently employed:
- Raise the effectiveness of confiscation: Challenge courts with more ML cases relying on inferences that can properly be drawn from available evidence.
- Consistently employ the legislative framework: Ensure that the legislative framework is used to raise the effectiveness of confiscation.
By addressing these weaknesses and implementing these recommendations, Moldova can enhance its AML/CFT measures, ultimately improving its ability to prevent and combat money laundering and terrorist financing.