Financial Crime World

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Strengthening Anti-Money Laundering and Counter-Terrorist Financing Measures in Moldova

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The Republic of Moldova has been working to improve its anti-money laundering (AML) and counter-terrorist financing (CFT) framework. A recent report highlights areas where improvements are needed, as well as priority actions to address these weaknesses.

Key Challenges

Financial Institutions (FIs)

  • Supervisors of financial institutions have a good understanding of money laundering risks, leading to better governance and compliance.
  • However, some non-banking FIs may not be adequately addressing AML/CFT obligations.

Designated Non-Financial Businesses and Professions (DNFBPs)

  • There are gaps in the supervisory framework for DNFBPs, particularly regarding their level of compliance with AML/CFT obligations.
  • Strengthening oversight of these entities is crucial to prevent money laundering activities.
  • The National Regulatory Agency has taken steps to prevent the misuse of legal entities (LEs), particularly in uncovering VAT fraud.
  • However, a comprehensive analysis of money laundering/financial terrorism risks related to LEs is lacking.

International Cooperation

  • Moldova has a well-developed legal framework for international cooperation and actively seeks assistance from foreign countries for ML cases.
  • Effective collaboration with other countries is essential for combating transnational financial crimes.

Priority Actions

Risk Assessment

  • Reporting entities (REs) should prioritize assessing their business-specific money laundering/financial terrorism threats and vulnerabilities.
  • Implementing risk-mitigating measures will help prevent financial crimes.

Suspicion-Based Transaction Reporting System

  • Moldova should implement the new suspicion-based transaction reporting system as a priority.
  • Testing and supervising its effectiveness is crucial to ensure it functions properly.
  • Moldova should challenge courts with more money laundering cases, relying on inferences that can be drawn from available evidence.
  • Strengthening international cooperation will enhance the country’s ability to combat financial crimes.

Resources for Law Enforcement Agencies (LEAs)

  • LEAs should be provided with sufficient resources and capacities to effectively use financial intelligence.
  • Enhancing their capabilities will help prevent financial crimes and bring perpetrators to justice.