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Moldova’s Transnistria Region Remains a Vulnerability for US Financial Institutions

Washington D.C. - The Financial Crimes Enforcement Network (FinCEN) has issued a warning to U.S. financial institutions about the ongoing risks of dealing with entities originating in Moldova’s Transnistria region.

Unauthorized Banking Activities in Transnistria

The Transnistria region is an unrecognized separatist area in Moldova where unauthorized banking activities are still taking place. According to FinCEN, several entities operating as unauthorized financial institutions have been identified in the region, including:

• Trans-Dniester Republican Bank: A bank that has been known to engage in suspicious transactions.
• Sberbank: A Russian-owned bank with operations in Transnistria.
• Elektronny Regionalny Bank LAMINAT: An electronic banking system that has been linked to money laundering activities.

Ongoing Risks and Requirements for US Financial Institutions

Despite previous warnings from Moldovan officials, large wire transfers are still being routed out of the Transnistria region into financial institutions in other jurisdictions. FinCEN is reminding U.S. financial institutions to conduct due diligence when assessing the money laundering risk presented by accounts with financial institutions in this region of Moldova.

Key Takeaways

• Conduct Due Diligence: U.S. financial institutions must assess the money laundering risk presented by accounts with financial institutions in Moldova’s Transnistria region.
• File Suspicious Activity Reports: Financial institutions are required to file Suspicious Activity Reports if they suspect or have reason to believe that a transaction involves funds derived from illegal activity.

Background and Contact Information

Moldova’s anti-money laundering laws are not being enforced against banks operating in the Transnistria region, as they are not under the supervision of the Moldovan government. This lack of oversight has encouraged criminal activities and the movement of proceeds from smuggling and trafficking.

For questions or comments regarding this advisory, please contact FinCEN’s Regulatory Helpline at 800-949-2732.