Moldova

New Documents

The Council of Europe’s Group of Experts on Action against Trafficking in Human Beings published a report, following its assessment of Moldova’s compliance with the Council of Europe Convention on Action against Trafficking in Human Beings.

The Council of Europe adopted an action plan for the Republic of Moldova for the years 2021 to 2024, aiming to bring the country’s legislation and institutions, particularly with respect to corruption and risks of financial crimes, in light with international standards.

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Important Facts

  • The U.S. State Department identifies Moldova as a jurisdiction of concern. While the country is not considered a regional financial center, it has an economy that is largely cash-based and remains highly vulnerable to money laundering activities. The government of Moldova monitors money flows throughout the country, but does not control its breakaway region of Transnistria. Transnistrian authorities do not adhere to Moldova's financial controls and maintain a banking system not licensed by the National Bank of Moldova, making Transnistria highly susceptible to money laundering. Criminal proceeds in Moldova are primarily derived from tax evasion, contraband smuggling, fraud and corruption. Money laundering occurs in the banking system, exchange houses and the offshore financial centers in Transnistria. Moldova does not permit offshore banks or shell companies. Internet gaming comes under the same set of regulations as domestic casinos, yet enforcement of the regulations is sporadic. In October 2015, Moldova’s Office for Prevention and Control of Money Laundering noted that it subjected 549 transactions to complex criminal analysis.
  • KYC Covered Entities:  Banks, currency exchange offices, investment funds, investment or fiduciary service providers and management companies, deposit companies, fiduciary companies, securities dealers, stock exchange companies, brokers, insurance and reinsurance companies, company formation agents and ownership registries, gaming and lottery organizers and institutions (including internet casinos), real estate agents, dealers of precious metals or gems, auditors, accountants and financial consultants, lawyers, notaries, and organizations which provide postal and telephone mandate exchange or value transfer services
  • STR Covered Entities:  Banks, currency exchange offices, investment funds, investment or fiduciary service providers and management companies, deposit companies, fiduciary companies, securities dealers, stock exchange companies, brokers, insurance and reinsurance companies, company formation agents and ownership registries, gaming and lottery organizers and institutions (including internet casinos), real estate agents, dealers of precious metals or gems, auditors, accountants and financial consultants, lawyers, notaries, and organizations that provide postal and telephone mandate exchange or value transfer services
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 29 (January – October, 2015); Convictions: 2 (January – October, 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 8 High : 0
Largely Compliant : 21 Substantial : 3
Partially Compliant : 11 Moderate : 7
Non-Compliant : 0 Low : 1

BASEL i

Rank : 71/141
Score : 5.14/10

TRANSPARENCY INTERNATIONAL i

Rank : 120/180
Score : 32/100

Tax Justice Network i

Rank : N/A
Score : N/A