Enhancing the system of prevention and combating money laundering and terrorism financing in the Republic of Moldova
Money Laundering, Terrorist Financing, Capacity Building, Process Management
Twinning [MD 16 ENI JH 01 18 (MD/33)]
Junior Partner Germany
Lithuania: Financial Crime Investigation Service (FCIS); Public Prosecutor Office of the Republic of Lithuania (PPO); Supreme Court of Lithuania; Central Project Management Agency (CPMA)
Poland: Ministry of Finance of the Republic of Poland (MoF); General Inspector of Financial Information (GIFI)
Germany: University for Public Administration Bremen (HfÖV) / Institute of Police and Security Research (IPoS)
The implementation of AML/CFT system in Moldova started in November 2001. In order to implement enhanced international requirements, the AML/CFT Law no. 190-XVI of 26.07.2007 on the prevention and combating money laundering and terrorist financing was passed, thus allowing the completion of the national system to prevent and combat money laundering and financing of terrorism. In accordance with requirements of AML/CFT Law and latest amendments, OPFML will operate as an autonomous and independent central specialized body under the Government, whose main functions consist of receiving, processing, analysing and disseminating information received from banks and non-banking financial institutions, including specialized professions. Prosecution of money laundering and terrorist financing cases is carried out by the prosecuting authority of the APO and the NAC.
Main private entities responsible for the implementation of AML/CFT Law are commercial banks operating in the Republic of Moldova, which are licensed and supervised by NBM of the Republic of Moldova. Other important actors of the AML/CFT system are non-banking financial institutions supervised by the National Commission for Financial Markets and representatives of non-financial business, such as casinos, reals estate agencies, notaries, auditors and others. Main economic problems having negative influence to AML/CFT system of Moldova are cash based economy, high risk of transit of criminal and non-clear source assets via banking system, active using of companies registered in off shore jurisdictions for money laundering and tax evasion purposes, lack of the cross-border control of goods and capital from Transnistria.
- Align the legislation with the 4th Directive on money-laundering and financing of terrorism;
- Increase the technical and operational capacities of the Financial Intelligence Unit in order to implement effectively all tasks in the AML/CFT area, especially in the field of improvement of financial intelligence;
- The Financial Intelligence Unit should increasingly and pro-actively tackle allegations of money laundering and terrorism financing, starting with those bodies under reporting obligation that systematically report suspicious transactions, which should be sanctioned in case of failure to report;
- Strengthen preventive freezing regime by providing relevant reporting entities the power to suspend suspicious financial transactions.
- Enhance and implement a robust anti-money laundering and counter-terrorism financing legislative framework that is in line with UN Security Council Resolutions and FATF recommendations and in compliance with the results of the mutual evaluations in the frame of Moneyval;
- Enhance operational cooperation between financial intelligence-, police-, financial
inspection, tax- and customs services and units via interoperability and data exchanges (for example, on the basis of tailor-made agreements on data exchange). Liaison officers between services should be appointed to facilitate operational cooperation. Temporary exchanges of staff for training purposes should be considered;
- Develop the guidance and instructions for the bodies under reporting obligation that systematically report suspicious transactions in order to enhance the effectiveness of the 5 implementation of the National Anti-Money Laundering and Countering Terrorism Financing legislation.
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