|
|
Sanctions:
The EU Council has adopted a decision concerning restrictive
measures (visa ban) against the Transnistrian leadership
(13623/10).
The decision extends the restrictive measures until 30 September
2011. It also extends the suspension of the measures for a further
period of 6 months (until 31 March 2011), in order to encourage
progress in reaching a political settlement to the Transnistrian
conflict, addressing the remaining problems of the Latin-script
schools and restoring free movement of persons.
http://ec.europa.
eu/external_relations/cfsp/sanctions/docs/measures_en.pdf
____________________________________________________
Offshore Jurisdiction Blacklists – Further Information:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report 2011:
Moldova is not considered a regional financial center based on
either volume or structure. The Government of Moldova (GOM)
monitors money flows through Moldova, but does not exercise
control over its breakaway region of Transnistria. Transnistrian
authorities do not adhere to GOM financial controls, and maintain
a banking system independent of and not licensed by the National
Bank of Moldova. Criminal proceeds laundered in Moldova derive
substantially from tax evasion, contraband smuggling, and
corruption. Money laundering has occurred in the banking system
and in exchange houses, along with offshore financial centers in
Transnistria. Fifteen banks constitute the Moldovan financial
system. Neither offshore banks nor shell companies are permitted
to operate in Moldova. Internet gaming sites do exist, although no
statistics are currently available on the number of sites in
operation. Internet gaming comes under the same set of
regulations as domestic casinos.
Moldova contains six free-trade zones (FTZs). Some of these free-
trade zones are infrequently used. Reportedly, goods from
abroad are frequently imported into the FTZ and then resold
without payment of customs duties to the country of origin or to
Moldova. The goods are then exported to other countries with
documentation indicating Moldovan origin. Companies operating
in FTZs are subject to inspections, controls, and investigations by
inspectors from the Customs Service and the Center for
Combating Economic Crime and Corruption.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, currency exchange offices, investment
funds, investment management companies, deposit companies,
fiduciary companies, security 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, investment or fiduciary service
providers, lawyers, notaries, and organizations that provide postal
and telephone mandate exchange or transfer of resource services
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, currency exchange offices, investment
funds, investment management companies, deposit companies,
fiduciary companies, security 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, investment or fiduciary service
providers, lawyers, notaries, and organizations that provide postal
and telephone mandate exchange or transfer of resource services
Number of STRs received and time frame: 303,671 from January
to October 2010
Number of CTRs received and time frame: 8,973,795 from
January to October 2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 16 from January to November 2010
Convictions: One from January to November 2010
Assets forfeited: criminally: $85,750 from January to October
2010 civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Moldova is a member of MONEYVAL, a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Moldova_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Moldova has made some progress in instituting a legal framework
for combating money laundering that is consistent with
international standards, and has made significant efforts to raise
its stature in this area. Despite these encouraging developments,
the GOM still faces serious challenges in the enforcement and
implementation of anti-money laundering laws, as evidenced by
the low level of prosecutions and convictions for money
laundering. These challenges may be magnified even further if a
November 2010 decision of the Constitutional Court goes into
effect. This decision invalidates some provisions of the law
regulating the ability of the FIU to collect suspicious transactions
reports as well as the ability of authorities to temporarily restrain
accounts suspected of involvement with illegal activity. The GOM
has issued a decree reinstating the provisions; the enforceability
of this document is questionable. As underscored by this recent
development, there is a pressing need to review and amend the
laws regulating enforcement and implementation of the anti-
money laundering framework. This should also include changes to
the criminal procedure code to institute non-conviction based
confiscation, and to permit special investigative techniques to be
applied to a wider range of offenses associated with money
laundering and terrorist financing.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Moldova is neither a major drug trafficking nor drug producing
country, but Moldova is a regular transit point for drugs destined
for Western Europe. Moldova’s proximity to the European Union,
limited law enforcement capacity, and its lack of control of the
Transnistria territory (on the east bank of the Dniester River
adjoining the Ukrainian border) where Moldovan law and by
extension, national drug policy, are not applicable, have
complicated drug control efforts. This has resulted in an
increased importation of synthetic drugs and psychotropic
substances into Moldova, both for local use and external
distribution. Moldova is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Moldova is a source and, to a lesser extent, a transit and
destination country for women and girls subjected to sex
trafficking, and for men, women, and children subjected to
conditions of forced labor. Moldovan women are subjected to
forced prostitution in Turkey, Russia, Cyprus, Bulgaria, the UAE,
Kosovo, Israel, Indonesia, Malaysia, Lebanon, Italy, Greece,
Ukraine, Czech Republic, and Romania. Men, women, and
children are subjected to conditions of forced labor in Russia,
Ukraine, Turkey, UAE, Israel, and Greece in the construction,
agriculture, and service sectors. Men, women, and children are
also subjected to conditions of forced labor and sexual
exploitation in Slovenia, Spain, and the Netherlands. Some
children from Moldova are subjected to conditions of forced
begging in some neighboring countries. Victims of forced
prostitution found in Chisinau include Ukrainian women and
Moldovan girls and women from rural areas. Victims from
Azerbaijan are subjected to forced labor in Moldova. Men and
women are subjected to forced labor within Moldova. Moldovan
victims of trafficking have been subjected to retrafficking after
return to Moldova. Victims from Moldova are often recruited by
individuals they trust. In the past several years, there have been
reported incidents of men from the United States, the United
Kingdom, Germany, Turkey, and possibly Italy and Greece,
traveling to Moldova for the purpose of sex tourism. The small
breakaway region of Transnistria in eastern Moldova is outside
the central government’s control and remained a source for
victims of both forced labor and forced prostitution.
The Government of Moldova does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. The government has made
progress over the past year in addressing the protection of
victims and the prevention of trafficking. Specifically, NGO
representatives reported that the government’s ability to identify
and provide care for victims improved; it increased the
participation of NGOs in the investigative process, including
special provisions for child trafficking victims. The government
expanded the National Referral System, a program lauded by
NGOs and viewed as a model for other countries in the region. In
addition, the government raised awareness through high-level
attention to the issue. However, the government did not show
sufficient progress in addressing complicity in trafficking by law
enforcement and other government officials. Reports of
widespread corruption in the police and judicial system persisted
and no officials were prosecuted, convicted, or served time in
prison for trafficking-related offenses. Furthermore, overall law
enforcement efforts declined from the previous year and forced
labor crimes were rarely investigated and prosecuted.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Moldova continued to work on implementation of its UN
obligations related to terrorist financing. The Government of
Moldova welcomed information regarding terrorist financing from
the U.S. government and other bodies, and actively applied such
information in its monitoring efforts through its Center for
Combating Economic Crimes and Corruption.
A specific section in the Prosecutor General’s Office handles
terrorism-related cases. The primary investigative body in
counterterrorism cases is the Information and Security Service,
Moldova’s intelligence service. In 2006, SIS was given the
governmental lead to establish and manage a special
counterterrorism center. In 2009, staffing and funding were
minimal, as were its activities. The U.S. Embassy’s law
enforcement assistance programs aid Moldovan efforts to impede
the ability of terrorists and other citizens without proper
documents to cross national borders. The programs also
facilitated automation at ports of entry to ensure greater security
of passports and travel documents.
The separatist-controlled Transnistria region of Moldova
remained a potential area of concern. Moldovan law enforcement
worked hard to track the whereabouts and activities of individuals
moving in and out of Transnistria, an area where central
government police and security services were not able to operate.
Some of the individuals moving in and out of Transnistria were
foreign students who remained in Moldova illegally, as the
government lacked the resources to deport them when their visas
expired. Corruption was endemic, and it was easy to obtain false
travel documents in both Transnistria and Moldova.
The EU Council has adopted a decision concerning restrictive
measures (visa ban) against the Transnistrian leadership
(13623/10).
The decision extends the restrictive measures until 30 September
2011. It also extends the suspension of the measures for a further
period of 6 months (until 31 March 2011), in order to encourage
progress in reaching a political settlement to the Transnistrian
conflict, addressing the remaining problems of the Latin-script
schools and restoring free movement of persons.
http://ec.europa.
eu/external_relations/cfsp/sanctions/docs/measures_en.pdf
____________________________________________________
Offshore Jurisdiction Blacklists – Further Information:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report 2011:
Moldova is not considered a regional financial center based on
either volume or structure. The Government of Moldova (GOM)
monitors money flows through Moldova, but does not exercise
control over its breakaway region of Transnistria. Transnistrian
authorities do not adhere to GOM financial controls, and maintain
a banking system independent of and not licensed by the National
Bank of Moldova. Criminal proceeds laundered in Moldova derive
substantially from tax evasion, contraband smuggling, and
corruption. Money laundering has occurred in the banking system
and in exchange houses, along with offshore financial centers in
Transnistria. Fifteen banks constitute the Moldovan financial
system. Neither offshore banks nor shell companies are permitted
to operate in Moldova. Internet gaming sites do exist, although no
statistics are currently available on the number of sites in
operation. Internet gaming comes under the same set of
regulations as domestic casinos.
Moldova contains six free-trade zones (FTZs). Some of these free-
trade zones are infrequently used. Reportedly, goods from
abroad are frequently imported into the FTZ and then resold
without payment of customs duties to the country of origin or to
Moldova. The goods are then exported to other countries with
documentation indicating Moldovan origin. Companies operating
in FTZs are subject to inspections, controls, and investigations by
inspectors from the Customs Service and the Center for
Combating Economic Crime and Corruption.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, currency exchange offices, investment
funds, investment management companies, deposit companies,
fiduciary companies, security 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, investment or fiduciary service
providers, lawyers, notaries, and organizations that provide postal
and telephone mandate exchange or transfer of resource services
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, currency exchange offices, investment
funds, investment management companies, deposit companies,
fiduciary companies, security 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, investment or fiduciary service
providers, lawyers, notaries, and organizations that provide postal
and telephone mandate exchange or transfer of resource services
Number of STRs received and time frame: 303,671 from January
to October 2010
Number of CTRs received and time frame: 8,973,795 from
January to October 2010
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 16 from January to November 2010
Convictions: One from January to November 2010
Assets forfeited: criminally: $85,750 from January to October
2010 civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Moldova is a member of MONEYVAL, a Financial Action Task
Force (FATF)-style regional body. Its most recent mutual
evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Moldova_en.asp
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Moldova has made some progress in instituting a legal framework
for combating money laundering that is consistent with
international standards, and has made significant efforts to raise
its stature in this area. Despite these encouraging developments,
the GOM still faces serious challenges in the enforcement and
implementation of anti-money laundering laws, as evidenced by
the low level of prosecutions and convictions for money
laundering. These challenges may be magnified even further if a
November 2010 decision of the Constitutional Court goes into
effect. This decision invalidates some provisions of the law
regulating the ability of the FIU to collect suspicious transactions
reports as well as the ability of authorities to temporarily restrain
accounts suspected of involvement with illegal activity. The GOM
has issued a decree reinstating the provisions; the enforceability
of this document is questionable. As underscored by this recent
development, there is a pressing need to review and amend the
laws regulating enforcement and implementation of the anti-
money laundering framework. This should also include changes to
the criminal procedure code to institute non-conviction based
confiscation, and to permit special investigative techniques to be
applied to a wider range of offenses associated with money
laundering and terrorist financing.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Moldova is neither a major drug trafficking nor drug producing
country, but Moldova is a regular transit point for drugs destined
for Western Europe. Moldova’s proximity to the European Union,
limited law enforcement capacity, and its lack of control of the
Transnistria territory (on the east bank of the Dniester River
adjoining the Ukrainian border) where Moldovan law and by
extension, national drug policy, are not applicable, have
complicated drug control efforts. This has resulted in an
increased importation of synthetic drugs and psychotropic
substances into Moldova, both for local use and external
distribution. Moldova is a party to the 1988 UN Drug Convention.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
Moldova is a source and, to a lesser extent, a transit and
destination country for women and girls subjected to sex
trafficking, and for men, women, and children subjected to
conditions of forced labor. Moldovan women are subjected to
forced prostitution in Turkey, Russia, Cyprus, Bulgaria, the UAE,
Kosovo, Israel, Indonesia, Malaysia, Lebanon, Italy, Greece,
Ukraine, Czech Republic, and Romania. Men, women, and
children are subjected to conditions of forced labor in Russia,
Ukraine, Turkey, UAE, Israel, and Greece in the construction,
agriculture, and service sectors. Men, women, and children are
also subjected to conditions of forced labor and sexual
exploitation in Slovenia, Spain, and the Netherlands. Some
children from Moldova are subjected to conditions of forced
begging in some neighboring countries. Victims of forced
prostitution found in Chisinau include Ukrainian women and
Moldovan girls and women from rural areas. Victims from
Azerbaijan are subjected to forced labor in Moldova. Men and
women are subjected to forced labor within Moldova. Moldovan
victims of trafficking have been subjected to retrafficking after
return to Moldova. Victims from Moldova are often recruited by
individuals they trust. In the past several years, there have been
reported incidents of men from the United States, the United
Kingdom, Germany, Turkey, and possibly Italy and Greece,
traveling to Moldova for the purpose of sex tourism. The small
breakaway region of Transnistria in eastern Moldova is outside
the central government’s control and remained a source for
victims of both forced labor and forced prostitution.
The Government of Moldova does not fully comply with the
minimum standards for the elimination of trafficking; however, it is
making significant efforts to do so. The government has made
progress over the past year in addressing the protection of
victims and the prevention of trafficking. Specifically, NGO
representatives reported that the government’s ability to identify
and provide care for victims improved; it increased the
participation of NGOs in the investigative process, including
special provisions for child trafficking victims. The government
expanded the National Referral System, a program lauded by
NGOs and viewed as a model for other countries in the region. In
addition, the government raised awareness through high-level
attention to the issue. However, the government did not show
sufficient progress in addressing complicity in trafficking by law
enforcement and other government officials. Reports of
widespread corruption in the police and judicial system persisted
and no officials were prosecuted, convicted, or served time in
prison for trafficking-related offenses. Furthermore, overall law
enforcement efforts declined from the previous year and forced
labor crimes were rarely investigated and prosecuted.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
Moldova continued to work on implementation of its UN
obligations related to terrorist financing. The Government of
Moldova welcomed information regarding terrorist financing from
the U.S. government and other bodies, and actively applied such
information in its monitoring efforts through its Center for
Combating Economic Crimes and Corruption.
A specific section in the Prosecutor General’s Office handles
terrorism-related cases. The primary investigative body in
counterterrorism cases is the Information and Security Service,
Moldova’s intelligence service. In 2006, SIS was given the
governmental lead to establish and manage a special
counterterrorism center. In 2009, staffing and funding were
minimal, as were its activities. The U.S. Embassy’s law
enforcement assistance programs aid Moldovan efforts to impede
the ability of terrorists and other citizens without proper
documents to cross national borders. The programs also
facilitated automation at ports of entry to ensure greater security
of passports and travel documents.
The separatist-controlled Transnistria region of Moldova
remained a potential area of concern. Moldovan law enforcement
worked hard to track the whereabouts and activities of individuals
moving in and out of Transnistria, an area where central
government police and security services were not able to operate.
Some of the individuals moving in and out of Transnistria were
foreign students who remained in Moldova illegally, as the
government lacked the resources to deport them when their visas
expired. Corruption was endemic, and it was easy to obtain false
travel documents in both Transnistria and Moldova.
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| MOLDOVA |
| KnowYourCountry |
|
__________________________________________________
AML News / Updates:
April 16, 2010 - FinCEN issues Guidance to Financial Institutions on
Transactions Involving Banking Activities by Entities Originating in the
Transnistria Region of Moldova
Read Guidance....
Links:
Worldwide AML Legislation (International Bar Association)
AML News / Updates:
April 16, 2010 - FinCEN issues Guidance to Financial Institutions on
Transactions Involving Banking Activities by Entities Originating in the
Transnistria Region of Moldova
Read Guidance....
Links:
Worldwide AML Legislation (International Bar Association)
|
| Last Updated: 16 April 2012 |