Identifier
Created
Classification
Origin
08CHISINAU1126
2008-11-19 14:44:00
UNCLASSIFIED
Embassy Chisinau
Cable title:
MOLDOVA: 2008-2009 INTERNATIONAL
how-toP 191444Z NOV 08 FM AMEMBASSY CHISINAU TO SECSTATE WASHDC PRIORITY 7317 INFO DEPT OF TREASURY WASHINGTON DC DEPT OF JUSTICE WASHINGTON DC
UNCLAS CHISINAU 001126
STATE FOR EUR/UMB, INL, S/CT, EEB
JUSTICE FOR AFMLS, OIA, OPDAT
TREASURY FOR FINCEN
E.O. 12958: N/A
TAGS: EFIN SNAR KCRM KTFN ASEC MD
SUBJECT: MOLDOVA: 2008-2009 INTERNATIONAL
NARCOTICS CONTROL STRATEGY REPORT (INCSR) PART II:
MONEY LAUNDERING AND FINANCIAL CRIMES (PART II OF
II)
20. Article 279 of the Moldovan Criminal Code
criminalizes terrorist financing, defining it as a
Qserious crime.Q Moldova regulates efforts to
combat terrorist financing in the Law on Combating
Terrorism, enacted on November 12, 2001. Article
2 defines terrorist financing, while Article 8/1
authorizes suspension of terrorist and terrorist-
related financial operations. These statutes are
disparate from the aforementioned money laundering
law, which contains other relevant provisions.
21. In 2008, the CCECC issued a decree regarding
actions to be taken to enforce the provisions of
the Law on Preventing and Combating Money
Laundering and Terrorism. The CCECC decree listed
entities worthy of particular focus due to
possible money laundering and/or terrorist
financing concerns. These entities include
countries that produce narcotics, countries that
do not have legal provisions against money
laundering and terrorist financing, countries with
a high crime rate and corruption, countries
operating offshore centers, and persons, groups,
and entities identified as participating in
terrorist activities. The decree was developed on
the basis of MoldovaQs national interests and from
U.S. and UN lists of designated terrorists. In
2008, according to the CCECC, the Moldovan
authorities neither froze nor seized assets
related to terrorism or terrorist financing.
22. Reportedly, no indigenous alternative
remittance systems exist in Moldova, although the
use of cash couriers is common. During 2008,
authorities report that they did not detect any
cases involving the misuse of charitable or
nonprofit organizations. In December 2006, the
GOM signed a $24.7 million Threshold Country
Program with the Millennium Challenge Corporation
that focuses on anti-corruption measures. The GOM
requested funding to address areas of persistent
corruption including the judiciary, health care
system, tax, customs and law enforcement. Moldova
is listed as 109 out of 180 countries in
Transparency InternationalQs 2008 Corruption
Perception Index.
23. The GOM does not have a bilateral agreement
with the United States for the exchange of
information regarding money laundering, terrorism,
or terrorist financing investigations and
proceedings. Moldovan authorities, however,
continue to solicit USG assistance on individual
cases and cooperate with U.S. law enforcement
personnel when presented with requests for
information or assistance. The FIU has entered
into bilateral agreements with the financial
intelligence units of Albania, Belarus, Bulgaria,
Croatia, Estonia, Georgia, Indonesia, Korea,
Lebanon, Lithuania, Macedonia, Romania, Russia,
and Ukraine to exchange information.
24. Moldova is party to the 1988 UN Drug
Convention, the International Convention for the
Suppression of the Financing of Terrorism, and the
UN Convention Against Transnational Organized
Crime. On October 1, 2007, the GOM ratified the
UN Convention against Corruption. In addition,
Moldova signed an agreement with CIS member states
on the exchange of information on criminal
matters, including money laundering. In 2004, the
CCECC was accepted as an observer at the Eurasian
Group on Combating Money Laundering. Moldova is a
member of the Council of EuropeQs Committee of
Experts on the Evaluation of Anti-Money Laundering
Measures (MONEYVAL). On May 20, 2008, Moldova
joined the Egmont Group of financial intelligence
units.
25. The GOM should continue to enhance its
existing anti-money laundering and counter-
terrorist financing regime. The GOM should ensure
that the FIU and law enforcement agencies have
sufficient resources, training, and tools to
adequately analyze and investigate suspected cases
of money laundering and terrorist financing. The
GOM should improve the mechanisms for sharing
information and forfeiting assets. Border
enforcement and anti-smuggling enforcement should
be top priorities and considered potentially
economically and criminally destabilizing if not
properly addressed. The GOM should continue the
momentum of its anticorruption efforts, an area
where it has made genuine progress in a relatively
short period of time.
CHAUDHRY
STATE FOR EUR/UMB, INL, S/CT, EEB
JUSTICE FOR AFMLS, OIA, OPDAT
TREASURY FOR FINCEN
E.O. 12958: N/A
TAGS: EFIN SNAR KCRM KTFN ASEC MD
SUBJECT: MOLDOVA: 2008-2009 INTERNATIONAL
NARCOTICS CONTROL STRATEGY REPORT (INCSR) PART II:
MONEY LAUNDERING AND FINANCIAL CRIMES (PART II OF
II)
20. Article 279 of the Moldovan Criminal Code
criminalizes terrorist financing, defining it as a
Qserious crime.Q Moldova regulates efforts to
combat terrorist financing in the Law on Combating
Terrorism, enacted on November 12, 2001. Article
2 defines terrorist financing, while Article 8/1
authorizes suspension of terrorist and terrorist-
related financial operations. These statutes are
disparate from the aforementioned money laundering
law, which contains other relevant provisions.
21. In 2008, the CCECC issued a decree regarding
actions to be taken to enforce the provisions of
the Law on Preventing and Combating Money
Laundering and Terrorism. The CCECC decree listed
entities worthy of particular focus due to
possible money laundering and/or terrorist
financing concerns. These entities include
countries that produce narcotics, countries that
do not have legal provisions against money
laundering and terrorist financing, countries with
a high crime rate and corruption, countries
operating offshore centers, and persons, groups,
and entities identified as participating in
terrorist activities. The decree was developed on
the basis of MoldovaQs national interests and from
U.S. and UN lists of designated terrorists. In
2008, according to the CCECC, the Moldovan
authorities neither froze nor seized assets
related to terrorism or terrorist financing.
22. Reportedly, no indigenous alternative
remittance systems exist in Moldova, although the
use of cash couriers is common. During 2008,
authorities report that they did not detect any
cases involving the misuse of charitable or
nonprofit organizations. In December 2006, the
GOM signed a $24.7 million Threshold Country
Program with the Millennium Challenge Corporation
that focuses on anti-corruption measures. The GOM
requested funding to address areas of persistent
corruption including the judiciary, health care
system, tax, customs and law enforcement. Moldova
is listed as 109 out of 180 countries in
Transparency InternationalQs 2008 Corruption
Perception Index.
23. The GOM does not have a bilateral agreement
with the United States for the exchange of
information regarding money laundering, terrorism,
or terrorist financing investigations and
proceedings. Moldovan authorities, however,
continue to solicit USG assistance on individual
cases and cooperate with U.S. law enforcement
personnel when presented with requests for
information or assistance. The FIU has entered
into bilateral agreements with the financial
intelligence units of Albania, Belarus, Bulgaria,
Croatia, Estonia, Georgia, Indonesia, Korea,
Lebanon, Lithuania, Macedonia, Romania, Russia,
and Ukraine to exchange information.
24. Moldova is party to the 1988 UN Drug
Convention, the International Convention for the
Suppression of the Financing of Terrorism, and the
UN Convention Against Transnational Organized
Crime. On October 1, 2007, the GOM ratified the
UN Convention against Corruption. In addition,
Moldova signed an agreement with CIS member states
on the exchange of information on criminal
matters, including money laundering. In 2004, the
CCECC was accepted as an observer at the Eurasian
Group on Combating Money Laundering. Moldova is a
member of the Council of EuropeQs Committee of
Experts on the Evaluation of Anti-Money Laundering
Measures (MONEYVAL). On May 20, 2008, Moldova
joined the Egmont Group of financial intelligence
units.
25. The GOM should continue to enhance its
existing anti-money laundering and counter-
terrorist financing regime. The GOM should ensure
that the FIU and law enforcement agencies have
sufficient resources, training, and tools to
adequately analyze and investigate suspected cases
of money laundering and terrorist financing. The
GOM should improve the mechanisms for sharing
information and forfeiting assets. Border
enforcement and anti-smuggling enforcement should
be top priorities and considered potentially
economically and criminally destabilizing if not
properly addressed. The GOM should continue the
momentum of its anticorruption efforts, an area
where it has made genuine progress in a relatively
short period of time.
CHAUDHRY