FATF Status

Moldova is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Moldova was undertaken in 2024. According to that Evaluation, Moldova was deemed Compliant for 9 and Largely Compliant for 25 of the FATF 40 Recommendations. It remains rated Highly Effective for 0 and Substantially Effective for 3 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Moldova continues to face significant challenges with corruption despite recent government reforms aimed at enhancing transparency and accountability. The ruling Action and Solidarity Party has implemented various measures, including the establishment of specialized anti-corruption agencies and the introduction of new laws to combat public sector corruption. However, issues such as inadequate resources, lack of enforcement, and persistent public perception of corruption hinder progress, as reflected in Moldova's ranking in the Transparency International Corruption Perceptions Index.

Moldova's economy has shown modest growth of 0.7% in 2023, recovering from a 4.6% contraction in 2022, largely due to the impacts of Russia's invasion of Ukraine which disrupted trade routes and increased costs. The government is focused on reforming the investment climate to attract foreign investment, particularly in sectors like agriculture, IT, and manufacturing, while also addressing issues of corruption and bureaucratic inefficiencies that hinder economic development.

Moldova's investment climate is characterized by a commitment to attract foreign direct investment (FDI) as a means to foster economic growth and mitigate the impacts of recent crises, including the COVID-19 pandemic and the war in Ukraine. Despite some progress, challenges remain, such as pervasive corruption, arbitrary government decisions, and a lack of effective law enforcement, which hinder fair competition and investor confidence. The government has initiated reforms to improve the business environment, including the establishment of free economic zones and a preferential tax regime for certain sectors, but FDI levels remain low.