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Moldova

Last updated: 19/02/2007

CENTRAL AUTHORITY FOR REPORTING

Centre for Combating Economic Crimes and Corruption of the Republic of Moldova (‘CCECC’)

ARE LAWYERS COVERED BY MONEY LAUNDERING LEGISLATION?

Yes. A ‘lawyer’ is hereby recognized as a qualified legal counsel who was admitted to the Bar and obtained a relevant licence. ‘Lawyers’ does not include corporate or self-employed legal counsels who hold no such licence.

NAME LAWS REGARDING ANTI-MONEY LAUNDERING PROCEDURES

Law on Prevention and Combating of Money Laundering and of Terrorism Financing (‘AML Law’), No. 633-XV dated 15 November 2001.

Order of the CCECC regarding the approval of Instructions on the Manner of Filling-in and Delivery of the Special Form on Financial Operations (‘Order’), No. 152 dated 15 December 2004.

"The Republic of Moldova signed a strategic cooperation agreement with Europol to combat money laundering, drug trafficking and illegal immigration. " 1

IN ADDITION TO THESE LAWS, IS THERE ANY MONEY LAUNDERING GUIDANCE FOR LAWYERS CURRENTLY IN PLACE?

No

UNDER WHAT CIRCUMSTANCES IS A LAWYER UNDER THE OBLIGATION TO REPORT?

  1. Suspicious transactions have to be reported. These are:

    1. the making of one or more operations in cash in circumstances that reveal the lack of connection between such operations and the business activity of the client;
    2. the transfer by a natural or legal person of an amount in cash when there are reasons to believe that, given the business of such person and other circumstances, the amount so transferred is disproportionate to the income and the financial position thereof;
    3. the transfer and receipt of money by a natural or legal person which usually settles through a cheque or otherwise by wire transfer;
    4. when the client operates an account not related to its business and transfers amounts which exceed the reported amount;
    5. the transfer of money by means of cheque to the account of a client from various natural or legal persons which have no contractual or production relationships with such client;
    6. the depositing of money into an account in its capacity of income, which is not normal for such client;
    7. transfers related to sale and purchase of securities in circumstances denoting the suspicious character of financial operations;
    8. transfers related to purchase of securities by legal persons in exchange for cash payments;
    9. cheque and other bearer instruments operations;
    10. money transfers where at least one of the parties is a resident of an offshore jurisdiction or through offshore bank accounts; or
    11. operations made through companies and banks located in countries that have not implemented anti-money laundering or antiterrorism laws, or have implemented inadequate regulations therefor, or represent a high risk due to the high level of crime and corruption, as well as operations with the residents of such countries*;
    12. requesting a loan facility and securing it with a document certifying deposits in foreign banks, where there are data about the suspect character of such deposits; or
    13. requesting a loan facility and securing it with assets or a document certifying deposits in foreign or other banks, where there are data about the suspect character of such deposits.

  2. Limited transactions have to be reported. These are:

    1. single exchange of banknotes of smaller nominal value to banknotes having higher nominal value, and the value of such exchange exceeds MDL 50,000 (about USD 4,000)
    2. increase of deposit by an amount exceeding MDL 250,000 (about USD 20,000), accompanied by their subsequent transfer to another person;
    3. international transfers of funds in an amount exceeding MDL 65,000 (about USD 4,800) with the order to release cash to the payee;
    4. client opens several accounts having a similar purposes with the same bank, and then transfers on each of these accounts more than MDL 250,000 (about USD 20,000); or
    5. transfer or receipt of an amount exceeding MDL 100,000 (about USD 7,400) from a country that according to a list approved by the Government of Moldova is viewed as a country reputable for illegal manufacturing of narcotic substances. To date the Government has not yet officially approved such a list of countries.

    Although in general the transactions listed in Sections A and B relate mostly to banking institutions, the wording of the law in terms of the obligors of reporting is rather broad and includes lawyers.

  3. Notwithstanding that it is neither suspicious nor limited, should be reported:

    1. any transaction by a natural person exceeding MDL 300,000 (about USD 24,000);
    2. any transaction by a legal person exceeding MDL 500,000 (about USD 40,000); or
    3. any group of transactions by the same client within 30 days reaching the respective threshold (also referred to as ’cumulative transactions’).

    Transactions in this Section C are to be reported within 15 days.

  4. ‘Suspect financial operations’ are being prepared, executed or finalized – to be reported within 24 hours.
  5. Upon the written request by CCECC, the lawyer shall deliver such information, documents, materials as are available with respect to any limited or suspicious financial transactions.

LAWYER RESPONSIBILITY/LIABILITY

There are no specific sanctions that the CCECC could use against an advocate (such as an administrative fine) for breach reporting obligations per se. CCECC may report the breach committed by the advocate to the Ministry of Justice which may subject the advocate a to: (1) a warning; (2) a reprimand; and/or (3) the withdrawal of their licence (thus, exclusion from the Bar).

CLIENTS IDENTIFICATION AND VERIFICATION

Lawyers should obtain and keep records in order to fully identify clients and their representatives.

LAWYERS PROSECUTED FOR MONEY LAUNDERING OFFENCES

An advocate shall be deemed an accomplice and will be subject to criminal prosecution for the crime of money laundering if he/she provided advice, directions, information, means or instruments or removed obstacles, and/or promised beforehand to support the criminal, has concealed the means or instruments of the crime, its traces or items received as a result of the crime or promised beforehand to purchase or sell such items.

We are not aware of any cases of prosecution of Moldovan advocates for the crime of money laundering.

* It is worth mentioning though that an unofficial and unpublished list prepared by CCECC came to our attention. The list includes, inter alia, such countries as the UK, Switzerland, Ireland, Greece, Sweden, Australia and others.


Information provided by:

Turcan & Turcan
Octavian Cazac, Associate, Octavian.Cazac@TurcanLaw.md.
Alexander Turcan, Partner, Alexander.Turcan@TurcanLaw.md.

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Sources

  1. Marcus Simpson, “Moldova signs MoUs with Europol and Belgium”, 14 February 2007, www.complinet.com.
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