Moldova -- Travel Rule Implementation Regulatory Overview

As of the latest available information, including the MONEYVAL (Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism) 5th Round Mutual Evaluation Report for Moldova, Moldova has not yet adopted a comprehensive legal and regulatory framework for Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs), including the implementation of the FATF Travel Rule.

Here's a breakdown based on the current situation:

• Whether Adopted:

  • No, not yet. Moldova's AML/CFT legislation currently does not explicitly cover virtual assets or VASPs. The MONEYVAL report concluded that there is a significant gap in the legal framework regarding these areas. Moldova was rated "Non-Compliant" (NC) for FATF Recommendation 15 (New Technologies) and implicitly cannot implement Recommendation 16 (Wire Transfers, i.e., the Travel Rule) for VAs.
  • However, authorities are aware of the issue and are reportedly working on developing a regulatory framework for virtual assets and VASPs.

• Effective Date:

  • Since the framework has not been adopted, there is no effective date for the FATF Travel Rule in Moldova.

• Threshold Amounts:

  • As there is no specific legislation governing VASPs for AML/CFT purposes, there are no defined threshold amounts for the Travel Rule.

• Which VASPs are Covered:

  • Currently, no VASPs are explicitly covered by specific AML/CFT obligations related to virtual assets and the Travel Rule. There is no licensing or registration regime for VASPs.

• Technical Implementation Requirements:

  • As there is no legal framework or effective date, there are no technical implementation requirements for VASPs concerning the Travel Rule.

• Penalties for Non-Compliance:

  • Since there is no specific VASP regulatory framework or Travel Rule implementation, there are no specific penalties for non-compliance with the Travel Rule. However, general AML/CFT legislation would apply to any financial institution (traditional or otherwise) involved in illicit activities, but this does not cover the specific VASP-related obligations of the Travel Rule.

Reference:

• MONEYVAL Mutual Evaluation Report on Moldova (December 2022):
  • This report comprehensively assesses Moldova's compliance with FATF Recommendations. It clearly highlights the lack of a regulatory framework for VAs and VASPs.
  • Key finding (Excerpt from the Report Summary): "Legal persons and arrangements providing services in the virtual assets sector (VASPs) are not yet covered by the AML/CFT legislative framework and do not fall under the supervision of AML/CFT purposes. Authorities are in the process of developing a regulatory framework for VASPs."
  • URL: You can find the full report on the MONEYVAL website: https://www.coe.int/en/web/moneyval/countries/moldova (Look for the "Mutual Evaluation Report on Moldova - 5th round" document, specifically the one published in December 2022).

In summary, Moldova is in the early stages of addressing virtual asset regulation, and the FATF Travel Rule has not yet been implemented. VASPs operating in or serving customers in Moldova currently do so in a regulatory vacuum concerning specific AML/CFT obligations for virtual assets.