Overall determination on the legal framework: In Place But Needs Improvement
Moldova’s domestic legislative framework is in place and contains many of the key aspects of CRS and its Commentary requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures, but it needs improvement in relation to the due diligence procedures that must be applied to Financial Accounts (SR 1.2) and the framework to enforce the requirements (SR 1.4). More specifically, Moldova’s domestic legislative framework does not require self-certifications to be obtained for New Accounts in in line with the AEOI Standard, its approach with respect to Participating Jurisdictions is not in line with the AEOI Standard and its rules to prevent persons or intermediaries from adopting practices intended to circumvent the reporting and due diligence procedures do not cover all relevant persons and circumstances.
SR 1.1 Jurisdictions should define the scope of Reporting Financial Institutions consistently with the CRS.
Moldova has defined the scope of Reporting Financial Institutions in its domestic legislative framework in accordance with the CRS and its Commentary.
Recommendations:
No recommendations made.
SR 1.2 Jurisdictions should define the scope of Financial Accounts and Reportable Accounts consistently with the CRS and incorporate the due diligence procedures to identify them.
Moldova has defined the scope of the Financial Accounts that are required to be reported in its domestic legislative framework and has incorporated the due diligence procedures that must be applied to identify them in a manner that is largely consistent with the CRS and its Commentary. However, deficiencies have been identified. More specifically, Moldova’s legislative framework does not require self-certifications to be obtained for New Entity Accounts in line with the AEOI Standard and its approach with respect to Participating Jurisdictions is not in line with the AEOI Standard.
Recommendation:
Moldova should amend its domestic legislative framework to require self-certifications to be obtained for New Entity Accounts in line with the AEOI Standard.
Moldova should amend its domestic legislative framework to ensure that the approach taken with respect to the 45 jurisdictions defined as Participating Jurisdictions and with which Moldova does not have an agreement to exchange CRS information with (five of which have not implemented the AEOI Standard), is in accordance with the AEOI Standard
SR 1.3 Jurisdictions should incorporate the reporting requirements contained in Section I of the CRS into their domestic legislative framework.
Moldova has incorporated the reporting requirements in its domestic legislative framework in accordance with the CRS and its Commentary.
Recommendations:
No recommendations made.
SR 1.4 Jurisdictions should have a legislative framework in place that allows for the enforcement of the requirements of the CRS in practice.
Moldova has a legislative framework in place to enforce the requirements in a manner that is largely consistent with the CRS and its Commentary. However, a deficiency has been identified. More specifically, Moldova’s legislative framework does not include rules to prevent all relevant persons or intermediaries from adopting practices intended to circumvent the reporting and due diligence procedures as required
This is a key element of the required enforcement framework and are therefore material to the proper functioning of the AEOI Standard.
Recommendations:
Moldova should amend its domestic legislative framework to include rules to prevent all Financial Institutions, persons and intermediaries from adopting practices intended to circumvent the due diligence and reporting procedures, rather than just those on whom the AEOI Standard imposes an obligation.