{"id":449336,"date":"2021-04-18T13:37:45","date_gmt":"2021-04-18T13:37:45","guid":{"rendered":"https:\/\/www.moldova.org\/en\/?p=449336"},"modified":"2021-04-18T13:39:03","modified_gmt":"2021-04-18T13:39:03","slug":"report-moldova-loses-about-1-billion-usd-every-year-due-to-iffs-linked-to-criminal-activity","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/report-moldova-loses-about-1-billion-usd-every-year-due-to-iffs-linked-to-criminal-activity\/","title":{"rendered":"Report: Moldova loses about 1 billion USD every year due to IFFs linked to criminal activity"},"content":{"rendered":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

The report “Illicit Financial Flows and asset recovery in the Republic of Moldova”<\/em> was published<\/a> recently by the United Nations Interregional Crime and Justice Research Institute (UNICRI)<\/strong>, with the support of the European Union.<\/p>\n

The report showed that the main organised criminal activities conducted in Moldova are corruption, tax evasion, illicit drug trafficking, human trafficking, smuggling of arms and illicit goods, CBRN (chemical, biological, radiological and nuclear) trafficking, cybercrime,<\/span>
\ntobacco smuggling and large-scale financial crime schemes<\/span>, the biggest of them being the 2014 billion theft, which involved the banking sector and government corruption.<\/p>\n

The Republic of Moldova is not a major drug<\/strong> producing country. Instead, it is a trans-shipment location for heroin traffickers into Europe from Turkey, which is the dominant heroin supplier to Europe, as the UNICRI report stated. “There has been an increase in drug trafficking across the Moldova-Ukraine border in recent years. Joint Europol operations have dismantled organised criminal groups involving either Moldovan territory or nationals trafficking cocaine, heroin, and hashish.”<\/em><\/p>\n

Human trafficking<\/strong> for purposes of exploitation is another form of organised crime committed in Moldova for decades. Moldovan citizens became victims of human trafficking, along with non-Moldovan citizens that were transited using the most common routes leading to Western Europe. Official statistics showed that the number of victims decreased lately. Still, Moldova has not yet met minimum standards for eliminating human trafficking, the current report suggested.<\/p>\n

The smuggling of illicit goods<\/strong>, especially tobacco and arms, as well as cash is especially profitable through Transnistria<\/span>. According to the estimations of the European Union Border Assistance Mission to Moldova and Ukraine (EUBAM), tobacco smuggling across the Moldova-Ukraine border costs both countries millions per year.<\/p>\n

Concerning\u00a0CBRN trafficking<\/strong>, experts consider that Moldova has been used as a transit country for nuclear materials since Soviet times. The issue is even more acute if taking into consideration that Moldova never provided sufficient funds, highly trained staff and proper legislative framework in this regard.<\/p>\n

“Moldova has a substantial problem with wealthy individuals utilising money laundering and other organised criminal apparatuses to commit large-scale financial crimes,”<\/em> the report mentioned, referring to financial crimes <\/strong>committed in Moldova, particularly to the 2014 Bank Fraud Case and the 2014 Global Laundromat Case. “Additionally, Transnistria is highly susceptible to money laundering schemes, with its banking and financial regulation not compliant with international norms,”\u00a0<\/em>it is specified in the report.<\/p>\n

\"\"

Source: unicri.it<\/p><\/div>\n

Overall, an amount of about 9 billion USD<\/strong><\/span> was estimated as the total Illicit Financial Flows (<\/em>IFFs) from Moldova between 2004 to 2013. The Moldova Bank Fraud (2014) has deprived the country of at least 1 billion USD<\/span><\/strong>, that also being the average annual loss due to IFFs linked to criminal activity. “IFFs created substantial economic, political, social, and development costs in Moldova. […] Progress made by the government to increase country growth and stability is diminished by the allowance of substantial IFFs into and within the country.”<\/em><\/p>\n

Therefore, combating IFFs and related crimes, as well as the recovery of illicitly obtained assets must be a crucial component of the country’s development strategy, as authors of the report stated<\/a>. According to it, the seizure and confiscation of only 10% of the IFFs estimated annual amount would allow the country to supplement the salaries for more than 20 000 teachers, 2 250 doctors, 6 800 nurses or cover the costs to fully subsidise minimum wage costs for over 55 000 citizens for an entire year. Alternatively, such funds would cover 40% of the annual cost to maintain and repair all national and local roads throughout Moldova.<\/p>\n

Photo: unicri.it<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>The report “Illicit Financial Flows and asset recovery in the Republic of Moldova” was published recently by the United Nations Interregional Crime and Justice Research Institute (UNICRI), with the support of the European Union. The report showed that the main organised criminal activities conducted in Moldova are corruption, tax evasion, illicit drug trafficking, human trafficking, […]<\/p>\n","protected":false},"author":31,"featured_media":449337,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,40,4],"tags":[1031,35,27,1032,124,1033],"class_list":["post-449336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-security","category-society","tag-illicit-financial-flows","tag-important","tag-moldova","tag-organised-crimes","tag-report","tag-trafficking"],"content_social_share":"Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>

The report “Illicit Financial Flows and asset recovery in the Republic of Moldova”<\/em> was published<\/a> recently by the United Nations Interregional Crime and Justice Research Institute (UNICRI)<\/strong>, with the support of the European Union.<\/p>\n

The report showed that the main organised criminal activities conducted in Moldova are corruption, tax evasion, illicit drug trafficking, human trafficking, smuggling of arms and illicit goods, CBRN (chemical, biological, radiological and nuclear) trafficking, cybercrime,<\/span>
\ntobacco smuggling and large-scale financial crime schemes<\/span>, the biggest of them being the 2014 billion theft, which involved the banking sector and government corruption.<\/p>\n

The Republic of Moldova is not a major drug<\/strong> producing country. Instead, it is a trans-shipment location for heroin traffickers into Europe from Turkey, which is the dominant heroin supplier to Europe, as the UNICRI report stated. “There has been an increase in drug trafficking across the Moldova-Ukraine border in recent years. Joint Europol operations have dismantled organised criminal groups involving either Moldovan territory or nationals trafficking cocaine, heroin, and hashish.”<\/em><\/p>\n

Human trafficking<\/strong> for purposes of exploitation is another form of organised crime committed in Moldova for decades. Moldovan citizens became victims of human trafficking, along with non-Moldovan citizens that were transited using the most common routes leading to Western Europe. Official statistics showed that the number of victims decreased lately. Still, Moldova has not yet met minimum standards for eliminating human trafficking, the current report suggested.<\/p>\n

The smuggling of illicit goods<\/strong>, especially tobacco and arms, as well as cash is especially profitable through Transnistria<\/span>. According to the estimations of the European Union Border Assistance Mission to Moldova and Ukraine (EUBAM), tobacco smuggling across the Moldova-Ukraine border costs both countries millions per year.<\/p>\n

Concerning\u00a0CBRN trafficking<\/strong>, experts consider that Moldova has been used as a transit country for nuclear materials since Soviet times. The issue is even more acute if taking into consideration that Moldova never provided sufficient funds, highly trained staff and proper legislative framework in this regard.<\/p>\n

“Moldova has a substantial problem with wealthy individuals utilising money laundering and other organised criminal apparatuses to commit large-scale financial crimes,”<\/em> the report mentioned, referring to financial crimes <\/strong>committed in Moldova, particularly to the 2014 Bank Fraud Case and the 2014 Global Laundromat Case. “Additionally, Transnistria is highly susceptible to money laundering schemes, with its banking and financial regulation not compliant with international norms,”\u00a0<\/em>it is specified in the report.<\/p>\n

\"\"

Source: unicri.it<\/p><\/div>\n

Overall, an amount of about 9 billion USD<\/strong><\/span> was estimated as the total Illicit Financial Flows (<\/em>IFFs) from Moldova between 2004 to 2013. The Moldova Bank Fraud (2014) has deprived the country of at least 1 billion USD<\/span><\/strong>, that also being the average annual loss due to IFFs linked to criminal activity. “IFFs created substantial economic, political, social, and development costs in Moldova. […] Progress made by the government to increase country growth and stability is diminished by the allowance of substantial IFFs into and within the country.”<\/em><\/p>\n

Therefore, combating IFFs and related crimes, as well as the recovery of illicitly obtained assets must be a crucial component of the country’s development strategy, as authors of the report stated<\/a>. According to it, the seizure and confiscation of only 10% of the IFFs estimated annual amount would allow the country to supplement the salaries for more than 20 000 teachers, 2 250 doctors, 6 800 nurses or cover the costs to fully subsidise minimum wage costs for over 55 000 citizens for an entire year. Alternatively, such funds would cover 40% of the annual cost to maintain and repair all national and local roads throughout Moldova.<\/p>\n

Photo: unicri.it<\/p>\n

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