The information contained in this document is marketing material and for informational purposes only. The information contained in this document is presented without any warranty or representation as to its accuracy or completeness and all implied representations or warranties of any kind are hereby disclaimed. Recipients of this document, whether clients or otherwise, should not act or refrain from acting on the basis of any information included in this document without seeking appropriate professional advice. The provision of the information contained in this document does not establish any express or implied duty or obligation between Citco and any recipient and neither Citco nor any of its shareholders, members, directors, principals or personnel shall be responsible or liable for results arising from the use or reliance of the information contained in this document including, without limitation, any loss (whether direct, indirect, in contract, tort or otherwise) arising from any decision made or action taken by any party in reliance upon the information contained in this document. © The Citco Group Limited, December 2024.
Moldova – New Ultimate Beneficial Ownership Reporting Obligations
Ultimate Beneficial Ownership (UBO) Reporting Obligations are now in effect for all legal entities in Moldova, with the deadline for reporting set as the 31st of December 2025.
Background
In May 2023, Moldova updated its anti-money laundering (AML) legislation through Law no. 66/2003, amending Law no. 308 (December 22, 2017). This change aligns Moldovan law with the EU’s 5th Anti-money Laundering Directive and introduces new Ultimate Beneficial Owner (UBO) reporting requirements for all Moldovan legal entities.
The new UBO reporting requirements came into effect in 2024, with an extended compliance deadline set for the 31st of December 2025, giving legal entities additional time to adapt to the new regulations.
UBO Definition
- Any natural person(s) who ultimately own or control the entity, directly or indirectly, through a sufficient percentage of the shares or voting rights or ownership interest in that entity, including through bearer shareholdings, or through control via other means.
- For corporate entities: 25% or more ownership/control
- For trusts: settlor, trustee(s), protector, beneficiaries, and/or other controlling persons by means of direct or indirect ownership.
- For foundations: persons in similar positions to trusts
Reporting Requirements
- Registerable details include:
- First and surname
- Date of birth
- Personal Identification Number
- Domicile address
- State of residence
- Citizenship
- Position within the legal entity
- UBO information will not be made publicly available.
- Any changes to Beneficial Ownership information must be communicated within 30 days.
When No UBO is identifiable
If no UBO can be identified, the local administrator of the legal entity is registered as its formal UBO.
For companies listed on stock exchanges that meet adequate transparency standards, a different approach applies. In these cases, obliged entities should not register local administrators as formal UBOs. Instead, they should use the name of the relevant stock exchange along with the company’s International Securities Identification Number (ISIN) as the UBO identification information.
The Risks of Non-Compliance
- Financial Penalties for Legal Entities
Failure to identify and register UBOs can result in legal entities facing fines of up to MDL 75,000 (approx. €3,700) - Director Liability
Failure to identify and register UBOs can result director’s facing fines of up to MDL 40,000 (approx. €2,000) - Inability to Register Company Changes
In the absence of the documents disclosing and registering the UBO, the Moldovan Trade Registry will prohibit companies from registering any amendments/modifications to the corporate documents of a legal entity.
Companies operating in Moldova should take immediate steps to identify their UBOs and prepare for reporting. Failure to comply may result in significant operational and financial consequences.
Contact us for assistance with UBO identification and reporting in Moldova.
