The risk of legalizing, by different methods, gains of a dubious origin, persists in the Republic of Moldova. In such conditions, the recent statements by Minister of Finance Octavian Armasu concerning the possible conceding of the National Bank of a part of the internal debt following the conversion of guarantees in favor of a potential investor should be examined with attention and prudence. Such a step could be a method of legalizing funds that were earlier embezzled in the Republic of Moldova, stated Transparency International (TI) Moldova, quoted by IPN.
In a position note, the organization says that in a recent interview Minister of Finance Octavian Armasu admitted that the central bank, as the owner of securities issued by the Ministry of Finance to convert the guarantees to the value of 13.2 billion lei issued by the Government in November 2014 and March 2015 into internal state debt, could concede a part of the securities, up to 40%, to an investor.
According to Transparency International Moldova, the law that provides for the conversion of the guarantees into internal state debt was adopted with deviations, by the assumption of responsibility by the Government. Even if the law allows conceding up to 40% of the state securities to a possible investor, the motivation of this could be determined by the wish to legalize money of a dubious origin. There is no economic or financial interest related strictly to interest rates. If the earlier attempt to legalize the gains by a special law failed, different economically packed methods can be now used with reference to the independence of the National Bank of Moldova, which can take such a decision.
Transparency International Moldova says the transactions with investors in state securities are considered secret and the information about these is not accessible to the public and a number of state institutions. The value of the transaction would amount to la 5.2 billion lei (40% of the 13.2bn lei), which is a considerable amount that represents almost one quarter of the internal debt of Moldova. The vulnerability of the state and the Ministry of Finance to such an investor is thus evident.
The conceding by the central bank of securities to a dubious investor for exorbitant sums of money of an unclear origin could have a negative impact on the security of the Republic of Moldova, would compromise the combating of money laundering, would reduce the efficiency of the recently created Agency for Illegal Assets Recovery, would limit and constraint the activity of companies involved in the investigation of bank frauds, says the organization.
Transparency International Moldova is concerned that the conceding of state securities could be a new attempt to legalize money of a dubious origin, while the secret character of the information about transactions with investors in state securities generates the risk of abuses. It warns the National Bank of Moldova and the Ministry of Finance about the inadmissibility of allowing legalizing ill-gotten gains under the cover of laws adopted with deviations from the constitutional provisions by the Leanca, Gaburici and Filip Governments.
