EU urges Moldova to hunt down cash from $1 billion fraud
26 Apr 2018

The European Union has called on Moldova to retrieve funds from a one billion dollar banking fraud and bring to book the criminals behind the scam.

In a report discussing the issue of reform in Moldova, amongst other topics, the EU observed that although the country has made some advances, ‘considerably more’ progress is required.

“Further efforts, however, are still needed in particular in order to address high level corruption, recover the misappropriated funds from the one billion dollar banking fraud and bring to justice those responsible for the fraud.

“A thorough reform of the judicial system is also to be addressed,” the EU said.

The notorious banking fraud was pulled off in 2014, involving three banks. Funds worth $1 billion – roughly 13% of Moldova’s GDP – are believed to have been shifted from Moldova to shell firms in the UK and Hong Kong, and then routed into individual bank accounts.

“During the reporting period, investigations on the massive banking fraud (13% of GDP), unveiled in 2014, have touched only upon a limited number of individuals and mainly in the private sector,” the EU said in the report.

“Lost funds have not been recovered, and the full version of the follow-up report on the fraudulent schemes … has not been published (only a summary was published in December 2017) raising doubts on the real will to prosecute this culprit of the fraud.”

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