The Council of Europe’s anti-money laundering monitoring body, MONEYVAL, has released detailed follow-up reports evaluating the efforts of Bulgaria, Cyprus, and the Republic of Moldova in strengthening their frameworks to combat money laundering and terrorist financing. The assessments reflect notable progress while underscoring areas that require continued attention and improvement.
In its update on Bulgaria, MONEYVAL highlighted significant enhancements since the country’s last evaluation in 2022. Bulgaria is now either fully or largely compliant with 27 of the 40 recommendations outlined by the Financial Action Task Force (FATF), with the remaining 13 rated as partially compliant. No recommendation received a non-compliant rating. Improvements include better coordination between national agencies, tighter regulations on politically exposed persons, more effective supervision of money transfer services and designated non-financial businesses, and a more transparent framework for identifying beneficial ownership. Bulgaria has also enhanced its monitoring of cash couriers. Still, MONEYVAL called on the country to make further advances in correspondent banking oversight, the regulation of new financial technologies, and risk-based supervision of non-profit organisations. Another progress report is expected within one year.
Cyprus has also made tangible strides in its anti-money laundering capabilities. The country has seen improvements in 16 of the FATF recommendations and is largely compliant with 21 others. Three recommendations remain partially compliant. Notably, Cyprus upgraded its rating for managing new technologies and virtual assets, moving from partially compliant to largely compliant. This was supported by a national action plan and more rigorous regulation of crypto-related service providers. Cyprus is due to submit a follow-up report by May 2025, with particular focus expected on the full implementation of its reforms for virtual assets and oversight of the non-profit sector.
Moldova has demonstrated forward movement in developing its legal and institutional anti-money laundering infrastructure. However, MONEYVAL’s June 2024 report emphasized that critical reforms must still be implemented effectively. While legislative frameworks have been established, Moldova needs to ensure stronger enforcement capabilities and continued alignment with international standards to maintain momentum.
MONEYVAL serves as the Council of Europe’s oversight body for ensuring member jurisdictions comply with global anti-money laundering and counter-terrorism financing standards. Its monitoring activities cover 33 states and jurisdictions, with follow-up reports like these designed to assess progress after initial mutual evaluations. The purpose of these reviews is not only to measure compliance on paper, but to ensure that national systems are operating effectively in practice.
Looking ahead, each of the three countries remains under enhanced follow-up, meaning that MONEYVAL will continue to monitor and guide their AML/CFT reform efforts. The next phases will require more comprehensive implementation of existing regulations, better use of financial intelligence, stronger inter-agency coordination, and improved supervision of high-risk sectors.
These reports reaffirm that progress is being made, but sustained commitment and action are essential. As financial threats continue to evolve, effective and dynamic anti-money laundering systems are critical for protecting national and international financial integrity.
