The Ultimate Beneficial Owner – a Pillar of Financial Transparency and Corporate Integrity in the Context of the Republic of Moldova’s Alignment with European Standards

Abstract

The paper examines the role of the Beneficial Ownership (BO) regime as an infrastructure for financial integrity and corporate governance, in the context of the Republic of Moldova's alignment with European and international standards in the field of AML/CFT. Methodologically, the paper employs a qualitative doctrinal analysis of national legislation and implementing acts, triangulated with comparative and policy analysis of international standards and guidance and a structured review of recent reports to assess institutional design choices and implementation dynamics. The analysis combines: (i) a theoretical synthesis of the concepts of beneficial ownership, control, and fiduciary responsibility; (ii) a comparative normative assessment of FATF standards R.24 and R.25; Directive (EU) 2015/849 and subsequent amendments; case law developments on public access to information about beneficial owners, and (iii) an institutional examination of the reform trajectory of the BO legal regime in the Republic of Moldova over the last two decades based on normative acts, EU, MONEYVAL, and IMF reports. The results of the study indicate that the public value of the BO register derives not only from the existence of a register, but also from the quality of the data (adequate, accurate, up-to-date), risk-based verification capabilities, interoperability, and the intelligent use of data in supervision, public procurement, company registration, licensing, authorization, and financial investigations. At the same time, there is a structural tension between transparency and the protection of personal data, accentuated by the limitation of public access to information about beneficial owners in the EU following the CJEU rulings. The paper proposes an implementation framework for Moldova centered on three pillars: (1) BO data governance and strengthening verification mechanisms, (2) interoperability and cross-agency operational use of data from the BO Register, and (3) proportional and auditable access architecture that maximizes the deterrent effect and usefulness for legitimate actors while minimizing the risks of abuse. UDC: [005.322.5:061.1EU]:347.73(478); JEL: G28, K22, K42, H83, D73, O17