Category: Moldova

The country’s EU candidate status and grave security concerns gave rise to far-reaching legislative reform in Moldova, with IPOs and digitalization in full swing, according to ACI Partners Partner Cristina Martin.

“2022 wasn’t just a difficult, but an unprecedented, historical year for Moldova,” Martin begins. “Since February 24, 2022, we’ve constantly been in a state of emergency. There are huge challenges related to conflict, energy security, inflation, and providing shelter for refugees, as well other economic ramifications.” On the other hand, Martin points out that on June 23, 2022, Moldova and Ukraine were granted EU candidate status.

“All of these issues generated a huge wave of legislative reforms,” she explains. “The hot topic in the business community is the impact of those reforms on the business side – how the government will facilitate the transitions, and how businesses will weather all these challenges.”

According to Martin, “there haven’t been any major changes in corporate law, however, due to recent requirements on the minimum amount of the share capital of a JSC, 40 IPOs took place on the Moldovan market in the first nine months of 2022 – over ten times more than in previous years. Taking into consideration that the minimum amount is increasing, we might again see a large number of IPOs in Moldova for 2023.” According to her, “some companies went the way of reorganizing into limited liability companies, but banks and insurance companies cannot make that switch, which is why IPOs seem more likely.”

“Currently, one of Moldova’s largest commercial banks, Moldova-Agroindbank, is intending to list its shares on the Bucharest Stock Exchange as well, to attract foreign funds,” she says, adding that this is the second foreign-listed company after the Purcari Wineries Group.

“Starting with 2022, the mechanism for the issuance of bonds by LLCs was put in place,” Martin points out. “By the end of 2022, we had a draft law providing that companies and local public authorities can issue bonds in foreign currency. This would allow attracting foreign currency through subscriptions by non-residents.”

Another piece of legislation, set to enter into force in June 2023, according to Martin, “provides that foreign securities could be admitted to placement and trading on the regulated market in Moldova if certain conditions are met: the issuers were incorporated at least three years prior, registered a profit for at least two years, and there aren’t any trading prohibitions imposed by the operator of a foreign or Moldovan regulated market.”

Additionally, Martin highlights reforms in digitalization. “The government already started the program for the digitalization of business activities. From November 2022 Moldovan entities can request online documents from the company registers without the requirement of physical presence within public authorities,” she notes. “The goal of the government is to digitalize all business processes in the nearest future.” According to her, “another impediment – not being able to grant a personal identification number to foreign investors unless they travel to Moldova – is set to be removed as well. Electronic KYC and mobile-sign services should become available externally as well, for example for the Moldovan diaspora.”

Finally, Martin says that the digital format of notary services should be possible soon. “The language barrier would broadly be eliminated by providing all the drafts in English as well,” she notes.

Dolea & Co has successfully represented Gribnaya Strana in the recognition and enforcement procedures of an arbitral award before the Chisinau Court of Appeal.

According to the firm, the Belarussian agricultural corporation Gribnaya Strana is a non-sanctioned and politically unaffiliated entity. In terms of the award, the firm informed it was issued last year in Minsk and required its client’s Moldovan counterparty to pay damages following a breach of the supply agreement of agricultural products.

Dolea & Co’s Managing Attorney Sorin Dolea represented Gribnaya Strana in this matter.

Following the tendency among EU states to improve labour legislation, through its 28 July 2022 law (“Law 243/2022“), the Moldovan Parliament passed certain amendments to the Labour Code. These were motivated by the need to align the existing legislation to current realities and the recommendations of the International Labour Organization.

Law 243/2022 entered into force on 26 August 2022.

What’s new? 

Introduction of non-compete clause for ordinary employees (Art. 53¹(1), (2), (4), (5), (6) Labour Code)

With a non-compete clause, the parties can negotiate and regulate that after the termination of the individual employment agreement, the employee will not perform, in their own interest or that of a third party, an activity that competes with the one performed at the employer before the termination. The maximum duration can be one year. After the termination, the employer will pay the employee monthly compensation as agreed, but not less than 50 % of the employee’s average monthly salary.

The non-compete clause must contain (i) the territorial scope, (ii) the precise activities prohibited, (iii) the duration of the prohibition, (iv) the amount of the monthly compensation, and (v) the terms and method of payment of the compensation.

Any non-compete clause that completely prohibits the employee from engaging in their profession (according to academic background) is prohibited and considered null and void.

Unless otherwise specified in the non-compete clause the employee may terminate the non-compete clause (subject to a written notification) if the employer delays payment of the compensation by at least one month, and the employer may terminate the non-compete clause at any time subject to a written notice and payment of a termination fee equal to three monthly compensations.

Important: Non-compete clauses with managing directors remain regulated by the Civil Code, which allows the parties greater autonomy. 

KPI (Art. 211², 211³, 211⁴, 211⁵ Labour Code)

A new chapter of the Labour Code regulates employees’ individual performance and evaluation. The mechanics and procedure of employees’ individual performance evaluation by which the level of fulfilment of the individual performance indicators is determined must be included in the company’s internal regulations, while the targets for employees must be included in the legal act(s) concluded between the employer and the employee.

Employees must be informed in writing about the initiation of the evaluation process at least five days in advance, while the evaluation cannot last more than one month. The evaluation consists in comparing the results of the employee’s activity with the established individual performance indicators and in awarding a performance qualification. The procedure will provide for at least three distinct performance qualifications, correlated with the level of fulfilment of the individual performance indicators, in accordance with the grid established by the company.

The indicators are established once every three months (longer periods are also possible) and must be reasonably close to those formulated for other employees who occupy similar positions, have the same level of experience and professional training. The indicators should be (i) specific to the employee’s duties, which are mentioned in the individual employment agreement, (ii) measurable – to have a concrete form of achievement, (iii) reflect the terms of fulfilment, and (iv) be achievable, i.e. to be able to be fulfilled within the stipulated deadlines and with the allocated resources.

The employee will be informed of the results of the evaluation, the qualification awarded and the reasons for its awarding in writing and the employee can challenge them within five working days from the moment the results are made known.

Failure to meet individual performance indicators repeatedly during a calendar year may constitute grounds for dismissal (Art. 86(1)(e) Labour Code). 

Maximum three consecutive fixed-term individual employment agreements between the same parties (Art. 55(3), (4) Labour Code)

According to the new provisions, at most three fixed-term individual employment agreements can be concluded successively between the same parties, which cumulatively will not exceed 60 months. Fixed-term individual employment agreements will be regarded as concluded successively if there is a time interval of less than three months between them. 

Lengthier trial period (Art. 60 (1) Labour Code)

The maximum trial period can now be set to six months. 

Additional grounds to suspend an employment agreement (Art. 76(d) Labour Code)

Following Law 243/2022, an employment agreement can be suspended if the employee is in quarantine based on a medical certificate.

Salary in foreign currency (Art. 141(2) Labour Code)

The parties can now agree to state the salary in a foreign currency in the individual employment agreement, with the mandatory payment being made in the national currency (Moldovan Leu) at an exchange rate contractually agreed by the parties and which cannot be lower than the official exchange rate set by the National Bank of Moldova for the date of payment.

Simpler to inform employees (Art. 48(1) Labour Code)

It has become simpler for employers to inform employees about terms of employment, amendments and employee transfers. Under the new legislation, the employer’s duty to inform the employee (e.g. about terms of employment) is deemed accomplished upon the signing of the individual employment agreement or addendum to it.

By Vladimir Iurkovski, Office Managing Partner, and Adriana Otean, Schoenherr

On 19 May 2022, the Moldovan Parliament voted on the new Law on Electronic Identification and Trust Services (“Law 124/2022“). Law 124/2022 will enter into force on 10 December 2022 and replaces the currently existing Law on Electronic Signature and Electronic Document (“Law 91/2014“). This replacement seeks to align the national legislation in the field of electronic signature with European norms, namely the harmonisation with Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC.

What’s new?

Recognition of EU public key certificates

Derogating from the general rule under which the recognition of public key certificates issued abroad is subject to certain formalities (e.g. a qualified trustworthy service provider domiciled or established in Moldova guarantees the recognition of the respective certificate, etc.), a qualified public key certificate issued by a trust service provider of an EU Member State will be recognised as equivalent, from the point of view of legal effects, to a public key certificate issued by a trust service provider domiciled or established in the Republic of Moldova. Still, the Moldovan Government is expected to pass secondary legislation on the manner of recognition of a qualified public key certificate issued by a trust service provider in an EU Member State.

New tools

Law 124/2022 excludes the regulation of simple electronic signatures. Instead, it introduces and regulates new instruments on the Moldovan digital market. These include trust services, advanced and qualified electronic signature & seal, electronic registered delivery services and certificates for website authentication. Also, under Law 124/2022, the notion certification services provider is changed into trust services provider similarly to EU Regulation 910/2014.

Electronic signature & seal

Electronic signatures and seals regulated under the new legal framework are grouped into two types: advanced and qualified.

Advanced electronic signatures and advanced electronic seals must cumulatively meet the following requirements: (a) refer exclusively to the holder; (b) allow the identification of the holder; (c) be created using electronic signature creation data or electronic seal creation data, which the signatory or the creator of the electronic seal can use with an enhanced level of confidence, under their sole control; and (d) be linked to the data to which they relate in such a way that any subsequent changes to such data can be detected.

The use of advanced electronic signatures and advanced electronic seals is not allowed for: (i) application to electronic documents containing information classified as a state secret; or (ii) application to electronic documents in legal relations of legal persons under public law with natural persons and legal persons (companies) under private law.

Qualified electronic signatures and qualified electronic seals meet all the requirements of electronic signatures or advanced electronic seals, and additionally: (a) rely on a qualified public key certificate issued by a qualified trust service provider; and (b) are created by means of the electronic signature or electronic seal creation device and verified by means of the electronic signature or electronic seal verification device and/or product, which have confirmation of compliance with the requirements of the law.

Introduction and regulation of electronic registered delivery services and certificates for website authentication

The new electronic registered delivery service allows the electronic transmission of data between third parties and provides evidence related to the management of the transmitted data, including evidence regarding data transmission and reception. At the same time, the service is meant to protect data transmitted against the risk of loss, theft, damage or any unauthorised modification. The qualified electronic registered delivery service must be provided by one or more qualified trust services providers in compliance with the law. Data transmitted and received through a registered electronic delivery service will not be denied legal effect and admissibility as evidence in legal proceedings solely on the grounds that they are in electronic form or that they do not meet the requirements for a qualified registered electronic delivery service. Data transmitted and received by means of a qualified registered electronic delivery service will be presumed (until the contrary is proven) to be complete, to have been sent by the identified sender and received by the identified recipient, and to have been sent and received by the registered electronic delivery service at the correct time.

Also, Law 124/2022 expressly provides the requirements for granting qualified certificates for website authentication, which is an attestation that makes it possible to authenticate a website and links the website to the natural or legal person to whom the certificate is issued.

Presumption of integrity of data provided by digital tools

Pursuant to Law 124/2022, digital instruments benefit the presumption of integrity of the data they refer to. Additionally, a qualified electronic signature and qualified electronic seal presume the correctness of the origin of the respective data. Electronic registered delivery services and website authentication also benefit from the presumption that the respective data is sent by the identified sender and received by the identified recipient, as well as the accuracy of the date and time the data were sent and received as indicated by the registered electronic delivery service. Likewise, it is presumed that a qualified electronic time stamp correctly indicates the date and time.

Suspension of validity and revocation of public key certificate at managing director’s request

With the entry into force of Law 124/2022, the managing director (administrator) (RO conducător) of the legal entity (company) in which the holder of the public key certificate operates and uses the key when representing the legal entity, can request the trusted service provider to revoke the public key certificate.

Presumption of intention or negligence of qualified trust service providers

Another novelty under Law 124/2022 is the introduction of the presumption of intention or negligence of the qualified trust service provider until proven otherwise.

Conclusion

The new amendments aim to boost the use and development of electronic services. The introduction of new digital tools will essentially facilitate remote business communication between local natural persons or legal entities and those of EU Member States. The new law is not only a stage in achieving harmonisation with the community legislation, but also an essential advantage for the users of electronic services.

By Adriana Otean, Associate, Schoenherr

Romanian firm Stratulat Albulescu has opened a new office in Chisinau, Republic of Moldova, with Sabina Cerbu joining as a Partner.

Specializing in corporate/M&A and intellectual property, Cerbu joins after working since 2020 in her eponymous firm Law Office Cerbu Sabina. Before that, she worked at Efrim Rosca & Asociatii between 2015 and 2019, where she became the Head of Litigation in 2016. Earlier still, she worked for the Ministry of Justice, first as the Head of the Minister’s Office between 2011 and 2013 and then as a Deputy Minister between 2013 and 2015. Her experience also includes working as a Junior Lawyer with Burac Law Office between 2010 and 2011 and with JV Moldcell between 2008 and 2009.

According to the firm, the office will be led by the firm’s Managing Partner Silviu Stratulat. Alongside, Cerbu, the firm currently features two Senior Associates in the office on its website and announced it expects “to grow significantly over the next 12 months.”

“We saw the potential of the Moldovan market when we noticed the increased interest from Moldova in investment from Romania and indeed elsewhere in Europe and are very excited to have now brought our law firm to Chisinau,” Stratulat commented. “We strongly believe in the growth prospects of Moldova and with our presence on the ground, we want to contribute to the future development of the country.”

 This article provides an up-to-date overview of the currently existing FDI regimes in Moldova.

Legal basis

Law on the examination mechanism of investments of importance for state security (the “FDI Law”) No 174/2021 dated 11 November 2021.

Filing requirement

The notification obligation is triggered:

• if any natural or legal person intends to carry out an investment by any means, directly or indirectly, individually or jointly, including as ultimate beneficial owner(s) in a Moldovan area of significance for state security. This includes:
• by the acquisition of control, the acquisition or increase of a “qualified participation”, in a company active in (including in a company which invests in companies active in) areas of significance for state security;
• by the entry into certain types of concession agreements, i.e. (i) works concession contract or a service concession contract, and (ii) concessions in the field of defence and state security;
• by the entry into a public-private partnership agreement relating to “assets of national security significance” or falling within areas of significance for state security;
• by the entry into investment agreements with the Moldovan Government relating to “assets of national security significance” or falling within areas of significance for state security;
• by the entry into a sale and purchase agreement in relation to assets representing at least 25 % of the value of the assets of companies already investing in areas of significance for state security; or
• by the entry into financial transactions (loans/credits or subsidies) between a company already investing in areas of significance for state security and persons from other states that are directly or indirectly controlled by the governments of other states.

The FDI Law does not provide for a financial threshold from which the transactions in question would fall within its scope.

No approval is required for an investment carried out by an undertaking from the financial sector as well as those involving international financial institutions.

Relevant sectors

The FDI Law defines the relevant sectors through the following exhaustive list:

1. hydrometeorological and geophysical field;
2. radioactive waste management; operation of energy (including electric energy, natural gas and petroleum products), transport, water and sewerage, aerospace, defence, election infrastructure;
3. exploitation of artificial intelligence technologies, robotics, semiconductors, cybersecurity, aerospace, defence technologies, quantum and nuclear technologies, nanotechnologies and biotechnologies;
4. production of means of cryptographic protection for information;
5. production and acquisition for the purpose of resale of means of protection of information classified as a state secret;
6. production of explosive materials for industrial use and their distribution activities;
7. aviation security activities;
8. design, production, maintenance and operation of aircrafts, including unmanned aircrafts, and of its components;
9. design, production, maintenance and operation of systems and components used in air traffic management and provision of air navigation services;
10. design, maintenance and operation of airports and heliports, including the safety-relevant equipment used on them;
11. management of airports, bus stations, rail traffic, inland waterways, ports and quays for waterway traffic;
12. television broadcasts/audio-visual services;
13. provision of fixed or mobile electronic communications networks and/or services;
14. supply of services in national ports;
15. geological exploration and/or exploitation of mineral deposits;
16. production, export, re-export, import of weapons, ammunition and military equipment; products, technologies and services that can be used in the manufacture and use of nuclear, chemical, biological and missile weapons; and
17. administration of public registers of the state, information security.

Also, the FDI Law provides a filing requirement in relation to assets of national security significance. The list of assets of national security significance is exhaustive and approved by the Government decree.

Process and timetable

Competent authority: Council for the promotion of investment projects of national importance

Mandatory filing requirement: Yes

Filing deadline: Prior to carrying out investment activities in areas of significance for state security.

Responsibility for filing: The responsibility for filing remains with the potential investor or foreign acquirer.

Sanctions: Entering into or carrying out transactions without the prior approval of the Council may lead to the Council’s decision to (i) request the termination of the agreement/ transaction and the reparation of the damage caused, regardless of the law applicable to the contract/transaction,

(ii) suspend the investor’s voting right, right to summon a general meeting of shareholders, right to include questions on the agenda of the general meeting of shareholders, right to propose members to management bodies, right to receive dividends / net income, etc., and (iii) order the management to annul the target’s issued shares and order the issuance of new shares, which will become Moldovan company treasury shares, which would need to be transacted (sold) in line with the applicable legislation (including while observing the FDI Law).

Length of the proceedings: The Council will examine the request within 45 days of the date of its receipt. The term can be suspended within up to 20 days in case the potential investor has to complete the filing with some missing documents.

FDI Screening in Poland.

FDI Screening in Czech Republic.

FDI Screening in Austria.

FDI Screening in Bosnia & Herzegovina.

FDI Screening in Croatia.

By Vladimir Iurkovski, Office Managing Partner at Schoenherr, Moldova 

Gladei & Partners has promoted Iulian Pasatii to Partner – the first Partner appointment in the firm’s history. 

Pasatii has been with the firm for seven years having joined as a Junior Associate and having “pursued all the stages of his legal career within the firm.” He specializes in real estate, ITC, data protection, media, and IP. 

“Advancing to a Partner position in such a renowned law firm is certainly one of the most important steps in my career so far. Looking back, I believe it to be a team success, for which I am especially grateful to the colleagues I have worked with side by side for the last seven years and for the firm’s select clientele,” Pasatii commented. “For me, this promotion – the first of its kind in the firm’s history – is a professional fulfillment that comes with new duties and responsibilities, but also further proof that ambition, competence, and perseverance build solid careers in Moldova as well.”

 “It is a unique experience, both for the firm and for me personally, I admit being emotional when announcing the promotion,” added Gladei & Partners Managing Partner Roger Gladei. “Iulian is the first Partner fostered within the firm. Joining us seven years ago directly from university halls, he was accelerating, increasing speed every day and gaining the respect of colleagues and clients. Beyond the fact that he is a true professional, he is also a stand-up man, whom you can take into battle. This promotion will take both Iulian and the entire firm to the next level.”

Current geopolitical events might revolutionize Moldova’s energy industry, with progress being made on both legal and technical mechanisms, according to Dolea & Co Managing Attorney Sorin Dolea.

“Since last year’s election and one-party majority in parliament, there have been no major political changes in Moldova,” Dolea begins. “On the other hand, in terms of geopolitics, the war in Ukraine has been the main subject of discussion for the last a few months.”

The current geopolitical situation might have a major impact on energy, leading to significant reforms,” he says. “One could say that we see a sort of revolution in this aspect, especially when it comes to gas, electricity, and renewable energy.” Traditionally, Dolea notes, “we had one gas supplier for over thirty years, which is Russia, and our electricity comes mainly from one Russian-controlled producer in the breakaway region of Transnistria. Nowadays, we are trying to find alternatives in EU countries, particularly in Romania.”

He adds that the government, lawmakers, and regulators are hard at work adapting the legal framework. “For instance, our latest changes enable the construction of renewable energy facilities without requiring a change in land destination,” which Dolea says will simplify the entire process. Likewise, “amendments have been proposed for wholesale gas transactions – to facilitate orientation towards the EU market – which are under consideration and likely to be implemented.”

“Interestingly,” Dolea emphasizes, “the construction of gas infrastructure with pipelines between Romania and Moldova started as early as 2013. To progress further, both adequate technical capacities and a legal framework were needed. The latest events accelerated the process of seeking alternative sources of energy and we see progress in that direction.” 

According to Dolea, following the war, most transactions in Moldova were suspended and many were canceled. “A lot of business entities and investors seem to be reluctant to do business right now in this region,” he notes. “At the same time, we expect waves of litigation and arbitration due to parties’ inability to fulfill their obligations, in particular in cases with suppliers from Russia and Ukraine. We already have a few clients preparing claims in these directions.”

Aside from that, Dolea highlights recent legislative proposals. “Quite recently, we had amendments on the issuance of bonds by limited liability companies,” he notes. “The new law clarified and regulated the procedures regarding which company body decides the issuance of those bonds, among other aspects. In addition, he says that, recently, “the mandatory judiciary mediation procedure has been eliminated for a number of disputes (e.g., family and labor disputes), which means that parties can now directly litigate these matters, without first going through judiciary mediation.”

Finally, Dolea says another major topic in Moldova was white-collar crime, particularly corruption and bribery. “One of the proposed amendments included the abolition of the presumption of legality of gained assets for public officials, envisaged in Moldova’s Constitution. Thus, the public officials suspected of corruption crimes would have had to prove the legality of ownership for their assets,” he notes. “This proposal, however, was rejected by the Constitutional Court, and was, therefore, not implemented in the end.”

On 11 November 2021, the Moldovan Parliament passed a series of legal amendments (“Law 175/2021“), including to the existing Law on Personal Data Protection. Law 175/2021 entered into force on 10 January 2022 and partially transposes the European Union’s General Data Protection Regulation (“GDPR“).

No more registration with the supervising authority

The most important change is that personal data controllers will no longer be obliged to submit prior notification (which in essence was a registration application) to the National Centre for the Protection of Personal Data (the “Centre“). This will help controllers overcome the Centre’s formalistic approach when checking applications. Now controllers are on their own, free to implement the measures as they deem adequate and sufficient to ensure compliance with Law 175/2021. As of the date of entrance into force of Law 175/2021, the Register of controllers, previously kept by the Centre, will cease to exist.

Obligation to carry out an impact assessment

Law 175/2021 imposes a mandatory impact assessment in case the type of processing, in particular using new technologies, and taking into account the nature, scope, context and purposes of the processing, is likely to result in a high risk to the rights and freedoms of natural persons. Where such a data protection impact assessment indicates that the personal data processing would lead to a high risk (and the controller believes the risk cannot be mitigated by reasonable means), the controller will be obliged to consult the Centre prior to initiating the respective personal data processing activity.

Data protection officer

Another novelty is the designation of a data protection officer. The cases where the controller is obliged to designate a data protection officer are similar to those listed in the GDPR (i.e. processing conducted by a public authority or institution, activities consisting in processing operations requiring regular and systematic monitoring of data subjects on a large scale, and activities consisting in the processing of special categories of personal data).

Cross-border personal data transfers

Under the new rules, the cross-border transfer of personal data is generally permitted, based on the principle of the free flow of personal data, to the Member States of the European Economic Area and to states that ensure an adequate level of personal data protection. The Centre is obliged to adopt and publish in the Official Gazette of Moldova the list of states ensuring an adequate level of personal data protection.

Conclusion

While admitting that the implementation of the new rules may require certain resources from the entities concerned to ensure they comply with the new rules, local personal data controllers may benefit from the experience of the European Union in implementing the transposed GDPR rules. Moreover, the amendments are a great opportunity for local subsidiaries to adapt their privacy policies to those of their parent companies.

By Andrian Guzun, Attorney at Law, and Viorica Cornescu, Associate, Schoenherr

Following a major political change in the country six months ago, Moldova is in the process of sweeping legislative reforms seeking to elevate the country’s business landscape, according to Brodsky Uskov Looper Reed & Partners Partner Ivan Turcan.

“Following the parliamentary elections that took place six months ago, the country has seen some change,” Turcan begins. “With the new leadership firmly in place – the parliamentary majority is held by just one party – there have been many legislative changes of note.”

Firstly, Turcan reports updates to the corporate legislation of Moldova. “The first major overhaul is the cancellation of a necessity to register share purchase agreements via a notary in order to receive a notary-certified SPA.” Before, Turcan explains, in order to buy or sell an LLC, one would have to go through a complicated and costly notarization procedure. Now, with this need no longer being in place, the entire process is “faster, but not necessarily quicker,” Turcan says. “Of course, not having to pay any excess taxes and fees does render SPAs less costly, but not involving the notary is a hurdle,” he explains. “The notaries have access to a number of official databases to check and verify data veracity which, without involving them, we, as lawyers, simply cannot access with such ease as notaries. The acquisition of this data could be a headache-inducing ordeal, if done on one’s own,” Turcan reports. “For this reason, in those cases where speed is of the essence, we still recommend our clients do their business ‘the old way’ and involve notaries.”

Secondly, Turcan says that there were changes made to the civil code framework, seeking to prepare the country for an inevitable inflow of digital services. “The groundwork has been laid for a future push for digitalization,” Turcan reports. “This, however, does not mean that it will happen in the immediate future, but it’s good to know that the foundations are in place.”

Thirdly, Turcan reports that the legal framework regulating waste management has been amended. “The updates have been placed to ensure that it is no longer too costly to import and process materials in Moldova. Before, domestic manufacturers were facing a double-taxation situation in which it was quite difficult to import and process plastic materials, for example,” he says.

Fourthly, commerce in Moldova stands to be shaken up. “Up until now, there was a requirement that some 50% of all the goods on the market must come from local sources –  i.e. to be a domestic product. The next draft of the law regulating this area is heavily debated and is a huge clash point between local producers fighting to protect their market share and large market players who wish to expand further,” Turcan explains.

Finally, Turcan reports on changes to the AML and KYC frameworks. “The changes introduced more stringent fines and penalties and, overall, lower thresholds that require a check to take place. Given that most of the rules and regulations surrounding AML and KYC are quite complicated and, at times, obtuse, it is not very clear if these changes will slow down business,” he says in conclusion.