Moldovan parliament approves harsher penalties for fraud with European funds

The parliament has adopted, in the second reading, a draft law that boost measures against fraud aimed at the financial interests of the European Union. The document implements the EU Directive on protecting European funds through criminal law and was voted by 57 deputies.

The law, drafted by the Ministry of Justice, aims to supplement the Criminal Code with clear provisions regarding European funds, recognizing that the EU budget includes resources from European institutions, agencies and bodies, whether managed directly or indirectly.

An important novelty is the enhanced criminal liability for misuse of external funds, subsidies, humanitarian aid, donations, grants or loans.

According to an amendment proposed by the head of the parliament’s juridical commission Committee, Veronica Rosca, these offenses will be punishable by up to three years in prison and fines of up to 200,000 lei for individuals. As for legal entities, fines can reach 300,000 lei, accompanied by a ban on carrying out activities for up to five years.

As for offenses committed on a particularly large scale, by public officials or organized crime rings, penalties can reach up to 10 years of imprisonment and maximum fines, as well as other bans.

At the same time, the law explicitly criminalizes the use or presentation of false or incomplete documents, or the intentional omission of relevant information, if the latter has led to damage to the European Union's budget or budgets managed by it.