AML in ROMANIA
Anti-Money Laundering Regulations
In Romania, regulatory bodies such as the Romanian Parliament, the National Office for Prevention and Control of Money Laundering (NOPCML), the Romanian National Bank, and additional institutions like the Financial Supervisory Authority are responsible for enacting primary and secondary legislation.
These regulatory authorities in Romania bear various responsibilities aimed at preventing money laundering. These responsibilities encompass the following key aspects: conducting Know Your Customer (KYC) procedures during initial customer engagement, collecting information about actual beneficiaries, designating an Anti-Money Laundering Officer, promptly notifying NOPCML of suspicious transactions, placing transactions on hold pending NOPCML authorization, retaining all pertinent evidence related to suspicious transactions, and refraining from disclosing any AML investigations to customers.
Institutions subject to AML requirements
The entities falling within the scope of these regulations encompass:
1. Credit institutions and foreign credit institution branches operating within Romania.
2. Romanian branches of foreign financial institutions, along with financial institutions.
3. Private pension fund managers and authorized agents for the private pension system.
4. Casinos.
5. Auditors and individuals or entities providing tax and accounting consultancy services.
6. Independent legal practitioners, including notaries, lawyers, and bailiffs.
7. Professionals such as realtors.
8. Other individuals or entities engaged in trade of goods and services, wherein the transaction value in foreign currency, carried out over a single network, exceeds the equivalent of EUR 10,000 in cash.
US Department of State Money Laundering Assessment (INCSR)
In the 2016 International Narcotics Control Strategy Report (INCSR) by the US State Department, Romania was identified as a concerning authority. Noteworthy findings from this report include:
Romania’s geographical location renders it a natural conduit for transnational organized crime groups engaged in trafficking narcotics, weapons, stolen vehicles, and human trafficking. Additionally, Romania’s susceptibility extends to financial undertakings intertwined with these criminal activities. The country’s economy primarily relies on cash transactions, and the informal sector constitutes approximately 22 percent of the GDP. The proceeds from financial smuggling and criminal activities are estimated to contribute around 15 percent to the GDP.
While not a prominent financial hub, Romania has demonstrated indications of organized crime groups from neighboring nations and Italy investing in Romanian assets. Romanian organized crime factions partake in a spectrum of criminal endeavors across Europe, including but not limited to prostitution, cigarette smuggling, extortion, and narcotics trade. Furthermore, Romania stands among the global leaders in online credit card fraud and cybercrime prevalence. Notably, research highlights that Romanian servers rank as the second-largest source of worldwide cybercrime transactions.
