Financial Crime World

Private Pension Fund Managers Must Comply with AML Regulations

Preventing Money Laundering and Terrorism Financing

In a move to prevent money laundering and terrorism financing, private pension fund managers in Romania are now required to comply with Anti-Money Laundering (AML) regulations.

New Law Requires Compliance

According to the new law, managers of private pension funds, except for professional occupational retirement houses, must report suspect transactions exclusively to the Office. This includes situations where goods come from offenses or are related to terrorism financing, or where the person or proxy/representative/trustee is not who they claim to be.

Reporting Entities Must Submit Reports

Reporting entities must submit a report for suspect transactions if the objective factual circumstances of a business relationship or occasional transaction correspond in whole or in part to the indicators or typologies of suspect transactions publicly presented by the Office. Additionally, reporting entities must:

  • Report cash transactions, including external transfers, whose minimum limit represents the equivalent in lei of 15,000 euros
  • Send reports on transfers of funds whose minimum limit represents the equivalent in lei of 2,000 euro for remittance activity

National Agency for Fiscal Administration Must Submit Reports

The National Agency for Fiscal Administration is also required to submit reports concerning information included in statements of individuals regarding cash in foreign currency and/or national currency, which is greater than or equal to the limit laid down by Regulation (EC) no. 1.889/2005.

Law Aims to Prevent Money Laundering and Terrorism Financing

The law aims to prevent money laundering and terrorism financing, and ensure that private pension fund managers comply with AML regulations. Failure to comply may result in severe penalties.

What Does this Mean for Private Pension Fund Managers?

Private pension fund managers must:

  • Report suspect transactions exclusively to the Office
  • Comply with AML regulations
  • Establish internal rules and policies to prevent money laundering and terrorism financing
  • Submit reports on cash transactions, including external transfers, and remittance activity

Consequences of Non-Compliance

Failure to comply with AML regulations may result in severe penalties, including fines and even criminal charges. Private pension fund managers must take immediate action to ensure compliance with these new regulations.

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