Financial Crime World

Anti-Money Laundering Requirements in Romania: A New Era for Financial Professionals and Legal Professionals

Introduction

Romania has recently introduced anti-money laundering requirements for financial professionals and legal professionals who provide services related to real estate, shares, or assets. This move aims to combat money laundering and terrorist financing.

New Regulations for Financial Professionals

  • Chartered accountants, certified accountants, certified appraisers, tax consultants, and other persons providing financial, business, or accounting advice must report transactions in cash, RON, or foreign currency that exceed the equivalent of EUR 10,000.
  • Related transactions, such as transfers of funds, are also subject to reporting requirements.

Regulations for Credit Institutions and Financial Institutions

  • Credit institutions and financial institutions must submit reports on external transfers to and from accounts in RON or foreign currency that exceed the equivalent of EUR 10,000, including related operations.
  • Notaries public, lawyers, bailiffs, and other persons exercising legal professions who provide assistance in drawing up or completing operations for their clients regarding the purchase or sale of real estate, shares, or assets are also subject to anti-money laundering requirements.

Cryptocurrency Industry Subject to Anti-Money Laundering Requirements

  • Providers of virtual currencies and digital wallets, electronic money institutions, and payment institutions from other Member States that provide services in Romania must ensure compliance with the legal provisions on preventing and combatting money laundering and terrorist financing.

NFTs: A Waiting Game

  • There are no specific regulations governing non-fungible tokens (NFTs) yet. Romanian authorities are waiting for a general EU-level regulation on this matter.

Compliance Programmes Required

  • All entities subject to the anti-money laundering requirements must adopt adequate AML measures and apply risk-based standard/simplified/additional customer due diligence measures.
  • Financial institutions must also apply AML measures to foreign branches and subsidiaries.

Recordkeeping and Reporting Requirements

  • Reporting entities must implement secondary or operative recordkeeping policies, designed for internal control, risk assessment, and management.
  • Reports to the National Office for Preventing and Combating Money Laundering (NOPCML) must be filed within three working days from the internal or external transaction(s) with cash, in RON or foreign currency, whose minimum threshold represents the equivalent in RON of EUR 10,000.

Cross-Border Transactions Reporting Requirements

  • There are no specific cross-border transactions reporting requirements. The general rules of reporting apply.

Customer Identification and Due Diligence Requirements

  • The anti-money laundering regulations stipulate three possibilities to customer-related obligations (especially KYC rules), chosen on a risk-based approach: standard; simplified; or supplementary.
  • Financial institutions must also apply AML measures to foreign branches and subsidiaries.

Conclusion

The new regulations aim to prevent money laundering and terrorist financing by introducing anti-money laundering requirements for financial professionals and legal professionals who provide services related to real estate, shares, or assets.