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Payment Services in Romania: A Guide for Users
As a consumer or business owner, it’s essential to understand the regulatory framework governing payment services in Romania. In this article, we’ll provide an overview of the key requirements and restrictions applicable to payment institutions operating in the country.
Authorization Requirements
To operate as a payment institution in Romania, you must obtain authorization from the National Bank of Romania (NBR). This involves submitting various information, including a business plan, and demonstrating robust governance arrangements, effective risk management procedures, and adequate client fund safeguards. If your entity is already licensed as a deposit-taking bank, e-money issuer, or investment firm, you may not need separate authorization to provide payment services.
EEA Passporting
If your payment institution is authorized in another European Economic Area (EEA) member state, you can use the EEA passport system by making a notification in your home country. This allows you to operate in Romania without requiring additional authorization.
Key Takeaways
- Payment institutions must obtain authorization from the NBR.
- Entities already licensed as a deposit-taking bank, e-money issuer, or investment firm may not need separate authorization.
- EEA passporting allows authorized payment institutions to operate in Romania without additional authorization.
Insurance Services in Romania: A Guide for Users
As a consumer or business owner, it’s crucial to understand the regulatory framework governing insurance services in Romania. In this article, we’ll provide an overview of the key requirements and restrictions applicable to insurance companies operating in the country.
Authorization Requirements
To operate as an insurance company in Romania, you must obtain authorization from the Insurance Supervisory Commission (ISC). You can choose to specialize in either life insurance or general insurance, with some exceptions for companies authorized before 2005. Romanian intermediaries, including brokers and insurance agents, are also subject to authorization or registration requirements.
Key Takeaways
- Insurance companies must obtain authorization from the ISC.
- Companies may specialize in life insurance or general insurance, with some exceptions.
- Intermediaries, such as brokers and insurance agents, must be authorized or registered.
Capital Markets in Romania: A Guide for Users
As a consumer or business owner, it’s essential to understand the regulatory framework governing capital markets in Romania. In this article, we’ll provide an overview of the key requirements and restrictions applicable to financial institutions operating in the country.
Authorization Requirements
To operate as a credit institution, investment firm, or electronic money institution in Romania, you must obtain authorization from the relevant authorities. Credit institutions are limited to providing specific financial services, while investment firms may engage in various activities subject to regulatory constraints. Electronic money institutions can provide payment services and issue electronic money, but may not perform other activities without NBR approval.
Key Takeaways
- Financial institutions must obtain authorization from relevant authorities.
- Credit institutions are limited to specific financial services.
- Investment firms may engage in various activities subject to regulatory constraints.
Non-Regulated Financial Activities
Some financial-related activities, such as closed-end funds, are subject to registration requirements rather than authorization. However, these entities may still be regulated by the National Securities Commission (NSC) or other authorities.
Key Takeaways
- Some financial activities are subject to registration requirements.
- These entities may still be regulated by the NSC or other authorities.
Government Monopolies and Restricted Activities
There are no government monopolies in Romania’s financial sector. Credit institutions, electronic money institutions, and payment institutions are limited to specific activities, while insurance companies are prohibited from engaging in non-insurance activities.
Key Takeaways
- There are no government monopolies in Romania’s financial sector.
- Financial institutions are subject to specific activity restrictions.
- Insurance companies are prohibited from engaging in non-insurance activities.
Outsourcing and Notification Requirements
Credit institutions, e-money issuers, and payment institutions must notify the NBR prior to outsourcing significant activities or operational functions. Insurance companies are subject to similar notification requirements for certain activities.
Key Takeaways
- Financial institutions must notify the NBR before outsourcing significant activities.
- Insurance companies are subject to similar notification requirements.
By understanding these regulatory requirements and restrictions, you can ensure compliance with Romanian financial regulations and avoid potential penalties or fines.