Financial Crime World

Romania’s Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) System: A Media Analysis

Key Findings from MONEYVAL Evaluation (September 21-October 4, 2022)

The Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) conducted a thorough assessment of Romania’s AML/CFT system. The following are key findings:

Understanding of ML and TF Risks

  • Romania has a fair understanding of money laundering (ML) risks but needs a more in-depth analysis of terrorist financing (TF) risks, specifically in non-profit sectors and legal persons.

Financial Intelligence and ML Investigations

  • Romania has made progress in accessing financial intelligence and filing reports through dedicated channels and government databases.
  • But improvements are necessary to increase effectiveness of the system, such as increasing information and communication technology resources, human resources, and training.

Confiscation of Criminal Proceeds

  • Romania has progressed in freezing, seizing, and confiscating proceeds but faces challenges in foreign predicates, third-party cases, and standalone cases.

Terrorist Financing

  • The country’s TF offense is generally in line with required standards, but it lacks a meaningful strategy to combat TF.
  • Romania has strengthened its legal and regulatory framework but needs to address specific areas such as VASPs, DNFBPs, cash couriers, and sanctions.

Recommendations

MONEYVAL provided several recommendations to strengthen Romania’s AML/CFT system:

  1. Mitigate identified risks
    • Strengthen cooperation between law enforcement agencies
    • Improve communication and coordination between prosecutors’ offices
  2. Increase resources and training
    • FIU: Increase ICT resources, human resources, and training
    • LEAs: Investment in ICT resources, human resources, and training
  3. Develop an overarching national CFT strategy
  4. Improve communication, cooperation, and coordination between various agencies, prosecutors, and the financial sector
  5. Address specific regulatory and legal concerns
    • VASPs
    • DNFBPs
    • Cash couriers
    • Sanctions for failing to comply with AML/CFT requirements