Financial Crime World

Money Laundering Techniques Plague Romania, Experts Warn

Romania’s financial system has been plagued by money laundering techniques used by criminals to conceal illegal activities such as drug trade, financial crimes, fraud, tax evasion, and smuggling. The country’s recent increase in profit-making activities like human trafficking and illegal immigration have also contributed to the problem.

Combating Money Laundering in Romania

To combat this issue effectively, Romanian authorities need a comprehensive strategy involving law enforcement, regulations, international cooperation, and public awareness campaigns. This approach will help address the root causes of money laundering and protect the country’s financial system and society.

Progress Made in Fighting Money Laundering

Romania has made significant progress in improving its legal and institutional framework to combat money laundering and terrorism financing (AML/CTF) since 2014. However, there is still room for improvement in the practical effectiveness of its measures.

Anti-Money Laundering Regulations in Romania

In Romania, regulatory bodies such as:

  • The Romanian Parliament

  • National Office for the Prevention and Control of Money Laundering (NOPCML)

  • Romanian National Bank

  • Other institutions are responsible for preventing money laundering. These bodies have several obligations to prevent money laundering, including:

  • Implementing Know Your Customer (KYC) procedures

  • Obtaining information about actual beneficiaries

  • Reporting suspicious transactions

Institutions Subject to AML Requirements

The following institutions are subject to AML requirements:

  • Credit institutions
  • Branches of foreign credit institutions
  • Private pension fund managers
  • Auditors
  • Notaries
  • Lawyers
  • Bailiffs
  • Realtors
  • Other natural or legal persons trading in goods and services with a minimum value of EUR 10,000

FATF Status

As a member of the Financial Action Task Force (FATF), Romania is expected to adhere to and implement the FATF’s recommendations and standards in its national anti-money laundering (AML) and counter-terrorist financing (CTF) framework. The country has been found to be:

  • Compliant with 7 of the FATF’s 40 recommendations
  • Mostly compliant with 18

US Department of State Money Laundering Assessment

Romania was designated as an Authority of Concern in the US State Department’s 2016 International Narcotics Control Strategy Report (INCSR) due to its geographical location making it a natural transit country for:

  • Trafficking in narcotics
  • Weapons
  • Stolen vehicles
  • Human trafficking Romanian organized crime groups participate in various European criminal activities.

AML Solutions for Romania

To combat money laundering effectively, organizations obligated to adhere to regulations can turn to Sanction Scanner for advanced solutions. Sanction Scanner helps these entities meet their obligations and enhances financial integrity. With Sanction Scanner, organizations can stay ahead in compliance efforts and financial security.