Financial Crime World

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Romania Urged to Step Up Efforts Against Money Laundering and Terrorism Financing

A recent report by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has called on Romanian authorities to strengthen their measures to combat money laundering and terrorist financing.

Compliance with Standards

The report provides a comprehensive assessment of Romania’s level of compliance with standards set by the Financial Action Task Force (FATF). Since 2014, when MONEYVAL last evaluated Romania, the country has taken steps to strengthen its legal and institutional framework against money laundering and terrorism financing.

Gaps Identified

However, the report highlights that Romania needs to take immediate action to target the highest risks it is exposed to. The authorities have been criticized for not prioritizing investigations and prosecutions of money laundering cases. Specifically:

  • Investigations and prosecutions of domestic tax crimes and corruption are effective, but those related to human trafficking and drug trafficking focus on predicate offenses rather than money laundering.
  • Romania has improved its ability to freeze and seize assets linked to crime, but confiscation is rare.

Recommendations

The report recommends that Romania:

  • Develop a national strategy and action plan to counter terrorism financing
  • Provide relevant training
  • Strengthen the capacity of financial investigators to carry out parallel financial investigations and pursue asset recovery

Additionally, MONEYVAL has commended Romania on its sound legal framework for implementing targeted financial sanctions, but expresses concerns about the implementation by the private sector and adequacy of supervision. The authorities should:

  • Improve the calibration of supervisory actions with risk
  • Increase resourcing to align with statutory responsibilities

Next Steps

Romania is expected to report back to MONEYVAL in May 2025 under the enhanced follow-up reporting process.

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