Financial Crime World

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Romania Fines Euroins Romania $1.3 Million for Regulatory Failures, Emphasizing Financial Crime Prevention Strategies

The Romanian Financial Supervision Authority (ASF) has imposed a fine of 5.58 million lei on insurance company Euroins Romania for failing to meet payment regulatory obligations.

Failure to Meet Payment Obligations

The ASF carried out checks at the company from May to October, during which time Euroins Romania was required to submit a recovery plan with measures to restore its eligible own funds and cover the Solvency Capital Requirement (SCR). The plan would need to be approved by the regulatory body within six months.

Efforts to Remedy Financial Challenges

Euroins Romania, part of Bulgaria’s Euroins Insurance Group, has made efforts to remedy its financial challenges since 2020. The company received a series of capital infusions totaling over 300 million lei in the last 12 months, which resolved all financial issues, including those identified by the ASF.

Romania’s Anti-Money Laundering Regulatory Regime

Primary and Secondary Legislation

The National Office for Prevention and Control of Money Laundering (NOPCML) and the Romanian National Bank are key players in Romania’s anti-money laundering regulations. The Financial Supervisory Authority, among other institutions, plays a crucial role in secondary legislation.

Key Measures

  • Knowing your customer checks
    • Gathering personally identifiable information
    • Appointing anti-money laundering officers
  • Reporting suspicious transactions to NOPCML
  • Seizing bogus transactions pending permissions
  • Preserving evidence of crimes
  • Hiding AML investigations from customers

Progress in Implementing Anti-Money Laundering Regulations

Romania has made significant progress in implementing its anti-money laundering regulations. According to the Financial Action Task Force (FATF) Reports, Romania is not on the list of jurisdictions with anti-money laundering shortcomings.

Law No. 129/2019 and EU Fifth Anti-Money Laundering Directive

Romania’s Law No. 129/2019, replaced in 2019 by the European Fourth Anti-Money Laundering Directive (4AMLD), defines the proceeds of money laundering and lists governed institutions and their duties.

Consequences of Non-Compliance

Financial businesses operating in Romania must also practice ongoing customer verification, making client risk profiles based on obtained KYC data. Failure to comply with regulatory obligations can result in sanctions or fines of up to 150,000 RON and imprisonment for three to 10 years.

How Shufti Pro Can Help: A Viable Solution for Financial Crime Prevention

Shufti Pro’s anti-money laundering screening services provide a reliable solution for banks and financial firms operating in Romania. The company’s automated services integrate with thousands of AI models, allowing businesses to screen customers against 1700+ global sanctions and PEPs lists in under a second with 98.67% accuracy.

Benefits of Shufti Pro’s ID Verification Services

  • Determining the real identity of customers in less than a second
  • Generating results with 98.76% accuracy
  • Screening customers against 1700+ global watch lists
  • Helping businesses stay compliant with regulatory obligations and secure them from sanctions

To learn more about KYC/AML services for financial businesses, [insert link].