Financial Crime World

Title: Romania’s Stride Forward in Fighting Financial Crimes: AML/CFT Measures Assessed by Moneyval

Key Findings

  • Moderately developed understanding of ML/TF risks: Romania displays a moderate understanding of ML and TF risks, but the effectiveness of domestic cooperation and coordination needs to be demonstrated. (Moneyval)
  • Underutilization of financial intelligence: A wealth of financial, administrative, and law enforcement information is collected and accessible, but financial intelligence is not utilized effectively.
  • Improvement required in smaller financial institutions and DNFBPs: Larger financial institutions and banking sectors show a good understanding of ML/TF risks, whereas smaller financial institutions and DNFBPs require significant improvement.
  • Lack of reliable data for international cooperation: The legal framework is in place for international cooperation, but a significant lack of reliable data and statistics hampers the authorities’ ability to demonstrate results.
  • Challenges in confiscating foreign criminal proceeds: While progress has been made in confiscating domestic proceeds, challenges remain in confiscating proceeds from foreign predicates or standalone cases.

Challenges and Recommendations

  1. Develop a national AML/CFT strategy: The authorities should develop a consistent approach and methodology through an overarching national AML/CFT strategy.
  2. Improve ICT resources and human capacity: Enhance ICT resources, human resources, and training for the National Office for the Prevention and Control of Money Laundering (NOPCML) and LEAs to increase their effectiveness.
  3. Increase financial investigator capacity: Develop the capacity of financial investigators to conduct parallel financial investigations and provide practical guidance to prosecutors on investigation and prosecution of ML.
  4. Regulatory oversight framework for non-profit sector: Develop a risk-based regulatory oversight framework for the non-profit sector and provide further guidance to obliged entities on sector-specific risk factors and red flags.
  5. Improve recognition of AML/CFT oversight by FSA: Increase recognition of AML/CFT oversight by the FSA and increase NOPCML resourcing in line with statutory responsibilities.
  6. Develop case management systems for international cooperation: Develop case management systems for international cooperation and ensure the accuracy and currency of BO information held in public registries.

Conclusion

Romania has taken significant steps forward in the implementation of AML/CFT measures, but challenges remain, particularly in areas such as financial intelligence, confiscation of proceeds, and TF risk understanding. By following the recommendations put forth by Moneyval, Romania can build on its progress and further strengthen its financial crime prevention measures.