Financial Crime World

Title: Romania’s Fifth Round Evaluation Report: Progress and Challenges in Anti-Money Laundering and Counter-Terrorist Financing Measures

Subtitle: MONEYVAL’s Assessment and Recommendations

The fifth round mutual evaluation report of Romania by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) was adopted during the 65th Plenary Meeting in Strasbourg on May 24-26, 2023. This report provides an in-depth analysis of Romania’s progress and challenges in implementing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.

MONEYVAL is a monitoring body of the Council of Europe that assesses compliance with principal international standards against money laundering and the financing of terrorism and makes recommendations for improvements. The evaluation covers various aspects, including risk assessment, legal frameworks, and operational issues.

Romania’s Assessment Results

Romania has made significant strides in risk assessment and applying a risk-based approach. However, a more profound understanding of terrorist financing risk and collaboration among authorities for policy-setting is needed. The authorities have taken several steps to counteract corruption and bolster financial intelligence capabilities.

Key Findings

  • A fairly good understanding of money laundering risks, with ongoing efforts to counter tax evasion, corruption, fraud, and drug trafficking.
  • Limited understanding of terrorist financing risks and prevention measures.
  • Adequate legal framework for international cooperation but data availability and coordination present challenges.

Challenges and Recommendations

To address these challenges, MONEYVAL has made several recommendations:

  1. Enhance risk assessment: Focus on terrorist financing risk, non-profit sector exposure, and legal person risks.
  2. Develop and implement: an overarching national strategy for countering terrorist financing.
  3. Strengthen regulations and oversight: of Designated Non-Financial Businesses and Professions (DNFBPs), Virtual Asset Service Providers (VASPs), and cash couriers.
  4. Enhance cooperation and coordination: among law enforcement, prosecution, and financial intelligence agencies.
  5. Increase resources and training: for the National Office for the Prevention and Control of Money Laundering and Fiscal Intelligence Unit (NOPCML-FIU) and Law Enforcement Agencies (LEAs).

Implications for Romania’s Future

This evaluation offers essential insights into Romania’s AML/CTF framework and identifies areas for improvement. Implementing MONEYVAL’s recommendations will help enhance Romania’s capacity to effectively counter money laundering and terrorist financing. The next step for the authorities is to focus on their strategic goals and implement appropriate measures to address these challenges.

For media inquiries, contact the MONEYVAL Secretariat at +33 3 88 41 34 21 or moneyval@coe.int.