Financial Crime World

Romania’s Anti-Money Laundering Laws: Prosecution, Requirements, and Enforcement

Romania, like many countries, has strict anti-money laundering (AML) laws aimed at preventing and combating financial crimes. In this article, we explore the legal framework, regulatory requirements, and enforcement of these laws in Romania.

1. Prosecution of Money Laundering Crimes

  • The Romanian criminal code recognizes money laundering as a criminal offense under Art. 49 of Law no. 129/2019.
  • The Public Ministry, specifically the Prosecutors’ Offices with different levels of courts, holds the authority to prosecute such crimes.
    • Tribunals have general competence.
    • Any Prosecutors’ Office can prosecute if they encounter money laundering during investigations of other crimes.
    • Specialized agencies like the National Anticorruption Directorate (NAD) and the Directorate for Investigating Organized Crime and Terrorism (DIOCT) have the power to prosecute if the predicate crime falls within their jurisdiction.

2. Anti-Money Laundering Regulatory Requirements and Enforcement

  • The Romanian Parliament enacts the legislation.
  • Financial institutions and other regulated businesses comply with AML requirements as detailed by specific regulatory bodies.
  • These regulatory bodies include the Romanian National Bank, Financial Supervisory Authority, National Anti-Fraud Agency, and NOPCML.

2.2 Anti-Money Laundering Requirements by Self-regulatory Organizations

  • No regulatory requirements are imposed by self-regulatory organizations.
  • They can provide guides and recommendations for compliance.

2.3 Anti-Money Laundering Compliance and Enforcement by Self-regulatory Organizations

  • Leading structures of independent legal professions are responsible for preventing and stopping money laundering activities by their members.
  • They are not directly responsible for non-compliance.

2.4 Exclusivity of National-level Requirements

  • Requirements are applicable only at the national level.

2.5 Competent Authorities for Examination and Enforcement

  • NOPCML, Romania’s Financial Intelligence Unit, is responsible for examining information reported by financial institutions and businesses, as well as conducting sanctions and reporting potential criminal intimations to the criminal investigation bodies.

2.6 Statute of Limitations for Competent Authorities

  • Competent authorities have six months to issue a sanction or contravention.
  • They may face criminal charges if the deed is considered a crime.

2.7 Maximum Penalties for Violations

  • Breaches of AML requirements can lead to fines of up to one million euros for legal entities or thirty thousand euros for individuals.
  • Accessory sanctions like confiscation or suspension of licenses, freezing of accounts, and shutdown of units can be imposed.

2.8 Criminal Sanctions for Violations

  • Individuals and legal entities can face both administrative and criminal penalties for violating anti-money laundering requirements.

2.9 Appeal of Administrative Decisions and Publicity of Penalty Resolutions

  • Administrative decisions can be appealed in court.
  • The resolutions of penalty actions are typically not public.

3. Anti-Money Laundering Requirements for Financial Institutions and Other Designated Businesses

3.1 Entities Subject to AML Requirements

  • Reporting entities in Romania include credit institutions, financial institutions, pension fund administrators, gambling service providers, and various professions dealing with financial, business, or accounting services or real estate transactions.

3.2 Types of Payments and Money Transmission Subject to AML Requirements

  • Financial institutions, non-financial businesses, and professions are subject to reporting requirements for transactions in cash, RON, or foreign currency exceeding the equivalent of EUR 10,000, as well as related transactions.

3.3 Cryptocurrency Industry and Anti-Money Laundering Regulations

  • Beginning in 2020, providers of virtual currencies and digital wallets, electronic money institutions, and payment institutions from other EU countries are subject to AML regulations for their activities in Romania.

3.4 NFTs and Anti-Money Laundering Requirements

  • Currently, there are no specific legal provisions regarding AML requirements for NFTs in Romania.

3.5 Compliance Programs for Financial Institutions

  • Financial institutions and other reporting entities are required to adopt AML measures, appoint designated officers, and apply risk-based customer due diligence measures.

3.6 Recordkeeping and Reporting Large Currency Transactions

  • Financial institutions and other reporting entities must maintain comprehensive records and report large transactions to the NOPCML.

3.7 Reporting Routinely Transactions Other Than Large Cash Transactions

  • There are no requirements to report routine transactions other than large cash transactions.

3.8 Cross-border Transactions Reporting Requirements

  • There are no specific requirements for cross-border transactions reporting.

3.9 Customer Identification and Due Diligence

  • Entities subject to anti-money laundering requirements must apply risk-based approaches for customer identification and due diligence, with enhanced measures for certain types of clients.