Financial Crime World

Title: Romania’s Anti-Money Laundering Laws: Fighting Financial Crimes and Complying with Global Standards

Money Laundering in Romania

Money laundering is a persistent issue in Romania due to illicit activities such as:

  • Drug trade
  • Financial crimes
  • Fraud
  • Tax evasion
  • Smuggling
  • Illegal immigration
  • Human trafficking

Romania requires a multi-pronged strategy to effectively address this problem, including:

  • Law enforcement
  • Regulations
  • International cooperation
  • Public awareness campaigns

Anti-Money Laundering Framework in Romania

Key regulatory bodies overseeing AML/CTF efforts in Romania include:

  1. Romanian Parliament
  2. National Office for the Prevention and Control of Money Laundering (NOPCML)
  3. Romanian National Bank
  4. Various other institutions

Their responsibilities include:

  • Carrying out Know Your Customer (KYC) procedures
  • Identifying actual beneficiaries
  • Appointing Anti-Money Laundering Officers
  • Reporting suspicious transactions
  • Freezing transactions
  • Preserving relevant evidence
  • Not communicating AML investigations to customers

Progress Towards Effective AML/CTF System

Since the 2014 MONEYVAL evaluation, Romania has made significant strides but still faces challenges:

  • Modestly effective AML/CTF implementation in most sectors, except international collaboration
  • Ongoing improvements necessary
  • Reporting to MONEYVAL as part of an enhanced follow-up process in May 2025

Covered Entities and Criminal Activities

Entities falling under AML/CTF regulations in Romania:

  • Credit institutions
  • Romanian branches of foreign financial institutions
  • Private pension fund managers
  • Casinos
  • Auditors
  • Accountants
  • Notaries
  • Lawyers
  • Realtors
  • Legal or natural persons with a minimum value of €10,000 in cash transactions in foreign currency

Criminal activities driving money laundering in Romania:

  • Human and drug trafficking
  • Financial crimes
  • Fraud
  • Tax evasion
  • Smuggling

Romania and FATF

The Financial Action Task Force (FATF) is a global organization fighting money laundering and terrorist financing:

  • Romania is a member of FATF
  • Expected to adhere to and implement FATF recommendations and standards
  • Demonstrated compliance with seven of FATF’s 40 recommendations and substantial compliance with 18 (as of the 2023 evaluation)
  • Room for improvement, with one evaluation rating reflecting “substantially effective” progress

U.S. Department of State Money Laundering Assessment

In 2016, the U.S. State Department categorized Romania as an “Authority of Concern”:

  • Role in narcotics, weapons, stolen vehicle, and human trafficking transits
  • High rates of online credit card fraud and cybercrime
  • Criminal groups from neighboring countries and Italy have reportedly invested in Romanian assets

Combatting Money Laundering with Advanced Solutions

Effectively combating money laundering requires sophisticated solutions:

  • Organizations mandated to comply with AML/CTF regulations can utilize advanced compliance solutions like Sanction Scanner.
  • Sanction Scanner offers tools to help organizations meet their obligations and strengthen financial integrity.
  • Contact Sanction Scanner for more information or request a demo to learn how our solutions can safeguard your financial security.