Financial Crime World

Romania Cracks Down on Money Laundering: AML Regulations and Institutional Progress

Money laundering remains a pressing issue in Romania, fueled by various illicit activities such as:

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

These profit-making enterprises threaten the financial system and society, making it crucial to adopt a comprehensive approach to combat the problem effectively.

Romania’s Strategy to Curb Money Laundering

The Romanian Parliament, National Office for the Prevention and Control of Money Laundering (NOPCML), Romanian National Bank, and other regulatory bodies have taken on the challenge of enforcing Anti-Money Laundering (AML) regulations. Their roles include:

  • Implementing Know Your Customer (KYC) procedures
  • Identifying real beneficiaries
  • Appointing Anti-Money Laundering officers
  • Reporting suspicious transactions
  • Freezing transactions

Progress Since MONEYVAL’s 2014 Assessment

Since the European anti-money laundering body, MONEYVAL’s, 2014 assessment, Romania has:

  • Improved its legal and institutional framework against money laundering and terrorism financing (AML/CTF)
  • Made significant strides in sectors like asset recovery and confiscation, and international cooperation

Regulatory Bodies & AML Requirements

Institutions subject to AML requirements include:

  • Credit institutions
  • Romanian branches of foreign financial institutions
  • Private pension fund managers
  • Casinos
  • Auditors
  • Tax and accounting consultancy services
  • Notaries
  • Lawyers
  • Bailiffs
  • Those practicing the independent legal profession
  • Realtors
  • And other natural or legal persons engaging in goods and services transactions of EUR 10,000 or more in foreign currency

Romania’s FATF Status

Romania is a member of the Financial Action Task Force (FATF), an intergovernmental organization that fights money laundering and terrorist financing on a global scale. It must adhere to and implement FATF recommendations. In the 2023 Mutual Evaluation Report:

  • Romania was found to be compliant with 7 of the FATF’s 40 recommendations
  • It was mostly compliant with 18
  • The country has demonstrated commitment but improvement is necessary for practical effectiveness

Money Laundering Concerns & U.S. State Department Assessment

Romania was designated as an “Authority of Concern” in the U.S. State Department’s 2016 International Narcotics Control Strategy Report (INCSR):

  • Romania is a transit country for various illicit activities like narcotics, weapons, stolen vehicles, and human trafficking
  • It is not a significant financial center but experiences high rates of online credit card fraud and cybercrime

AML Solutions for Romania

Organizations subject to regulations in Romania can turn to solutions like Sanction Scanner for effective AML compliance. Sanction Scanner’s advanced tools help meet responsibilities and ensure financial integrity. For more information or to request a demo, contact us today!