Financial Crime World

Title: Romanian Crackdown on Money Laundering: A Look at the Legal Framework and Enforcement

Subtitle: From Law 129 to NOPCML: Exploring the Romanian Regime Against Financial Crimes

Romania, as a member of the European Union, is committed to strengthening its legal and regulatory framework against money laundering and terrorist financing. In this article, we delve into the Romanian legal landscape, focusing on money laundering, relevant authorities, and administrative and regulatory requirements for combating financial crimes.

1. The Crime of Money Laundering and Criminal Enforcement

  • Prosecutions for money laundering in Romania are handled by the Public Ministry and its specialized investigation authorities.
  • Tribunals, the National Anticorruption Directorate (NAD), and the Directorate for Investigating Organized Crime and Terrorism (DIOCT) are responsible for investigating money laundering cases.
  • Any Prosecutors’ Office can prosecute money laundering if the predicate crime is within their jurisdiction.

1.2 Defining Money Laundering and Predicate Offenses

  • Money laundering involves conversion, concealment or possession of illegally-derived assets.
  • Tax evasion, a common predicate offense, often leads to money laundering charges.
  • A money laundering conviction does not require a prior or simultaneous conviction of a predicate offense.

1.3 Extraterritorial Jurisdiction and International Cooperation

  • Romanian criminal law extends its jurisdiction to crimes committed outside its territory by Romanian citizens or legal entities.
  • Money laundering of foreign proceeds is punishable under Romanian law.
  • Romania cooperates with foreign countries to investigate and prosecute money laundering cases.

2. Anti-Money Laundering Regulatory/Administrative Requirements and Enforcement

2.1 Legislation and Supervision

  • The National Assembly imposes anti-money laundering requirements on Romanian financial institutions and businesses.
  • Regulated and supervised by bodies like the Romanian National Bank (RNB), the Financial Supervisory Authority (FSA), and the National Anti-Fraud Agency (NAFA).
  • The National Office for Prevention and Control of Money Laundering (NOPCML) serves as Romania’s Financial Intelligence Unit (FIU).

2.2 Self-Regulatory Organizations and Professional Associations

  • Self-regulatory organizations or professional associations issue guidelines to help their members comply with anti-money laundering requirements.

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

3.1 Covered Businesses and Individuals

  • Entities subject to Law 129 include credit institutions, financial institutions, auditors, tax consultants, notaries, and other legal professionals.

3.2 Covered Payments and Transactions

  • Reporting entities must report cash transactions or transfers exceeding €10,000 (or the RON equivalent).
  • For remittance activities, the minimum limit is €2,000.
  • All credit or financial institutions are responsible for reporting external transfers from accounts with a RON equivalent of €10,000 or more.

3.3 Cryptocurrencies and NFTs

  • Providers of virtual currencies, digital wallets, electronic money institutions, and payment institutions are subject to Law 129 with respect to anti-money laundering regulations.
  • No explicit regulations regarding non-fungible tokens (NFTs) as of now.

In summary, the Romanian legal framework against money laundering and terrorist financing is multilayered, with various authorities responsible for ensuring prevention, investigation, and enforcement. Ongoing efforts to comply with regulations will continue to shape the Romanian financial landscape, reducing risks of financial crimes.