Title: Romania’s Crusade Against Money Laundering: A Comprehensive Approach

Money Laundering Threat in Romania

Money laundering remains a significant challenge for Romania due to various illegal activities such as:

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

To counteract this pervasive issue, Romania is implementing a multi-faceted strategy composed of:

Law enforcement
Regulations
International cooperation
Public awareness campaigns

Regulatory Bodies’ Role

Key Romanian institutions working to prevent money laundering include:

Romanian Parliament
National Office for the Prevention and Control of Money Laundering (NOPCML)
Romanian National Bank

These bodies implement measures like:

Know Your Customer (KYC) procedures
Obtaining information about actual beneficiaries
Appointing an Anti-Money Laundering Officer
Reporting suspicious transactions
Freezing transactions
Preserving relevant evidence
Maintaining confidentiality

Improvements in Legal and Institutional Framework

Since 2014, Romania has increased efforts to strengthen its legal and institutional framework against money laundering and terrorist financing (AML/CTF). The country has achieved moderate levels of effectiveness in most sectors, with improvements in:

Implementing various successful AML/CTF system elements
Continuing to work on further improvements in 2023

According to MONEYVAL, Romania’s notable exception is international collaboration, where it has reached a significant level of effectiveness.

Institutions Subject to AML Requirements

Numerous institutions in Romania fall under AML regulations. These include:

Credit institutions
Private pension fund managers
Auditors and accounting consultancy services providers
Casinos
Notaries
Lawyers
Bailiffs
Realtors
Other persons or entities trading in goods and services worth €10,000 in foreign currency

Romania’s Membership in FATF

Romania is a member of the Financial Action Task Force (FATF), meaning it must adhere to and implement FATF recommendations and standards in its national AML/CTF framework, and is not currently on the FATF list of countries with strategic AML deficiencies.

Evaluation of the 2023 Mutual Evaluation Report on Romania

The 2023 Mutual Evaluation Report on Romania’s AML and CTF efforts identified the following compliance levels:

Compliant with 7 of the FATF’s 40 recommendations
Mostly compliant with 18
Highly Effective rating for 0 recommendation
Substantially Effective rating for 1 recommendation

While Romania has made progress, there’s still room for improvement in the practical effectiveness of its measures.

Addressing Concerns from the US Department of State

In the past, the US Department of State named Romania as an “Authority of Concern” due to its role as a transit country for illegal drugs, weapons, stolen vehicles, and human trafficking. Although Romania isn’t a significant financial center, there are signs of money laundering activities and investments in Romanian assets by organized crime groups from neighboring countries and Italy.

Protecting Against Financial Crimes in Romania

Entities obligated to comply with AML regulations in Romania can leverage advanced solutions such as Sanction Scanner to combat financial crimes and maintain financial integrity. Sanction Scanner enables these organizations:

To stay ahead of compliance efforts
To enhance overall financial security