Financial Crime World

Title: Romania’s New Anti-Money Laundering Law: Strengthening the National Framework

Date: November 12, 2019

Romania’s Parliament passed Law no. 129/2019, effective July 21, 2019. The new law aims to strengthen Romania’s framework for preventing and controlling money laundering and financing of terrorism. This article outlines key changes brought about by the new legislation.

Empowering the National Office for Prevention and Control of Money Laundering (The Office)

  • Coordinating national response to assessed risks
  • Informing European institutions of assessments
  • Setting administrative obligations for reporting entities

Responsibilities of the National Office for Prevention and Control of Money Laundering (The Office)

  • Identifying reporting entities and setting reporting obligations
  • Conducting risk assessments
  • Allocating and grading resources for countering money laundering and terrorism financing

Terms and Expressions

  • Money laundering: crime as per Romanian law (Article 49)
  • Financing of terrorism: crime as per Law No. 535/2004 on the prevention and control of terrorism (Article 36)
  • Property: any asset of any kind, including legal documents

Application to Various Entities

  • Credit institutions
  • Financial institutions
  • Private pension fund managers
  • Providers of gambling services
  • Auditors
  • Notaries
  • Estate agents
  • Other entities trading in goods as professionals

Reporting Obligations

Credit Institutions and Financial Institutions

  • Online reports on external transfers exceeding EUR 15,000
  • Reports on transactions without suspicion indicators (cash transactions exceeding EUR 10,000 and money transfers exceeding EUR 2,000)

All Reporting Entities

  • Submission of all reports to the Office within three working days of the transaction
  • Confirmation of report receipt in writing
  • Prohibition of conducting transactions related to reported transactions within 24 hours

Changes Affecting Publicly Exposed Persons

  • Subject to enhanced due diligence measures for one year after leaving prominent public functions

Conclusion

Romania’s new anti-money laundering law represents an ongoing commitment to addressing money laundering and terrorism financing effectively. The strengthened national framework is expected to provide more comprehensive coverage and a more coordinated response to money laundering and terrorism financing risks.