Financial Crime World

Title: Romania’s AML/CTF Watchdogs: ONPCSB and Its Role in Combating Money Laundering and Terrorism Financing

Overview

The Romanian authorities have intensified their efforts to enforce Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. In accordance with Law No. 129/2019, the National Office for Prevention and Control of Money Laundering (ONPCSB) acts as a key player in this mission.

The Role of ONPCSB

The ONPCSB, Romania’s Financial Intelligence Unit, is authorized to collect, store, investigate, analyze, and disclose financial intelligence. Its responsibilities go beyond its own premises as the National Office for Gambling and the Financial Supervisory Authority work together to ensure compliance.

Responsibilities for Regulated Entities

Regulated entities face various obligations under AML law:

  1. Client Due Diligence Procedures

    • Identify and confirm client identity
    • Assess the true beneficiary’s identification
    • Identify and take measures to ascertain a Politically Exposed Person (PEP)
    • Retain records for at least 5 years
    • Maintain sufficient risk management systems

  2. Implementing Internal Rules and Procedures

    • Enact policies for staff and customer enforcement
    • Determine retention guidelines for reports and records
    • Implement measures for managing and enforcing compliance
    • Set guidelines to safeguard staff from threats
    • Provide regular employee training

  3. Assigning a Compliance Officer

    • Establish an independent audit function

Reporting Obligations

Reporting entities have the following reporting obligations:

  • Report suspicious transactions if they are suspected to involve illegal activities or terrorism financing.
  • Provide information that might be used to carry out AML/CTF requirements.
  • Report on transactions, external transfers, and remittances of 2000 euros or greater, and cash transactions of 10,000 euros or more in RON.

Conclusion

Romania’s watchdogs are unwavering in their pursuit of financial transparency and security. The country’s AML/CTF regulations leave no stone unturned in ensuring the detection and prevention of money laundering and terrorism financing.