Romania Tightens Grip on Financial Sanctions Enforcement

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Romania has implemented a comprehensive sanctions regime, ensuring the direct applicability of international sanctions adopted by the United Nations Security Council (UNSC) and the European Union (EU) at a national level.

Key Regulations

The country’s sanctions regime is primarily based on Government Emergency Ordinance no. 202/2008 (GEO 202/2008), which prohibits all entities and individuals subject to international sanctions from operating in Romania. The ordinance ensures that international sanctions are directly applicable at the national level, without the need for further legislation.

Regulatory Bodies

The National Bank of Romania, the Financial Supervisory Authority, and the National Office for Preventing and Combatting Money Laundering are among the key regulators responsible for enforcing financial sanctions in the country. These authorities work closely together to monitor compliance with international sanctions and prevent any breaches.

Additional Measures

In addition to freezing funds and economic resources, Romania also implements licensing and authorization procedures for the transfer of financial funds to and from Iran. Any person or entity wishing to make such transfers must obtain a waiver from the competent Romanian authority after demonstrating compliance with international law.

Penalties for Non-Compliance

Article 26 of GEO 202/2008 stipulates that any breach of sanctions in Romania constitutes a contravention punishable by fines ranging from RON 10,000 to RON 30,000 and the confiscation of property used or derived from the misdemeanour.

Travel Restrictions

Romania’s travel restrictions are also aligned with international sanctions. The General Inspectorate of Border Police and the National Visa Centre at the Ministry of Foreign Affairs are responsible for ensuring that all individuals subject to international travel bans are denied entry into the country.

Expert Insights

Experts at law firm Eversheds Romania caution that while Romania’s sanctions regime is robust, it is essential for businesses operating in the country to ensure they comply with all applicable laws and regulations. “Non-compliance can result in severe financial penalties and reputational damage,” warned Senior Associate Alexandra Sulea.

Conclusion

Romania’s commitment to enforcing international sanctions demonstrates its dedication to upholding global standards of transparency and accountability. As a member of the European Union, Romania plays an important role in maintaining stability and security throughout the region.