The MONEYVAL report, the anti-money laundering body of the Council of Europe, shows that Romania must further strengthen measures to combat money laundering and terrorist financing.
With direct conflict in the East and another one escalating at the West border, these risks must be carefully monitored to secure the territorial potential.
Although several actions have been taken to strengthen its legal and institutional framework to combat money laundering and terrorist financing, the elements of an effective AML system are still in their beginnings.
The evaluation points to a correct understanding of the risks of money laundering and, to a lesser extent, the risks of terrorist financing, with a real success in the chapter of international cooperation, where it has reached a significant level of effectiveness and constructive assistance. Investigations and prosecutions of money laundering from tax crimes and domestic corruption are carried out much more efficiently.
By actively applying measures for the most frequent crimes committed internally, Romania has improved its ability to freeze, confiscate and recover the proceeds and assets acquired because of domestic crimes. It needs to strengthen its capacity to enable financial investigators to conduct parallel investigations, trace assets and recover assets.
In Romania, there is a set of measures and rules in force to prevent money laundering and terrorist financing. They are regulated by national legislation and are aligned to international standards, such as those set by the Financial Action Task Force (FATF). Here are some examples of money laundering prevention measures implemented in Romania:
1. Due diligence: Financial institutions and other entities subject to anti-money laundering obligations are required to carry out rigorous due diligence procedures. These include verifying the identity of customers, assessing the purpose of transactions and sources of funds, and analyzing the money laundering risk associated with each customer.
2. Transaction Monitoring: Financial institutions and other entities subject to AML regulations must regularly monitor their customers' transactions to identify patterns of suspicious behavior and unusual transactions. Any suspicion of money laundering must be reported to the appropriate authorities.
3. Obligations to report suspicious transactions: Financial institutions and other entities have the obligation to report any suspicious transaction or activity that could be indicative of money laundering or terrorist financing to the National Office for the Prevention and Combating of Money Laundering (ONPCSB) or other authorities competent.
4. Verification of sources of funds: Financial institutions and other entities must conduct investigations into the origin and provenance of funds used in their transactions. This includes reviewing financial documents and other relevant information to ensure that the funds do not come from illegal activities.
5. Internal Policies and Procedures: Financial institutions and other entities are required to develop and implement periodic risk assessments, staff training and the designation of a compliance officer.
6. Cooperation and exchange of information: Financial institutions and other entities must cooperate with competent authorities and provide information requested in connection with money laundering and terrorist financing investigations.
This information is general and may be subject to change depending on the evolution of legislation and regulations in force. For specific statistics and up-to-date details on money laundering prevention measures in Romania, it is recommended to consult official sources, such as the National Bank of Romania.
Major financial institutions are subject to risk-based supervision, and authorities need to improve the calibration of more sophisticated supervisory actions according to risk. By developing and using public registries of beneficial owners and bank accounts authorities must develop existing controls to ensure that the information in the registries is accurate and up to date.
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