Compliance Strategies for AML Regulations in Romania: Essential Reading for Fintech Entrepreneurs

Compliance Strategies for AML Regulations in Romania: Essential Reading for Fintech Entrepreneurs

Romania has recently reinforced its Anti-Money Laundering (AML) regulations, with key laws and regulations based on the Romanian Law No. 129/2019 on the Prevention and Combating of Money Laundering and Terrorist Financing [1]. This legislation, along with relevant regulations issued by the National Bank of Romania (NBR), forms the backbone of Romania's AML framework [3].

In 2020, some principles of the European Fifth AML Directive were implemented by Emergency Ordinance no. 111, marking a significant development in Romania's AML landscape [2]. More recently, the 2025 amendment to the Prevention of Money Laundering and Terrorist Financing Act (ZPPDFT-2C) was introduced, partially transposing the EU Directive 2024/1640/EU [1]. This amendment aims to align Romanian AML legislation with EU case law, restricting general public access to beneficial ownership data and strengthening transparency for eligible parties.

For businesses operating or seeking to enter the Romanian market, key AML aspects to consider include:

1. Customer Due Diligence (CDD) and Know Your Customer (KYC): Businesses must implement rigorous procedures to identify and verify customers and beneficial owners, with enhanced scrutiny for higher-risk cases such as Politically Exposed Persons (PEPs) [1][3].
2. Reporting Obligations: Suspicious transaction reports (STRs) must be filed promptly with the competent authorities when money laundering or terrorist financing suspicions arise [3].
3. Beneficial Ownership Transparency: Access to beneficial ownership data is limited to parties demonstrating a legitimate interest, following EU and Romanian data protection principles [1].
4. Compliance Culture: Businesses entering or operating in Romania, such as gambling operators, are required to have comprehensive AML and KYC policies aligned with these laws to secure licenses and maintain operational legitimacy [2].
5. Regulatory Oversight: The National Bank of Romania and other authorities enforce AML compliance, issuing guidelines and conducting inspections [3].

For sectors like gambling, AML compliance is a critical licensing requirement, including detailed documentation and ongoing adherence to AML/KYC standards approved by the Romanian National Gambling Office (ONJN) [2].

In addition, the AML Law requires enhanced due diligence (EDD) in situations with a high risk of money laundering, such as business relationships and transactions with persons from countries included in the FATF NCCT list, PEPs, or clients whose real beneficiaries are PEPs [1].

Businesses in Romania are required to conduct CDD for their clients when establishing a business relationship, carrying out an occasional transaction equal to or exceeding €15,000, carrying out occasional cash transactions equal to or exceeding €10,000, or receiving remittances or transferring funds equal to or exceeding €2,000 through a single operation [3].

The affected businesses include credit institutions, financial institutions, insurance companies, e-money institutions and payment institutions, exchanges of virtual currencies and fiat currencies, digital wallet providers, and gambling service providers [3]. In case of correspondent relations with financial institutions of other EU member states or third states, businesses must apply additional measures such as obtaining information about the respondent institution, assessing AML/CFT mechanisms, and ensuring ongoing KYC measures [3].

In summary, Romanian AML regulations are grounded in Law No. 129/2019 as updated by recent EU directive transpositions, emphasizing beneficial ownership confidentiality, enhanced due diligence, reporting duties, and continuous compliance supported by regulatory authorities [1][3][2]. Romania's commitment to strengthening its AML regulations is evident in the ongoing efforts to align its legislation with EU standards and address money laundering risks effectively.

References:

1. ZPPDFT-2C
2. ONJN
3. NBR
4. When engaging in business activities in Romania, it's essential to invest in a comprehensive understanding of personal-finance aspects, including AML regulations, as failure to comply may lead to the rejection of licenses and operational legitimacy issues.
5. To ensure investing in Romania's financial sector is sustainable, businesses must adhere to strict AML laws, such as conducting Customer Due Diligence (CDD) and Know Your Customer (KYC) procedures, reporting suspicious transactions, and maintaining a culture of compliance, all of which are key to navigating the country's AML landscape.

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