The Council of Europe has recommended that Romania strengthens its anti-money laundering institutions and improves their results, according to a recently published report. The report highlights the need for Romania to focus on the financial intelligence unit and supervisory authorities, and their enforcement results.

“Romanian authorities need to strengthen the independence of the financial intelligence unit by divesting the government-appointed Board of its decision-making powers on core operational functions,” according to the Council of Europe.

However, the country has made progress in the fight against money laundry. This offence is broadly in line with international standards, while the number of investigations, prosecutions and convictions has increased, the Council has found. But more measures are needed “to strengthen the implementation of the money laundering offence, and to address structural and capacity deficiencies in the law enforcement and judicial processes.”

Romania has a better framework which allows it to freeze, seize and confiscate proceeds of crime, but law enforcement authorities need to conduct parallel financial investigations proactively alongside the investigation of proceeds-generating crimes, according to the Council of Europe.
The country has also been recommended that it improves the system to detect the physical cross-border transportation of currency, “given the significant vulnerability of the Romanian financial system to cash-based money laundering.”

The Council will continue to monitor the implementation of these recommendations, and Romania will need to submit a follow up report by April 2016.

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) is a Council of Europe division which assesses compliance with international and European standards to counter money laundering and terrorist financing. It also makes recommendations to national authorities on how to improve their systems.

editor@romania-insider.com

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