On December 12, 2020, the law on infringement procedure in the field of prevention of money laundering and terrorist financing and the method of applying sanctions entered into force.
The law applies to reporting entities (e.g., banks, real estate agents, payment companies, insurers, etc.) and determines inclusive the procedure for verifying that entities comply with their obligations in the field of money laundering and terrorist financing prevention.
Suppose the reporting entities admit violations of the legislation on the prevention of money laundering and terrorist financing. In that case, they may be subject to sanctions in the form of statements in the media, the prescription of cessation of illegal behavior, suspension of activity, prohibition of the exercise of management functions, or a fine.
The fine varies from 4500 lei to 5 000 000 euros.
Infringements that may result in liability of reporting entities include: failure to identify the source of customer assets, failure to keep track of all transaction data, failure to identify the politically exposed person, family members, and persons associated with the politically exposed person, etc.
The law can be consulted at the following link (ro).
