Bancherul - BANCI / ENGLISH / Romanian banks which fail to comply measures against money laundering will face fines

Banks and financial non-banking institutions in Romania which fail to adopt and comply with measures against money laundering will face fines of 10,000 to 50,000 lei, according to a new set of rules elaborated by the country’s central bank.

Besides this sanction, financial institutions’ goods used for felonies can be seized and the harsh measures go as far as suspending the institution’s authorization or even closing down the respective unit.

The central bank’s document stipulates that lenders have to know clients well and take into account any risks that could appear. This is the consequence of a recent law endorsed by the government, which fights money laundering in line with international directives of the Financial Action Task Force on Money Laundering.

The country’s securities watchdog (CNVM) prepared on June 5 regulations which require brokers to get acquainted well with the clients they work with.

The central bank said in the new set of rules that financial institutions will establish which clients bear a higher risk potential analyzing risk indicators which take into account the volume of assets, the type of solicited services, economic circumstances or the client’s native country.

Moreover, credit institutions which provide complex banking services called private banking are required to be more vigilant regarding their clients.

Lenders and non-banking institutions, which should apply these new measures in maximum six months after they are endorsed, have to provide the central bank with reports on clients and their operations, the new regulations say. Changes to the set of rules are admitted until June 23.