Achieving full AML compliance in Romania is a step-by-step process. For investors starting a new business, it’s important to integrate compliance from the very beginning of your company setup. Below is a roadmap from incorporation to ongoing compliance:

Business classification and registration

When setting up your company, first determine if your business will be an AML-obligated entity under Romanian law. If yes, there may be initial formalities. Immediately upon incorporation, declare your company’s UBO (Ultimate Beneficial Owner) to the trade registry (this is usually done via a statement to the National Trade Register Office). Newly formed companies in Romania must file a UBO declaration within 15 days of incorporation, and any changes to beneficial ownership must be reported as well. Separately, certain types of businesses must notify the ONPCSB that they are starting regulated activities. For example, real estate developers were added as obliged entities in 2020, and they are required to send a notification to ONPCSB within 15 days of commencing operations. Not doing so can lead to a fine between RON 5,000 and 10,000, plus an additional penalty up to 10% of the firm’s prior year turnover. While not every sector has this explicit notification requirement, it’s wise to check with local authorities or legal advisors if any registration with regulators is needed for your specific industry. Completing these registrations (UBO and ONPCSB notification if applicable) is the first milestone in compliance.

Appoint an AML Compliance Officer

As you set up the company, designate a competent person to serve as the AML Compliance Officer (CO). This should be someone with sufficient seniority and knowledge of compliance – in a small startup it could be a manager or even an executive assuming this role, whereas larger companies may hire a dedicated AML officer. Notify the relevant authorities (if required) of this appointment. The compliance officer will be responsible for developing and enforcing the AML program from day one. It’s important to clearly define their responsibilities and give them the authority to access information across the company. In some cases, you might need to appoint deputy compliance officers or a team, especially if operating at scale. Investors should ensure that the chosen person has a clean background and ideally some experience or training in AML compliance, as this will set the tone for your program’s effectiveness.

Develop internal AML policies and procedures

Craft your company’s AML Policy Manual and related procedures early. This is essentially the rulebook that your staff will follow to remain compliant. It should cover all the key components discussed above: customer identification procedures, how to conduct risk assessment, what enhanced due diligence steps to take for high-risk cases, how to monitor and report suspicious activities, record retention, etc. Include a section that outlines the responsibilities of the compliance officer and reporting lines (e.g. how employees should escalate concerns). If your business has multiple locations or subsidiaries in Romania, ensure the policy is applied consistently across all. At company startup, you might leverage templates or hire experts to help draft these policies in line with Romanian law and EU standards. The policies must then be approved by top management (and in some cases, by the board of directors). Having a solid policy in place will not only guide your operations but also demonstrate to regulators that you have a systematic approach to AML. Remember, as your business evolves, these policies should be revisited and refined – but getting them right from the start creates a strong compliance culture.

Conduct a business-wide risk assessment

With your policies drafted, perform an institutional risk assessment of your new business (if you haven’t already as part of policy drafting). Identify what products or services you will offer and where risks could arise. For example, if you plan to deal with foreign clients or handle cash, those are risk elements to document. Consider the profile of your expected customer base: Will you serve mostly local clients, or international? Retail clients or other businesses? Any likely PEP clients? This initial risk assessment will inform how you implement controls. Romanian law (Art. 7 of Law 129/2019) actually requires reporting entities to document an institutional risk assessment. Make sure to write down your findings and decisions (e.g. “Because we will operate an online platform open to international users, we assess a higher risk of foreign PEPs or sanctioned parties attempting to use our service. We will implement enhanced ID verification and sanctions screening as a mitigation measure.”). This document will be useful if you later face an inspection – it shows you understand your risk environment. Regulators appreciate when companies can explain why they chose certain controls based on risk.

Implement customer KYC onboarding procedures

Before you start doing business with clients, set up the practical procedures for customer due diligence. This includes choosing KYC verification methods (Will you check IDs in person? Will you use electronic verification services? Who in your team will be responsible for collecting documents? etc.). If you have an online business, integrate an identity verification solution. Ensure your process captures all required information: full name, official ID number, address, nature of business, and UBO for legal entities. Also incorporate checks against sanctions and politically exposed persons lists at onboarding. A tip for new businesses is to create a KYC checklist or form that employees must complete for each new customer, to standardize the process. This step is where your policies turn into action – by having clear guidelines for staff on how to verify identities and what signs to look for, you reduce the chance of onboarding a risky client unknowingly. Also decide what risk-rating you will assign by default to new customers and at what point high-risk ones need approval from the compliance officer.

Ensure beneficial owner transparency

As part of both compliance and general corporate obligations, make sure you maintain transparency of ownership. For your own company, keep your beneficial owner information updated with the authorities (initial registration is done, but if the ownership changes, you must file an update within 15 days of change). Also, when dealing with corporate clients, obtain and verify their beneficial ownership information. Law 129/2019 obliges companies to provide their beneficial ownership details to any reporting entity that is doing due diligence. In practice, this means if your client is another company, you should request their registration extract or UBO registry excerpt to see who ultimately owns or controls it. If you find any discrepancy between what the client tells you and the official UBO registry, you are required to report that discrepancy to the authorities (ONPCSB and the registry). Building procedures for UBO identification and verification into your onboarding (and updating them whenever corporate clients’ information changes) is crucial. It not only keeps you compliant but also helps you truly know who you are doing business with — which protects you from unwittingly facilitating shell companies or fronts for bad actors.

Install transaction monitoring and screening systems

As you commence operations and start handling client transactions, have a system in place to monitor those transactions in real time or retrospectively. For a small business, this might be as simple as the compliance officer reviewing transactions above a certain amount each week. Larger businesses should use automated software that flags unusual patterns (for example, an unusually large transfer, multiple rapid transactions just under reporting thresholds, or activity at odd hours). Set parameters based on your risk assessment. Additionally, set up sanction screening for any payments or new customer names against global watchlists. Many companies integrate their payment systems with databases so that if a client tries to send money to a sanctioned entity, it will be blocked or flagged. For gambling or real estate businesses, define what normal transactional behavior looks like (e.g. average bet amounts, typical property values) and alert on outliers. All alerts should be reviewed by the compliance officer to determine if there is a reasonable explanation or if further investigation is needed. Effective monitoring is key to catching suspicious activity early. Remember that Romanian regulators are now requiring more granular monitoring in certain sectors (like casinos linking every transaction to a customer profile), so adopting a thorough approach from the start will keep you ahead of the curve.

Establish internal reporting and escalation

Create a clear process for employees to report suspicious information or behavior internally. Often, front-line staff (like a sales agent, cashier, or account manager) may notice something unusual about a client. They should know how to promptly inform the AML Compliance Officer (or a designated delegate) for further review. Set up a standard internal suspicious activity report form or other channel (some companies use secure email or hotlines) that staff can use without fear of retaliation. The compliance officer should investigate these internal reports and if a suspicion is confirmed, file the official STR to ONPCSB. It’s critical that your employees understand they must not tip off the client at any stage. Even routine queries that could alert the client (like “we are reviewing your transactions”) should be handled carefully once a suspicion arises. As an investor-owner, foster a culture where compliance concerns are taken seriously and communicated freely. You might include in your training some case studies of what types of scenarios should be escalated. When your team knows that management is committed to compliance, they will be more proactive in reporting issues.

File reports to ONPCSB as required

When a transaction triggers suspicion or a statutory threshold, ensure timely reporting to ONPCSB. This step happens as needed (not on a fixed schedule), but it is a crucial part of your ongoing compliance. Have your compliance officer or another authorized person registered with ONPCSB’s online reporting system if available, so that they can submit STRs quickly. Remember, an STR must be sent “without delay” – in practice, this means as soon as you complete your internal review and find reasonable grounds, do not wait. Even if you are gathering more information, the law expects a report if suspicion exists. Similarly, set a routine (perhaps monthly) for checking if any large cash transactions occurred that cross the EUR 10,000 threshold and compile the required report for those. Many businesses automate this threshold reporting, but if you are small and using manual processes, it should be someone’s responsibility to monitor and file these on time (usually within days of the transaction). Keep copies of all reports sent to ONPCSB (but in a secure manner). Timely and accurate reporting will keep you in good standing with the regulators and is one of the most important defences against being penalized – it shows you are fulfilling your duty to alert authorities of potential money laundering.

Maintain ongoing record-keeping 

As your business operates, continuously archive all relevant AML records. This includes copies of customer identification documents, due diligence forms, risk assessment files, transaction logs, internal STR investigations, training attendance logs, and communications with regulators. Ensure these are stored securely (to prevent data leaks) but also organized for easy retrieval. Romanian AML law mandates a 5-year minimum retention, but many firms choose to keep records longer (especially electronically, since storage is cheap) to be safe. Be mindful of GDPR and data protection rules as well – you should inform customers that their data will be retained for compliance reasons. Establish a schedule for periodic clean-up: e.g. at the end of each year, identify any records older than 5 years that are eligible for destruction, and dispose of them securely if appropriate. Strong record-keeping practices not only meet legal requirements but also will greatly assist during any audits or investigations, as you can quickly provide evidence of your compliance actions.

Periodic audits and testing of the program

Once your AML program is up and running, plan to audit and test it regularly. This could be an internal audit by someone independent of the compliance function, or an external audit by a specialized firm. The goal is to verify that what’s on paper (your policies) is actually happening in practice and is effective. For larger companies meeting certain size criteria, an independent audit function is legally required – meaning you must have an audit either internally or by hiring professionals. Even if not mandated, consider arranging an annual AML compliance audit. During an audit, things like customer files are reviewed for proper KYC documentation, employees might be interviewed about their training, and your risk assessment and transaction monitoring alerts are evaluated for adequacy. An audit report will highlight any gaps or weaknesses so you can fix them before regulators step in. Regulators in Romania (ONPCSB or sector supervisors) may also conduct inspections of your business. Being audit-ready is the best way to get through such inspections smoothly. It’s worth noting that many companies engage outside experts to perform a mock inspection or audit as a proactive measure. As an investor ensuring compliance, budgeting for periodic audits is an investment in avoiding fines later.

Stay updated and adapt

The AML landscape is continually evolving – new laws, EU directives, and typologies emerge over time. Make it a practice to stay informed about changes in AML regulations and update your compliance program accordingly. For instance, the EU might release new guidelines or Romania might pass amendments (such as the ones in late 2024 that introduced new PEP rules and stricter real estate due diligence). Subscribe to regulatory newsletters, engage with industry associations, or consult with legal advisors to keep abreast of developments. Additionally, refresh your risk assessment and policies whenever a major change occurs (or at least annually even if nothing obvious changed). If you expand your business or enter new markets, revisit your AML procedures to cover the new risks. Regular training updates to staff on new red flags or requirements is also part of this adaptation. By being proactive and agile, you demonstrate a commitment to not just one-time compliance but continuous compliance – something authorities appreciate and which ultimately safeguards your investment. Following this roadmap will help ensure that from day one of your business operations, AML compliance is built into your company’s DNA. Many of the steps above can be done in parallel (for example, appointing an officer, drafting policies, and conducting the risk assessment often go hand-in-hand). The key takeaway for investors is early integration of compliance: it’s much harder (and riskier) to bolt on an AML program after your business is already handling customers and transactions. Romanian regulators like ONPCSB have become quite proactive – they have even started auditing real estate developers and other DNFBPs to check AML compliance levels. Therefore, having your compliance infrastructure in place can not only prevent legal troubles but also make your business more credible to banks, partners, and clients.

In Romania, the National Office for Prevention and Control of Money Laundering (ONPCSB) is the central authority responsible for AML oversight. ONPCSB serves as Romania’s Financial Intelligence Unit (FIU) – it collects STRs and other reports, analyses them, and disseminates financial intelligence to law enforcement under the procedures of Law 129/2019. ONPCSB also functions as a regulator/supervisor for compliance, especially for sectors that don’t have their own dedicated regulator. For instance, ONPCSB may conduct inspections or audits of real estate agencies, jewellery dealers, or other non-financial businesses to ensure they have AML programs in place. It works alongside other regulators like the National Bank of Romania (for banks) and the Financial Supervisory Authority (for insurance, securities firms) to monitor the entire spectrum of obliged entities. In practice, if you’re a bank, you might be primarily audited by the National Bank on AML matters, but ONPCSB remains the central point for STR filings and inter-agency coordination. 

Enforcement powers of ONPCSB

ONPCSB has the authority to impose administrative sanctions on companies that breach AML requirements. This includes issuing warnings, fines, and even suspending business licenses or activities in severe cases. The office can investigate compliance by requesting documents, conducting on-site inspections, and requiring remedial actions from businesses. If ONPCSB, through its analysis of STRs or an audit, suspects actual money laundering or terrorist financing, it will forward the case to the Prosecutor’s Office for criminal investigation. ONPCSB can also order the temporary freezing of transactions or accounts if it believes urgent action is needed to prevent money being laundered away (though such measures are time-limited and typically followed by either a criminal case or release of funds). For example, if a suspicious transaction report indicates an ongoing transfer of illicit funds, ONPCSB might halt that transfer for 48 hours while law enforcement is alerted. 

Consequences of non-compliance

Romania has significantly increased penalties for AML compliance breaches in recent years. Both the company and the individuals responsible (such as directors or the compliance officer) can face consequences:

• Administrative fines: Companies that fail to meet AML obligations can be fined heavily by regulatory authorities. Fines in Romania can range from relatively modest amounts for minor infractions to extremely large sums for serious violations. For instance, not filing a required report or missing a UBO declaration deadline might result in a fine on the order of a few thousand RON. On the other hand, systematic non-compliance or enabling money laundering can draw fines up to RON 5 million or 10% of the company’s annual turnover (whichever is higher) under Law 129/2019. The upper range of fines is typically reserved for financial institutions or repeat offenders in egregious cases. It’s worth noting that in regulated industries, the sector regulator (e.g. National Bank or Gambling Office) may also impose fines or penalties under their own rules, which can add to the ONPCSB’s enforcement.
• Remedial orders and license suspension: Beyond fines, authorities can issue orders requiring businesses to fix deficiencies (for example, mandating that you hire an AML officer or conduct a full customer file remediation by a set deadline). In extreme cases, regulators can suspend or revoke licenses. A casino or currency exchange bureau that blatantly ignores AML laws could have its operating license suspended until compliance is restored, effectively halting business. For companies that are not “licensed” per se, they could still face orders to cease certain high-risk activities. ONPCSB and other bodies have the power to disqualify individuals from management positions if they are found responsible for serious AML breaches. The risk of license loss is particularly concerning for investors, as it directly threatens the viability of the business – this underscores why AML must be taken seriously at the board level.
• Criminal liability: AML compliance lapses can escalate to criminal matters if they are coupled with wilful intent or if actual money laundering is taking place. Money laundering itself is a crime in Romania, punishable by imprisonment of 3 to 10 years for individuals found guilty. If someone within the company actively participates in laundering (for example, by knowingly helping to conceal dirty money), they could be personally prosecuted. Companies (legal entities) can also be criminally liable for money laundering; penalties include criminal fines up to RON 1.5 million (around EUR 300,000), and additional sanctions like company dissolution, asset seizures, or a ban on certain activities. Usually, if your organization has strong AML controls, it serves as a defence against being implicated in a laundering scheme. But if those controls are wilfully ignored or circumvented by insiders, the law can come down hard. It should be emphasized that ignorance is not a defence – claiming “I didn’t know we had to do that” will not shield a company or its officers from liability, since AML obligations are clearly defined in the law and expected to be known by those in business.
• Reputational damage: While legal penalties are a concern, an often-overlooked consequence of non-compliance is damage to your reputation and business relationships. Regulators publicize major enforcement actions. Banks might terminate relationships with businesses known to be non-compliant (for instance, your company could struggle to maintain a bank account if you land on a compliance blacklist). Investors might find their partners or clients are wary to engage in deals if there’s a perception the company has compliance issues. In Romania and the EU, there are increasingly discussions of public registers for compliance offenders. Being named and shamed could lead to loss of customers and opportunities. Thus, from a business continuity perspective, compliance failures carry a steep cost beyond the immediate fines.

In summary, non-compliance is not an option – the Romanian authorities have both the legal means and the will to enforce AML laws. ONPCSB and other regulators are actively monitoring and conducting audits. A recent example is the focus on real estate developers, where ONPCSB audits uncovered that some were unaware of their obligations; fines were issued to drive the point home. As an investor, you should treat AML compliance as a critical part of risk management. The cost of implementing a compliance program is far less than the cost of penalties or the fallout of being involved (even unknowingly) in a money laundering scandal. Remember that regulators in 2025 expect not just basic compliance, but a demonstrable culture of compliance – companies are expected to be proactive, not reactive, in preventing money laundering.