FATF status

Romania is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Romania was undertaken in 2023. According to that Evaluation, Romania was deemed Compliant for 7 and Largely Compliant for 18 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 1 of the Effectiveness & Technical Compliance ratings.

Romania has made progress in combating corruption, ranking 63rd in Transparency International's 2023 Corruption Perceptions Index, but challenges persist, particularly in high-level corruption and judicial reform. The European Commission has noted improvements, yet widespread corrupt practices remain, with significant cases closed due to statute limitations. U.S. investors report ongoing issues with corruption, particularly involving customs and local authorities, while the government struggles to enforce anti-corruption laws effectively.

Romania has a largely open investment regime and is strategically positioned for access to European and Near East markets, supported by a well-educated workforce and competitive wages. The economy has shown resilience, with growth rates of 4.1% in 2022 and 2.1% in 2023, despite external challenges, and is expected to benefit from substantial EU funding aimed at enhancing green transition and digitalization efforts. However, issues such as high inflation, administrative capacity limitations, and governance challenges may hinder the full realization of these opportunities.

Romania offers a largely open investment climate, welcoming foreign investment due to its strategic location, EU and NATO membership, and a well-educated workforce. The government has established the Romanian Agency for Investment and Foreign Trade to facilitate foreign investments, although potential investors should exercise due diligence due to challenges such as inconsistent legislative predictability and administrative capacity. While there has been progress in combating corruption and improving public procurement rules, ongoing issues with governance and the unpredictability of policies may affect investment decisions.