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, as evidenced by its ranking of 63 out of 180 in Transparency International's 2023 Corruption Perceptions Index, but challenges persist, particularly in high-level corruption and judicial efficiency. The European Commission has noted improvements sufficient to recommend lifting the Cooperation and Verification Mechanism, yet issues such as the statute of limitations on criminal liability hinder effective prosecution. Despite the establishment of various anti-corruption strategies and agencies, widespread perceptions of corruption among the public and foreign investors indicate that significant work remains to be done.

Romania's economy has shown resilience, growing by an estimated 4.1 percent in 2022 and 2.1 percent in 2023, despite limited direct impacts from Russia's war in Ukraine. The country benefits from a strategic location, a well-educated workforce, and significant EU funding opportunities, with eligibility for up to $83.5 billion in EU funds by 2030, aimed at supporting green transition and digitalization efforts. However, challenges such as inflation, administrative capacity issues, and a mixed investment climate continue to pose risks for potential investors.

Romania has a largely open investment climate, actively welcoming foreign investment, particularly in sectors such as information technology, automotive, and energy. The government has established the Romanian Agency for Investment and Foreign Trade to facilitate foreign investment, but challenges remain, including a lack of administrative capacity and unpredictable policy changes that can affect investor confidence. Despite progress in combating corruption and improving governance, potential investors are advised to conduct thorough due diligence.