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, yet issues such as the statute of limitations affecting corruption cases and widespread corrupt practices in various sectors remain significant obstacles. U.S. investors have reported corruption in government and business, highlighting a general perception among Romanians that corruption is pervasive and detrimental to fair competition.

Romania has an open investment regime and is an attractive destination for foreign investment due to its strategic location, EU and NATO memberships, and a well-educated workforce. The economy has shown resilience, with a growth rate of 4.1% in 2022 and 2.1% in 2023, despite external challenges, and is expected to benefit from significant EU funding aimed at enhancing its green transition and digitalization efforts. However, issues such as high inflation, administrative capacity limitations, and governance challenges may hinder the full realization of its economic potential.

Romania has a largely open investment climate, actively welcoming foreign investment, particularly in sectors such as information technology, automotive, and energy. The government established the Romanian Agency for Investment and Foreign Trade to facilitate foreign investments, although challenges such as legislative unpredictability and limited administrative capacity persist. While there have been improvements in combating corruption and streamlining public procurement, potential investors are advised to conduct thorough due diligence due to ongoing governance issues.