Amendments to the legislation on anti-money laundering and terrorist financing17 July 2020
Government Emergency Ordinance no. 111/2020 regarding the amendment and supplementation of Law no. 129/2019 on the prevention and combating of money laundering and terrorist financing, as well as for amending and supplementing some normative acts, for supplementing art. 218 of the Government Emergency Ordinance no. 99/2006 on credit institutions and capital adequacy, for the amendment and supplementation of Law no. 207/2015 on the Fiscal Procedure Code and for supplementing art. 12 para. (5) of Law no. 237/2015 on the authorization and supervision of the insurance and reinsurance activity (“GEO no. 111/2020”) introduces, amongst others, a series of amendments to the rules for identifying and declaring the ultimate beneficial owners and regarding the obligations of reporting entities. The normative act entered into force on July 15 and mainly focuses on the following aspects:
► Definition of the ultimate beneficial owner (“UBO”) for associations and foundations
In the case of associations and foundations, the following shall be considered as UBO: (i) associates or founders, (ii) members of the board of directors, (iii) individuals with executive functions empowered by the board of directors to exercise its powers, (iv) the category of natural persons or, as the case may be, the natural persons in whose main interest the associations or foundations have been constituted and (v) any other natural person exercises control at last resort and by any means over the non-profit legal entity.
► Submission of UBO affidavit (“UBO affidavit”)
The UBO affidavit may be submitted in the form of a document under private signature or electronic form and sent via electronic means with an electronic signature attached or by post and courier services to the competent Trade Registry.
The obligation to declare the UBO at the incorporation of a company shall be deemed fulfilled also by including the identification data of the UBO and the ways in which the control over the legal entity is exercised in the articles of incorporation. In such case, any subsequent change in the identification data of the UBO shall be declared by means of a new UBO affidavit, without being considered as an amendment of the articles of incorporation.
► Definition of the reporting entities
GEO no. 111/2020 introduced the following entities under the obligation to report suspicious transactions: (i) persons who undertake to provide, directly or through other affiliated persons, material assistance or advice on tax, financial, business activities, (ii) providers of virtual currency and fiduciary currencies, (iii) providers of digital wallets, (iv) real estate agents and developers, including when acting as intermediaries in the rental of real estate, but only in respect to transactions for which the value of the monthly rent represents the RON equivalent of EUR 10,000 or more and (v) persons who sell or mediate trade in works of art, under certain expressly stipulated conditions.
► Additional obligations for reporting entities
Among other obligations, reporting entities will be required to obtain proof of UBO registration or information from the central registers of beneficial owners whenever they enter into a new business relationship with persons who are subject to the obligation to register UBO information.
Moreover, GEO no. 111/2020, details the additional customer awareness measures that reporting entities are required to apply in case of business relationships or transactions involving high-risk countries.
► Electronic registry for payment accounts and bank accounts
The National Agency for Fiscal Administration will organize and operationalize the Electronic register for payment accounts and bank accounts identified by IBAN, to allow timely identification of all individuals or legal entities that hold or control payment accounts and bank accounts identified by IBAN or securities held at a credit institution in Romania.