Romania - AML KYC Regulations
Issue Date Version Comments 24.04.2022 1.0 -
ERON Pay is a registered brand of S.C. ERON Project and Development SRL.
This AML Policy is merely a statement through which all clients are informed that SHUFTI PRO Ltd., on behalf of S.C. ERON Project and Development SRL will conduct all the processes related to KYC (ID verification with OCR extraction of name and DoB, address verification), AML (for both, individuals and companies), KYI (MLRO Validation and uploader iFrame) and KYB (of future partners).
S.C. ERON Project and Development SRL through its website (https://www.eronpay.com) will not store, process, sell, distort, donate or any other action pertaining to any personal data from and/or about any of its users.
All KYC, KYB and AML information gathered from users, as well as the generated reports are stored and handled solely by Shufti PRO Ltd.
Shufti Pro Limited is a company incorporated in England, United Kingdom (registration number 11039567), having its office address at Coppergate House, 10 Whites Row, E1 7NF, London, England.
Romania introduced the ‘Law no. 129/2019 For the Prevention and Combating of Money Laundering and Terrorist Financing, as well as for the Modification and Completion of some Normative Acts’, effective from 21st July, 2019. The law aims to ensure that Romania’s anti-money laundering regime is in line with the Financial Action Task Force’s standards and recommendations. The law establishes the national framework for preventing and combating money laundering and terrorist financing.
The ‘Romania - AML KYC Regulations’ report may be used as a reference to highlight information from the Romanian ‘Law For the Prevention and Combating of Money Laundering and Terrorist Financing, as well as for the Modification and Completion of some Normative Acts’.
Under the guidelines from the National Office for Prevention and Control of Money Laundering (ONPCSB), National Bank of Romania and the aforementioned Act(s), this document highlights the necessary requirements for AML and KYC procedures, in particular, AML and Identity Verification required in Romania. These requirements are approximated from relevant information/laws/directives from the aforementioned document.
Client: Shufti Pro’s customer is referred to as the Client.
Customer: The client’s customer whose subject to the KYC - AML checks.
End-user: The client’s customer is referred to as end-user but from Shufti Pro’s perspective.
Document Verification: The process of verifying the authenticity of a government-issued identity document.
Identity Verification: The process of verifying the identity of the client’s customers. Proof of Identity: Any government-issued identity document that can be used to
identify an individual (natural person).
EDD: Enhanced Due Diligence (EDD) is a process that executes a greater level of scrutiny related to the potential business relationships.
Third-Party Diligence: Outsourcing of the due diligence process to an external party by the Client who is originally responsible for carrying out due diligence activities.
PEP: Politically Exposed Person (PEP) is a person with a higher risk for potential involvement in bribery/corruption.
Due Diligence: Refers to the measures taken to mitigate risk before entering into an agreement or carrying out a financial transaction with another party.
● Law No. 129/2019 For The Prevention And Combating Of Money Laundering
5. Due Diligence Requirements
5.1. Identity Verification Requirements
As per the requirements of Romania’s regulations, these are the following ID attributes required for the purpose of identifying a natural person (Individual) from official documents.
5.2. Compliant CDD Methods
Date of Birth;
Shufti Pro may apply one or more of the following measures at the request of the Client to perform Identity Verification on its behalf. Where an End-user is an individual, who does not present himself to the Client for verification in physical presence.
5.3. Documents Required for Verification
5.3.1. Shufti Pro shall perform verification of the End-user’s identity on the basis of independent sourced documents that are highlighted in 5.3. These documents provide reasonable reliability to the confirmation of the identity in Romania. Shufti Pro shall ensure that documents being utilized are photo-based biometric identification documents that suffice requirements for Identity Verification.
5.3.2. For the purpose of verifying the End-user’s identity, Shufti Pro shall also verify the documents that are submitted. They utilize specialized Document Verification service to perform checks on the authenticity of the document. This includes checks on security features such as holograms, tapered/crumpled edges, doctored elements, form inconsistencies, document expiration, MRZ, reflected colors and microprinting.
The following documents are considered in Romania as Proof of Identity:
● Identity card;
The following documents are considered in Romania as proof of address:
● Utility bills; (issued no more than three months ago that shows the End-user’s address and name).
● Bak statement (issued no more than three months ago that shows the End-user’s address and name).
5.4. Timing of Verification
Identity Verification is not limited to a one-time, one instance process. In fact, it is required in multiple instances as per regulations. The application and choice of when to deploy Identity Verification procedures depend on requirements and it’s conveyance to Shufti Pro.
All customers undergo Identity Verification when onboarding, as per the monetary thresholds defined in Romania’s regulations. In other instances, Identity Verification becomes more important to employ if you face higher risks from your Customers. Any instance where an Individual might represent above normal exposure of money laundering related threats to the Client or SHUFTI PRO Ltd, will lead to the Individual being the subject to further scrutiny of funds source.
6. Politically Exposed Persons and EDD Measures
As per the Enhanced Due Diligence requirements under Romanian regulations, SHUFTI PRO Ltd. is required to determine if the Customer is a Politically Exposed Person, holds a public office, or exhibits a higher risk profile. In order to fulfill ythe obligations, Shufti Pro provides the AML Screening service. The service screens an individual’s selected ID attributes of Name and DOB against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs and sanctioned individuals.
The service highlights the category of the PEP based on the degree of risks they pose and also any immediate family member, or a close associate of the PEP.
This service is included before or after establishing a relationship between the Client and the Customer.
7. Record Retention
As per Romania’s Act, SHUFTI PRO Ltd. is required to retain data for no less than five (5) years. These are a part of AML and KYC obligations for due diligence in the case where this information is processed, collected and managed by a relevant third-party (SHUFTI PRO Ltd.).