Romania Country Summary

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 efficiency. The National Anticorruption Strategy (2021-2025) aims to strengthen anti-corruption efforts, yet issues like the statute of limitations hinder convictions. Additionally, Romania faces significant challenges with human trafficking, organized crime, and cybercrime, while civil society organizations struggle with funding and political censorship.

Romania has a largely open investment regime, attracting foreign investment due to its strategic location, EU and NATO memberships, competitive wages, and a well-educated workforce. The economy has shown resilience, growing by an estimated 4.1% in 2022 and 2.1% in 2023, while inflation has moderated but remains above the National Bank's target. Romania is set to receive significant EU funding, which could drive medium-term growth, although challenges in administrative capacity may hinder effective implementation.

Romania has a largely open investment climate, actively welcoming foreign investment due to its strategic location, EU and NATO memberships, and a well-educated workforce. However, potential investors should exercise due diligence, as the investment landscape is mixed, with ongoing challenges such as bureaucratic inefficiencies, a lack of administrative capacity, and concerns over governance. Recent reforms and the establishment of the Romanian Agency for Investment and Foreign Trade (ARICE) aim to facilitate foreign investment, but the unpredictable business environment remains a significant consideration.