The National Office for Preventing and Combating Money Laundering pays particular attention to education and awareness of money laundering and terrorist financing in the gambling industry 64v4m

We offer you a comprehensive interview with Mr. Adrian Cucu – President of the National Office for Preventing and Combating Money Laundering (ONPCSB). We discussed several topics related to the cooperation of this institution with the NGO and gambling operators, but also general topics such as the National Risk Assessment, the Mutual Evaluation Report of Romania after the visit of the experts of the Moneyval Committee of the Council of Europe to Romania last year or the objectives of the ONPCSB for the next period of time. I recommend you to read this material especially as it represents one of the major concerns of our gaming industry in recent years. 103y2l

Adrian Cucu – President of the National Office for Preventing and Combating Money Laundering (ONPCSB) 3l1437

Last year on 22-25 November 2022 the National Office for Preventing and Combating Money Laundering together with the institutional partners of the SRSP 2020/137.01 project discussed the National Money Laundering and Terrorist Financing Risk Assessments in Romania. What were the conclusions? Please also cover the area of gambling.

During 2022, in a national premiere, Romania completed an extensive and comprehensive National Money Laundering and Terrorist Financing Risk Assessment process, in which the Office provided the role of national coordinator, as well as information with data and information within its sphere of competence.

On 16 September 2022, the of the Inter-Institutional Council for the approval of the Report on the National Risk Assessment on Money Laundering and Terrorist Financing, established by the Decision of the Prime Minister No 454/02.09.2023, met in a working session and adopted the Report on the National Risk Assessment on Money Laundering and Terrorist Financing for the period 2018-2020.

The main conclusions and findings of the national risk assessment concern the classification of business sectors according to the level of risk associated with money laundering and terrorist financing.

Thus, some sectors such as the sub-sector of non-bank financial institutions (leasing/credit institutions), the mutual aid houses sector (non-bank financial institutions ed with the National Bank of Romania), other professionals such as auditors and valuers, and bailiffs present a low risk.

The assessment revealed an average residual exposure risk for the banking sector, securities intermediaries, investment/dealers, investment fund management companies, securities depositories, insurance financial institutions, pawnbrokers (non-bank financial institutions ed with the National Bank of Romania) and non-bank financial institutions (ed exclusively with the National Bank of Romania’s Special and not having the status of payment institution 34 or electronic money institution), the currency exchange offices sector, gambling service providers of the betting type (land-based) and slot machines (land-based), professionals such as lawyers, notaries, chartered ants and certified ants, as well as tax consultants, insolvency practitioners and persons dealing in works of art.

The sub-sectors of electronic money institutions, payment institutions and electronic money distributors/payment agents were also found to be at medium to high risk.

According to the national risk assessment, the most vulnerable sectors in of the threat of money laundering and terrorist financing are: gambling service providers sector, both casinos (land-based or online) and online gambling, services provided by professionals offering management and business consultancy, service providers for companies or trusts other than those referred to in points (e) and (f) of Law 129/2019, real estate agents and developers, providers of virtual and fiat currency exchange services and providers of digital wallets, all of which are exposed to high risk.

For more information on the National Risk Assessment, please consult the summary of the National Risk Assessment Report published on our website at the following address:

https://www.onpcsb.ro/s/articole/attachments/643ffdc8b970f186011444.pdf

National Office for Preventing and Combating Money Laundering (ONPCSB)

Last autumn a team of experts from the Council of Europe’s Moneyval Committee visited Romania to assess the anti-money laundering and combating the financing of terrorism (AML/CFT) system in Romania. Please let us know the conclusions of their report? We know the risks of a negative report (see the case of Malta) and we would not want to get into unpleasant situations. Hence our curiosity about the opinion of international experts on our country’s compliance in this matter.

From 21 September to 4 October 2022, Romania received the on-site visit of the team of experts of the Moneyval Committee of the Council of Europe, within the framework of the 5th Round of the evaluation of the anti-money laundering and combating the financing of terrorism (AML/CFT) system in Romania, which started in October 2021.

Romania’s Mutual Evaluation Report was approved at the 65th plenary meeting of the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL) in Strasbourg on 22-26 May 2023.

The ratings obtained, both in of the technical compliance of the legislative framework and the efficiency of its implementation, place Romania at the top of the informal hierarchy of the results obtained by the countries assessed by Moneyval in Round V, and place our country in a normal monitoring process, with the next progress report to be presented to the Moneyval Committee in two years’ time.

Please tell us if during the last year there have been controls by the ONPCSB to gambling operators in our country on issues related to the application of the legislation in this field, and what were the conclusions and consequences? What irregularities did you find? Were companies sanctioned? What steps have been taken to improve the enforceability of the law in our area? Are gambling operators sufficiently prepared to enforce the law in cases related to preventing and combating money laundering?

In 2022, the gambling industry has not been included in the ONPCSB’s control plan, but we have confidence in the professionalism and expertise of the National Gambling Office (ONJN) in supervising and carrying out controls in this sector.                                      In accordance with the provisions of Article 26 of Law 129/2019 on preventing and combating money laundering and terrorist financing, as well as amending and supplementing certain regulatory acts, the application of the obligations established by the aforementioned regulatory act is supervised and controlled, for gambling providers, by the National Gambling Office.

Last year, on 28 March, you were appointed President of the ONPCSB. More than 1 year after taking over the leadership of this institution, please tell us what are the main achievements of your mandate and what are the proposed objectives for the next year?

Since I took office as President of the Office, I have set myself, together with all my colleagues in the institution, the goal of achieving significant objectives capable of positively marking the results of the work to prevent and combat money laundering and terrorist financing. These objectives include:

• adoption of the National Risk Assessment and the Strategic Action Plan to mitigate the risks identified by the National Risk Assessment;
• completion of the Mutual Evaluation process, marked by the adoption of Romania’s Mutual Evaluation Report, with results that place Romania at the top of the informal ranking of the results obtained by the countries evaluated by Moneyval in Round V and place our country in a normal monitoring process, with the next progress report to be presented to the Moneyval Committee in two years’ time;
• relocation of the institution to new premises;
• increase by 30 the number of posts allocated to the institution;
• continue the process of implementing new financial analysis software;
• establishment of a structure within the Office with exclusive powers of supervision and control of providers of cryptocurrency and trust currency exchange services and providers of digital wallets;
• creation of the legal framework establishing the obligation to notify the Office of the commencement or cessation of business by reporting entities that are not subject to supervision by an authority and the creation of the online platform for such notifications.

For the year 2023, one of our main objectives is to put into operation and make efficient use of the Integrated Information Analysis System, thus ensuring the full implementation of this high-performance system at ONPCSB level. At the same time, we are focusing on the digitization of document management at the level of the Office in order to streamline activities and reduce the volume of physical documents, adapting to developments in the digital age.

We also aim to meet the commitments made for 2023 in the Strategic Action Plan to mitigate the risks identified during the national assessment of money laundering and terrorist financing risks, actively collaborating with the other national institutions involved in this process.

Last but not least, we will ensure the appropriate framework for the revision of national legislation on preventing and combating money laundering and terrorist financing, taking into the final provisions to be offered in the EU AML package and the recommendations addressed to Romania following the Mutual Evaluation carried out by Moneyval in the 5th Round.

combat money laundering

At the end of January, the 5th National Conference “Preventing and Combating Money Laundering. Impact of the law on the liberal professions”. What were the main conclusions that emerged from the presentations and debates that took place on this topic?

At the 5th National Conference “Preventing and Combating Money Laundering. The impact of the law on the liberal professions”, participants included representatives of regulatory bodies as well as representatives of key reporting entities within the professions. This diverse representation allowed for a comprehensive debate and a change of perspective on the topic.

The conference addressed issues related to the challenges faced by the professions in fulfilling their obligations under the AML/CFT legislation. These challenges include difficulties in identifying and managing risks, and meeting compliance requirements in an efficient manner commensurate with available resources.

The conference also highlighted emerging trends and best practices in this area. By presenting these best practice examples, participants had the opportunity to get inspired and understand how they can improve their processes to prevent and combat money laundering.

Another highlight of the conference was the presentation of the findings of the National Risk Assessment. This assessment provides a holistic view of the specific risks faced by Romania in relation to money laundering and terrorist financing. Knowing these risks helps professionals adapt their strategies and practices to address them more effectively.

The main conclusion of the conference was that compliance with AML/CFT obligations is an effective tool for reporting entities to protect their reputation and ensure the stability of their business in the face of serious consequences that may arise from non-compliance with AML/CFT rules and laws. At the same time, the importance of adopting a risk-based approach and targeting resources appropriately to high-risk sectors was stressed. This approach allows efforts and resources to be concentrated in areas where the greatest vulnerabilities and threats are identified, facilitating their more effective use in combating money laundering.

In of gambling, what are the main concerns of the ONPCSB in the short and medium term? What are we doing right? What does the gambling industry need to improve? What are your expectations from our industry?

Close collaboration with the National Gambling Office is an essential pillar in our efforts to prevent and combat money laundering in the gambling industry. We rely on our strong partnership with the NGO to implement effective strategies and measures in regulating and monitoring this area.

Thus, in accordance with the measures adopted by the ONPCSB together with the competent national authorities, through the development of the Strategic Action Plan to mitigate the risks identified during the national assessment of money laundering and terrorist financing risks, the short and medium-term objectives, applicable also to the field of gambling, aim at:

• strengthening the institutional framework for the continuous updating of the national risk assessment;
• deepening the understanding of money laundering and terrorist financing risks;
• conducting a national overgrowth financing risk assessment in accordance with FATF/FATF Recommendation 1;
• implementing a public communication and education policy on the negative impact of money laundering, terrorist financing and proliferation financing on society;
• strengthening the framework for inter-institutional cooperation and exchange of information between authorities responsible for preventing money laundering, terrorist financing and proliferation financing.

The ONPCSB pays particular attention to education and awareness of money laundering and terrorist financing in the gambling industry. To this end, through training sessions organized annually by the Office, we aim to improve knowledge and compliance practices among gambling operators and other categories of reporting entities on money laundering risks and prevention mechanisms.

We also appreciate the increased cooperation with gambling operators in reporting suspicious transactions and implementing compliance measures. We also recognize the efforts made in developing and using advanced monitoring technologies to identify suspicious activity.

On the other hand, we believe that greater transparency and collaboration between the gambling industry and regulators is needed to ensure proper implementation of AML/CFT measures. Improving reporting systems and the ability to identify and manage risks within the industry are key issues.

The main expectation is that operators in the gambling industry are aware of the risks of money laundering and implement effective measures to prevent and combat this phenomenon. A proactive approach to identifying and managing risks and implementing robust systems for prompt monitoring and reporting of suspicious transactions and activities is desired. Collaboration and the provision of relevant information to the Office are also important expectations.