Transposition of Anti Money Laundering Directive in Romania

Civil Society Europe together with the European Foundation Centre, and the Dafne Donors and Foundation Network in Europe addressed a letter to First Vice President Timmermans and Commissioner Europe last Thursday on the transposition of the 4th Anti Money Laundering Directive in Romania.

The letter expresses concerns on the draft legislation currently being examined by the Chamber of Deputies for fast track approval in particular as regards the provisions applied to civil society organisations (NGOs and foundations)

The draft imposes on all NGOs and foundations the status of obliged entity, placing civil society organisations as a whole as providers of Financial services and under the same due diligence obligations obligations towards partners or individuals as banking institutions, auditors, accountants, notaries, providers of gambling services or real estates, and this without any previous risk assessment.  Furthermore, this provision is also coupled with the wrong translation of beneficial owner into “real beneficiary”. This would include every single person actually assisted by civil society. Thus, the personal data of abuse victims, vulnerable individuals with human rights under threat, journalists or children participating in any kind of NGO activity should be reported, and this in breach of the EU General Regulation on Data Protection.

While the draft imposes disproportionate provisions on civil society organisations, at the same time in the current draft, provisions already covered by the third anti Money laundering Directive  such as on Political Exposed Persons have been removed, and this in a context of repeated corruption scandals.

we ask therefore the Commission to initiate a dialogue with Romanian authorities .

Please find here the full letter

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