Romania: corporate statements regarding ultimate beneficial owner(s), March 2020

Law no. 129/2019 for the prevention and combating of money laundering and terrorism financing, and for the amendment and supplementation of certain legislative acts (“Law 129/2019“) requires Romanian companies subject to registration with the Romanian Trade Registry (with the exception of national companies and companies fully or majority owned by the State) to submit statements on their ultimate beneficial owners with the Romanian Trade Registry.

Such statement must be submittedin the following scenarios:

• upon the incorporation of the relevant company;
• annually, within 15 days as of the approval of the annual financial statements;
• and in case of a change of the identification details of the ultimate beneficial owners, within 15 days as of date of the occurrence of the change.

A grace period of 12-months as of the entry into force of Law 129/2019 was granted to companies already incorporated upon the enactment of the same.

Failure to submit the statement is an administrative offence punished by fines between RON 5,000 (approximately EUR 1,040) and RON 10,000 (approximately 2,080).

Should the companies fail to submit the statement after the relevant fine is imposed, the competent court can order the dissolution of such companies.

The registry where the Trade Registry will register the ultimate beneficial owners was not operational upon the entry into force of Law 129/2019.