Complete guide for fulfilling AML audit obligations in Romania

In the context of increasingly strict regulations on the prevention and combating of money laundering and terrorist financing, it is important for every reporting entity to address the legal obligation to conduct an AML audit. An effective AML audit must reflect the requirements of Law no. 129/2019 and secondary regulations, as well as the expectations of supervisory and regulatory authorities.

This guide presents the correct way to organize, conduct, and implement an AML audit so that entities can demonstrate real and sustainable compliance.

The role of AML audits and the importance of compliance in Romania

To fully understand the need for customizing an AML audit, it must be recognized that each industry presents distinct risks and specific vulnerabilities. For example, entities in the financial sector face risks related to complex transactions and high volumes of operations, while companies in real estate must manage risks associated with high-value property transactions and potential money laundering schemes through successive purchases and sales. Additionally, the gambling and cryptocurrency sectors introduce an extra level of complexity due to the digital nature and partial anonymity of transactions.

The purpose of an AML audit is to verify the independence and effectiveness of the entity’s framework for preventing and combating money laundering and terrorist financing. Its objectives are to assess:

• The degree of alignment with applicable national and European legislation

• Implementation of internal procedures and the effectiveness of controls

• The level of understanding and application of AML measures by staff

• Residual risks and existing vulnerabilities

  
  

Because AML risks vary depending on the sector, size, business model, and distribution channels, the audit must be tailored to the specific characteristics of each entity, ensuring an objective and relevant analysis.

Customized AML compliance solutions: essential steps for implementation

To properly fulfill legal obligations regarding an AML audit, it is necessary to follow a series of well-defined steps that ensure the audit is correctly and fully adapted to the specific needs of your business. These steps include:

1. Preliminary analysis and understanding of the entity’s AML risksConduct a comprehensive AML risk assessment, including identification of client types, offered products and services, distribution channels, involved jurisdictions, and internal vulnerabilities.

   
   

2. Establishing the audit methodology and frameworkDefine audit criteria, sources of verification, and sampling methodology for reviewing transactions, KYC files, and reports submitted to authorities.

   
   

3. Verifying the implementation of AML measuresThe audit evaluates compliance with Law 129/2019 and includes checks such as:

   • Client identification and verification (KYC)

   • Customer risk assessment

   • Transaction monitoring and reporting of suspicious activities

   • Screening for sanctions, PEPs, and negative media

   • Employee training, testing, and preparedness

   • Internal governance and management involvement

     
     

4. Identifying deficiencies and providing recommendationsHighlight non-compliance, procedural errors, and risk areas, accompanied by concrete recommendations and remediation deadlines.

   
   

5. Audit report and corrective action planThe final report must be clear, documented, objective, and available to authorities during inspections. An action plan is developed, assigning responsibilities and implementation deadlines.

   
   

6. Periodic follow-upThe audit does not end with the report. Implementation of corrective measures must be monitored and updated regularly.

   
   

These customized AML compliance solutions are essential for ensuring adequate protection against money laundering risks and maintaining a high level of integrity and transparency in the entity’s operations.

Essential elements to be assessed in an AML audit

To ensure the effectiveness of a customized AML audit, special attention must be given to key elements that form the pillars of a robust compliance strategy. These include:

• Client identification and verification (KYC – Know Your Customer)KYC procedures should be tailored to the client’s profile and associated risks, including enhanced checks for high-risk clients.

  
  

• Continuous transaction monitoringImplement automated and manual systems to detect suspicious transactions, with parameters adjustable based on evolving risks.

  
  

• Suspicious activity reportingEstablish clear and efficient procedures for reporting to competent authorities, ensuring confidentiality and data protection.

  
  

• Internal audit and periodic evaluationConduct regular internal audits to verify compliance with procedures and identify any deficiencies or non-compliance.

  
  

• Comprehensive and transparent documentationMaintain thorough records of all compliance-related activities and decisions to facilitate inspections and demonstrate due diligence to authorities.

  
  

• Senior management involvementEnsure strong commitment from management to support and promote a compliance culture throughout the organization.

  
  

Integrating these elements into a coherent and tailored process helps create an anti-money laundering system that effectively addresses the specific challenges of each entity.

Practical recommendations for optimizing an AML audit

To maximize the benefits of a customized AML audit, it is recommended to implement practical measures that support both efficiency and sustainability. These include:

• Use of specific performance indicators (KPIs)Define relevant KPIs to monitor the effectiveness of AML controls, such as the number of suspicious transactions identified, response time to alerts, or employee compliance levels.

  
  

• Automation of repetitive processesImplement software solutions to automate routine checks, freeing resources for analyzing complex cases.

  
  

• Collaboration with external expertsPeriodically consult AML specialists to benefit from updated expertise and ensure compliance with the latest regulations.

  
  

• Continuous updating of proceduresQuickly adapt internal policies to legislative changes and evolving risks to maintain the audit’s relevance and effectiveness.

  
  

• Involvement of all relevant departmentsEnsure effective communication and collaboration between finance, legal, compliance, and operational teams for an integrated risk approach.

  
  

• Periodic risk assessmentConduct updated risk analyses at least annually to identify new threats and adjust preventive measures accordingly.

  
  

Applying these recommendations turns the AML audit process into not only a legal obligation but also a strategic tool for protecting and sustainably developing the business.

The AML regulatory context in Romania and the need for continuous adaptation

AML legislation in Romania is evolving rapidly, both through national updates and the transposition of European directives. Therefore, an AML audit should be viewed as a continuous, flexible, and proactive process, rather than a single annual check.

Collaboration with specialized institutions and service providers, such as AML Expert, facilitates access to innovative solutions and up-to-date know-how, which is essential for maintaining an optimal level of compliance. This collaboration also allows for an objective and independent assessment of internal processes, helping to quickly identify and remediate any vulnerabilities.

Conclusion

Conducting an AML audit tailored to the specific characteristics of an entity is both a legal obligation and a strategic tool for protecting against operational, reputational, and legal risks. A properly executed audit contributes to higher compliance levels, strengthens the internal culture of integrity, and safeguards the long-term stability of the business.