Regulation no. 28 from - ALB

REGULATION NO. 28of 15 December 2009On supervising the way in which international sanctions concerning the freeze of assetsare enforcedConsidering the provisions of Article 5, paragraph (1), Article 15, paragraph (2), Article 17,paragraphs (1), (4) and Article 18 of Government Emergency Ordinance No. 202/2008concerning the implementation of international sanctions, approved and amended by Law No.217/2009, of Article 17 paragraph (1) in Law No. 656/2002 for the prevention andsanctioning of money laundering, as well as for setting up measures for prevention andfighting the financing of acts of terrorism, as subsequently amended and completed, of Article4, paragraph (1) in Government Emergency Ordinance No. 99/2006 concerning creditinstitutions and capital adequacy, approved and amended and completed by Law No.227/2007, as subsequently amended and completed, of Article 62 in Government EmergencyOrdinance No. 113/2009 concerning payment services, of Article 44 of Law No. 93/2009concerning non-banking financial institutions, the recommendations of the Council of theEuropean Union formulated in the document titled "Best European Union practices for theefficient enforcement of restrictive measures", 2008, as well as the recommendations issuedby the Financial Action Task Force on Money Laundering in the document: "Bestinternational practices – freezing terrorist assets", 2009 version,Based on the provisions of Article 17, paragraph (6), and of Article 18, paragraph (3) ofGovernment Emergency Ordinance No. 202/2008, approved and amended by Law No.217/2009, of Article II in Law No. 217/2009 and of Article 48 in Law No. 312/2004concerning the Statute of the National Bank of Romania,The National Bank of Romania issues this regulation.CHAPTER IGeneral ProvisionsArticle 1. - (1) This Regulation appliesto credit institutions, Romanian legalpersons, payment institutions, Romanianlegal persons, and non-banking financialinstitutions, Romanian legal persons,registered in the special Registrymaintained by the National Bank ofRomania, and regulates the minimumstandards for the implementation ofinternational sanctions that regulate thefreezing of funds, according to theprovisions of Government EmergencyOrdinance No. 202/2008 concerning theimplementation of international sanctions,approved and amended by Law No.217/2009.(2) This Regulation is also appliedaccordingly, for the purpose specifiedunder paragraph (1), to the branches inRomania of credit institutions, foreignlegal persons, to the branches in Romaniaof payment institutions, foreign legalpersons, and to the branches in Romania offinancial institutions, foreign legal persons,registered in the special Registrymaintained by the National Bank ofRomania.(3) For the purpose of this regulation, theentities specified under paragraphs (1) and(2) are henceforth named “institutions”.Article 2. – The terms and expressionsused within this regulation have themeaning specified in GovernmentEmergency Ordinance No. 202/2008,approved and amended by Law No.217/2009.CHAPTER IIDispositions concerning theimplementation of international

sanctions that regulate the freezing offundsArticle 3. - In order to ensure thatactivities are performed in compliancewith the requirements of GovernmentEmergency Ordinance No. 202/2008,approved and amended by Law No.217/2009, the institutions must adoptinternal norms governing theimplementation of international sanctionsthat regulate freezing of assets.Article 4. – The internal normsgoverning the implementation ofinternational sanctions that regulatefreezing of assets should include at leastthe following elements:a) procedures for tracking the appointedpersons or entities and operations in whichgoods are involved, for purposes ofGovernment Emergency Ordinance No.202/2008, approved and amended by LawNo. 217/2009, applicable to potentialclients and applicants of occasionaltransactions;b) a policy concerning the acceptance asclient and the regime of occasionaltransactions for appointed persons orentities or for persons or entities requestingtransactions in which are involved goods,for purposes of Government EmergencyOrdinance No. 202/2008, approved andamended by Law No. 217/2009;c) procedures for tracking appointedpersons or entities and transactions inwhich goods are involved, for purposes ofGovernment Emergency Ordinance No.202/2008, approved and amended by LawNo. 217/2009, applicable to the existingclients in the context of the modificationand/or completion of the regimes of theinternational sanction regarding the freezeon assets;d) the regime for clients which have beentracked as appointed persons or entities,applicable starting on the date when theyno longer come under the incidence ofinternational sanctions that regard freezingof assets, as well as the regime applicableto persons or entities which have appliedfor the making of transactions involvinggoods, for purposes of GovernmentEmergency Ordinance No. 202/2008,approved and amended by Law No.217/2009;e) methods for setting up and keepingrecords concerning the designated personsor entities and persons or entities whichhave applied for making transactionsinvolving goods, for purposes ofGovernment Emergency Ordinance No.202/2008, approved and amended by LawNo. 217/2009;f) the access of persons havingresponsibilities in the field to theinstitutional records so that they canexamine the transactions made in the pastwith persons or entities tracked asdesignated persons or entities;g) the competences of persons who areresponsible for the implementation ofinternal norms governing theimplementation of international sanctionsthat regulate freezing of assets inaccordance with Article 6;h) the reporting procedures, bothinternally and to the competent authorities.Article 5. - (1) The internal normsspecified under Article 3 must be approvedby the management of the institution andsubject to revision whenever it isnecessary.(2) The internal norms for implementingthe international sanctions that regardfreezing of assets must be known by all thestaff with responsibilities in the field.(3) The internal norms for implementingthe international sanctions that regardfreezing of assets shall be submitted to theNational Bank of Romania – theSupervision Directorate – within 5 daysfrom their approval, respectively theirmodification, by the competent bodies.Article 6. – (1) The institutions shallappoint one or more persons who shallcoordinate the implementation of theinternal norms that regulate theimplementation of international sanctionsconcerning the freeze of assets, includingthe permanent updating of information

held by the institution regarding theinternational sanctioning regimes in forcethat regard freezing of assets, themanagement of alerts received from theNational Bank of Romania – theSupervision Directorate – with regard tothe updating of information published onthe internet page of the central bank, inaccordance with Article 5 paragraph (1) ofGovernment Emergency Ordinance No.202/2008, approved and amended by LawNo. 217/2009, and compliance with thereporting obligations.(2) The name and position of personsmentioned under paragraph (1) shall becommunicated to the National Bank ofRomania – the Supervision Directorate –within 5 days from their appointment.Article 7. – The institutions are using, inorder to track the designated persons orentities, the data, including the dataconcerning the real beneficiary, obtainedby applying the client insight measuresspecified by the internal norms elaboratedin order to prevent money laundering andfinancing of terrorism.Article 8. - For those cases in which theinternal norms elaborated in order toprevent money laundering and financing ofterrorism are not stipulating the applicationof client insight measures, the institutionsshall apply the procedures establishedthrough internal norms for implementingthe international sanctions that regulatefreezing of assets specified under Article 3.Article 9. – The reports to the NationalBank of Romania are submitted to theSupervision Directorate both in electronicformat and in hard copy, using the unitaryreporting model, set up in accordance withthe provisions of Article 18 in GovernmentEmergency Ordinance No. 202/2008,approved and amended by Law No.217/2009, and approved by Order of theGovernor.Article 10. – The institutions shallprovide the National Bank of Romania –the Supervision Directorate – by request,any additional relevant data andinformation, according to the requestreceived.CHAPTER IIISupervising measures and sanctionsArticle 11. - While supervising howinternational sanctions that regard freezingof assets are implemented, the NationalBank of Romania may take the followingspecific measures:a) request to modify the internal normsregulating the implementation ofinternational sanctions that regard freezingof assets, as specified under Article 3;b) request to remedy the deficienciesfound.Article 12. - (1) Any breach of thisRegulation and any non-compliance withthe measures required by the NationalBank of Romania shall be sanctioned inaccordance with Article 57 of Law No.312/2004 concerning the statute of theNational Bank of Romania.(2) The measures provided under Article11 may be applied separately orsimultaneously with the sanctions specifiedunder paragraph (1).CHAPTER IVTransitory DispositionsArticle 13. – Without prejudice to thecompliance with the obligations that fall tothem in accordance with GovernmentEmergency Ordinance No. 202/2008,approved and amended by Law No.217/2009, the institutions which arefunctioning on the date when thisRegulation comes into force shall have tosubmit to the National Bank of Romania –the Supervision Directorate - their internalnorms that regulate the implementation ofthe international sanctions that regardfreezing of assets specified under Article 3,as well as the information concerning thepersons stipulated under Article 6, withinnot more than 180 days from the date whenthis Regulation takes effect.

President of the Board of Directors ofThe National Bank of Romania,Mugur Constantin IsarescuBucharest, 15 December 2009.