CMS | Romania imposes new reporting obligations on entities supervised by the Financial Supervisory Authority

Romania recently published Government Emergency Ordinance no. 125/2024 in the Official Gazette no. 1073/ 25.20.2024, which creates new obligations for entities authorised, regulated, supervised and controlled by the Financial Supervisory Authority (FSA) to report information on life insurance and other financial products.

The financial non-banking sectors under the supervision and regulation of the FSA include insurance, capital markets and private pensions.

In order to comply with these new Fiscal Procedure Code reporting requirements, FSA supervised entities are obliged to report the following to the National Agency for Tax Administration (ANAF) on a semi-annual basis – the list of resident individuals who have contracted life insurance and other financial products, the type of insurance and other financial products, and information related to them.

This provision has been criticised as vague or unclear. However, the ANAF and FSA are to provide more detailed information at a later date, such as specifying the types of life insurance and other financial products subject to the reporting obligation, the content of the reporting, the forms to be used for reporting and the reporting deadlines.

This provision will go into effect on 1 January 2025. Entities that fail to comply with the reporting obligation, or report incorrect or incomplete information will be sanctioned with fines of between RON 20,000 to RON 100,000.