Ultimate Beneficial Owners at a Glance
We have tackled the subject of the ultimate beneficial owners (Ro. beneficiar real) on a regular basis in our past articles. Shortly after Romania was sanctioned due to its failure to implement the 5th anti-money laundering directive, two changes of the money laundering law were adopted in July. The subject is far from being exhausted. By means of the questions below, we will try to synthesize the most important regulations, as well as the issues not yet clarified.
Further fiscal support measures
The Emergency Ordinance (“EO”) No.99/2020, issued on the 25th June 2020, extends certain payment terms and temporary measures taken during the state of emergency and also includes some tax benefits.
Fiscal measures after the state of emergency
Following the state of emergency, in order to encourage the Romanian business environment, Romanian Authorities came with a series of fiscal measures and facilities. All the new provisions, which change and/or complement the provisions of the Fiscal Code, are detailed in Government Emergency Ordinance (G.E.O.) no. 69/2020, published on 14.05.2020. We would like to bring to your attention the most important topics.
Anti-money laundering rules: the electronic central register for accounts
On 11.07.2019, Law No. 129/2019 on preventing and combating money laundering and the financing of terrorism was put into effect. It underwent several changes, among which the one made through the Emergency Ordinance (“EO”) No. 111/2020.
Amendments to the insolvency law in Romania
At the present time, there is consensus around the world: the COVID-19 pandemic will have significant economic consequences in all countries. In the eurozone, many states face a drop in their gross national product for the second quarter of 2020: Spain by 18,5%, France by 13,8%, Italy by 12,4% and Germany by 10,1% . This, of course, is a red flag pointing to a possible increase in insolvency cases, also in Romania.
NEWSFLASH - Short-time work is finally regulated! (supplemental)
NEWSFLASH - Short-time work is finally regulated! (supplemental) As announced last week, on 10.08.2020 Romania has joined the circle of European states implementing short-time work during the pandemic. The Emergency Ordinance 132/2020 (the "EO") is the result of an initiative launched as early as at the beginning of March, in which our law firm was actively involved. Supplemental to the general principles, conditions and limitations applicable to the short-time work legal frame, presented in our previous Newsflash, we have prepared an overview of the new rules with regard to special categories of employees/ employment agreements. Please find more details here.
NEWSFLASH - Short-time work is finally regulated!
NEWSFLASH - Short-time work is finally regulated! Many states have successfully used short-time work during the pandemic to keep their economies alive and reduce unemployment. Fortunately, Romania has joined this circle since 10.08.2020. The Emergency Ordinance 132/2020 (the "EO") is the result of an initiative launched as early as at the beginning of March, in which our law firm was actively involved. Please find more details here.
NEWSFLASH - New Law on quarantine and isolation in force
NEWSFLASH - New Law on quarantine and isolation in force On July 21., the Law No. 136/ 2020 regarding measures in the public health sector for epidemiological and biological risk cases (the „Law”) entered into force. The Law sets the legal base for certain temporary restrictions in situations where epidemiological and biological risk exists, especially by means of quarantine and isolation of individuals. Not only does it cover the current crisis caused by the COVID-19 Pandemic, but also generally applies to future epidemics/ pandemics. The legal purpose is to avoid or limit the introduction and spread of contagious diseases in the above mentioned cases. For more information please find more details here.
NEWSFLASH - Practical changes related to statements on beneficial owners (UBO)
NEWSFLASH - Practical changes related to statements on beneficial owners (UBO) We have reported regularly on the changes and deadlines that have occurred since July 2019 regarding Romania's new anti-money laundering legislation (Money Laundering Act No. 129/2019). Last week brought on July 9, 2020 two practical facilities and clarifications based on the Law no. 108/2020. For more information please find more details here.
New law simplifies procedures regarding Romanian companies
On 2nd of July 2020, the Law no. 102/ 2020 amending the Romanian Companies’ Law (Law no. 31/1990) was published in the Romanian Official Gazette. As of July 5th 2020, this law removes some long criticized bureaucratic obstacles regarding the incorporation of Limited Liability Companies and the activity of Romanian companies.