Payment Transactions in Romania – Particularities

The daily payment transactions occur under the supervisions of banks and in compliance with the foreign exchange law. Some principles and particularities are to be discussed below.   

In general, payment transactions between residents and non-residents can be performed in RON or a foreign currency. No legal restrictions apply, although certain payment flows contain foreign elements such as payments between a Romanian and a foreign person, between a parent company and its Romanian branch or other similar cases.

Exceptions for payment flows between residents

Payments in commercial transactions between residents have to occur in RON. Certain exceptions hereto exist which are listed in Annex 2 to the rules of procedure. Residents may perform payments to other residents based on value papers, deposits, loans /credits, distribution of dividends in RON or a foreign currency.

In order to generate an invoice in a foreign currency, the consent of the parties is required.

However, payments based on an employment relationship can be made exclusively in RON.

Reporting obligations

Bond loans with a duration of more than one year must be notified to the National Bank of Romania within 3 days after signing the respective agreement, according to the rules of procedure Nr. 4/2014 of BNR. The notification shall be made by filling out a form which is available on the website of the National Bank of Romania. Amendments to the above mentioned agreements shall also be notified.

Direct investments of residents abroad, such as long lasting assets in foreign entities, for instance contribution shares in the share capital of a foreign company of at least 10% or the establishment of a foreign branch, real estate purchasing abroad etc., also have to be notified.

Other effects

Moreover, banks have a reporting obligation towards the fiscal administration. Banks, having the obligation to report certain information to the fiscal authorities, must organize a centralized electronic register of the IBAN – accounts. Hence the fiscal authorities may access such information and for example block the accounts of a person not having paid his/her duties towards the state budget or check transactions performed by a certain person through his/her bank accounts.       

Foreign persons opening an account in Romania have to be registered for fiscal purposes. If a foreign person was not registered, the bank has the obligation to impose the registration to be made.  

Conclusion

For international payment transactions, the involved parties must consider certain relevant aspects in order not to fail to observe certain obligations.

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