Overview of Romanian EMI Licensing
Romania offers electronic money institution licensing under the supervision of the National Bank of Romania (Banca Nationala a Romaniei - BNR). As an EU member state, Romanian EMI authorization provides access to the broader European market through passporting arrangements, while Romania's position in Eastern Europe offers strategic advantages for regional market development.
The Romanian regulatory framework, strengthened through measures introduced in 2018, applies European standards while addressing the specific characteristics of the Romanian financial services market.
Regulatory Framework
Romanian EMI regulation derives from European harmonization requirements:
EU Directive 2009/110/EC: The Electronic Money Directive, implemented in Romanian law, establishes authorization and operational standards for electronic money institutions.
Payment Services Directive 2 (PSD2): Directive 2015/2366 governs payment services, including strong customer authentication and open banking provisions.
Romanian Emergency Ordinances: The Ministry of Finance established key definitions and issuer requirements through official regulatory measures, including significant provisions introduced in summer 2018.
Romanian Anti-Money Laundering Legislation: Implements EU AML directives, establishing customer due diligence and suspicious activity reporting obligations.
EU Standards Compliance: Operators must follow EU directives, European Parliament regulations, and applicable standards including PCI DSS for payment card operations and GDPR for data protection.
Definition of Electronic Money
Under Romanian regulations, electronic money represents monetary values stored electronically. Licensed issuers can facilitate payment transactions accepted by parties other than the digital fund issuer, enabling broad payment ecosystem participation.
Corporate Structure Requirements
Legal Entity Formation
- •Register a legal entity in Romania under appropriate corporate structure
- •Physical office establishment with adequate staff
- •Genuine operational substance within Romania
Director Requirements
- •Minimum two EU-resident directors mandatory
- •Directors must possess verified financial/economic qualifications
- •Relevant experience in financial services required
- •Fit and proper standards apply
Local Presence
- •Physical office supporting operations
- •Staff adequate for authorized activities
- •Key management functions performed locally
Documentation Requirements
Business Planning
- •Comprehensive business plans with multi-year financial projections
- •Market analysis and strategy
- •Description of proposed services
- •Operational procedures
Due Diligence Documentation
- •Due diligence screening for founders and management
- •Background verification
- •Source of funds documentation
- •Beneficial ownership disclosure
Corporate Documents
- •Certificate of incorporation
- •Articles of association
- •Shareholder structure documentation
- •Management appointment records
Information Security Requirements
Romanian regulations emphasize robust information security measures:
Technical Requirements
- •Appropriate IT equipment and infrastructure
- •Anti-virus protection systems
- •Firewall implementations
- •Secure network architecture
Access Controls
- •Access management systems
- •Account control mechanisms
- •User authentication procedures
- •Authorization protocols
Security Policies
- •Written security policies and procedures
- •Incident response plans
- •Business continuity measures
- •Regular security assessments
Data Protection Compliance
GDPR Implementation
- •Full compliance with GDPR requirements
- •Written personal data processing procedures
- •Data subject rights implementation
Documentation Requirements
- •Written personal data registers
- •Privacy policies
- •Consent management systems
- •Data processing agreements
Organizational Requirements
- •Data Protection Officer (DPO) appointment where required
- •Privacy impact assessments
- •Data breach notification procedures
Technical Security
- •Technical security policies implementation
- •Encryption for sensitive data
- •Secure data storage and transmission
- •Regular security audits
Authorization Process
Pre-Application Phase
- •Business model development and regulatory classification
- •Corporate establishment in Romania
- •Capital arrangement
- •Compliance framework development
- •Director recruitment meeting qualification requirements
Application Submission
- •Complete documentation package to BNR
- •Application fee payment
- •Formal acknowledgment
Regulatory Review
BNR evaluates:
- •Business plan viability
- •Capital adequacy
- •Management fitness and propriety
- •Governance and compliance frameworks
- •Information security measures
- •Operational readiness
Decision
- •Authorization granted (with or without conditions)
- •Or refusal with stated reasons
Post-Authorization
- •Implementation of operational systems
- •Banking relationship establishment
- •Connection to payment infrastructure
- •Supervised commencement of activities
Capital Requirements
Romanian EMI capital requirements align with EU standards:
Minimum Initial Capital: €350,000 for electronic money institution authorization, consistent with EU Directive requirements.
Ongoing Capital: Licensed EMIs must maintain own funds calculated according to prescribed methods based on outstanding electronic money and payment transaction volumes.
Services Under Romanian EMI Authorization
Licensed institutions may provide:
Electronic Money Services
- •Issuance of electronic money against receipt of funds
- •Redemption at par value
- •Distribution through authorized channels
Payment Services
- •Operation of payment accounts
- •Credit transfers and standing orders
- •Direct debit services
- •Card issuance and processing
- •Money remittance services
- •Payment initiation services
- •Account information services
EU Market Access
Romanian EMI licenses provide passporting rights throughout the European Economic Area:
Freedom of Services
Cross-border provision of services without establishing local presence in host member states.
Freedom of Establishment
Establishing branches or appointing agents in other EU/EEA member states.
Passporting Process
Notification to BNR, which coordinates with host state regulators for market entry.
Advantages of Romanian EMI Licensing
EU Market Access
- •Direct passporting throughout the European Economic Area
- •Access to 450+ million European consumers
- •SEPA participation
Regional Position
- •Gateway to Eastern European markets
- •Strategic position for regional operations
- •Growing regional financial services sector
Cost Competitiveness
- •Competitive operating costs compared to Western European jurisdictions
- •Skilled workforce at competitive compensation levels
- •Favorable cost structure for FinTech operations
Talent Pool
- •Strong IT and technical skills workforce
- •University graduates in relevant disciplines
- •Growing FinTech employment base
Compliance Obligations
Prudential Requirements
- •Capital adequacy maintenance
- •Customer fund safeguarding
- •Liquidity management
AML/CFT Compliance
- •Customer due diligence procedures
- •Transaction monitoring
- •Suspicious activity reporting
- •Record keeping requirements
Regulatory Reporting
- •Periodic financial returns to BNR
- •Annual audited financial statements
- •Notification of material changes
PCI DSS Compliance
For card-related services, compliance with Payment Card Industry Data Security Standard requirements.
Practical Considerations
Professional Support
Most applicants engage:
- •Romanian legal counsel familiar with BNR requirements
- •Compliance specialists for policy development
- •Local accounting and audit support
- •IT security consultants
Language
Romanian language proficiency beneficial for regulatory interactions. Certain documentation may require Romanian language versions.
Timeline
BNR processing times vary based on application quality and complexity. Well-prepared applications with qualified management typically progress more efficiently.
Banking Relationships
Romania hosts both domestic banks and international institutions providing options for corporate banking facilities.
Conclusion
Romanian EMI licensing provides access to European markets through EU passporting while offering competitive operating costs and a skilled workforce. The BNR's established regulatory framework ensures licensed institutions operate within defined standards aligned with EU requirements.
Success requires thorough preparation, including qualified EU-resident directors with financial services expertise, comprehensive information security measures, and robust GDPR compliance. Companies should engage appropriate Romanian professional support and ensure genuine operational capability within the jurisdiction.
The combination of EU membership, competitive costs, and regional positioning makes Romania an attractive option for FinTech companies seeking Eastern European market presence with full European market access.