Recently, the Romanian Minister of Public Finance released Order no. 1939/2016 regulating the main reporting requirements of financial institutions (“Order 1939”). Order 1939 ensures the joint application of three related pieces of regulation - the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information, ratified by Romanian Law no. 70/2016; the Agreement between the US and Romania to Improve International Tax Compliance and to Implement FATCA, ratified by Romanian Law no. 233/2015; and the Romanian Fiscal Procedure Code.
The main scope of Order 1939 is to:
- Implement the OECD common reporting standard for financial accounts;
- Identify reporting and non-reporting financial institutions;
- Determine which information will be used to identify tax payers whose financial information must be reported;
- Establish the compliance rules that financial institutions must use to identify the reporting accounts and the procedure to report such information;
- Regulate the administrative norms and procedures in order to ensure the application and observance of the reporting procedures and fiscal compliance rules.
Annex 1 to Order 1939 presents a list of the participant jurisdictions and Annex 2 lists the economic activity codes to be used to determine which account holders are financial institutions and which are passive non-financial foreign entities.
Order 1939 goes into great detail with specific aspects related to the reporting requirements.