According to Government Emergency Ordinance No. 99/2006 on credit institutions and capital adequacy approved and amended by Law No. 227/2007, for the purpose of protecting the interests of depositors and ensuring a sound and viable banking sector, National Bank of Romania shall carry out the prudential supervision of credit institutions, Romanian legal persons, and of their branches established in other Member States or in third countries, by setting rules and prudential banking indicators, by monitoring their observance and the compliance with other requirements laid down by law and by the applicable regulations, on an individual basis, as well as on a consolidated or sub-consolidated basis, as appropriate, in order to prevent and reduce specific banking risks.
National Bank of Romania shall review the arrangements, strategies, processes and mechanisms implemented by each credit institution, Romanian legal person, to comply with the provisions of the Government Emergency Ordinance No. 99/2006 on credit institutions and capital adequacy approved and amended by Law No. 227/2007 and of the regulations issued for its application and shall evaluate the risks to which the credit institution is or might be exposed.
In order to establish and facilitate effective supervision, the National Bank of Romania, in its capacity as authority responsible for supervision on a consolidated basis and/or on an individual basis, and the competent authorities of other states shall conclude written co-ordination and co-operation arrangements.
According to Government Ordinance No. 28/2006 on certain financial and fiscal measures, with a view to achieving its financial stability objectives, the National Bank of Romania shall ensure the monitoring of the non-bank financial institutions registered with the General Register and the prudential supervision of the non-bank financial institutions registered with the Special Register, which are doing business in Romania.
For the entities subject to supervision, the National Bank of Romania is the authority in charge of checking and controlling the manner of applying the provisions of: (i) Law No. 656/2002 on the prevention and sanctioning of money laundering and the setting of certain measures for the prevention and combat of terrorist financing, as subsequently amended and supplemented; (ii) Government Emergency Ordinance No. 202/2008 on the enforcement of international sanctions, as amended and approved by Law No. 217/2009, as subsequently amended and supplemented; (iii) Law No. 535/2004 on preventing and fighting terrorism; (iv) the Regulation for the enforcement of Law No. 656/2002 on the prevention and sanctioning of money laundering and the setting of certain measures for the prevention and combat of terrorist financing, as approved by Government Decision No. 594/2008, as subsequently amended; (v) NBR Regulation No. 9/2008 on "know-your-customer" rules for the prevention of money laundering and terrorist financing, as subsequently amended; and (vi) NBR Regulation No. 28/2009 on overseeing the enforcement of international sanctions imposing the freezing of funds.
The National Bank of Romania has the power to determine infringements and impose the sanctions set forth in the applicable laws.