In Official Gazette (Part I) No 724 of 7 August 2023 the Regulation
Regulation No 6/2023 amending and supplementing the National Bank Regulation
of Romania No 4/2005 on the foreign exchange regime.
We mention that, according to Article 4, point 4.2 of Annex no.1 (BNR Regulation no. 4/2005), residents are defined as:
a) natural persons – Romanian citizens, foreign citizens and stateless persons, residing in Romania, attested by identity documents issued according to the law;
b) legal entities and any other entities, with registered office in Romania, as well as natural persons, Romanian citizens, foreign citizens and stateless persons, with domicile/residence in Romania, who are authorized and/or registered to carry out economic activities on the territory of Romania, independently, under the conditions provided by the legal regulations in force;
c) branches, agencies, representatives, offices of foreign legal entities, as well as of any other foreign entities, registered and/or authorized to operate in Romania;
d) embassies, consulates and other permanent representations and missions of Romania abroad.
According to the new amendments, it is specified that residents, as defined in Article 4, point 4.2 of Annex no. 1, are responsible for the application of the provisions of this Regulation for the foreign exchange operations performed.
We remind you that according to Article 3 “Foreign exchange transactions between residents”:
- Payments, receipts, transfers and any other such transactions arising from the sale of goods and provision of services between residents, regardless of the legal relationship governing them, shall be made only in national currency (leu), except for the transactions provided for in Annex No. 2 “Categories of residents who may carry out transactions in foreign currency”, which may also be carried out in foreign currency.
- Payments, receipts, transfers and any other such transactions between residents arising out of remuneration for work done, irrespective of the legal relationship governing them, shall be made only in national currency (leu).
- All other transactions between residents not covered by paragraphs 1 and 11 may be carried out freely, either in national currency (leu) or in foreign currency. These transactions include, but are not limited to, transactions representing financial flows generated by the granting of credit, the establishment of deposits, transactions in securities and the distribution of dividends.
- The transactions referred to in the previous paragraph and in Annex No 2 to this Regulation may also be carried out in foreign currency only if the parties so agree.
The new BNR regulation specifies that the following institutions have the obligation to verify compliance with the provisions of Article 3 for foreign exchange operations ordered by their clients:
a) credit institutions for which the National Bank of Romania is the competent authority according to the Government Emergency Ordinance no. 99/2006 on credit institutions and capital adequacy, approved with amendments and additions by Law no. 227/2007, with subsequent amendments and additions;
b) institutions issuing electronic money for which the National Bank of Romania is the authority responsible for supervising compliance with the provisions for the purposes of Law no. 210/2019 on the activity of issuing electronic money;
c) payment institutions for which the National Bank of Romania is the authority responsible for supervising compliance with the provisions for the purposes of Law no. 209/2019 on payment services and for the amendment of some normative acts;
d) non-bank financial institutions within the meaning of Law No 93/2009 on non-bank financial institutions, as amended and supplemented, registered in the General Register;
e) the branches in Romania of the foreign institutions mentioned in points a) to d).
Foreign exchange operations shall be carried out by the aforementioned institutions in accordance with their own rules issued for this purpose and with the other legal provisions in force.
The rules shall contain provisions at least on the documents and information required for the classification of transactions in the category of those that can also be carried out in foreign currency, as provided for in Article 2, Article 3, paragraph (2) and Annex No 2 to this Regulation.
In order to ensure compliance with the provisions of this Regulation, in addition to the documents and information mentioned above, the entitled institutions may request from the customers any other information and supporting documents provided for by their own rules, considered necessary for carrying out the operations in foreign currency ordered by them.
– BNR Regulation 6/2023 on amending and supplementing the Regulation of the National Bank of Romania No 4/2005 on the foreign exchange regime;
– Regulation 4/2005 on the foreign exchange regime – republished.