ROMANIA Law and Practice Contributed by: Sergiu-Traian Vasilescu, Luca Dejan, Bogdan Rotaru and Ana-Maria Bută, VD Law Group
open banking. In addition, open banking can involve data protection and privacy laws (such as the GDPR), which govern the processing of personal data, mak - ing compliance with both banking and data protection laws necessary. Factoring Factoring, or the purchase of receivables, falls under the broader umbrella of financial services regulation. In the EU, factoring services must comply with the Consumer Credit Directive (CCD) and the Directive on the Legal Framework for Electronic Payments. Roma - nia enforces these EU regulations and may impose specific requirements for factoring companies, par - ticularly regarding capital requirements and consumer protection in factoring agreements. Digital Operational Resilience Act (DORA) DORA, which came into effect in 2023, focuses on enhancing the operational resilience of financial insti - tutions and their service providers in the face of ICT (Information and Communication Technology) risks. DORA applies to a wide range of financial entities, including banks, insurance companies and payment service providers, and extends to third-party provid - ers, such as cloud services. The act outlines require - ments for risk management, incident reporting and business continuity plans, with specific attention to ICT service providers that offer critical services. In Romania, DORA is directly applicable due to its status as an EU regulation, and compliance will be monitored by the Romanian National Bank ( Banca Națională a României , BNR) and other relevant author - ities, depending on the sector. Financial institutions must integrate operational resilience and ICT risk management into their day-to-day operations, ensur - ing they can withstand, respond to and recover from disruptions. Key Issues Between Local and Supra-National Law There are several points where local law may diverge from EU or international regulatory frameworks, par - ticularly in the areas of enforcement and interpreta - tion. While EU regulations, such as MiCA, PSD2, the GDPR and DORA, provide harmonised rules across member states, individual countries like Romania may
have nuances in their implementation and enforce - ment. For example, Romania’s Electronic Payments Law may impose additional requirements or exemptions that are not found within EU law, especially concern - ing payment services and consumer protections. Similarly, the enforcement of AML and KYC regula - tions may be stricter at the national level, reflecting Romania’s commitment to compliance with interna - tional standards. Additionally, while the EU strives for harmonisation, there may still be challenges for businesses operating cross-border, particularly in the crypto space, where some jurisdictions within the EU are more progressive in their treatment of digital assets than others. The traveller rule, which applies to financial transfers involving virtual assets, is another key area of com - pliance. It is aimed at enhancing transparency and compliance with AML and countering the financing of terrorism (CFT) regulations. The rule is relevant for cross-border transfers of cryptocurrencies and must be adhered to by VASPs within the EU, including Romania. Non-compliance with the traveller rule and AML regulation may result in penalties or restrictions on operations. 2.3 Compensation Models Compensation Models and Disclosures in Romania’s Fintech Sector Permitted compensation models Fintech companies in Romania utilise diverse com - pensation models, shaped by EU directives and local regulations. Key models include the following. • Subscription fees: Charging recurring fees for pre - mium services (eg, advanced analytics, exclusive features). Common in neo-banking and regtech platforms. • Transaction fees: Per-transaction charges for pay - ments, cross-border transfers, or currency con - versions. Widely used by PSPs and e-commerce platforms. • Freemium models: Offering basic services free of charge while monetising premium upgrades (eg,
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