Money laundering offense | Asset concealment - my experience as a lawyer (Bogdan Lamatic, Bucharest)

Law 129/2019 criminalizes money laundering (art. 49) in three alternative forms:

• Converting or transferring assets derived from crime to conceal their illicit origin or help the perpetrator evade prosecution.
• Concealing or disguising the nature, origin, location, disposition, movement or ownership of assets, knowing they derive from crimes. This is commonly referred to as “asset concealment.”
• Acquiring, possessing, or using assets while knowing they come from crimes. (art. 49 Law 129/2019)

For individuals, the penalty ranges from 3 to 10 years’ imprisonment; attempts are punished with lower limits. Legal entities face fines and complementary sanctions (dissolution, suspension of activity etc.). Amendments in 2021 (Law 102/2021) clarified extraterritorial applicability to Romanian entities committing laundering abroad.

Updates introduced by Law 86/2025

In May 2025, Law 86/2025 amended Law 129/2019, tightening reporting entities’ obligations and restricting public access to UBO registers:

• Mandatory identification of the customer and beneficial owner for all transactions; entities must verify identity and monitor business relationships and transactions to detect unusual operations. (art. 16)
• No simplified due diligence when there is suspicion of ML/TF.
• Suspicious transaction reporting is mandatory when a Politically Exposed Person (PEP) is the beneficiary of a life insurance policy and there are grounds for suspicion.
• Access to UBO registers is granted only to persons/organizations demonstrating a legitimate interest; only limited data is displayed and access is subject to an administrative fee. (art. 19 para. 8)
• Record-keeping: reporting entities must retain supporting documents and transaction records for five years and ensure periodic staff training. (ONPCSB obligations)
• Supervision of associations and foundations: the Romanian FIU (ONPCSB) supervises their activity on a risk basis and may request information on structure and management. (art. 26)

1) Handling/receiving stolen goods (art. 270 Criminal Code)

Receiving, acquiring, transforming or selling an asset known to originate from a crime. Punished with 1-5 years or a fine; the accessory’s sentence cannot exceed the author’s, and acts by family members are not punished. (art. 270 CC) Unlike laundering, it does not require concealment.

2) Abuse of trust by defrauding creditors (art. 239 CC)

The debtor alienates, hides, damages or destroys assets, or invokes fictitious acts/debts to defraud creditors; also punished is acquiring goods/services knowing payment will not be possible. Typically relates to insolvency and debtor‑creditor relations, not laundering.

3) Fraudulent bankruptcy (art. 241 CC)

In fraud of creditors: falsifying, removing or destroying records; hiding assets; inventing debts; or alienating assets in insolvency. Punished with 6 months-5 years, initiated upon prior complaint.

4) Tax evasion (Law 241/2005)

Frequently a predicate to laundering. Art. 9 lists offenses and penalties (2-8 years or fine): concealing taxable goods/sources, omitting commercial entries, double bookkeeping, fictitious expenses. (Law 241/2005) If the damage exceeds 100,000/500,000 EUR, limits increase. (increases)

When concealing assets/taxable sources aims to avoid taxes, it may constitute tax evasion and, later, a predicate to laundering. Detailed analysis of economic activity and accounting records is essential.

Romanian law mandates confiscation of assets used for, intended for, or derived from ML offenses; equivalent value is confiscated if assets cannot be identified. Art. 50 of Law 129/2019 provides for seizure.

In May 2025, Law 70/2025 amended the Criminal Procedure Code to clarify seizure procedure and parties’ rights:

• Prosecutor, preliminary chamber judge or court may order measures to prevent hiding, destruction or alienation of assets subject to special/extended confiscation. (Law 70/2025)
• New paragraphs (6^1 - 6^4): during the investigation, measures are ordered by the prosecutor; notified immediately to the suspect and civil party; if the civil party’s request is rejected, the decision is communicated without delay. (paras. 6^1-6^4)
• The decision is pronounced in chambers, without summoning the parties; proceedings are urgent and the prosecutor’s participation is mandatory. (procedure)
• Defendant, prosecutor and civil party may challenge the measure within 48 hours before the issuing court.

In practice, effective defense means promptly documenting the lawful origin of assets and challenging disproportionate measures.

Confusing laundering with handling stolen goods, abuse of trust or fraudulent bankruptcy can be fatal in court. Each has distinct elements.

• Laundering involves intentional concealment/integration of illicit assets; for lit. (c) (acquiring/using), the offender must be different from the author of the predicate offense.
• Handling stolen goods punishes receiving or selling the asset knowing its illicit origin, without concealment.
• Abuse of trust and fraudulent bankruptcy are tied to debtor‑creditor relations and insolvency procedures.

Accurate qualification drives the defense strategy, evidence required and procedural objections. My role is to demonstrate when conduct is actually handling or bankruptcy, reducing the risk of disproportionate sanctions.

1) Fact assessment and flow mapping

Identify predicate offenses (fraud, tax evasion, corruption etc.) and analyze financial flows, including blockchain/virtual asset transactions. A mere transfer or formal change is not automatically “laundering.”

2) Differentiated defense strategy

By legal qualification: for laundering - focus on knowledge of illicit origin and link to the predicate; for handling - lack of concealment; for bankruptcy/abuse - real insolvency and actual fraud.

3) Managing precautionary measures

Challenge grounds, proportionality and scope of seizure; provide asset documentation. The law allows lifting/narrowing measures where they paralyze economic activity. The 2025 procedure gives the civil party an active role and rights to challenge.

4) Evidence litigation and procedural exceptions

Exclude illegally obtained evidence, verify chain of custody and wiretap legality; challenge overbroad interpretations of “beneficial owner” and KYC procedures.

5) Remedies and compliance

For regulated sectors (finance, real estate, crypto), implement compliance with Law 129/2019 and FIU guidance: KYC policies, processes for UBOs, staff training and audits; negotiate with authorities where appropriate.

Is a conviction for the predicate offense required? Not necessarily. It suffices to prove assets come from a criminal offense (not a contravention) and that the defendant knew this. (reference)

Can the author of the predicate also be charged with laundering? Yes. For art. 49 (a) and (b), the offender need not be a different person; only for (c) (acquiring/using) must it be a third party.

Can seizures and garnishments be lifted if they paralyze activity? Yes. Courts must respect proportionality; under the 2025 amendments, measures can be challenged and narrowed when they disproportionately affect economic activity.

ML/asset concealment files are not mere financial equations; beyond numbers, they involve moral responsibility, trust in business relations and a balance between asset protection and the rule of law.

Effective defense blends technical analysis of financial flows with a legal strategy tailored to each count and careful management of precautionary measures.

If you are under investigation, act quickly: document the lawful origin of assets, consult a specialist and prepare your defense early in the investigation.