Romanian Police Reports Surge in Economic-Financial Crimes in Early 2024

The Romanian Police has reported a significant increase in economic-financial crimes, including tax evasion, in the first four months of 2024. The number of such crimes has risen by 2,992 compared to the same period last year.

The RO e-Transport system, introduced in January 2023, aims to mitigate tax evasion by monitoring transports within Romania that contain goods with higher tax risks. This system was extended in January 2024 to include all types of goods transported internationally within Romania.

From July 1, 2024, Romanian control authorities will begin issuing fines for non-compliance with the new regulations. Carriers are required to electronically notify the national platform of the RO e-Transport document in XML format, including a UIT code that uniquely identifies the goods.

The UIT code can be requested up to three calendar days before the specified transport date and is valid for five days from the declared transport date. Legal entities responsible for declaring goods in the RO e-Transport system include hauliers, who must equip their vehicles with systems that enable the ongoing collection and transmission of vehicle location data throughout the route.

Why this matters: The increase in economic-financial crimes in Romania has significant implications for the country's economy and tax revenue. If left unchecked, it could lead to a loss of public trust in the government and a decline in economic stability.

Drivers are obliged to switch on the positioning device before entering Romania and present the UIT code and transport documents to the relevant authorities upon request. Failure to comply with these obligations can result in fines ranging from 5,000 to 10,000 lei for drivers and 20,000 to 100,000 lei for legal entities, plus confiscation of the value of undeclared goods.

The increase in economic-financial crimes highlights the challenges the Romanian authorities face in combating tax evasion and illegal trade. The implementation of the RO e-Transport system and the impending fines for non-compliance reflect the government's commitment to addressing these issues.

Romanian authorities continue to enforce these regulations, the effectiveness of the RO e-Transport system in reducing economic-financial crimes will be closely monitored. The coming months will reveal whether these measures can significantly curb tax evasion and illegal trade.

Key Takeaways

• Romania sees 2,992 increase in economic-financial crimes in 2024.
• RO e-Transport system aims to mitigate tax evasion by monitoring high-risk goods.
• Fines for non-compliance with RO e-Transport regulations start July 1, 2024.
• Carriers must electronically notify authorities with UIT code and transport documents.
• Non-compliance can result in fines and confiscation of undeclared goods.