CoE: Grey Economy Results in Losses of EUR 40 B per year in Romania
The grey economy in Romania amounted to 28.4% of the GDP in 2013, down from the rate of 30% of GDP registered in 2011, according to the Council of Europe's anti-money laundering Committee (MONEYVAL).
According to a report of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL), Romania's grey economy in 2011 resulted in losses of EUR 40 B for the country, and the amount remained the same in 2013 due to the growth in the GDP rate.
According to the report, in 2012 the number of cases of economic abuse was 41 280 compared to 39 124 in 2011 and 34 730 in 2008, according to the report, as cited by the Bulgarian Telegraph Agency.
Meanwhile, the number of tax fraud cases doubled in 2012 as compared to 2008, climbing from 12 579 to 25 586.
Romania suffers damage worth around EUR 400 M a year from cigarette smuggling, according to MONEYVAL.
The number of people charged with smuggling in 2012 increased by 184% from 2007 to 879 people.
The experts from the Council of Europe point out that Romania improved its legal framework and its ability to freeze, seize and confiscate proceeds of crime.
However, the country's law enforcement authorities need to conduct parallel financial investigations proactively alongside the investigation of proceeds-generating crimes, according to the Council of Europe.
According to the report, Romania reported an increase in the number of investigations, prosecutions and convictions of money laundering cases.
However, MONEYVAL has several concerns regarding the effectiveness and consistency of the anti-money laundering and terrorist financing supervision, and of the application of sanctions for non-compliance with the relevant requirements by the relevant supervisory authorities.
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