Law no. 70/2015 brings some changes to cash transactions

Effective May 9th, 2015, Law no. 70/2015 (published in the Official Journal, Part I, no. 242 of April 9th, 2015) brings some changes to cash transactions made both by legal and individual entities. The provisions of the Government Ordinance no. 15/1996 on strengthening the financial and foreign currency discipline are repealed as of May 9th.
 
The full text of the regulatory document is available for consultation here. Below is an overview of the main amendments brought by Law no. 70/2015.
 
The new rules apply both to receipt and payment operations in lei and foreign currency, performed on the territory of Romania. Compliance with the new upper limits will consider the exchange rate, as communicated by the National Bank of Romania, applicable on the date of the receipt or payment operation.

Hence:
a)      Cash receipts from business operators shall be restricted to a maximum amount of RON 5,000/day from one individual;
b)     Cash payments to legal entities shall be restricted to a maximum daily amount of RON 5,000 per individual, without exceeding the total amount of RON 10,000 /day;
c)      Advance payments for settlement shall be restricted to a maximum amount of RON 5,000/day established for each individual receiving advance payments for settlement.

Cash and carry stores can receive cash from companies, registered sole traders, individual undertakings, etc. within a daily limit of RON 10,000 per entity. The same limit of 10,000 RON/day shall apply to the payments made to cash and carry stores.
Fragmented cash receipts and payments from beneficiaries for invoices exceeding RON 5,000, respectively RON 10,000 in the case of cash and carry stores, as well as the fragmentation of invoices for supply of goods and/or provision of services exceeding RON 5,000, respectively 10,000 RON, are prohibited. However, companies can settle the invoices in excess of the RON 5,000 limit for suppliers of goods and services, respectively RON 10,000 for cash and carry stores, as follows: 5,000/10,000 RON in cash, and the remaining balance exclusively by non-cash payment instruments.

Companies can receive cash from individuals, representing assignment of receivables, loans or other financing, as well as the price for deliveries of goods and/or provisions of services, only within a daily limit of RON 10,000 per individual. Fragmented receipts from an individual for the aforementioned cash receipt operations amounting to more than RON 10,000, as well as the fragmentation of transactions representing assignment of receivables, loans or other financing, as well as the price for deliveries of goods and/or provisions of services exceeding the amount of RON 10,000 are prohibited.

Companies shall be allowed to make cash payments to individuals, representing purchases of goods or services, dividends, assignment of receivables or other rights and reimbursement of loans or other financing, within a limit of RON 10,000 /day to one individual. Fragmented cash payments made to an individual for transactions exceeding RON 10,000 are prohibited.
 
In the case of cancelled invoices corresponding to returned goods and/or non-provided services exceeding RON 5,000, respectively RON 10,000 in the case of cash and carry stores, the related amounts shall be reimbursed as follows: RON 5,000, respectively RON 10,000 in cash, and the remaining balance by non-cash payment instruments. By way of exception, if at the time of reimbursement the individuals declare under oath that they no longer hold a bank account, the reimbursement can be fully made in cash, regardless of the amount to be reimbursed.
 
Cash receipt and payment operations between individuals for the transfer of ownership to assets or rights, for provision of services, or related to granting/reimbursement of loans, shall be restricted to daily limit of RON 50,000 /transaction. Fragmented cash receipts and payments for transactions exceeding RON 50,000, as well as the fragmentation of a transaction exceeding RON 50,000, shall be prohibited.
 
Failure to comply with the maximum amounts allowed for cash receipts and payments shall be subject to a fine of 10% of the amount received/paid in excess of the limit established for each type of operation, but no less than RON 100.
 
The upper limits for cash operations shall not apply to the following operations:

a)      cash deposits in bank accounts, including in cash deposit ATMs;
b)     payment of business travel expenses, in the amount due for transportation costs, per diem allowance and accommodation during the business stay, as well as out-of-pocket expenses;
c)      cash payment of taxes, levies, contributions, fines and any other obligations due to the state general consolidated budget;
d)     cash withdrawals from bank accounts for the payment of wages and other employee benefits;
e)      money transfers through institutions providing payment services authorized by the NBR or authorized in another European Union Member State and notified to the NBR;
f)       cash deposits in ATMs equipped with banknotes and coins acceptors.

The provisions of Law no. 70/2015 shall not apply to agreements entered into before May 9th.