Recent Instruments to Address Financial Crime. The Case of Romania

In recent years, the financial crime became a matter of major concern in the European Union and at the level of the Organization for Economic Cooperation and Development (OECD). The phenomenon of financial crime evolves in close connection with the development of society from a technological and economic point of view, permanently adapting and integrating within the rapid advancement of digital technology. The present paper explores a recent instrument that addresses financial crime, namely the BEPS Action Plan, an initiative of OECD/G20, that through its set of 15 actions, focuses on the tax avoidance strategies used by multinationals on corporate tax planning, to erode the tax base of higher tax level jurisdictions by shifting profits to jurisdictions with lower tax level. The case of Romania is presented, a country not yet member of OECD, that is participating in the BEPS Plan as Associate Member. Romania assumed to work on the development of standards and to monitor the implementation of the entire package, beginning with the four minimum BEPS standards on: harmful tax practices, abuse of tax agreements, country-by-country reporting requirements and dispute resolution mechanisms.