On paper the transaction looks simple: you find a flat, agree a price, transfer the money, get the keys. In practice it is precisely the money transfer that is the most common point where foreigners’ transactions in the EU stall. Not at the notary, not at the valuation, not on the property documents — at the bank. The money lands in the account and hangs under review. Sometimes for weeks, sometimes for months, sometimes it goes back to the sender with a refusal from the bank. And this does not happen to people who are hiding something, but to ordinary, honest buyers who simply were not prepared for the requirements of bank compliance.
What bank compliance is
Compliance is the bank’s internal control system through which every client operation passes. It works in two directions: AML (Anti-Money Laundering) and KYC (Know Your Customer — identifying the client and the origin of the funds).
The rules are set by European Union directives, are binding on every EU country and are supervised by Romania’s regulators — ONPCSB, ANAF and Banca Națională a României. Before a large sum arrives from abroad, especially from a foreigner, the bank is obliged to check: who is sending, who is receiving, the economic rationale of the operation, the origin of the funds, sanctions risks, and consistency with the declared source of income.
If even one point raises doubt, the operation is suspended until supporting documents are received. In the worst case the funds are returned to the sender and the bank informs the regulator.
Why compliance has become stricter
Until 2018–2020, checking the origin of funds was a formality in most European banks. After the 5th and 6th EU anti-money-laundering directives, after the expansion of the list of countries under enhanced monitoring, and after the introduction of CRS automatic exchange of tax information, the situation changed fundamentally.
Today a large sum from abroad from a third-country national is always a reason for an in-depth check. The bank does not take your word for it. The bank demands documents. There are no favours for acquaintances, no “we have known you for years”. The regulator checks the bank, the bank checks the client.
Typical mistakes of a foreign buyer
Sending the money without preparing the bank first
The money arrives, the bank automatically suspends the operation and requests documents — the client is left without a flat and without the money. The deal with the seller falls through.
No proof of the origin of the funds
Inheritance, sale of property, savings, business income, help from relatives — each case needs specific documents (contracts, statements, tax returns, notarial deeds). Without documents the bank does not let the money through.
A mismatch between the stated source and the actual movement of funds
The client says “I saved it from my salary”, but the money arrived in three transactions from three different individuals — that is not a question, it is a refusal.
Trying to speed up the transaction with cash
In the EU, cash settlement between individuals above 10 000 € per transaction (50 000 lei in Romania, Law 70/2015) is not permitted. A notary will not execute such a transaction.
Approaching the bank without support
A foreigner without Romanian, without an understanding of compliance terminology and without experience of Romanian forms answers the bank in an unstructured way — the application is rejected.
How Alliance guides the client through compliance
We start the work with the bank as a parallel process — at the same time as selecting the property, not as “the last step of the transaction”.
- 01
Property research and document check
Before the bank, we check the property itself — the owner, the history, encumbrances, the developer’s status, tax cleanliness. The bank looks not only at the buyer but at the whole transaction. If the property has legal problems, the bank may refuse the payment regardless of how clean the buyer is.
- 02
Client profile and source of funds
Citizenship, country of tax residence, profession, source of funds (business income, sale of property, savings, inheritance, help from relatives, investment income — each with its own documentary base). We understand in advance which documents will be needed and what to collect.
- 03
Selecting a bank for the client’s profile
Not all Romanian banks work equally well with foreigners. Each has its own policy on countries and types of operation. Alliance works with several partner banks and directs the client to the one where the profile will be accepted most smoothly.
- 04
Opening the account
We accompany you to the bank, prepare the application, translate the documents and handle communication with the bank manager. The foreigner does not need to explain anything themselves.
- 05
The source-of-funds evidence package
The central point. A specific package is prepared for the specific source: property sale contracts, statements from accounts in the country of origin for the accumulation period, tax returns, notarial deeds, bank statements of movements. All documents are translated into Romanian or English by a sworn translator. The documents are arranged in a logical chain showing the bank a clean path of origin for the funds.
- 06
Declaring the operation before the money arrives
The bank is notified: what sum, from whom, for what purpose, which documents. This turns a large transfer from “an unexpected transaction that needs to be checked” into “an expected operation with a ready package”. The bank does not block — it reconciles against the information it already holds.
- 07
Support for the receipt of funds and the transaction
When the money arrives, Alliance coordinates all parties: the bank, the notary, the seller, the buyer. If the bank has additional questions, we answer immediately, on the spot, with documents already prepared. The transaction proceeds without stops.
- 08
After the transaction
Compliance does not end with the purchase. Future large operations (rental income, sale of the property, receipts from the company) also pass through compliance. Alliance continues the support so that future operations raise no questions and do not block the account.
What Alliance’s work includes
- Legal check of the property before the transaction
- A profile interview with the client and determination of the best source of funds to declare
- Selection of a bank for the specific buyer profile
- Accompanying you to the bank, filing applications, opening the account
- Collection and organisation of documents proving the origin of the funds
- Translation of documents into Romanian or English by a sworn translator
- Preparation of the package to ONPCSB requirements and the bank’s internal standards
- Declaring the operation before the funds arrive
- Coordination of the bank, the notary and the seller at the moment of the transaction
- Post-sale support of the client at the bank for subsequent operations
Typical client profiles and documents
There is no universal list of documents — the package is assembled for the specific source of funds and the specific bank.
Savings from employment income
Account statements for the accumulation period, tax returns from the country of residence, income certificates.
Sale of property in the country of origin
Notarial sale contract, statements showing receipt of the funds, tax return for the transaction.
Business income
Company statements, tax returns, documents proving ownership of the shares.
Inheritance
Certificate of inheritance, notarial deeds, documents on the origin of the deceased’s assets.
Help from relatives
Notarial deed of gift, documents on the donor’s income.
Investment income
Brokerage statements, tax reports on securities transactions.
What to do if the account is already frozen
Clients often come to Alliance after they have already sent the money unprepared and the bank has frozen it. This is harder, but it can be resolved. We take the situation apart: which bank, what the regulator has requested, which documents have already been submitted, what was missed.
We prepare an explanatory package — the economic rationale of the operation, documentary proof of the source, correct legal support. In most cases the money is unblocked. But it takes longer and costs more than if the work had been done in advance.
The universal rule: fixing it costs more than doing it right. Not fixing it costs the most of all.
The bottom line
A property transaction is not just the notary and the keys. It is a long chain in which the bank today is the link of heightened risk. Compliance is neither a formality nor an obstacle. It is the bank’s normal work under EU rules, and it can be prepared for in advance.
A buyer who has been prepared goes through the transaction calmly. One who ignored it ends up in a zone of uncertainty that is expensive and slow to get out of.
Most estate agencies finish their work at the notary. They have no legal department, no financial monitoring specialists, no partnerships with banks. Alliance covers this section systematically: the legal, tax and financial parts work as a single team. It is part of standard transaction support, not an extra service. If you are planning a large purchase, start with a conversation with us, not with the bank.
If the transaction amount exceeds 30 000–50 000 €, bank compliance applies to you in full, regardless of the country the funds come from.