White-collar crime risks for businesses in Romania
In today’s complex regulatory environment, white-collar crime in Romania faces closer scrutiny than ever. Romanian authorities, supported by EU initiatives, are stepping up investigations into offences like corporate fraud, tax evasion, and anti-money laundering (AML) breaches.
For companies operating in Romania, the risks are twofold. Individuals within the organisation may face criminal charges, while the company itself could suffer severe financial penalties, reputational damage, and operational disruptions.
This article highlights the most common corporate offences in Romania, shares how businesses can prevent liability through compliance strategies, and explains best practices for companies under investigation.
Common white-collar crimes in Romania: fraud, tax evasion, and AML failures
White-collar crime covers a range of non-violent financial offences committed for commercial advantage. In Romania, the most frequently investigated corporate offences include:
Fraud and misrepresentation
Fraud often involves misrepresenting financial information, issuing false invoices, corrupting public procurement processes, or manipulating financial statements to secure credit or investments. Companies that knowingly or negligently engage in these activities may face both criminal and civil penalties.
Tax evasion
Tax evasion remains a top priority for Romanian prosecutors and tax authorities. Practices like underreporting income, over-invoicing expenses, improperly using offshore entities, or filing fraudulent VAT claims are aggressively pursued. This is especially true in high-risk sectors such as construction, real estate, and retail.
AML compliance failures
Failing to comply with Romania’s anti-money laundering laws, particularly Law No. 129/2019, can trigger investigations—even without direct involvement in laundering. Companies that neglect customer due diligence (KYC), fail to monitor suspicious transactions, or omit mandatory reports risk facing significant sanctions.
Compliance strategies to prevent corporate liability in Romania
Prevention remains the most effective way to mitigate corporate criminal liability. Romanian businesses, particularly those in regulated industries, should build comprehensive compliance frameworks.
Key strategies include developing and enforcing internal policies that define ethical conduct, anti-bribery measures, financial reporting standards, and AML protocols. Employees at all levels should receive regular compliance training to understand their obligations and learn how to detect and report suspicious activities.
Moreover, conducting periodic risk assessments helps uncover vulnerabilities in operations, supply chains, and financial practices. Appointing a compliance officer or committee strengthens adherence to laws and promotes a culture of accountability and transparency.
By demonstrating strong preventive measures, businesses not only lower the risk of misconduct but also improve their legal defence during investigations.
How Romanian businesses should respond to criminal investigations
If a company faces investigation for alleged white-collar crime, taking immediate, strategic action is critical to protect the organisation and its employees.
Upon notification of an investigation or audit, businesses should immediately engage legal counsel experienced in criminal defence and regulatory compliance. Internal communications must be managed carefully to prevent unauthorised statements or the destruction of evidence. Furthermore, companies should fully cooperate with authorities while firmly protecting their legal rights.
Conducting an internal investigation in parallel with official inquiries allows businesses to assess facts independently, identify liabilities, and prepare a robust legal defence. When wrongdoing is detected, voluntary disclosure or remediation efforts can sometimes reduce penalties under Romanian law.
Defence rights for companies facing white-collar investigations in Romania
Romanian criminal law grants specific rights to companies and individuals under investigation, including:
- The right to be informed about the nature and cause of the accusations
- The right to remain silent and not self-incriminate
- The right to legal representation during all procedural stages
- The right to challenge procedural irregularities and evidence unlawfully obtained
- The right to access the case file at appropriate stages of the proceedings
Understanding and asserting these rights from the beginning ensures a fair process and better protects the company’s interests.
Building compliance resilience against white-collar crime in Romania
White-collar crime poses serious risks for businesses in Romania. However, by adopting a proactive and structured approach, companies can prevent liability and respond effectively if investigations occur.
Investing in strong compliance programmes, conducting regular internal audits, training employees, and seeking expert legal advice when necessary will reduce exposure to criminal liability. These steps also safeguard a company’s reputation and operations in a demanding regulatory environment.
At Iorgulescu-Legal, we help businesses design compliance strategies, conduct internal investigations, and defend companies during criminal proceedings. Contact us today to ensure your company is prepared, protected, and resilient.