This article explains, in practical terms, the main white-collar offences under Romanian law that typically affect entrepreneurs, managers and finance directors: tax evasion, money laundering, embezzlement, breach of trust and
fraudulent bankruptcy. It is general information only and does not replace tailored legal advice.
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1. What “white-collar crime” means for Romanian entrepreneurs
Romanian law does not use the expression white-collar crime as a legal term. Instead, it regulates a set of economic and service-related offences scattered across the Criminal Code and special laws. In business, the most common are:
- tax offences – mainly tax evasion under Law no. 241/2005;
- money laundering under Law no. 129/2019;
- embezzlement and other service-related offences under the Criminal Code;
- breach of trust and fraudulent management in commercial relations;
- simple and fraudulent bankruptcy in the context of insolvency.
2. Tax evasion
2.1. Legal framework and risky behaviours
Tax evasion is regulated by Law no. 241/2005, significantly amended in 2024 by Law no. 126/2024.
Article 9 lists typical forms, such as hiding taxable sources, failing to record revenues, recording fictitious expenses, destroying accounting records or keeping double sets of books.
In practice, risky patterns for entrepreneurs include:
- systematically issuing invoices but not recording them in the accounts;
- using invoices from “shell companies” to create artificial deductible expenses;
- intentionally bypassing systems like RO e‑Factură or e‑Transport when they are mandatory;
- keeping parallel inventories or undeclared warehouses.
2.2. Penalties
After the 2024 amendments, most offences under art. 9 are punished with imprisonment roughly between 3 and 10 years, and in some situations with a criminal fine instead of prison, depending on the damage and on how the offence was committed.
Law no. 241/2005 also includes specific mechanisms for reducing liability where the damage is fully paid back in time.
3. Money laundering
3.1. Basic definition
Under Law no. 129/2019 , money laundering covers operations used to disguise the criminal origin of assets derived from offences such as tax evasion, fraud, corruption and others. Article 49 lists three main forms: converting or transferring criminal proceeds, concealing the nature or ownership of such assets and acquiring or using them while knowing
their illicit origin.
3.2. Penalties and practical exposure
Money laundering is punishable with 3 to 10 years’ imprisonment. It can be prosecuted even if the person who launders the money is different from the person who committed the underlying offence.
Entrepreneurs are exposed when they accept large unexplained cash payments, use their company as a “vehicle” for money coming from opaque sources, or participate in artificial invoice chains designed to “legitimise” funds.
4. Embezzlement
Embezzlement is defined by art. 295 Criminal Code.
In short, it is committed when a person entrusted with managing or handling money or assets appropriates them, uses them or allows them to be used, for their own benefit or for someone else.
In the basic form (public officials), the offence is punishable with
2 to 7 years’ imprisonment. Under art. 308 Criminal Code, the same rules apply, with reduced limits, to private‑sector actors (directors, accountants, cashiers) who manage the company’s money or property.
Typical business examples:
- a director withdrawing company cash for private purposes without any contractual basis;
- a cashier keeping part of daily takings and hiding the shortfall in the records;
- a store manager selling goods “off the books” and pocketing the proceeds.
5. Breach of trust
Art. 238 Criminal Code punishes a person who uses, disposes of, or refuses to return a movable asset entrusted to them, causing damage to the rightful owner. Unlike embezzlement, it does not necessarily require a formal managerial position, but there is always a prior relationship of trust (loan, deposit, agency agreement and so on).
6. Fraudulent bankruptcy
Art. 241 Criminal Code covers fraudulent bankruptcy. It targets, in essence, debtors who, in fraud of their creditors, falsify or destroy records, hide assets, report non‑existent liabilities or transfer assets away when the company is in
insolvency.
The offence is punished with 6 months to 5 years’ imprisonment. It is closely linked to the obligations set out in Law no. 85/2014 on insolvency proceedings , especially the duty to request the opening of insolvency in due time.
7. Criminal liability of the company
Under art. 135 Criminal Code, legal entities can be held criminally liable for offences committed in their name or in their interest.
In tax, money laundering or bankruptcy cases it is common to see both the director and the company indicted.
Sanctions may include a criminal fine, restrictions on carrying out certain activities and, in extreme cases, judicial dissolution.
8. Practical prevention and compliance
- clear internal payment-approval and cash‑handling rules;
- segregation of duties (the person who authorises a payment should not also record it);
- periodic internal or external audits of accounting and cash flows;
- thorough checks on business partners using public registers and sanctions lists;
- training for finance, accounting and procurement staff on tax and AML risks;
- preventive advice from a criminal‑law and tax specialist before complex transactions.
9. Frequently asked questions (FAQ)
1. Can I be criminally liable for my accountant’s mistakes?
Yes, if you knew about or accepted the unlawful conduct (for example, fictitious invoices, deliberate non‑registration of income). Delegating bookkeeping does not automatically shield the administrator from
criminal liability.
2. Is paying the damage enough to close a criminal file?
In some tax evasion situations, specific provisions allow for reduced liability or for not sending the case to trial if the tax loss is fully recovered in time. For other economic offences, payment mainly influences the sentence, not the existence of the offence itself.
3. Can my company be accused of money laundering just because it receives cash?
Cash payments do not automatically amount to money laundering. The risk arises when transactions are unusual, poorly documented or when the origin of the funds cannot be credibly explained with proper documents.
4. What matters more in white-collar cases: intent or the amount of damage?
Both. Intent is crucial for the very existence of the offence, while the size of the damage influences the legal classification (aggravated forms), the sentence and the chances of benefiting from specific mitigating rules where available.