Navigating the White-Collar Crime Landscape in Romania: Legal perspectives on compliance and ethics in business

After nearly a year since Liviu Togan joined Dentons in Bucharest, Business Review sat down with him to delve into the intricacies of navigating the white-collar crime landscape in Romania. He underscored the crucial importance of implementing preventative measures to help businesses stay in compliance and prevent fraud.

How would you assess the development of the criminal law practice within Dentons’ Bucharest office this year?

When I joined the Dentons team in Bucharest, I found a strong team of professionals providing complex legal advice on compliance, internal investigations, and criminal litigation.

In the past year, we have grown the white-collar and compliance practice, with the support of our Europe White–Collar and Government Investigations group.  In response to the rising demand for compliance and preventive services related to criminal law, our aim is to further expand this practice area, both on a local and global scale.

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In collaboration with my colleagues, we have established a dedicated, multidisciplinary team. Our primary objective is to help clients prevent and manage risk related to business fraud. Our work encompasses ethical compliance codes, internal investigations, and white–collar litigation.

Could you provide information about the clients you’ve assisted with white-collar legal matters over the past year and the specific challenges they encountered?

Our clients include both local and multinational corporations from a diverse range of industries, such as the energy, agriculture, and pharmaceutical sectors.  We also represent individuals – usually top managers or company directors. They come to us for assistance in criminal law matters and compliance. For example, we help clients in updating their ethical codes to align with the latest legislative changes, including those pertaining to whistleblowers.

Furthermore, we provide training sessions for the employees of the companies we assist to help them understand their ethical obligations and be more aware of potential risks.

We also support clients through internal and external investigations. Such investigations are particularly sensitive and challenging because, in some cases, employees are considered akin to public officials and are obligated to report any potential criminal matters, including corruption, bribery, and compliance issues.

Dentons is the world’s largest global law firm. How do you collaborate with the other offices within Firm?

One of the reasons people choose Dentons is because we are global.  I work with colleagues from across Europe and around the world on an almost daily basis. This is especially valuable in cross-border investigations, where we often encounter intricate international elements that require knowledge of the laws in other countries. For example, we are currently working with colleagues in England and Germany on one investigation, and in Italy on another.

How have consultancy services in investigations/audits evolved in the Romanian business environment in recent years? What are your expectations for their future development?

In recent years, we’ve noticed a decline in corporate criminal investigations. This is likely due to improved compliance awareness among company leaders and their employees.  Companies tend to invest more up front into putting systems and controls in place to prevent wrongdoing.

Despite these substantial compliance efforts, there are still criminal cases related to economic crime, corruption, service-related offenses, and more.

We expect that legal services in investigations and audits will continue to be vital in the Romanian business landscape. There will be a growing emphasis on preventing economic crime and effectively managing associated risks.

As companies worldwide increasingly prioritize sustainability, ESG has emerged as the guiding principle for responsible corporate behavior. However, the threat of greenwashing, which refers to deceptive marketing or practices that falsely portray a company as environmentally or socially responsible, looms large. To protect against greenwashing litigation and maintain trust, companies must genuinely commit to ESG principles rather than offering mere lip service. Legal services, through audits and investigations, play a pivotal role in upholding ESG’s authenticity and safeguarding business integrity in Romania and beyond.

How do Dentons’ lawyers specialized in internal investigations work to mitigate risks for companies in the realm of criminal matters?

To assist clients in mitigating risk, we meticulously analyze their operations and policies to uncover potential legal and ethical pitfalls. We guide them in the implementation of robust compliance policies to help prevent criminal issues and ensure the company’s adherence to relevant laws and regulations.  And if we find a legal or ethical breach, we will help the client take corrective actions.

We work closely with the company’s management to formulate crisis management strategies to mitigating adverse effects on their business. Furthermore, we are well-equipped to facilitate productive dialogues with authorities and regulatory agencies, fostering accurate and transparent communication throughout investigations. Ultimately, our legal guidance extends to the implementation of corrective measures and compliance policies, designed to prevent the reoccurrence of similar incidents in the future.