Financial Crime World

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Romania Introduces Whistleblower Protection Laws to Combat Corruption

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In a significant move to combat corruption and promote transparency, Romania has introduced new whistleblower protection laws, effective December 22, 2022. The landmark legislation transposes European Union’s Directive (EU) 2019/1937 on the protection of persons who report breaches of EU law.

Who Can Be a Whistleblower?

Any natural person who is an employee, self-employed individual, shareholder, administrative, management or supervisory body member of a company, volunteer, trainee, or anyone working under supervision can be considered a whistleblower. This includes subcontractors and suppliers.

  • Reports do not require specific details such as name, surname, contact information, or signature to be valid.
  • Reports containing sufficient indications of violations will still be analyzed.

Internal Reporting Channels

Public authorities, institutions, and private entities with at least 50 employees must establish internal reporting channels and procedures for follow-up actions regarding law violations. Companies operating in specific sectors, such as financial services and insurance, are required to comply regardless of employee numbers.

External Reporting

Competent authorities responsible for receiving reports include:

  • Public authorities
  • Institutions
  • The National Integrity Agency
  • Other designated entities

Protection for Whistleblowers Who Make Public Disclosures

Whistleblowers who first report via internal or external channels and then make a public disclosure are protected if one of two conditions is met:

  • Either they had reasonable grounds to believe that the violation posed an imminent danger to the public interest, or
  • There was a risk of retaliation.

Reporting Evidence and Sanctions

Entities must keep records of registered reports for five years before destroying them. Failure to comply with reporting obligations can result in fines ranging from EUR 400 to EUR 8,000. Knowingly reporting false information is punishable by fines between EUR 500 and EUR 6,000.

  • Retaliating against whistleblowers, including suspension or dismissal, is prohibited and punishable by a fine of up to EUR 8,000.

Obligations for Medium and Large Companies

Private entities with 50-249 employees must establish internal reporting channels by December 17, 2023. This will involve:

  • Assessing existing channels
  • Implementing data sharing protocols
  • Ensuring compliance with personal data protection regulations