CROATIA Law and Practice Contributed by: Ivan Gržić, TUS & GRŽIĆ
which also includes internal investigations of suspi - cious transactions. As regards confidentiality, internal investigations must comply with the GDPR and the Act on the Imple - mentation of the General Data Protection Regulation (principles of processing, legitimate interest, informing data subjects), as well as the Labour Act (limitations on employee monitoring, prohibition of discrimination and retaliation). Obliged entities under the Anti-Money Laundering and Terrorist Financing Act must report suspicious transactions to the Anti-Money Laundering Office, and breaches of certain reporting duties may constitute a criminal offence. Lawyer-client commu - nications are protected by legal professional privilege, which also extends to internal investigations conduct - ed by lawyers. Accordingly, in the Croatian system, internal investiga - tions do not have a formally prescribed status under the CPA (CPA/08), but in practice they play an impor - tant role in detecting and clarifying financial crime, especially in the corporate environment. The results of internal investigations may serve as the basis for filing a criminal complaint or as a source of information for DORH, but they do not in themselves have evidentiary value unless lawfully introduced into the proceedings (eg, through witness testimony or the obtaining of documents by means of procedural actions). As regards voluntary disclosure and co-operation, Croatian law does not recognise formal mechanisms such as deferred prosecution agreements, but the competent authorities (primarily DORH and the courts) may take such conduct into account. Co-operation with prosecuting authorities, voluntary submission of information or remediation of harmful consequences may influence the decision whether to prosecute (eg, the application of the principle of opportunity in limited cases) or may mitigate punishment as a mitigating circumstance. 2.6 Right to Not Co-Operate or Self- Incriminate In financial crime investigations in Croatia, all meas - ures under criminal procedure may be applied, includ - ing arrest and questioning, if statutory conditions are met (grounds for suspicion and detention), in line with
the CPA. Suspects are questioned only after being informed of their rights, including legal counsel and the right of defence. The key document informing the accused of their rights is the “Notice of Rights”, served together with search warrants, summonses, detention or identifica - tion orders, or expert examination orders (Article 239 (2) CPA/08). Accused persons have the fundamental right not to co-operate or present a defence – ie, the right to remain silent and protected against self-incrimination (nemo tenetur se ipsum accusare), as guaranteed by the CPA, the Constitution and the European Conven - tion on Human Rights. Exercise of this right cannot be held against the suspect. However, some situations allow limited compulsory co-operation, subject to clear limits. Natural and legal persons may be required to produce documents, including financial records, based on court or state attorney orders. Searches, temporary seizure and special evidentiary measures are allowed under strict judicial supervision. Witnesses must testify unless exempted by law. Refusal of lawful co-operation has consequences depending on the person’s status: • a suspect may not be sanctioned for remaining silent; • a witness may be fined or compelled if failing to appear or testify without justification; • natural and legal persons may face fines or other measures for failing to produce ordered data; and • giving false testimony or obstructing evidence may constitute a separate criminal offence. The system balances protection of procedural rights with prosecutorial powers to obtain evidence from other persons or independent sources, under judicial supervision and the principle of proportionality. 2.7 Pre-Charge Powers Croatian law provides for restrictive measures prior to indictment to secure confiscation of unlawful gain or prevent disposal of a suspect’s assets (interim meas -
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