CROATIA Law and Practice Contributed by: Ivan Gržić, TUS & GRŽIĆ
ures). These measures are governed primarily by the CPA, while the Criminal Code provides the substantive basis for confiscation. In cross-border cases, the Act on Judicial Cooperation in Criminal Matters with EU Member States applies. The types of measures include, in particular: • temporary seizure of objects and assets; • prohibition on the disposal of assets; • freezing of bank accounts; and • other security measures aimed at future confisca - tion of unlawful gain. The legal conditions and thresholds for imposing such measures are: • the existence of reasonable suspicion that a crimi - nal offence has been committed; • a likelihood that the property derives from, or is connected with, the criminal offence; • a risk that the property will be concealed, alienated or otherwise made unavailable (necessity); and • proportionality of the measure in relation to the aim pursued. As a rule, measures are imposed upon the motion of the state attorney, subject to a court decision and judi - cial supervision. Injured parties may seek the freezing of assets to secure a civil claim under Article 160 (1) CPA/08. Cross-border effect is achieved through European freezing and confiscation orders within the EU, and mutual legal assistance with third countries. Meas - ures may also apply to third parties where property is suspected to be: • transferred to avoid confiscation; • formally registered in another person’s name; or • held by related persons or companies but con - nected with the offence. International legal assistance is governed by the Act on International Legal Assistance in Criminal Matters and the Act on Judicial Cooperation in Criminal Mat - ters with EU Member States. These cover the EAW, EIO, freezing and confiscation of unlawfully acquired
assets, extradition and transfer of proceedings. Croa - tian authorities co-operate through Eurojust, Europol, and the EPPO, especially in cross-border economic and corruption cases. 3. Core Financial Crime Offences 3.1 Fraud and Dishonesty Offences Under the Criminal Code of the Republic of Croatia (CC/11), offences often grouped under the notion of fraudulent conduct are not a single category, but con - sist of separate offences linked by the common pur - pose of obtaining unlawful pecuniary gain to the det - riment of another through deception, abuse of trust, abuse of position or misappropriation of property. The basic offence is fraud (Article 236), committed when a perpetrator, intending to gain unlawfully, mis - leads another person by false representation, con - ceals facts or keeps the person in error, causing action to the detriment of their or another’s property. Essen - tial is active or passive deception causing mistaken belief and resulting in pecuniary damage. Basic fraud carries up to five years’ imprisonment, while aggra - vated forms, particularly involving substantial damage or multiple perpetrators, carry one to eight years. Specific forms include fraud in business operations (Article 247), punishable by six months to ten years if substantial damage occurs, and computer fraud (Article 271), involving unauthorised interference with data or systems for unlawful gain, punishable up to five years. Abuse of trust and position are significant: abuse of trust in business operations (Article 246) covers situations where a person entrusted with manag - ing another’s property or representing a legal entity misuses their powers or fails to fulfil duties, causing damage. Basic forms are punishable up to five years, rising to ten for major damage. Embezzlement (Article 233) relates to unlawful retention or appropriation of entrusted movable property, without deception at the time of obtaining it, punishable up to three years, with harsher penalties for serious cases. Abuse of posi - tion and authority (Article 291) applies to officials or responsible persons exploiting their role, exceeding
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