CROATIA Law and Practice Contributed by: Ivan Gržić, TUS & GRŽIĆ
the Act on the Protection of Persons Reporting Irregu - larities, implementing EU Directive 2019/1937. A whistle-blower is any natural person who, in a work- related context, reports irregularities such as financial crime, corruption or abuse. The Act provides pro - tection of identity and confidentiality, prohibition of retaliation (dismissal, demotion, harassment), judicial protection and compensation for damage, free legal aid and institutional support. Protection extends to related persons (colleagues, family) and persons pro - cessing reports. Unlike some Anglo-Saxon systems, Croatia does not provide financial rewards, but strong legal and institu - tional incentives encourage reporting. A multi-channel reporting system exists: internal channels within the employer, external channels to competent authori - ties and, under certain conditions, public disclosure. Employers with 50 or more employees must establish internal reporting systems, appoint confidential per - sons and define procedures for handling reports. Anonymous reporting is allowed, and employers must act on reports with sufficient information. Confiden - tiality of the whistle-blower’s identity is maintained, except in statutory exceptions. Protection is condi - tional on good faith; knowingly false reports may incur misdemeanour liability. In conclusion, while financial rewards are not offered, the Croatian system provides broad legal protections, institutional mechanisms, and anonymous reporting options to encourage disclosure of financial crime while protecting whistle-blowers from retaliation.
ecution or issuance of a penal order (Article 17 (1) and 541 (1) CPA/08). Based on preliminary inquiries and investigations, the State Attorney decides whether to dismiss the com - plaint, discontinue prosecution, file an indictment, propose a penal order or conclude a plea agreement. While discretion exists, it is applied restrictively, par - ticularly in serious economic crime and corruption cases. During preliminary inquiries, the State Attorney exercises procedural autonomy in assessing whether conditions for action are met, but this is constrained by the principle of legality and internal supervision. For legal persons, corporate criminal liability under the Act on the Liability of Legal Persons applies where the offence was committed in the interest of or on behalf of the entity. The State Attorney decides whether to initiate proceedings once statutory conditions are sat - isfied, so discretion exists in procedural direction but not in omitting prosecution without grounds. At sentencing, courts have broad discretion within statutory ranges and must consider all relevant fac - tors, including seriousness, personal circumstances, and aggravating or mitigating factors. Decisions must be reasoned and are subject to appeal. DORH holds discretion mainly in prosecutorial deci - sions, including initiating, continuing or discontinuing proceedings, and in plea negotiations. This discretion is bounded by law, the principle of legality and the public interest. 6.2 Sanctions and Sentencing Under Croatian criminal law, natural persons may be sentenced to imprisonment, fines, suspended sen - tences, judicial admonition, security measures (eg, prohibition on certain activities or supervision) and confiscation of unlawful gain. Legal persons may face fines, confiscation, prohibitions, security measures, publication of the judgment and, in exceptional cases, dissolution. Sentencing and mitigation consider the seriousness of the offence, damage or gain, manner and duration of conduct, culpability, previous convic - tions, post-offence behaviour (confession, co-oper - ation, compensation) and, for legal persons, organi - sational failings, supervision and remedial measures.
6. Resolutions, Sanctions and Remedies
6.1 Prosecution and Resolution Mechanisms Under Croatian criminal law, financial crime offences are generally prosecuted ex officio and fall under the exclusive competence of the State Attorney, following the principle of legality (Article 2, CPA). Proceedings commence upon the final decision opening an inves - tigation, confirmation of an indictment if no investiga - tion occurred, scheduling a hearing in private pros -
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