CROATIA Law and Practice Contributed by: Ivan Gržić, TUS & GRŽIĆ
Sentencing follows the general rules of the Criminal Code, the Special Part prescribing ranges, and the Act on the Liability of Legal Persons. After establish - ing guilt, the court individualises the sentence within statutory ranges, assessing aggravating and mitigat - ing factors. For legal persons, organisational short - comings, deficient supervision and benefits obtained are particularly considered. Croatia does not formally recognise deferred or non-prosecution agreements, but plea agreements allow negotiation of sanctions, including suspended sentences, protective supervision, confiscation and costs. The court confirms the agreement, while the State Attorney can negotiate guilt, sentence and measures, or discontinue prosecution for opportunis - tic reasons, especially for legal persons without assets or in bankruptcy. Courts may consider remedial measures, such as compliance improvements or replacement of respon - sible persons, and legal persons can be exempt if they self-report before discovery. While Croatian law does not formally use a “failure to prevent” concept, liability for organisational failings has a similar effect, allowing sentencing to reflect institutional context, corporate culture, and circumstances to individualise punish - ment and encourage prevention. 6.3 Proceeds of Crime Recovery In the Croatian legal system, mechanisms for the confiscation of property obtained through criminal offences are regulated primarily through the Criminal Code and the CPA, with management of confiscated property governed by special legislation. Confiscation is generally ordered within the conviction judgment, but extended confiscation is possible where there is a clear disproportion between lawful income and the person’s property. The scope includes the directly obtained benefit, converted or transferred property, substitute property and any income or profits derived from it. Confiscation is usually decided within criminal pro - ceedings, with the criminal court applying the stand - ard of beyond reasonable doubt for criminal liability and a lower standard for establishing unlawful gain. Interim measures, such as prohibitions on disposal or
account freezing, may secure future confiscation, and third parties may participate to prove lawful origin. If direct confiscation is impossible, the court may order payment of a sum equivalent to the property’s value, with enforcement measures including execution or substitute imprisonment. Civil proceedings may run in parallel, allowing injured parties to claim damages or restitution, formally sepa - rate but potentially overlapping with criminal proceed - ings. Overall, the Croatian system provides a broad frame - work for confiscating unlawfully acquired property, including its transformations and returns, while safe - guarding procedural guarantees and third-party rights. 6.4 Victim Compensation and Asset Recovery Under Croatian criminal law, no one may retain prop - erty benefits obtained through a criminal offence, and such benefits are confiscated from the offender or third parties who did not acquire them in good faith. Confiscation primarily serves the state, but the law simultaneously protects the interests of the injured party through a civil claim within criminal proceedings (Articles 153–162 CPA/08), allowing the victim to seek damages, restitution of property or restoration of the previous state. The court may decide on such claims in the criminal judgment if the facts are clear, avoiding separate proceedings. This dual criminal-civil system enables the victim to assert rights effectively. Filing a civil claim within crimi - nal proceedings interrupts limitation periods and is legally equivalent to filing a civil action. If the court cannot resolve the claim or there is no conviction, the victim may pursue civil litigation under the Civil Obli - gations Act or the Act on Ownership and Other Real Rights, ensuring continuous protection. Victim protection extends to the misappropriated prop - erty and all its transformations. Restitution can cover the original item, its value if alienated or destroyed, or claims based on unjust enrichment if retained with - out legal basis. Confiscation also includes substitute property, mixed assets and any income or profits derived, effectively enabling tracing, although the term is not expressly used. Interim protective measures,
32 CHAMBERS.COM
Powered by FlippingBook