CROATIA Law and Practice Contributed by: Ivan Gržić, TUS & GRŽIĆ
such as freezing accounts or prohibiting disposal, may be applied during preliminary inquiries or investiga - tions to secure property for eventual confiscation or satisfaction of the victim’s claims. 7. Enforcement Priorities and Case Law Developments 7.1 Enforcement Priorities In the Republic of Croatia, enforcement priorities in financial crime are shaped by national needs and inter - national obligations, particularly within the EU, Organi - sation for Economic Co-operation and Development (OECD), Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) and Financial Action Task Force (FATF) frameworks, with an increasing focus on operational effectiveness rather than formal compli - ance. Key priorities include: • strengthening anti-corruption measures, particu - larly in relation to high-level and foreign bribery; improving efficiency of prosecutions and financial investigations; and • enhancing procedural frameworks to increase con - victions and expand confiscation of assets. Asset recovery remains central, with an emphasis on extended confiscation and alignment with EU rules to ensure that crime does not pay. AML/CFT enforcement is also a priority, focusing on supervision of obliged entities, risk-based approaches and strengthening private-sector compliance sys - tems. Increasing attention is given to digital finance and crypto-assets, particularly under the EU MiCA Regulation, as well as to cybercrime and technology- enabled offences, including proposed regulation of AI misuse. International co-operation, especially with EU bod - ies such as the EPPO, plays a key role, particularly in cases involving EU funds and cross-border finan - cial flows. Overall, Croatia is shifting towards a more results-oriented system focused on effective enforce -
ment, asset recovery and addressing emerging risks specialised units in DORH and police, as well as pro - posed Criminal Code amendments, such as criminal - ising misuse of AI systems. 7.2 Recent Case Law and Latest Developments In the Republic of Croatia, developments in white- collar crime show a clear trend towards normative modernisation and stronger enforcement, shaped both by international obligations (OECD, EU, MONEY - VAL) and lessons from recent complex corruption and economic crime cases. Legislative reforms focus on strengthening the anti-corruption criminal-law frame - work, particularly in line with OECD instruments. Following Croatia’s ratification of the Convention on Combating Bribery of Foreign Public Officials and par - ticipation in the OECD Working Group, the Criminal Code has been amended to expand bribery offences (especially involving representatives), introduce strict - er sanctions and criminalise conduct preceding formal decision-making, such as influencing votes or absten - tion. These reforms reflect a materially broader under - standing of corruption, aligned with OECD standards. Enforcement practice shows intensified activity by USKOK, DORH and the EPPO, with growing numbers of complex investigations involving EU funds, cross- border elements and sophisticated financial struc - tures. Recent high-profile cases illustrate this trend: • Darko Horvat, former Minister of Economy, Entre - preneurship and Crafts, and later Minister of Physi - cal Planning, was arrested in February 2022 for abuse of office in allocating non-repayable budget funds to connected entities that did not meet grant conditions; • Gabrijela Žalac, former Minister of Regional Devel - opment and EU Funds, was investigated by the EPPO and Croatian authorities for misuse of EU and public funds, ultimately resulting in a convic - tion via guilty plea; • Tomislav Tolušić, former Deputy Prime Minister and Minister, was accused of misrepresenting vineyards and secured funds to obtain approximately HRK7 million in EU subsidies; and
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