CROATIA Trends and Developments Contributed by: Ivan Gržić, TUS & GRŽIĆ
Anti-money laundering and emerging challenges The anti-money laundering framework in the Republic of Croatia is based on European directives and inter - national standards. However, the development of digi - tal finance and cryptocurrencies raises new questions that require adaptation of the regulatory framework. In this context, the OECD emphasises: • the need to strengthen supervisory mechanisms; • improvement of the quality of suspicious transac - tion reporting; and • the development of digital forensic capacities. These challenges point to the necessity of an interdis - ciplinary approach encompassing legal, financial and technological aspects. Institutional capacity as a key factor Regardless of the degree of normative alignment, the effectiveness of combating financial crime ultimately depends on institutional capacity. OECD evaluations therefore place particular emphasis on: • the specialisation of judges and public prosecu - tors; • the availability of experts in financial analysis; and • co-ordination among competent authorities. At the same time, attention is drawn to the need to professionalise the governance of public enterprises and strengthen institutional integrity. Digitalisation and the transformation of crime The digitalisation of the economy generates new forms of crime that transcend traditional legal categories. Cyber fraud, abuse of digital platforms and anony - mous transactions pose a challenge to the existing legal framework. In this respect, OECD standards require the adap - tation of regulatory and investigative mechanisms, including the development of digital forensic tools and the strengthening of international co-operation.
The international dimension of criminal prosecution
Financial and economic crime is increasingly transna - tional in nature. International co-operation therefore becomes a conditio sine qua non for the effective sup - pression of these forms of crime. OECD standards emphasise the importance of: • timely exchange of information; For the Republic of Croatia, OECD membership rep - resents an additional incentive to strengthen these mechanisms. Implications for the business sector OECD accession has direct implications for the busi - ness environment. On the one hand, it increases legal certainty and the predictability of the regulatory frame - work, which positively affects the investment climate. On the other hand, business entities are faced with increased compliance requirements, including: • stricter regulatory standards; • higher costs of implementing compliance systems; and • increased reputational risks. In this sense, compliance becomes an integral part of business strategy rather than merely a regulatory obligation. Conclusion An analysis of financial and economic crime in the context of the Republic of Croatia’s accession to the OECD demonstrates the multilayered nature of this process. Although normative alignment has to a large extent been achieved, the key challenge remains the securing of effective and consistent implementation of legal norms. • mutual legal assistance; and • co-ordinated investigations. OECD evaluations clearly point to a shift towards a model in which the success of the legal system is measured by concrete results: the number and quality of investigations, the effectiveness of criminal pros -
38 CHAMBERS.COM
Powered by FlippingBook