Compliance Guidelines for Business Entities in Croatia
Introduction
Implementing a comprehensive compliance system is crucial for businesses in Croatia to prevent corrupt and fraudulent practices. These guidelines cover various aspects of compliance, including strategy development, professional assistance and training, motivation, internal control, business partners, anti-corruption clauses, reporting irregularities, protection of the reporting person, education and promotion, measures for effective implementation, fit and proper requirements, transparency and reporting, and market conduct.
Key Points
Strategy
- Each entity subject to compliance should adopt a strategy that aligns with these guidelines and other applicable regulations.
- The strategy should be tailored to the specific needs of the business entity.
Professional Assistance and Training
- Business entities should provide ongoing training and professional assistance to ensure employees have the necessary knowledge and skills to comply with laws and regulations.
Motivation
- Encourage a positive compliance culture by promoting essential compliance values at all levels of the organization, including management and governance.
Internal Control
- Implement internal control measures to prevent corrupt and fraudulent practices, such as monitoring employee behavior and activities.
Business Partners
- Ensure that business partners adhere to the same level of compliance standards as the entity itself.
Anti-Corruption Clauses
- Include anti-corruption clauses in contracts with suppliers, customers, or other business partners to prevent corrupt practices.
Reporting Irregularities
- Establish a system for reporting irregularities, such as internal whistleblowing channels or external hotlines.
Protection of the Reporting Person
- Protect individuals who report irregularities from retaliation or harassment.
Education and Promotion
- Foster an open and supportive culture (“Speak Up” culture) that encourages employees to raise questions, get informed, and report suspected irregularities.
Measures for Effective Implementation
- Establish measures to enforce compliance, such as disciplinary actions against non-compliant behavior.
Fit and Proper Requirements
- Ensure members of the management and supervisory boards, key functions holders, and senior management personnel meet fit and proper requirements, including personal integrity, specialist knowledge, and no conflict of interest.
Transparency and Reporting
- Regularly report on compliance progress and state to stakeholders, such as owners, governance body, customers, staff members, and business partners.
Conclusion
These guidelines are designed to help Croatian businesses comply with relevant laws and regulations while promoting a positive compliance culture within the organization.