Financial Crime World

Croatia Tightens Grip on Proceeds of Crime

Strengthening International Cooperation

The Croatian government has taken significant steps to regulate and combat the proceeds of crime, with a new law aimed at strengthening international cooperation and ensuring the effective seizure and confiscation of illegal assets.

Aligning with Global Standards

According to Article 61 of the Act on International Legal Assistance in Criminal Matters, the seizure and safeguarding of proceeds of crime shall be carried out under conditions determined by international treaties and national legislation. This provision is designed to ensure that Croatia’s efforts are aligned with global standards and best practices.

Ratifying Key Conventions

In addition to the UN Convention Against Transnational Organised Crime, Croatia has also ratified the UN Convention Against Corruption, which governs the seizure of material gain in criminal offences of corruption. The country has also signed a range of other multilateral conventions aimed at combating financial crime and money laundering.

The Act on Confiscation

The Act on the Procedure of Confiscation of Pecuniary Gain Acquired Through a Criminal Offence or Misdemeanour, adopted in 2010, marks a significant milestone in Croatia’s efforts to combat proceeds of crime. The law regulates the procedure for determining the proceeds of crime, securing confiscation, enforcing decisions, and dealing with confiscated assets.

Key Features

  • Decisions on seizure are solely within the jurisdiction of the court, ensuring that courts examine the merits of measures and rule on any changes to legal measures.
  • Once a defendant has been found guilty, unlawfully acquired assets become the property of the Republic of Croatia.
  • Confiscated and temporarily confiscated property is managed and disposed of by the Central Office for the Management of State Assets.

Managing Confiscated Property

Confiscated and temporarily confiscated property is managed and disposed of by the Central Office for the Management of State Assets, which also tracks transferred assets. If keeping assets poses a risk or threatens significant loss of value, the Office may sell, rent, or transfer them without prior public announcement.

Challenges Remain

In a rapidly changing global financial landscape, Croatia’s efforts to combat proceeds of crime are more important than ever. However, challenges remain, including:

  • The need for further strengthening of inter-agency collaboration
  • Ensuring that data exchanged is used only by authorized authorities