Financial Crime World

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Croatia Fights Economic Crime: Survey Reveals Encouraging Stance Against Fraud

A recent survey has highlighted the efforts of Croatian companies in combating economic crime, with a significant proportion taking proactive measures to prevent and detect fraud.

Proactive Measures Against Fraud

According to the survey, nearly 50% of Croatian companies have notified relevant regulatory authorities when faced with external fraud, exceeding the global average. When it comes to internal perpetrators, dismissal is the most commonly cited measure taken by companies in Croatia, mirroring the global trend.

Confidence in Law Enforcement Agencies

The survey also found that while law enforcement agencies are seen as adequately resourced and trained to investigate economic crime by 27% of Croatian respondents, confidence levels drop significantly when it comes to cybercrime, with only 18% expressing confidence.

Compliance Programs

Companies play a crucial role in combating economic crime, and the survey reveals that 80% of Croatian companies have formal compliance programs in place. However, while this is an encouraging sign, experts warn that having such programs in place does not necessarily mean they are effective.

  • Only 24% of surveyed organizations in Croatia have carried out risk assessments in the past two years.
  • The importance of investing in internal processes to prevent economic crime and ensuring staff are trained on legal and ethical obligations cannot be overstated.

Whistleblower Protection

The survey also highlighted the importance of investing in whistleblower reporting hotlines, as employees are often reluctant to report ethical issues to their superiors or internal audit function. However, while 48% of Croatian respondents believe confidential channels for raising concerns exist, this is lower than global (74%) and regional (68%) averages.

  • Experts warn that a lack of specific legislation protecting whistleblowers in Croatia may be contributing to these low numbers.
  • Whistleblower reporting hotlines are an important tool in detecting fraud.

Recommendations

To combat economic crime effectively, organizations should:

  • Prioritize awareness and understanding of risks faced by organizations
  • Develop internal processes to prevent economic crime and ensure staff are trained on legal and ethical obligations
  • Implement whistleblower reporting hotlines to detect fraud
  • Invest in resources to develop effective compliance programs
  • Strengthen legislation protecting whistleblowers in Croatia

Key Findings

  • 50% of Croatian companies notify relevant regulatory authorities when faced with external fraud
  • Dismissal is the most commonly cited measure taken against internal perpetrators in Croatia and globally
  • Only 27% of Croatian respondents express confidence in law enforcement agencies’ ability to investigate economic crime
  • 80% of Croatian companies have formal compliance programs in place, but awareness of risk assessments is low (24%)
  • Confidential channels for raising concerns exist in only 48% of Croatian organizations