Title: Croatian Whistleblowers: New Law a Step Forward but Unclear Protections and Fines Criticized

Subtitle: The Unclear Path for Reporting Security Fraud in Croatia: A Media Perspective

Croatia’s recent implementation of the Whistleblower Protection Act marks progress in shielding individuals who report frauds against U.S. Government or securities violations. However, uncertainty surrounds the law’s provisions and potential consequences.

Croatia’s Current Landscape

• Croatia’s patchwork of whistleblower protection laws: Labour Code, Criminal Code, and Law on Public Servants
• Missing comprehensive legislative framework

New Whistleblower Protection Law: A Step Forward but with Vague Definitions and Insufficient Fines

1. Reporting Channels
   • Internal reporting: Through employers’ channels
   • External reporting: To the ombudsman or other authorities
   • Public disclosures: For imminent threats or large-scale destruction of evidence
2. Protections and Confidentiality
   • Ensuring confidentiality
   • Seeking protection and damages in court

Criticisms and Limitations

• Ambiguous provisions
• Same fines for both companies and whistleblowers
• Nominal fines for corporations
• Uncertainty regarding the law’s efficacy
• Compliance with the EU Directive and upcoming amendments

Whistleblowing in the U.S.: An Alternative Option

1. Protection and Rewards
   • U.S. regulatory bodies: SEC, CFTC, IRS
   • Anonymity and confidentiality
   • Financial rewards for successful whistleblowers

Conclusion

While Croatia’s new whistleblower protection law is a step forward, unclear provisions and insufficient fines call for caution. Whistleblowers may consider exploring options under U.S. laws for greater certainty and potential rewards.