Financial Crime World

Croatia Takes a Stance Against Economic Crime

Strong Stance Against Fraudsters

A recent survey has revealed that most companies in Croatia are taking a strong stance against fraudsters, both internal and external. The survey found that 50% of respondents notified law enforcement authorities when faced with external fraud, which is higher than the global average.

Remedial Actions Against External Perpetrators

  • Notifying regulatory bodies: 38%
  • Ceasing business relationships: 25%
  • Taking other measures: 25%

Internal Fraud Measures

  • Dismissal: 42%
  • Damage to employee morale: 17%
  • Reputation/brand strength: 33%

Confidence in Law Enforcement

However, when it comes to confidence in law enforcement agencies’ ability to investigate and prosecute economic crime, the survey found that only:

  • 27% of Croatian respondents expressed confidence
  • 18% expressed confidence in investigating cybercrime

Compliance Programs

The survey also highlighted the importance of effective compliance programs in preventing economic crime. While:

  • 80% of surveyed organizations in Croatia have formal compliance programs in place
  • Only 39% conduct fraud risk assessments quarterly or more often
  • 22% annually, and 18% do not conduct any risk assessments at all

Investing in Prevention

To combat economic crime effectively, the survey recommended:

  • Developing internal processes to prevent crime
  • Ensuring staff are trained on their legal and ethical obligations
  • Regular training on codes of conduct and supporting policies
  • Confidential channels for reporting concerns

Challenges Ahead

The survey found that:

  • 23% of Croatian respondents do not have regular training on codes of conduct (compared to 17% globally and 20% regionally)
  • Only 48% of respondents think that confidential channels for raising concerns exist (compared to 74% globally and 68% regionally)

Conclusion

The survey’s findings suggest that while there is a strong stance against economic crime in Croatia, more needs to be done to prevent it effectively. By investing in internal processes, staff training, and effective compliance programs, organizations can play a key role in combating economic crime and protecting their reputation and bottom line.