Croatia Tightens Grip on Compliance with International Sanctions
New Legislation Enhances Due Diligence and Reporting Procedures in Croatia
ZAGREB, Croatia - On November 15, 2023, the Act on Restrictive Measures came into force, introducing more effective due diligence and reporting procedures in Croatia. The new legislation aims to help the country implement complex sanctions regimes from the European Union and United Nations.
Overview of Restrictive Measures
The Act includes a range of restrictive measures designed to comply with international and European law, such as:
- Restrictions on asset disposal
- Prohibition of entry into the country or transit through it
- Termination of economic relations
- Trade restrictions
- Embargoes on weapons and military equipment
- And more
Obligations for Legal Entities
All legal entities operating in Croatia under the supervision of institutions such as:
- Croatian National Bank
- Croatian Financial Services Supervisory Agency
- Financial Inspectorate
- Tax Administration
must adhere to the new obligations outlined in the Act. These obligations include:
- Adopting written policies and procedures for implementing restrictive measures (as of May 15, 2024)
- Appointing a responsible person within their organizational structure
- Establishing reporting channels
- Maintaining data on the application of sanctions
Failure to comply with these requirements can result in monetary fines ranging from approximately €4,500 to €90,000 for legal entities and €600 to €4,500 for responsible individuals.
Importance of Compliance with International Sanctions
The introduction of these new obligations comes as the European Union has adopted its 14th package of restrictive measures against Russia, imposing restrictions on an additional 69 individuals and 47 entities. This development highlights the importance of compliance with international sanctions in navigating complex business relationships.
Expert Guidance from Wolf Theiss
Wolf Theiss, a leading European law firm, advises clients on international business law and provides expert guidance on compliance with restrictive measures. For more information, contact Partner Dora Gazi Kovacevic or Associate Alan Vuckovecki at dora.gazi@wolftheiss.com or +385 1 4925 400.