CMS Expert Guide To Mandatory Reporting Of Criminal Offences For Companies And Their Responsible Persons in Croatia

Under Croatian law, there is a distinction between the obligation to report the preparation of a criminal offence and the obligation to report a crime that has already been committed.

The duty to report the preparation of a criminal act applies to any person who becomes aware that a serious crime — one punishable by five or more years of imprisonment — is being planned. This report must be made while it is still possible to prevent the crime.

The duty to report a criminal offence that has already been committed arises when a person knows that a crime punishable by ten or more years of imprisonment has occurred. The report should be made as soon as the person becomes aware of the offence, particularly when such information could assist in detecting the crime or identifying the perpetrator. This obligation carries an additional layer for so-called "responsible persons"—individuals in official or managerial roles, such as company directors, managers, or other persons holding a position of authority in legal entities. If such a person becomes aware, in the course of performing their duties, that a serious offence has been committed (all offences except the ones prosecuted solely on private complaint or proposal), they are specifically required to report it.

Various white-collar crimes such as fraud, embezzlement, money laundering, insider trading, bribery, tax evasion, subsidy fraud, under certain circumstances can be punishable by ten years or more of imprisonment. As a result, they must be reported.

The responsibility to report a criminal offence within a company lies with the "responsible person" (odgovorna osoba); an individual who manages the affairs of a legal entity or is entrusted with performing tasks within the scope of the legal entity’s activities. This includes directors, managers, and other individuals in positions of authority.

The report should be made to the competent authorities, typically the public prosecutor’s office (državno odvjetništvo) or the police.

Failure to report a criminal offence, when legally required, constitutes a criminal offence in itself.

Failing to report preparation of a serious crime, if the crime is later attempted or committed, can result in criminal liability, including imprisonment of up to one year, or up to three years if the crime in question carries a long-term prison sentence.

The penalty for failing to report a criminal offence for which a prison sentence of ten years or more is prescribed, if such a report would enable or significantly facilitate the discovery of the criminal offence or the perpetrator, can be up to three years of imprisonment. The same sentence is prescribed for responsable persons for failing to report any serious criminal offence (all offences except the ones prosecuted solely on private complaint or proposal).

If the responsible person’s failure to report is connected to the intention of benefiting the company, this can also trigger the criminal liability of the company itself. The company may face significant fines (ranging from EUR 5,000 to EUR 25,000,000 depending on the severity of the offence), and in severe cases, even dissolution of the company. There may also be civil liability towards injured parties.

Reporting a criminal offence triggers an investigation by the public prosecutor and the police. If sufficient evidence is found, prosecution will proceed. Once the process is initiated, the person who filed the report cannot withdraw it, nor can they prevent the police or the public prosecutor from pursuing any additional leads uncovered during the investigation.

A person who intentionally assists or facilitates the commission of a criminal offence—without being the main perpetrator—is considered an accessory. This includes individuals who provide physical help, logistical support, or even moral encouragement, provided their actions had a tangible influence on the commission of the crime.

Anyone who aids an offender after a criminal offence punishable by five or more years of imprisonment—such as by hiding the offender, destroying or concealing evidence, or otherwise helping them evade detection or punishment—may be subject to a prison sentence of up to five years.

Accessory liability also extends to attempted and preparatory criminal acts. A person who intentionally incites another to commit a crime assumes the same level of responsibility as the person who carries it out. This liability applies even during the preparatory stage; encouraging or persuading someone to begin planning a crime—regardless of whether it is eventually attempted or completed—can give rise to criminal responsibility. Similarly, knowingly assisting another person in preparing for a crime—by providing tools, information, or other support—constitutes aiding and may lead to criminal sanctions.

If such assistance is provided by a responsible individual within a company, it may also give rise to the criminal liability of the company itself.