Legislation

Once Republic of Croatia becomes an EU Member States it will be obliged to comply with the obligations of Article 325 of the consolidated version of the Treaty on the Functioning of the European Union (TFEU Treaty). Until that, Republic of Croatia has to set up an effective and efficient coordination service to guarantee fulfilment of the obligations arising from article 325 of the TFEU Treaty. This article requires Member States to protect the Community's financial interests in the same way as national financial interests:

"1. The Union and the Member States shall counter fraud and any other illegal activities affecting the financial interests of the Union through measures to be taken in accordance with this Article, which shall act as a deterrent and be such as to afford effective protection in the Member States, and in all the Union's institutions, bodies, offices and agencies.
2. Member States shall take the same measures to counter fraud affecting the financial interests of the Union as they take to counter fraud affecting their own financial interests.
3. Without prejudice to other provisions of the Treaties, the Member States shall coordinate their action aimed at protecting the financial interests of the Union against fraud. To this end they shall organise, together with the Commission, close and regular cooperation between the competent authorities".

EU secondary legislation

In accordance with Article 53c of the Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as amended, "where the Commission implements the budget by decentralised management, implementation tasks shall be delegated to third countries".

Also, according to Article 56, paragraph 2 of the above mentioned Regulation, "in the case of decentralised management [...] the third country, national or international public-sector bodies concerned shall undertake to fulfil the following obligations:
(c) to conduct regular checks to ensure that the actions to be financed from the budget have been implemented correctly;
(d) to take appropriate measures to prevent irregularities and fraud and, if necessary, to bring legal proceedings to recover funds wrongly paid".


National legislation

In accordance with the commitment of the Republic of Croatia to align its criminal legislation to the Convention for protection of EU financial interests, inter alia, concerning the definition of „fraud detrimental to EU financial interests", the Criminal Code was amended (OG 152/08). For the purpose of protecting EU financial interests a new type of criminal offence was introduced:
Article 224b of the Criminal Code is amended to read:
Fraud against the Financial Interests of the European Communities
"(1) Whoever, by the use or presentation of false, incorrect or incomplete statements or documents or by non-disclosure of information in violation of a specific obligation, illegally appropriates or retains funds from the general budget of the European Communities or budgets managed by, or on behalf of the European Communities, shall be punished by imprisonment for six months to five years.
(2) The punishment referred to in paragraph 1 of this Article shall be imposed on whoever uses the funds referred to in paragraph 1 of this Article contrary to the initially approved purpose.
(3) The punishment referred to in paragraph 1 of this Article shall be imposed on whoever, by the use or presentation of false, incorrect or incomplete statements or documents, by non-disclosure of information in violation of a specific obligation, or the abuse of legally obtained profits illegally diminishes the funds of the general budget of the European Communities, or budgets managed by, or on behalf of, the European Communities".

Type Title Size
PDF The National Anti-Fraud Strategy for the Protection of the European Union's Financial Interest for the Period 2010 - 2012 489.22 KB