Identifier
Created
Classification
Origin
07ZAGREB143
2007-02-08 11:54:00
UNCLASSIFIED
Embassy Zagreb
Cable title:  

ZAGREB QUARTERLY FRAUD SUMMARY - OCTOBER 2006 - JANUARY

Tags:  KFRD CVIS CPAS CMGT ASEC HR 
pdf how-to read a cable
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UNCLAS ZAGREB 00143

SIPDIS
P 081154Z FEB 07

FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC PRIORITY 7267
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHPNH/NVC PORTSMOUTH PRIORITY 0831
UNCLAS SECTION 01 OF 02 ZAGREB 000143

SIPDIS

DEPARTMENT FOR CA/FPP AND CA/VO/F/P
DEPARTMENT ALSO PASS TO KCC
VIENNA ALSO FOR DHS/BICE
POSTS FOR FRAUD PREVENTION MANAGERS

E.O. 12958: N/A
TAGS: KFRD CVIS CPAS CMGT ASEC HR
SUBJECT: ZAGREB QUARTERLY FRAUD SUMMARY - OCTOBER 2006 - JANUARY
2007)


A. COUNTRY CONDITIONS: Croatia lies on the so-called "Balkans route"
and its geographic position between the European Union and the
transition countries of Southeastern Europe makes it a natural
transit point for organized crime gangs to smuggle people, drugs,
arms, and money into Western Europe. Local press recently reported
that Croatian police detained a Bosnian alien smuggler attempting to
get 16 Albanians into Italy, while another 28 Albanians, including
12 children under the age of 18, were stopped trying to cross the
border into Slovenia. Such incidents are being reported with
increasing frequency in Croatia. Police and Customs authorities are
beginning to show improvement in their ability to combat smuggling
in contraband, arms, and persons. However, a lack of basic skills,
particularly in Customs, and inadequate equipment and staffing along
the border continue to hamper efforts. Croatia has developed a
comprehensive strategic plan in partnership with German and
Slovenian authorities in particular to train and equip border
authorities, but much remains to be done. For example, access to
computerized immigration databases is only available at Croatia's
three largest border crossing points.

Additional attention will be focused on Croatia's ability to control
its borders as Slovenia completes preparations to comply with
Schengen requirements. On December 1, 2007, Slovenia is scheduled
to implement a new border regime to comply with Schengen standards.
Along the roughly 670 kilometer Slovenian-Croatian land border are
60 border crossings: 25 international border crossings, 11
inter-state border crossings (for Slovenian and Croatian citizens
only),and 24 crossings solely for use by locals holding border
passes. At the same time, Slovenia will close border check points
with Italy and Austria and cease immigration and customs control at
these posts. To receive EU financial support, Slovenia must
renovate or construct 16 new border posts, which it has promised to
do by September 2007.

Apart from the 60 official land border crossings are another 163
Slovenian -Croatian informal border crossing points (roads, paths,

etc.) that the Slovenes are expected to close by late 2007. At some
date soon but yet to be announced, Croatian citizens will be
required to present a valid passport to enter Slovenia (national
identification cards had previously been sufficient for entry) . As
travelers who succeed in crossing the Croatian-Slovene border will
be able to travel to all other EU counties without further
immigration control, we expect to see the dramatic increase in
illegal immigration through Croatia to continue.

Croatia continues efforts to improve cooperation with the United
States, Interpol and law enforcement authorities in neighboring
countries to stem drug traffic into and through Croatia. These
efforts have borne some success. The trans-Balkan nature of this
drug traffic, and the need for close regional cooperation, is
evident from recent reports of successful interdictions. For
example, border officials report that their coastal forces operating
off the Dalmatian coast, in coordination with Italian coastal
patrols, regularly retrieve bales of Albanian-grown marijuana
jettisoned from vessels bound for Italy. Serbian officials recently
intercepted 50 pounds of heroin hidden in the car of a Slovenian
trying to cross into Croatia. The drive to stop drug trafficking
through Croatia has taken on new urgency as Croatia becomes
increasingly a consumer country and no longer simply a transit
country. Croatian authorities in 2006 noted a dramatic rise in the
number of registered drug addicts, especially those addicted to
harder drugs such as heroin (Of the 244 new addicts registered in
one Zagreb hospital, 180 of them entered for heroin addiction.) and
an attendant drop in the average age of addicts, at least in one
region, from 27 years to 19.

Croatia's economy has enjoyed steady growth over the last six years
led by strong tourism receipts, a buoyant construction industry and
increasing mortgage and consumer credit. Although Croatia has grown
at a slower rate than other economies in Central and Eastern Europe,
analysts expect a 2006 growth rate of 4.6%. Unemployment during the
same period has trended steadily downward, dropping under 12% for
the first time in 2006, surprising many observers who do not
anticipate a large drop in Croatia's largely structural unemployment
rate. Annual wage growth during the same period has averaged
between 5 and 6 percent. The average monthly gross salary during
the first 3 quarters of 2006 was 6,560 kunas ($1,159). Although
Croatia's per capita GDP of $9,000 is high by regional standards and
is reflected in a relatively high standard of living, faster growth
rates will be essential to closing the gap between Croatia and its
wealthier European neighbors.

The opening of Croatia's European Union accession talks in the fall
of 2005 brought new confidence in Croatia's economic future,
particularly as the Government has been forced to implement
long-overdue reforms. Nevertheless, some significant problems still
remain. The country's judicial system remains notoriously
inefficient, with cases languishing unresolved for several years.
Likewise, corruption, lack of transparency and an overly-large state
role in the economy continue to hamper Croatia's growth.


B. NIV FRAUD: Zagreb is conducting a J-visa validation study to
determine the rate of return for all J-visa recipients in the past
three years. Post will provide the full results of its study by
septel. However, initial results for the Au Pair Visa portion of
the study indicate a dismal return rate of less than 50% of the 87
au pairs issued visas from December 2003 to November 2005.
Additionally, post regularly receives applications for B1 in lieu of
H visas for workers subcontracted by international companies,
primarily German and Italian, which, after the succession of
contracts and corporations are carefully scrutinized, are uncovered
to be clever attempts to import cheap, and usually unskilled, labor
into the U.S.


C. IV FRAUD: Post continues to see a number of marriages arranged
solely for immigration purposes by family members in the U.S. This
trend has been noted primarily in cases processed for Bosnian
citizens (Zagreb is the IV processing post for the region).


D. DV FRAUD: Post has not encountered any significant DV fraud.


E. ACS AND PASSPORT FRAUD: Post did not encounter any significant
ACS or Passport fraud during the reporting period.


F. ADOPTION FRAUD: Nothing to report.


G. ASYLUM AND OTHER DHS BENEFITS: Nothing to report.


H. COOPERATION WITH HOST GOVERNMENT AUTHORITIES: Post continues to
enjoy successful and collaborative cooperation with Croatian
authorities, albeit on an informal basis. Croatian law officially
requires that all requests for law enforcement information be made
by diplomatic note through Interpol channels. While the Embassy
works on drafting a law enforcement MOU that would permit freer
exchange of law enforcement information, the Consular Section is
able to call on long-time police contacts willing to work with us on
common anti-fraud concerns.

Embassy Zagreb is currently working to expand its anti-fraud efforts
into neighboring Montenegro, as we are now accepting visa applicants
resident there in an effort to assist Embassy Podgorica. To date
post has received only one such applicant, who was easily able to
demonstrate strong ties and ample financial resources.


I. PASSPORTS: Currently issued Croatian passports are
photo-digitized and difficult to alter. However, old-style
passports, last issued in 2000, remain in circulation and will be
valid until Dec 31, 2009. Fortunately, nearly 85% of Croatian
citizens have replaced their old-style passports with the new, more
secure ones. Croatian police report that an estimated two million
new passports have been issued. Since issuance of the first new
passports in 2000, only a hundred or so altered Croatian passports
have been intercepted at the Croatian border, disclosed as forgeries
by the machine readers. Croatian passports are not yet biometric.
The Croatian government is only now developing a plan for eventual
issuance of a biometric passport, but has not yet announced a
timeline for its implementation. Current passports meet EU/ICAO
standards.


J. AREAS OF PARTICULAR CONCERNS: Post would like to again express
its appreciation for the ongoing support received from CA/ FPP
point-of-contact Judy Carson. As noted in previous reporting, Post
would like to see in the future a regional fraud conference with DHS
participation to discuss, among others issues, fiance/spouse visas
and the special difficulties posed in harmonizing cultural mores and
U.S. visa law.


K. STAFFING AND TRAINING: Consul Ruta D Elvikis remained Fraud
Prevention Manager during the reporting period. Vice Consul Brigid
Reilly Weiller served as Fraud Prevention Officer and FPM back up.
Ljubica Murphy remained the LES FPU Assistant. Ms. Murphy recently
attended FSI's Fraud Prevention training and provided Consular
colleagues, both at post and at a Regional Leadership Day conference
hosted by Embassy Sarajevo, with a detailed overview of the training
and CA/FPP highlights.

BRADTKE