This paper is about the conflict of interest involving a conflict between public officials personal interests and their duty as a civil servant, in which the public official has private interests which could improperly influence the performance of his official duties and responsibilities. Consequently, it is possible to distinguish between the actual, apparent and potential or financial and non-financial conflict of interest. For better prevention and to strengthen the institutional framework for the prevention of conflict of interest Croatia adopted the Act on Preventing Conflict of Interest and for it's implementation Commision was established. In case of violation of the provisions of the Act, the Commission may impose a public official money penalty, a worning or a public announcement of the Commissions decision on the cost of officials. The paper focuses on the institutional framework for managing conflict of interest and the measures that the competent authorities can apply at the occurrence of a conflict of interest.