Financial Crime World

Detecting Financial Crime in Croatia: A Guide for Financial Institutions

As a financial institution operating in Croatia, it is essential to be aware of the regulations and procedures in place to prevent and detect financial crime. The Anti-Money Laundering Office (AMLO) in Croatia is responsible for enforcing compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.

Understanding AML and CTF Regulations

The Croatian Parliament has enacted the Anti-Money Laundering and Terrorism Financing Law 108/17, which outlines the duties of financial institutions to prevent and detect money laundering and terrorist financing. The law requires reporting entities to conduct customer due diligence, appoint an authorized person, and provide regular professional training for employees.

Key Provisions of AMLTF Law

  • Customer Due Diligence: Reporting entities are required to identify and verify the customer’s identity, beneficial owner, and conduct ongoing monitoring of the business relationship.
  • Appointing an Authorized Person: Reporting entities must appoint an authorized person and their deputy to implement AML measures.
  • Data Protection and Confidentiality: The Office is responsible for protecting data, information, and documentation in accordance with regulations on confidentiality and security.

Customer Due Diligence

Under Article 15 of the AMLTF Law, customer due diligence must include:

  • Identifying the customer and verifying their identity
  • Identifying the beneficial owner of the customer
  • Conducting ongoing monitoring of the business relationship

Reporting entities are required to conduct customer due diligence in the following cases:

  • Establishing a business relationship with a customer
  • Carrying out an occasional transaction amounting to HRK 105,000 or more
  • Providing services of games of chance, placing bets, and taking gains exceeding HRK 15,000

Best Practices for Financial Institutions

To ensure compliance with AML and CTF regulations, financial institutions in Croatia should:

  • Conduct regular customer due diligence
  • Appoint an authorized person and provide necessary training
  • Ensure data protection and confidentiality
  • Stay up-to-date with regulatory changes and updates

By following these guidelines, financial institutions can effectively prevent and detect financial crime in Croatia.