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Anti-Money Laundering (AML) Regulations in Croatia

Risk Assessment

A key component of AML regulations in Croatia is risk assessment. Reporting entities are required to identify and assess the risks associated with their customers, business relationships, products, or transactions.

  • Definition of a Money Laundering or Terrorist Financing Risk: A money laundering or terrorist financing risk is defined as the risk of a customer using a financial system for illicit purposes.
  • Risk Analysis: Reporting entities are required to develop a risk analysis and apply it to rate risks of individual customers, business relationships, products, or transactions.

Customer Due Diligence (CDD)

Customer due diligence measures are essential in preventing money laundering and terrorist financing. CDD includes:

Identifying the Customer and Beneficial Owner

  • Reporting entities must identify the customer and verify their identity.
  • Reporting entities must also identify the beneficial owner and verify their identity.

Obtaining Information on Business Relationships or Transactions

  • Reporting entities must obtain information on the purpose and nature of the business relationship or transaction.
  • Reporting entities must conduct ongoing monitoring of the business relationship.

Obligation to Apply CDD Measures

Reporting entities are required to conduct CDD measures in the following cases:

Establishing a Business Relationship

  • Reporting entities must conduct CDD measures before establishing a business relationship with a customer.
  • Derogation: Reporting entities may conduct CDD measures during the establishment of a business relationship if there is a negligible risk of money laundering or terrorist financing.

Carrying out Transactions Amounting to HRK 105,000.00 or More

  • Reporting entities must conduct CDD measures before carrying out transactions amounting to HRK 105,000.00 or more.
  • Doubts about the Credibility and Veracity of Previously Obtained Customer Information: Reporting entities must conduct CDD measures if they have doubts about the credibility and veracity of previously obtained customer information.
  • Suspicion of Money Laundering or Terrorist Financing: Reporting entities must conduct CDD measures if there is suspicion of money laundering or terrorist financing.

Note

This summary is not intended to be a comprehensive or exhaustive interpretation of the legal document. If you require specific guidance or clarification on any aspect of these regulations, it is recommended that you consult with a qualified legal expert or relevant authorities in Croatia.