Title: “Croatia’s Central Anti-Money Laundering and Terrorist Financing Unit (AMLO): Expanding Its Role in Protecting the Financial System”

Overview

The Croatian Anti-Money Laundering and Terrorist Financing Unit (AMLO) plays a crucial role in safeguarding the financial system of Croatia. Established under the AMLCFT Law, AMLO is an integral part of the country’s comprehensive prevention system against financial crimes. With the new Anti-Money Laundering and Terrorist Financing Law adoption in 2017, Croatian legislation is now in line with the 4th EU Anti-Money Laundering Directive and the FATF Recommendations.

Key Activities and Functions of the AMLO

AMLO performs several essential functions in protecting the Croatian financial system:

1. Intelligence Analysis & Dissemination: Analyzes suspicious transactions reported by banks and other reporting entities, and distributes cases to competent authorities like the State Attorney’s Office, Police, and supervision bodies within the Ministry of Finance, as well as foreign Financial Intelligence Units (FIUs).
2. Cooperation: Collaborates with all competent authorities in Croatia, exchanges data and information with foreign FIUs and international organizations, and acts preventively in the AML/CTF area.
3. Public Information: Informs the public about money laundering and terrorist financing, disseminating current techniques, methods, trends, and typologies.

The Structure of AMLO

AMLO consists of two services:

1. Financial Intelligence Analytics Service: Handles the intelligence analysis, distribution, and dissemination of suspicious transaction reports.
2. Prevention and Supervision of Reporting Entities Service: Oversees the prevention and supervision of reporting entities’ compliance with AML/CFT regulations.

The Cohesive Operation of the Prevention and Combating of Money Laundering and Terrorist Financing System in Croatia

The effective interaction and cooperation between the AMLO and other competent authorities are essential components of Croatia’s prevention system against money laundering and terrorist financing:

1. Reporting Entities: Banks, financial institutions, insurance companies, and professionals like lawyers and notaries are required to report suspicious transactions to the AMLO.
2. Supervisory Bodies: Croatian National Bank, Croatian Financial Services Supervisory Agency, Financial Inspectorate, and Tax Administration ensure compliance with AML/CFT Law.

Together, the intelligence and information provided by the AMLO and the effective cooperation between competent authorities significantly contribute to preventing the use of Croatia’s financial system for money laundering and terrorist financing activities.