Croatia’s Financial Regulators Receive Boost in Fight Against Money Laundering and Terrorist Financing

Effective supervision is crucial in preventing money laundering and terrorist financing. Regulatory bodies at both European and international levels have emphasized the importance of risk-based Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) supervisory activities, which are closely linked to the resources and capacity of AML/CFT supervision teams.

Recent Evaluations and Assessments

Recent FATF evaluation reports and assessments conducted by European bodies reflect this sentiment. The Council of Europe’s Economic Crime and Cooperation Division (ECCD) has been working with the Croatian Financial Services Supervisory Agency (Hanfa) to enhance its AML/CFT risk-based approach to supervision.

Technical Assistance from ECCD

The ECCD has provided tailored technical assistance to support Hanfa in enhancing its organisational structure in the field of AML/CFT, including resource allocation. This includes conducting a needs assessment to examine Hanfa’s current human resources and supervisory responsibilities.

Needs Assessment Findings and Recommendations

The needs assessment identified potential changes needed to ensure Hanfa can effectively fulfill its oversight duties. Based on these findings, the ECCD proposed alternative scenarios for reallocation of resources, ensuring that Hanfa can undertake effective AML/CFT risk-based supervision.

Online Workshop Discussion

The key findings and recommendations from the needs assessment were presented and discussed with Hanfa representatives during an online workshop held on February 22, 2022. The event provided an opportunity to reflect on different scenarios for resource reallocation aimed at enhancing the effectiveness of Hanfa’s supervisory activities.

Initiative Details

This initiative is part of the Technical Support Instrument “Risk-Based Supervision of Anti-Money Laundering and Countering the Financing of Terrorism in Croatia”, funded by the European Commission’s Directorate General for Structural Reform Support (DG REFORM) and the Council of Europe, and implemented by the Council of Europe.