Financial Crime World

Title: Croatia Makes Strides Towards FATF Compliance: Key Developments from the Latest MONEYVAL Report

ZAGREB, Croatia - The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has recognized Croatia’s progress in strengthening its regulatory framework against money laundering and terrorist financing. In its latest follow-up report, MONEYVAL commends Croatia’s efforts to address several key areas, including:

Significant Legislation Changes

Since December 2021, Croatia has made considerable strides to address weaknesses in its AML/CFT framework:

  • External Accountants: Bringing external accountants under the scope of AML/CFT obligations
  • Cash Disclosure System: Introduction of a cash disclosure system for inbound and outbound transportation
  • International Cooperation Powers: Bolstering international cooperation powers
  • Virtual Asset Service Providers: Implementation of a registration regime for virtual asset service providers (VASPs)
  • Beneficial Ownership Registers: Improvements to beneficial ownership registers and access to information on legal persons

Updated Status

As a result of these improvements, Croatia has been upgraded from Partially Compliant to Largely Compliant on several recommendations (Recommendations 10, 17, 22, 23, 32, and 40). The country has currently met 5 of the 40 Financial Action Task Force (FATF) Recommendations and is largely compliant with 23 recommendations.

Areas for Improvement

Despite progress, Croatia still faces challenges in achieving full compliance with certain recommendations, including:

  • Recommendation 1: Political commitment
  • Recommendation 2: Risk assessment methodology
  • Recommendation 15: Enforcement
  • Recommendation 24: Confidentiality and professional secrecy

MONEYVAL recommends the country continue to work on these areas and will monitor its progress towards FATF compliance in a follow-up report scheduled for December 2024.

Ongoing Assessments

MONEYVAL’s evaluations of states and territories’ compliance with international standards against money laundering, terrorist financing, and the financing of weapons of mass destruction remain ongoing. For more information and access to the complete MONEYVAL report, visit the Council of Europe’s official website.