Financial Crime World

Croatia Tightens Its Bolts in the Fight Against Money Laundering and Terrorist Financing

New Law Strengthens Croatia’s Anti-Money Laundering Arsenal

The Republic of Croatia has taken a significant step forward in protecting its financial system against illicit activities with the adoption of a new law that harmonizes the country’s legislation with international standards.

What is the Law About?

The Anti-Money Laundering and Terrorism Financing Law, adopted by the Croatian Parliament on October 27, 2017, brings Croatia’s laws in line with the European Union’s Fourth Anti-Money Laundering Directive (4MLD) and the Financial Action Task Force (FATF) Recommendations.

Key Players in Croatia’s Anti-Money Laundering System

At the heart of Croatia’s anti-money laundering and terrorist financing system is the Agency for Mobilization of Assets and Combatting Money Laundering (AMLO), a special unit within the Ministry of Finance. The AMLO plays a crucial role in collecting, analyzing, and disseminating data to competent authorities.

Functions of the AMLO

  • Analyzing suspicious transactions reported by banks and other entities
  • Cooperating with domestic and international authorities to combat money laundering and terrorist financing
  • Exchanging data and information with foreign financial intelligence units (FIUs)
  • Conducting off-site administrative supervision of reporting entities
  • Educating reporting entities on anti-money laundering measures

Other Key Players

In addition to the AMLO, other key players in Croatia’s anti-money laundering system include:

  • The Croatian National Bank, which supervises compliance with the law by banks and credit institutions
  • The Croatian Financial Services Supervisory Agency (CFSSA), which supervises compliance with the law by capital markets participants, funds, and insurance companies
  • The Financial Inspectorate, which conducts supervision of non-bank financial institutions and professional activities
  • The Tax Administration, which conducts supervision of organizers of games of chance and checks domestic legal and natural persons for compliance with cash payment limitations
  • The Customs Administration, which controls cash transfer across the state border

Conclusion

Croatia’s new anti-money laundering and terrorist financing law represents a significant step forward in protecting the country’s financial system against illicit activities. By bringing its legislation in line with international standards, Croatia has demonstrated its commitment to transparency and cooperation in the global fight against money laundering and terrorist financing.