Financial Crime World

CROATIA TIGHTENS SCREWS ON FINANCIAL CRIME

Strengthening Anti-Money Laundering and Counter-Terrorist Financing Systems in Croatia

In a move aimed at bolstering its defenses against money laundering and terrorist financing, Croatia has taken significant steps to strengthen its anti-money laundering and counter-terrorist financing (AML/CFT) systems. According to a report by MONEYVAL, a monitoring body of the Council of Europe, Croatia’s efforts have yielded tangible results.

Key Improvements

  • Amendments to AML/CFT Legislation: Croatia has addressed shortcomings in customer due diligence measures and third-party reliance through amendments to its AML/CFT legislation.
  • Enhanced International Co-operation Powers: New procedures have improved the international co-operation powers of competent authorities, facilitating a more effective exchange of information.
  • National Action Plan: Croatia has adopted a national action plan, which includes registration requirements for virtual asset service providers (VASPs), improved beneficial ownership registers, and streamlined access to information on legal persons.

Progress in Addressing Technical Compliance Shortcomings

Out of the 40 Recommendations made in the 2021 Mutual Evaluation Report, Croatia currently has:

  • 5 Recommendations rated Compliant
  • 23 Recommendations rated Largely Compliant
  • 12 Recommendations rated Partially Compliant

Under MONEYVAL’s enhanced follow-up procedure, Croatia is expected to report back on further progress made towards strengthening its AML/CFT system by December 2024.

International Cooperation and Global Impact

MONEYVAL evaluates 33 states and territories and makes recommendations to national authorities in respect of necessary improvements to their anti-money laundering and counter-terrorist financing systems. The body’s report provides a critical assessment of Croatia’s efforts to combat financial crime and will inform future policy developments.

In a statement, MONEYVAL highlighted the importance of continued cooperation between international bodies and national authorities to strengthen AML/CFT systems worldwide. The organization noted that Croatia’s progress demonstrates the effectiveness of collaborative efforts in this area.

Conclusion

As the global community continues to grapple with the challenges of financial crime, Croatia’s commitment to strengthening its AML/CFT systems serves as a model for other countries to follow. By prioritizing transparency and cooperation, Croatia is helping to safeguard the integrity of its financial system and promote economic stability.